Transforming Asset Management: A Roadmap to Higher ROI

In the rapidly evolving landscape of industrial operations, maximizing efficiency, ensuring reliability, minimizing downtime, and maximizing ROI are paramount objectives for businesses striving to stay competitive. Traditional asset management approaches often fail to meet these demands, leaving organizations grappling with unforeseen challenges such as breakdowns in production, costly
maintenance, and suboptimal asset utilization.

Traditional methods must be replaced with smarter, more connected approaches, driven by the Internet of Things (IoT) revolution. At the heart of this transformation is the IoTfication of industrial equipment, which is crucial to bridging the gap between the physical and digital realms, enabling companies to manage their industrial assets intelligently.

Going the digital transformation route has its long-standing benefits. However, many companies are hesitant to adopt smart asset management due to barriers such as cost, security and privacy, lack of internal expertise, integration challenges, uncertainty about ROI, and compatibility, among other issues.

Despite these challenges, the potential benefits of smart industrial asset management with IoT gateway technology are more compelling than its barriers. Overcoming these barriers starts with the company’s top brass, as adoption requires a strategic approach, collaboration between different stakeholders and various teams, and a strong commitment to leveraging technology to aid continuous growth and achieve business success. These can only be achieved when the top stakeholders in the company are driving that change.

Read out case study: Remote Pump Monitoring Solution

Let’s look at how we can maximize the ROI of our industrial assets with the help of IoT-based asset management.

Strategies for Improving ROI with Smart Industrial Asset Management

Using Predictive Maintenance to Maximize Uptime: One of the first things most organizations are worried about in an industrial setup is equipment downtime, which may severely affect production and cause delays in supply and revenue loss. With smart asset management, you can monitor assets in real-time and predict potential failures before they happen. IoT-enabled asset management can
significantly reduce unplanned downtime and maximize uptime for optimal production. This will also play an active role in reducing maintenance costs associated with emergency repairs, loss of production due to extended ETA of replacement parts, and overtime labor.

Predictive maintenance plays a major role in using captured data (from various sources) to protect the assets by addressing issues before they lead to major failures. This approach reduces the frequency of scheduled maintenance activities and minimizes the risk of catastrophic breakdowns, thereby saving on maintenance costs and extending asset lifespan.

Using Real-time Monitoring For Improved Asset Utilization: Real-time monitoring of assets helps you to better judge their performance, allowing you to understand their utilization by aggregating the activities of different equipment across locations onto a single dashboard. This can give an insight into the underutilized devices or areas where assets can be redeployed more effectively. This strategy can help in achieving optimal production output without the additional expenditure of acquiring new assets. At the same time, the organization can ensure optimal ROI from the existing systems.

Optimizing Energy Utilization with Automation: IoT-enabled asset management systems can play a key role in optimizing energy consumption by automating the identification of possible inefficiencies in operations (by implementing rule-based functions) and suggesting possible adjustments to improve energy efficiency.

It can integrate with demand response programs and utility grid data to optimize energy usage during peak demand periods. By dynamically adjusting energy consumption based on real-time pricing and grid conditions, factories can reduce their energy costs and minimize peak demand charges. For example, the system can automatically adjust production schedules or temporarily reduce nonessential equipment operations during peak demand periods.

Enhancing Equipment Performance by Fine-tuning: Asset management practices such as real-time performance monitoring and optimization can help organizations fine-tune equipment settings to achieve maximum efficiency and output. This not only improves overall equipment performance but also enhances energy efficiency, reducing operational costs over time.

Using Demand Forecasting to Optimize Spare Parts Inventory: The data derived from smart industrial asset management can help you in forecasting demands. Based on this, OEMs can optimize their spare parts inventory by accurately forecasting demand and maintaining the required stock. This minimizes any excessive inventory costs while ensuring that critical components are readily available when needed, thereby improving service levels and customer satisfaction.

Read out case study here: Cooling Tower Monitoring

Achieving Scalability: Smart asset management systems are built components such as modular architecture, cloud-based infrastructure, edge-based computing, open APIs to facilitate third-party integrations and scalable data storage are all essential elements for scalability. Scalability enables organizations to deploy and expand their IoT deployments with more confidence, knowing that your
asset management systems will grow in tandem with your business goals.

Data driven Operations optimization: One thing the age of IoT has made us realize is the value of data and how it can aid decision-making for better outcomes. The wealth of data that is generated on a production floor can be utilized to generate valuable insights. These data are collected from various sensors enabling better-informed decision-making across the organization. Insights obtained from
analytics can help in improving organizational or production processes, resource allocation optimization, and strategic planning that ultimately drives improvement in operational efficiency and cost savings.

Wrapping Up

For any business, the goal is always long-term success. One of the key factors in achieving long-term success is to generate maximum ROI from the existing industrial assets. Though deploying a smart industrial asset management system may incur additional costs, it sets you up to achieve long-term success, and at the same time meet customer demands and deliver satisfaction.

IoT gateway-based smart industrial asset management emerges as a linchpin for driving digital transformation and unlocking value from industrial assets. It also plays a key role in extending the life cycle of devices and improving device reliability, which is another factor that increases the ROI and reduces overhead costs.

To know more about IoT gateway-based industrial asset management, contact us and speak to our team of experts. Kemsys delivers smart solutions for the future by IoTifying industrial processes and devices to achieve maximum uptime and gain optimum output