There is a revolution happening in asset performance management (APM). The intersection of Industry 4.0, the Industrial Internet of Things (IIoT) and technologies such as predictive maintenance, cloud, big data and mobility is bringing the asset to the forefront of the business. This is the future of APM – APM 4.0.
Using APM 4.0, assets can be transformed from cost centers to key drivers of revenue and profitability. Businesses across multiple industries have seen significant gains in asset availability, reliability and performance after implementing APM 4.0. But what is it exactly?
APM 1.0 – 3.0
According to LNS Research, there have been three historical stages of APM. At the beginning APM 1.0 was purely manual, with paper-based record keeping and processes the norm. APM 2.0 brought digitization into the maintenance space for the first time with computer-based transactions systems such as CMMS, EAM, and calendar-based maintenance. The next stage, APM 3.0, leveraged increased instrumentation of assets to implement condition-based or rules-based maintenance and reliability-centered analysis. Each evolution brought increased asset performance and reliability, as well as improved operational efficiency.
What is APM 4.0?
APM 4.0 leverages Industry 4.0 and IIoT principles, including technologies such as predictive analytics, prescriptive guidance, augmented reality, cloud and mobility solutions, to increase the operational insight available for users across the decision-making chain. This enables an open environment that bridges the IT/OT gap and empowers people, processes and equipment to communicate and collaborate across traditional boundaries. One example of this flexibility is the digital twin, which combines multiple functions in an optimized, augmented user experience. The deployment and development of these mashup applications enables greater efficiencies and drives operational excellence across the value chain.
Smart Connected Assets
Smart Connected Assets are one of five key components enabling APM 4.0. Fully digitized assets provide the groundwork for APM 4.0 by supplying a wealth of sensor and operational data for real-time, historical and predictive analytics. Advanced analytics enable a much more predictive approach to maintenance by using advanced pattern recognition and machine learning to detect equipment issues before they become operational, and providing early warnings.
As analytic capabilities evolve from predictive to prescriptive – from what will happen to what should be done – integration with advanced workflow will enable continuous operational improvement across the enterprise. Eventually, advances in automation and analytics will allow for fleets of completely autonomous Smart Connected Assets, each operating optimally, independently and continuously improving.
Maximize Your Return on Assets
This concept is more than hype; it is providing real benefits to companies today. For instance, after implementing APM 4.0 strategies, companies have seen the following improvements:
- 30% improvement in asset utilization
- 25% reduction in unplanned downtime
- 20% increase in asset availability
- $17M+ saved in a single predictive analytics catch
To learn more about APM 4.0, Smart Connected Assets and the future of asset management, join our webinar with LNS Research.
What are your thoughts on the future of APM? Let us know in the comments.