Page 72 - An Introduction To Predictive Maintenance

62 An Introduction to Predictive Maintenance

ago, few plants recognized the ability of predictive technology to detect and correct
product-quality problems.

Asset Protection. More than 60 percent (60.8%) of those interviewed included asset
protection as the reason for implementation. Although asset management and protec-
tion is partially a maintenance issue, its inclusion as justification for a predictive main-
tenance program is a radical change from just a few years ago.

ISO Certification. Almost 36 percent (35.8%) included ISO certification as a reason
for implementing predictive maintenance. The primary focus of ISO 9000 is pro-
duct quality. As a result, the certification process includes criteria that seek to ensure
equipment reliability and consistent production of first-quality products. Predictive
maintenance helps maintain consistent quality performance levels of critical plant
production systems. Although ISO certification does not include specific requirements
for predictive maintenance, its inclusion in the plant program will greatly improve the
probability of certification and will ensure long-term compliance with ISO program
requirements.

Management Directive. Almost one-third (30.7 percent) of respondents stated that the
primary reason for implementation was top management directives. More senior-level
managers have recognized the absolute need for a tool to improve the overall reli-
ability of critical plant systems. Many recognize the ability of predictive maintenance
technologies as this critical management tool.

Lower Insurance Rates. Insurance considerations were cited by 25 percent of those
interviewed. Most plants have insurance policies that protect them against interrup-
tions in production. These policies are primarily intended to protect the plant against
losses caused by fire, flood, breakdowns, or other prolonged interruptions in the plant’s
ability to operate. Over the past 10 years, insurance companies have begun to recog-
nize the ability of predictive maintenance technology to reduce the frequency and
severity of machine- and process-related production interruptions. As a result, the
more progressive insurance companies now offer a substantially lower premium for
production interruption insurance to plants that have a viable predictive maintenance
program.

Predictive Maintenance Costs
The average maintenance budget of the plants interviewed was $12,053,000, but
included those with budgets ranging from less than $100,000 to more than $100
million. The average plant invests 15.8 percent of its annual maintenance budget in
predictive maintenance programs, but one-third (33%) of the plants interviewed in our
May 2000 survey allocate less than 10 percent to predictive maintenance.

According to the survey, the average cost of a predictive maintenance program is $1.9
million annually. This cost includes procuring instrumentation but consists primarily
of the recurring labor cost required to sustain these programs. The burdened cost—