<img height="1" width="1" style="display:none;" alt="" src="https://dc.ads.linkedin.com/collect/?pid=22923&amp;fmt=gif">

Increasing costs, aging equipment, and changes in environmental / safety / technical regulations require your company's full attention in order to keep a competitive edge.

It is vital to continuously evolve and streamline maintenance processes to achieve operational excellence and a competitive advantage.

The health of assets and equipment has a significant impact on the overall efficiency. Manufacturers need to utilize the latest technology in order to stay relevant, innovative and competitive.

Content

2019-07-01 10_00_46-Venngage _ Editor   2019-07-01 10_03_20-Venngage _ Editor   2019-07-01 10_04_14-Venngage _ Editor  

2019-07-01 10_05_17-Venngage _ Editor   2019-07-01 10_06_27-Venngage _ Editor   2019-07-01 10_07_45-Venngage _ Editor

2019-07-01 10_08_59-Venngage _ Editor   2019-07-01 10_09_51-Venngage _ Editor   2019-07-01 10_11_20-Venngage _ Editor


What is Enterprise Asset Management?

Enterprise asset management (EAM) is a process of managing the lifecycle of physical assets and equipment in order to maximize its lifetime, reduce costs, improve quality and efficiency, health of assets and environmental safety. 

Enterprise asset management (EAM) is also often refered as CMMS (Computerized Maintenance Management System). EAM solution is implemented to better plan, optimize, execute, and track maintenance activities with the associated labor, inventory, skills, materials, tools, and information. 

EAM Maintenance

"Enterprise" refer to the scope of the assets across organization departments, locations, facilities and supporting business functions like procurement, HR, Inventory and etc. The assets refered in EAM can be fixed: buildings, plants, machineries but also moving equipment like vehicles or ships. Effective asset management is required in asset intensive industries and it needs to be carefully planned and executed in order to achieve positive results. Enterprise asset management (EAM) software applications often include features preventive maintenance, maintenance planning and scheduling, has integrated wireless mobile solution to handle work orders.

CMMS or EAM is a software that maintains a database of information about maintenance operations. This information is used to help maintenance workers conduct their work more effectively. For example analyze which assets require maintenance and which spare parts should be used to maintain equipment. It also helps management make decisions based on calculated costs of machine breakdowns.

EAM data is also very important when it comes to regulatory compliances. Keeping track of maintenance records is one of the compliances for safety. To properly manually keep maintenance record information requires a tremendous amount of work and time. EAM system allows to track completed and assigned tasks and records all the maintenance history on an asset or location which makes it easier for organizations to provide authorities with needed documentation for compliance.  

EAM has many maintenance functionalities. The different functions of EAM includes Preventive Maintenance, Cost Control, Word order systems, Scheduling and planning maintenance and more. You can read more about Dynaway EAM functionality here

Maintenance Strategies


Corrective Maintenance:

Corrective maintenance is carried out after failure detection and is aimed at restoring an asset to a condition in which it can perform its intended function. In the Dynaway EAM module, a variety of corrective work flows are supported:

  • The machine operator can identify a machine failure and create a downtime registration that automatically triggers a service request for the maintenance department.
  • The maintenance worker can identify a failure and immediately create a corrective work order on which he can register work hours, spare parts and other related costs.
  • A machine can by itself report a failure through its PLC interface.

Structured registration processes around corrective maintenance are key in a fact-based approach to continuously improving the maintenance processes.

Creating Maintenance Service Requests with Dynaway EAM

Condition-based maintenance:

Condition-based maintenance (CBM) is maintenance performed after one or more indicators show that equipment is going to fail or that equipment performance is deteriorating. In Dynaway EAM, you can specify condition assessments and trigger maintenance based on those assessments.

Preventive maintenance:

Preventive Maintenance is supported through maintenance sequences, which can be calendar-based (date, time, weekday, …), counter-based (produced units, hours, miles,..), or condition-based.

Counters can be linked to Dynamics 365 resources and thereby be automatically updated from production with hours in use or number of units produced. They can also be updated manually using the Dynaway Mobile Client as part of an inspection.

Preventive maintenance jobs are scheduled based on linear projections of registered counter values.

Access Preventive Maintenance Factsheet

Predictive Maintenance:

Asset counters can be defined for individual asset types and then updated either manually or automatically, for example, through direct integration to PLCs. Those counters are an integral part of predictive maintenance, which covers advanced statistical analysis of one or more mathematical models underlying a given counter.

The Azure Machine Learning engine is a well-suited companion for Dynaway EAM as Azure ML can be linked directly to EAM data. Learn more about Predictive Maintenance using Azure here

 

Reactive Maintenance

What is reactive maintenance?

Reactive maintenance also often referred to breakdown maintenance means that equipment repairs are done after the equipment failure.

While reactive maintenance might make sense from the first sight (repairing only when failures occur) it shouldn’t be your main strategy.

Advantages of reactive maintenance

In theory, it is much less time consuming and less costly to not maintain unbroken equipment rather then spending money, using spare parts and labor on a machine that is still running. There is no initial cost associated with reactive maintenance, and it does not require maintenance planning which involves time and labor resources. However, reactive maintenance is a very shortsighted approach. Relying only on reactive maintenance in your factory or plant is not sustainable for the long term and will have negative results.

Reactive Maintenance Pressure

Disadvantages of reactive maintenance

Expensive

In a long term, unexpected downtime in the middle of the production can lead to damaged goods, late deliveries, losing a customer, consequently impact revenue. Additionally, relying on reactive maintenance means that labor and spare parts might not be forecasted accurately and organization won't be able to repair machinery after failure occurs. Company can end up losing money for emergency spare parts shipping and overtime.

Asset life expectancy

Reactive maintenance strategy does not involve keeping equipment running in an optimal way and therefore it does not maximize initial investment in the machinery. Maintaining your machinery before failures can increase asset life expectancy.

Safety

When maintenance work order is scheduled, workers have time to prepare and review standard procedures for maintaining specific piece of equipment. Every asset has safety requirements to complete the job correctly. With reactive maintenance everything must be more urgent and workers are under pressure. Therefore they are tend to take more risks in order to fast get machine up and running.

Time management

When you plan your maintenance activities you have time to analyze, consider and take actions based on previous data and production schedule. With reactive approach, failures occur unexpectedly, workers run around looking for the correct safety manuals and documentations as well as spare parts and tools.

Energy costs

When asset is not properly maintained, it uses more energy. Simple maintenance jobs like greasing parts or changing filter can reduce energy consumption by 15%.

Learn how Kent Corporation reduced Reactive Maintenance work orders by 60%

Preventive maintenance

If you have not been properly caring for the health of your company's equipment through preventive maintenance, then you may be surprised by the benefits a preventative asset maintenance plan could bring to your business. Preventive maintenance is proactive maintenance that is performed regularly at predetermined intervals in order to prevent asset failure. Preventive maintenance is then a critical part of maintaining any business's assets as it ensures optimal performance of equipment. In fact, properly caring for the health of your business's assets can help to reduce not only equipment maintenance costs  but for your business overall. If your business has been relying on reactive maintenance for your equipment (which is waiting until your equipment show signs of damage to perform repairs), here are just a few of the reasons you should consider switching to a preventive maintenance strategy.

Preventive Maintenance

Prevent Major Repairs

By implementing a preventive maintenance and using preventive maintenance software programs, routine maintenance will result in the need for fewer major repairs. The fact is that all maintenance issues get worse over time, and the longer an issue goes unfixed, the more damage it can cause. Relying on reactive maintenance will then result in performing maintenance less frequently, but this will likely also result in your equipment breaking down and requiring costly, complex repairs. It can be quite frustrating to have your equipment breakdown only to find out that what could have been a minor fix is now a major problem. Preventive maintenance allows you to address small problems over time, which can prevent major problems and make maintenance less expensive and easier to handle in the long-run.

Extend the Life of Assets

One of the most important reasons to invest in preventive maintenance is that this can help to extend the usable life of your assets. When equipment is neglected and not properly maintained, this can drastically decrease its lifespan. While many people will neglect proper maintenance in order to save money, the fact is that this can have the opposite effect. The time and money you invest into maintaining your equipment will extend its life, which can save you a great deal of money in the long run as you will not have to replace this equipment as frequently as you otherwise would have to.  

 

Reduce Maintenance Costs

In general, there is often a misconception that preventive maintenance will cost a lot of money and is an unnecessary expense. However, proactive, preventive maintenance generally has the opposite effect as it has been proven to lower equipment maintenance costs by allowing you to catch small issues before they turn into major problems. Investing in regular, low-cost maintenance and repairs can help to ensure that your equipment does not require more expensive repairs down the road, and it can save you a great deal of money over time by preventing you from having to replace costly equipment prematurely.  

 

Prevent Delays

When you rely on reactive maintenance instead of investing in preventive maintenance, not only will this cost you more on asset management, but it can also cause costly delays and reductions in productivity. Should you wait until an asset shows signs of problems, or breaks down altogether, before you perform necessary maintenance, you may find that a crucial piece of equipment becomes unusable for a significant period of time. This can mean a significant drop in productivity, which could result in major delays, loss of contracts, and a dip in revenue. Thusly, while creating and implementing a preventive maintenance strategy may seem like an unnecessary expense, preventive maintenance should actually be viewed as a cost-saving investment in the future stability of your company.    

Increase Productivity

Not only can unexpected breakdowns cause decreases in productivity, but a lack of regular maintenance can also cause your equipment to slow down over time. After continual use, all equipment and devices will begin to deteriorate in functionality, making them less efficient and less reliable. While the deterioration is usually slow enough that you are not likely to notice significant changes in your equipment, it is likely that you will eventually notice a drop in production. However, much of this deterioration can be avoided by investing in a proper preventive maintenance plan. By taking proper care of your equipment you can slow down this deterioration process, which can help you to maximize productivity.    

Enhance Safety

Perhaps the most important reason to invest in preventive maintenance is to enhance the safety of your facilities. Equipment failures can not only mean expensive repairs, but depending on the type of equipment you work with a catastrophic failure could also cause bodily harm to you and/or your employees. For instance, should a worn hose that pumps hazardous materials suddenly fail, this could seriously injure a nearby operator. This would not only cause damage to facilities and halt production, but you would also be leaving yourself open to being sued by your employees due to your negligence. Preventive maintenance is then a necessity in order to ensure that you maintain a safe and efficient work environment.   

Learn how Luck Stone reduced time required for safety inspections by 50% [User Case]

 

As you can see, proper preventive maintenance of your equipment is essential in order to ensure that your assets work efficiently and safely. Furthermore, a proactive approach to maintenance will help to save you money on equipment repairs and replacement. However, planning a preventive maintenance schedule, and determining what needs to be done when, can be extremely difficult as you will have to track data manually in order to determine when servicing needs to be performed based on time and usage data. This is where Enterprise Asset Management (EAM) tools can prove to be essential for many businesses.

An EAM can help you to plan, track, and optimize your maintenance activities in order to ensure that proactive maintenance is performed as necessary to keep your equipment running at optimal levels. If your company does not use maintenance scheduling softwareto help you manage your maintenance programs, you may be surprised to discover the benefits these programs can provide. Contact us to learn more about Enterprise Asset Management software and the benefits it could bring to your company. 

5 Key Performance Indicators (KPI's) for Maintenance

It's probably not the first time you hear that in order to achieve great results, you have to have a specific objective and metrics to measure if you have achieved your goal. 

For maintenance managers, measuring KPI's has become much easier with using EAM software which allows to create customer dashboards based on the data which has been gathered. 

So if it is that easy, why maintenance departments still find it challenging sometimes? The answer is… data. Surrounded by too much information, you can get lost and start looking into data and numbers that are actually not as important as you might have thought.

Maintenance KPI

Which KPI's to follow?

1. Downtime

Downtime is incredibly costly for any company which has assets. According to Vanson Bourne research, Average downtime costs 240.000 US dollars per hour according to decision makers in Field service and Service management. 

70% of the companies' lack awareness of which assets require maintenance which leads to unpredictable failures and costly downtime. Having a good Maintenance Strategy in place, can reduce downtime by more than 30%!

Measuring Downtime as a KPI, can help Maintenance Department to analyze and see how successfully they have implemented and adapted maintenance strategies and can help to make decisions based on that.

2. Inventory and maintenance budget

Maintenance department is often asked to forecast budget for maintenance operations and activities. Usually it is pretty challenging, especially due to unplanned downtime and poor maintenance data.

In order to accurately forecast, accurate and easily accessible data is required. Having EAM/CMMS solution helps to document maintenance processes, but what about data accuracy itself? If your EAM is not integrated directly to ERP, maintenance departments might have inacurae data and make error prone decisions and forecasts.

With integrated CMMS system into ERP, data flows freely from mobile inventory management system to ERP system regarding spare part stock levels. Being aware of spare part levels is highly important for maintenance professionals. Having information about inventory at their fingertips can help to improve maintenance budget forecast as well as control costs.

3. Asset lifecycle

The life of an asset is counted from when it is first established, through its acquisition, operation and any maintenance or upgrading, to its disposal. Lifecycle describes the evolution of an asset in terms of the increase and decrease in its use and value from inception to retirement. 

Another term is useful life of an asset which refers to the number of years an asset remains in service and provides cost-effective revenue generation. However, it can be challenging to predict total asset lifetime.

With EAM software, maintenance managers can get a better insight across all maintenance processes and operations. As one of the examples, Dynaway EAM has a functionality of building asset hierarchy tree which represents locations and assets. In Dynaway Enterprise Asset Management solution, you can calculate various Key Performance Indicators (KPIs) for objects and object types. 

Functional location hierarchy is based on individual company's requirements for maintaining internal equipment or servicing customer equipment.

This allows to easily view the location of every asset and add new equipment or locations. It helps maintenance department to monitor failure trends and better schedule preventive maintenance based on locations or equipment historical data. As a result, maintenance can create benchmarks in order to extend equipment lifetime.

4. Maintenance Response Time

Maintenance Response Time refers to a time measure from when the work order request is opened until the start of the actual work. For example, if you have troubles internally regarding response time, major downtime issues can occur if the work wasn't started at the right time. Maintenance department can easily reflect on KPI's like response time by using EAM solution, which collects accurate data and present it in an easy to understand and analyze way. The EAM/CMMS helps to identify how quickly and efficiently mechanics are able to respond to work order requests. This helps management to filter out cost ineffective departments or assets.

5. Preventive vs. Reactive

Reactive maintenance also often referred to breakdown maintenance means that equipment repairs are done after the equipment failure.

While reactive maintenance might make sense from the first sight (repairing only when failures occur), it costs more in the long run: unexpected downtime in the middle of the production can lead to damaged goods, late deliveries, losing a customer, consequently impact revenue.

When you plan your maintenance activities you have time to analyze, consider and take actions based on previous data and production schedule. With reactive approach, failures occur unexpectedly, workers run around looking for the correct safety manuals and documentations as well as spare parts and tools.

The Importance of Failure Data Analysis in Maintenance

In any asset-intensive industry, from manufacturing to mining to food and beverage processing, reactive maintenance can wreak havoc on operational efficiency, profit margins, and sustainable competitiveness. Conversely, preventative maintenance can yield significant financial and organizational benefits. In fact, studies have shown that businesses across all sectors of industry can reduce equipment maintenance costs by 12 to 18% by investing in preventative maintenance.

Maintenance ROI and KPI

A big part of implementing a successful preventative maintenance program in your business is understanding maintenance failure metrics, and effectively using them as KPI's. This article will discuss 5 key metrics that you need to consider, how to calculate them, and what benefits they offer for cost reduction and optimized efficiency.

MTTR

Mean Time To Repair is a measure of the average time that elapses between the discovery of equipment breakdown and the equipment's return to operational status. This includes the time it takes to troubleshoot the issue, the time spent in actual repairs, and the time spent in testing before the machine or piece of equipment is utilized again.

MTTR can be calculated by using the following formula: total maintenance time / total number of repairs. For example, say that you want to calculate the MTTR for an evaporator in a distillery over a period of 1 week. During that span, the evaporator fails 3 times, and the total time spent in repairs equals 2 hours. In that case, 2 hours divided by 3 instances of repair would yield a MTTR of 40 minutes.

Why is MTTR a metric well-suited for use as a KPI? It can be an invaluable aid to maintenance managers in the decision making process regarding:

  • The repair vs. replace question
  • Necessary inventory levels of replacement parts and tools
  • Staffing levels

For instance, the older a piece of equipment gets the greater its MTTR will become. After reaching a certain threshold, the maintenance manager may decide that replacement would be the most cost-effective option in the long run.

MTBF

Mean Time Between Failures gives an indication not only of the availability for each piece of operational equipment, but also the level of reliability. MTBF measures the average elapsed time between equipment breakdowns.

Supervisors can calculate MTBF by taking the total operational time of the machine in question and dividing that figure by the number of failures within that time frame.

Let's return to our example of the evaporator in the distillery. If the evaporator runs 8 hours a day for a 5-day workweek, and has to be repaired a total of 3 times within that span, then the evaporator's MTBF would be 40/3, or 13 hours and 20 minutes.

Why is MTBF a valuable metric? While MTBF is not directly related to planned maintenance, it is extremely helpful for determining the optimal frequency for certain tasks, such as equipment inspections, lubrication, etc.

MTTF

Mean Time To Failure at first glance may seem almost identical to MTBF. However, there is a key differentiation between these two metrics: MTBF always deals with reparable equipment, whereas MTTF focuses on non-reparable items. In effect, MTTF is a measure of the expected length of time a particular machine or piece of equipment will stay operational.

MTTF must be calculated as an average of multiple non-reparable units. So the formula for MTTF would be as follows: total operational time / total number of units. For example, 5 filters for a production line may need to be replaced at different times. If we take the following measurements of operational time for each unit:

  • 5 hours
  • 8 hours
  • 11 hours
  • 9 hours
  • 12 hours

...and divide them by 5 (the total number of units), we would receive a MTTF of 9 hours.

How is MTTF useful? Effective maintenance and using durable, high quality components in pieces of production equipment can boost MTTF. It can give maintenance managers and plant supervisors a good idea of how long components will last, which in turn can help them to plan for downtime, keep a sufficient number of replacement parts on hand, and analyze the pros and cons of sourcing the components in question from a different supplier.

PPC

Planned maintenance percentage gives a proportion of time spent on planned maintenance compared with total maintenance time. The formula for PPC is relatively straightforward: (planned maintenance time/total maintenance time) x 100. 

Generally speaking, 90% PPC is a good number for which to aim. If PPC numbers are sub-optimal, however, a detailed analysis of which systems are suffering the majority of unexpected failures can help managers prioritize areas of need, and implement strategies to mitigate the effect of unplanned downtime.

While PPC may be a broad metric, it can give you a solid indication of how effective your current preventative maintenance program actually is.

PMC

Planned maintenance compliance is a measure of how well your maintenance department is performing their required tasks. While PMC may not tell you if work orders are being completed on-time, it can give you a percentage of completed work orders compared to total work orders requisitioned.

The formula for PMC is, again, very straightforward: (completed work orders/total work orders) x 100. For instance, if 100 work orders are submitted within the month of June, and 78 are completed by month's end, then your PMC for June would be 78%.

PMC is helpful as a KPI for your maintenance staff's performance, and can also help you to determine if staffing levels should be adjusted, or additional training should be provided in certain areas. 

Becoming familiar with these 5 key maintenance failure metrics, and utilizing them as KPI's for your current maintenance program, can help you to cut costs, mitigate downtime, and streamline your operations for maximum productivity. 

Effectively managing preventative maintenance can be a labor-intensive task, with many moving parts. However, there are resources available to help you improve and/or streamline your workflow with regards to scheduling, data collection and analysis, and so forth. One such resource is the Dynaway EAM Factsheet. Download your free copy today to learn important details about the effective implementation of preventative maintenance.

Optimize Your Spare Parts Inventory With These 8 Best Practices

As a maintenance manager, your livelihood hinges on your ability to control maintenance costs and minimize production downtime.

Whether you work in manufacturing or in the food and beverage industry, you need to protect the health of your equipment and take the necessary measures to ensure that your facility runs efficiently. One of the best ways to accomplish these goals is to develop a strategic approach to organize your spare parts. Below are eight best practices to help optimize your spare parts inventory.  

Manufacturing 5, Logo

1) Ensure that your inventory records are comprehensive

One of the greatest challenges facing inventory control specialists is tracking for excess or unused parts that are not included in a company's existing inventory control system. While it can be tempting to temporarily store these "one off" parts or components in a box in the corner, they should be assigned an official part number and added to your inventory control system.  

2) Centralize your spare parts inventory

Centralizing your spare parts within your main warehouse simplifies the inventory control process and helps bolster inventory accuracy. If your warehouse space is limited or if you have a single physical warehouse to house all of your equipment and parts, you can physically centralize your parts inventory by creating a wire cage or enclosure where you can house your parts. You can simplify an online search for parts by using a unique prefix for all spare parts. 

3) Assign a dedicated employee to oversee your parts inventory

Parts inventory shrinkage is one of the greatest challenges facing manufacturers and food and beverage maintenance specialists. Top causes of inventory shrinkage include poor control of parts inventory and paperwork errors. You can help prevent these pitfalls by assigning a dedicated employee to control your parts inventory. Ideally, your inventory specialist will help prevent inventory shrinkage by using the following strategies:

  • Limit the number of employees who are able to receive parts into stock
  • Restrict physical access to your parts department to authorized personnel only
  • Create a process to track temporary removal of parts from inventory

4) Integrate EAM and ERP

IBIS World points to the "ability to control stock on hand and maintain appropriate inventory levels" as a key factor for success for manufacturers. One of the best ways to achieve this goal is to achieve EAM and ERP integration. Having one centralized tool to manage inventory bolsters accuracy and creates a seamless process for inventory control personnel.

Historically, EAM and ERP integration was not always an easy process. However, today's system integrators have simplified the process. Integration is best achieved by ensuring seamless connectivity between financials and using the same system to perform work management tasks such as purchasing. 

5) Simplify your work order procedures

One of the greatest tasks facing warehouse managers is documenting that a spare part was removed from inventory and used to maintain a piece of equipment. Without the availability of a mobile solution for an employee to use on the spot, paperwork must be completed by the employee. Unfortunately, employees often fail to complete this paperwork right away or forget to complete it altogether. This can lead to inaccurate inventory levels.

A formal work order should always be processed, no matter how small the order. This measure helps to protect the accuracy of your inventory. Here are some ways to help streamline your work orders:

  • Design a work order entry process that is fast and easy to follow
  • Hold all employees accountable for following your work order process
  • Establish consequences for employees who pull parts from inventory without a work order
  • Whenever possible, stage work orders to minimize order fulfillment delays 

6) Regularly update your bill of materials (BOM)

Failure to add or remove a part from a bill of materials (BOM) can wreak havoc on your inventory. On the flip side, keeping your BOM up to date will greatly simplify the process of placing work orders and buying parts. A current BOM helps prevent inventory shortages and can help notify you about the need for regularly scheduled preventive maintenance or servicing. 

7) Emphasize inventory control procedures during training

"Having a staff committed to protecting inventory is the most vital ingredient to loss prevention...Whether you're part of a huge chain or a small family business, the need to protect inventory remains the same."
- Controltek 

The cornerstone of effective inventory control is a team of employees that are committed to doing their part to bolster inventory accuracy and protect assets. These points should be emphasized during onboarding, initial training, and on a continuous basis by warehouse management and the executive team. Pain points should be addressed on a regular basis while employees who adhere to established processes should receive recognition.

Employees should also be trained about advances in offline inventory. For example, inventory and spare parts activity can be documented and updated in remote locations without WiFi. This helps to promote sound documentation habits among new and existing employees.

8) Make sure parts are easy to locate

Ensuring that employees can quickly locate spare parts is essential to expediting the order preparation process. You can assess the ease of locating parts by conducting a walk-through of your warehouse and making sure that stock locations are highly detailed. Each part should feature a unique SKU and should be housed in a clearly labeled bin on a designated shelf. Ideally, employees should have real-time access to this information at all times. 

What is the single most effective way to optimize your spare parts inventory?

As outlined above, there are many steps you can take to better manage your spare parts inventory. However, the single best path to success is mobile Enterprise Asset Management (EAM) that integrates seamlessly with your company's ERP system. By introducing mobile EAM, workers are able to manage spare parts faster and more accurately. Additional benefits include the ability to automatically create purchase orders and better protect inventory.

As a leader in the EAM industry, Dynaway offers a cutting-edge EAM module that achieves the goals above while controlling costs. In addition to reducing maintenance labor costs by 50%, Dynaway's EAM module can help you reduce production downtime by 20% and significantly. The end result is a healthier bottom line for your organization. We invite you to contact us to learn more about the benefits of our EAM module. We look forward to helping you optimize your spare parts inventory! 


Spare parts and consumption

The Dynaway Enterprise Asset Management system allows users to track spare parts on objects and object BOMs, which means you can follow item consumption on an object during the entire lifetime of the object. By this, you can reduce costs by optimizing spare parts handling.

Spare parts are managed in the Product information management module in Dynamics 365 for Finance and Operations. Spare parts consumption is registered on work orders in the Dynaway EAM solution. Replenishment of stock, including the spare parts ordering process, is done using standard Dynamics 365 for Finance and Operations functionality. Spare parts are set up on object types, which are related to objects. A spare parts list can contain a list of approved spare parts as well as spare part alternatives to be used in case approved spare parts are not available.

When you have created a work order, it is possible to add approved spare parts to the work order, if required. After you have completed a maintenance or service job, and item consumption has been registered on a work order, you are able to track consumption of spare parts and other items used on the object.

This functionality allows you to keep a complete item consumption record on all your objects. For example, you can use the record to monitor if a specific spare part is often replaced, or keep track of which spare parts or other items are currently used on an object.

On the work order details screen  Consume tab, you see a list of forecasts and actual registrations on the work order line. When you have completed the job, you can make registrations on: 

  • Hours
  • Items
  • Expenses

You can make registrations on a work order line several times, as long as the work order stage, which is selected on the work order, allows it. The table below shows the icons you may see on forecast lines and registration lines.


 

 

 

3D Printing of Spare Parts

3D printing is changing things in many industries including Manufacturing and Natural Resources. It is a game changer in spare parts production. 3D printing is revolutionizing the manufacture, storage, and shipping of spare parts and hence solving many problems for Asset Intensive industries that has machinery/equipment that needs to be maintained. With 3D technology, manufacturers and producers will not have to rely on external spare part manufacturers suppliers. The technology comes with ease of production that even amateurs can implement. However, even if a manufacturer of a product chooses to work with an external spare parts supplier, the process will be more seamless and timely. No delays that cause losses. By 2022, 85% of spare parts suppliers will embrace 3D printing.

Digital transformation, 3D printing

3D technology can save companies money as the production of spare parts can be done on-site. For example, a company can have a space for the 3D printers within the company hence save on transportation costs and cut on the cost of expediting. On-site production costs less money than overseas production of spare parts if you take into consideration transportation, urgency and delays. Companies can circumvent suppliers to manufacture their spare parts on their own using 3D printing technology.

Additionally, the goal of 3D printing is to produce on-demand spare parts as opposed to producing and storing the parts. This saves companies a lot of money since they can only order spare parts when they need them in the exact quantity they need, therefore no money will be spent in storage. Also, no expenses will be incurred to replace spare parts exposed to tear and wear in the warehouses.

Industries that have embraced 3D printing of spare parts

The aviation industry among the pioneer industries to adopt 3D printing technology for its spare parts. Aircraft and engine manufacturers are investing in 3D printing to reap its numerous benefits. The automotive industry has not been left behind too. Famous car manufacturers Mercedes-Benz and BMW are leading the way in embracing 3D printing.

BMW, for example, has set up a 3D metal printing startup while Mercedes Benz lets customers' print 3D spare parts for their freight trucks. The rail industry is also investing in 3D printing of spare parts with Deutsche Bahn and Siemens pursuing the technology.Siemens reports that the ability to print spare parts when it needs them has reduced costs and decreased dependency on suppliers to manufacture parts.   

Advancement in the 3D printing technology to produce spare parts has seen many partnerships being formed to this effect. For instance, Whirlpool, an American home appliance manufacturer has teamed up with Spare Parts 3D, a Singapore firm to produce spare parts for Whirlpool. Among the most significant outcomes of the partnership is cost savings. Whirlpool will not incur inventory expenses by storing high quantities of spare parts. Once a part is broken or lost, Spare Parts 3D manufactures a replacement promptly.  

Problems facing manufacturers and how 3D printing solves them

The process of making, storing, and shipping spare parts is time-consuming and very expensive for both suppliers and customers. The good news is that 3D printing solves many of these problems and has positive outcomes for optimized inventory, decreased costs, and increased efficiency.

1. Material waste

Material waste is among the areas that are milking product manufacturers dry. When using subtractive manufacturing techniques such as milling, so much material is wasted. A manufacturer uses only 30-60% of a block but pays for the entire block. This means that 40-70% of material goes to waste. This has a cost implication. When making huge parts, the wastage is massive, and the associated cost is prohibitive. However, 3D printing reduces material wastage and its associated costs. It reduces material waste costs by 95%. This means that a company that uses 3D printing for its spare parts will save a lot of money on huge projects.  

2. Inventory storage

Manufacturers across different industries struggle with maintaining and storing spare parts inventory. They incur huge storage costs that increase their operating expenses and reduce their bottom line. Labor and maintenance costs contribute significantly to high inventory costs. With 3D printing, there is no need for spare parts inventory as the company can produce spare parts only when demand arises. 

3. Turnaround time

Traditional manufacturing of spare parts is time-consuming. At times, companies have to rely on overseas manufacturers of spare parts to meet their demand. In such instances a company's operations will be sabotaged hugely due to the time it takes for the spare parts to reach the company if something needs urgent maintenance. 

Imagine a Food & Beverage producer with a broken equipment and stopped production. The more time it takes to get a spare part to fix the machine, the more damage occurs to business. Shorter turnaround time is more desirable for customers. 3D printing gives the farmer a short lead time because the spare parts can be made on-site.

4. Costs

Buying spare parts is costly from material to storage and maintenance expenses. However, 3D printing makes it less costly and hence saving manufacturers in different industries thousands or even millions of dollars. 3D printing cuts material costs, inventory storage expenses, and turnaround time. A survey on 38 German industrial firms revealed that using 3D printing technology, spare parts suppliers will save approximately €3 billionannually which leads to reduced costs for customers as well.

Benefits of 3D printing spare parts 

  • Reduce lead time: Spare parts can be manufactured easily and quickly within the company's premises.
  • Increase spare parts availability: With 3D printing, firms can always make any spare part whenever they need it. There's no rarity of spare parts for firms with 3D printers.
  • Cut costs: 3D printing will cut costs significantly in the production of spare parts. It will reduce the costs of producing, transporting, and storing spare parts.
  • Increase customer satisfaction: Currently, industries have to rely on spare part manufacturers to meet their spare part needs. This might sabotage the companies, and hurt the relationship with their customers due to delays. 3D printing will help companies to meet customers' needs and hence increase their satisfaction. 
  • Competitive advantage: Firms that will adopt 3D printing of spare parts will earn a competitive edge over others who will still rely on third-party suppliers to meet their spare part needs. 

3D technology is disrupting all major industries and it will transform how companies handle spare parts to a large extent and solve many of its problems. 3D printing helps firms to cut costs, increase operational efficiency, and optimize inventory. Industrial firms must embrace 3D printing to scale their businesses. 

The future of spare parts is 3D [REPORT]

Conslusion

Even with the pressure on companies in asset-intensive industries to reduce maintenance costs, it is important to ensure that the safety of the workplace and service delivery is not sacrificed. Coming up with the right strategies allows you to achieve your objectives and improve company performance.

Instead of reducing maintenance work hours, or quality of tools and spare parts which therefore immediately affect quality of maintenance, equipment, safety and overall company performance, we suggest another, cost efficient approach! Learn more about equipment maintenance strategies, budget, KPI's and more.

Such vital changes can be done with the implementation of tried and tested technologies and strategies. Consider learning more about EAM's built-in enterprise asset management software that is certified for Microsoft Dynamics. This software can seamlessly be integrated into your operations to boost work-order execution.


Don't forget to subscribe to receive monthly updates with the latest blog posts, industry news and insights, product updates and offers:

Subscribe Here!