Maximizing Asset Lifecycle and Reducing Costs Through Data-Led Operations & Maintenance

Operations and Maintenance (O&M) is the longest and most critical phase of Asset Lifecycle Management (ALM), directly impacting asset lifespan, reliability, and cost.?

Traditionally, the O&M process has relied on planned maintenance and reactive repairs. However, stakeholders' (asset owners, end-users, etc.) demand for increased asset reliability, cost reduction, and ROI is spurring the shift to proactive data-driven O&M practices.

In this article, I explore how a data-led approach can transform O&M practices and solve challenges that teams face today, along with the role of the right tech / digital strategy in empowering them to maximize asset life and optimize lifecycle costs.

How Data-led O&M Transforms Asset Lifecycle Management

Data-led operations and maintenance is a powerful tool for maximizing asset life and optimizing costs throughout the lifecycle. Here's how it can help teams achieve these goals:

Moving from Reactive to Proactive Maintenance

Data-driven O&M enables organizations to shift from reactive to proactive maintenance. By analyzing data from the asset and combining it with historical maintenance records, teams can predict failures and address them before they occur to significantly reduce downtime, improve asset health, and extend asset life.

Optimizing Maintenance Schedules and Resource Allocation

With data-driven insights, teams can optimize maintenance schedules based on actual asset conditions and performance. This ensures that maintenance activities are performed only when necessary, reducing costs and minimizing disruption to operations. Additionally, better resource allocation ensures that maintenance efforts are focused on critical areas, further enhancing efficiency and cost-effectiveness.

Achieving Cost Reduction and Improved ROI

The ultimate goal of data-driven O&M is to achieve significant cost reductions and improved ROI. By minimizing unplanned downtime, optimizing maintenance activities, and extending asset lifespan, organizations can realize substantial savings. These savings, coupled with improved asset performance, lead to a higher return on investment throughout the asset lifecycle.

Challenges Facing Asset Lifecycle Division Teams and Leaders

Asset lifecycle teams and leaders face a multitude of challenges across various stages of an asset's lifespan. Here are some prominent hurdles they encounter:

• Skill gaps and talent shortages

Finding and retaining skilled personnel is proving to be a big challenge with the ongoing retirement of the existing workforce. The move to a data and digital-first environment requires not only investment in technology but also training and change management on how to use and interpret the data generated.

• Lack of insights and context to inform asset lifecycle decisions

Critical asset data, including maintenance schedules, manuals, and work orders can be scattered across different departments or software systems. This makes it difficult for teams to access the right information at the right time, leading to inefficiencies and delays. It also creates difficulty in identifying assets that need replacement and gaps in terms of energy consumption and reliability.?

• Balancing costs and performance

Striking a balance between energy efficiency improvements and maintaining or enhancing asset reliability is a challenge. Striking a balance between minimizing maintenance costs and maximizing asset performance is a constant struggle. Over-maintaining assets can be wasteful while under-maintaining them can lead to premature failure.?

• Providing evidence-based suggestions to customers / asset owners:

Conveying technical information in a comprehensible format, addressing concerns, and aligning customer expectations with realistic outcomes can be challenging. Balancing budget constraints, assessing the remaining useful life of assets accurately, and justifying replacement decisions to stakeholders.

How the right O&M / APM technology partner can help

Partnering with a knowledgeable Asset Performance Management software provider can significantly benefit teams in maximizing asset life and reducing lifecycle costs through their data-driven O&M software, AI, and automation capabilities.

Industry Expertise and Best Practices

• Industry Knowledge: A knowledgeable partner with experience in your specific industry can provide valuable insights and best practices for implementing APM strategies tailored to your asset types and operational context.
• Software Implementation Guidance: The partner can assist with implementing their APM software, ensuring it integrates seamlessly with your existing systems and workflows. They can make onboarding of sites a breeze and help your team maximize software utilization.

Data-Driven Software and Processes

• Holistic, Data-Driven Process: The software integrates every aspect of operations, addressing maintenance needs as diverse and interconnected as they are. It replaces randomness with predictability and a focus on outcomes instead of 'check-the-box' activities.
• Predictive Maintenance: Analyzing sensor data from the asset (vibration, temperature, etc.) and combining it with historical maintenance records can help predict potential failures. This allows for targeted maintenance interventions, preventing unnecessary repairs and maximizing asset uptime.
• Risk-Based Prioritization: Data-driven insights to identify which assets are most critical and require the most attention. This allows for prioritizing maintenance tasks and resource allocation based on actual risk.
• Maintenance Schedule Optimization: Analyzing historical maintenance data and failure patterns can be used to optimize preventative maintenance schedules. This ensures assets are serviced at the right intervals, avoiding both over and under-maintenance.

• Root Cause Analysis: Analyzing historical data to identify recurring problems and their root causes. This allows for the implementation of corrective actions to prevent future failures and extend asset life.
• Advanced Analytics and Reporting: The software offers powerful analytics tools to identify trends, predict failures, and optimize maintenance schedules. It can generate reports that provide actionable insights into asset health and performance.
• Performance Benchmarking: Compare your asset performance data with industry benchmarks to identify areas for improvement. This can help you refine your O&M practices and optimize resource allocation.

Automation Capabilities

• Automated Workflows: The software can automate routine tasks such as generating work orders, scheduling preventive maintenance, and managing spare parts inventory. This frees up valuable time for your team to focus on more strategic initiatives.
• Automated Data Collection and Analysis: The software can automate data collection from sensors and other sources, eliminating manual data entry and ensuring data accuracy. It can then analyze this data to identify issues and fast-track investigation and corrective action with insights and recommendations for the engineering team.
• AI and Machine Learning: The software leverages AI and machine learning algorithms to analyze vast amounts of data and automatically detect anomalies or potential issues, enabling proactive maintenance interventions.

Additional Benefits

• Improved Communication and Collaboration: The APM software can facilitate communication and collaboration between maintenance teams, operations personnel, and data analysts. This ensures everyone has access to the right information and can work together to optimize asset performance.
• Scalability and Flexibility: A good APM solution is scalable to accommodate your growing asset base and evolving needs. It should also be flexible enough to integrate with your existing data infrastructure and maintenance practices.
• Change Management Simplified: A technology partner can act as a bridge between the technical aspects of implementing a new system and the human element of adopting it.
• Continuous Improvement: A good partnership includes ongoing support and updates, ensuring that your APM system and O&M processes remain current and effective. It offers the ability to scale and meet your future needs and its cost model aligns with your budget.

The Time to be Data-led is Now!?

In the modern business environment, the pressure to optimize asset performance and maximize ROI is more intense than ever. Traditional O&M practices, while effective in the past, are no longer sufficient to meet these demands. The shift towards data-driven, need-based O&M practices is essential for organizations looking to enhance asset reliability, reduce costs, and improve ROI.

By embracing data-driven O&M, leveraging APM software, and partnering with a knowledgeable vendor, organizations can gain a deeper understanding of their assets' health and performance. This empowers them to move from reactive maintenance to a proactive approach, preventing failures before they occur, minimizing downtime, and extending asset lifespan. The result is a more efficient, cost-effective, and reliable asset management strategy that maximizes asset life and optimizes lifecycle costs.

Xempla has been the partner of choice for companies like Engie, Serco, and Sodexo, helping them run a data and AI-led digital services model around energy and asset operations to reduce costs, improve asset health, and deliver reliability goals for customers.

I would love to share how we could help your team transition to a data-led O&M regime or answer any lingering questions in your mind regarding this shift.

Let’s connect!

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