There are many reasons for manufacturers and producers not meeting their operational performance goals. Unplanned downtime, production slowdowns, regulatory sanctions and quality excursions are but a few.
Through close cooperation with benchmarking companies and talking to our customers, we have gathered industry-wide data on the challenges companies face in core areas like safety, reliability, production and energy/emissions. Our findings show that across the global industrial sector, annually as much as $1 trillion is lost as a result of subpar performance.
Of course, not all manufacturers contribute equally to these losses. When studying the differences between Top Quartile and lower quartile performers, Roel identifies some key differences:
- Top Quartile performers had one-third the number of safety incidents compared to their average industry peers.
- Top Quartile performers spent half as much on maintenance compared to average performers and had an increased production availability of 15 days per year.
- Top Quartile manufacturers spent 20% less on production-related expenses compared to average producers.
- The top 25% of producers spent one-third of the industry average on energy costs and had 30% less CO2 emissions.
At last Fall’s Emerson Exchange conference in Austin, Texas, the Operational Certainty program was announced to help manufacturers and producers improve earnings as much as 15 percent and achieve top quartile performance.
IIoT makes it possible to either empower your company’s experts with the additional information they need for decisions and action that can facilitate operational performance improvements, or for the first time to completely outsource that analysis and decision making to third party domain experts. There are four critical aspects to achieving this: the provision of rich, real-time operating data from intelligent sensing and automation technologies across the business; secure transport of that data to where it’s needed anywhere in the world; robust, scalable software to convert the data into actionable insights; and domain expertise to make the decisions and drive the outcomes that will lead to improved performance. A new business model called Connected Services has also emerged where those last two pieces are performed by a remote third party rather than in-house experts.
Check out other ways to improve operational performance in the articles:
- Connected Services helps reduce steam consumption
- Pervasive Sensing drives operational excellence
- Joining forces with Microsoft to provide cloud-based IIoT services
- Cloud-based Connected Services optimises plant performance
- Innovative Technologies