Quantifying the impact of anomaly detection

There’s a great deal of excitement about anomaly detection as the most effective path to achieving Smart Operations. Yet a critical question still remains: How can we quantify the impact of anomaly detection or AI in general? The answer lies in the rate at which detection is successful in identifying an event while it is happening.

Anomaly detection brings into focus anomalies that can actually impact operations. The best way to assess such AI is for its performance for beneficial detection, i.e., detection that has a high likelihood of operational benefit. A high number of beneficial detections reduces the payback period for the adoption of anomaly detection. For this reason, we use a success metric called "Beneficial detection rate" where we measure the ratio of beneficial events detected by AI as a percentage of the events observed independently of the AI. Our customers find this to be an outcome of AI that contributes to operational improvement.?

A beneficial detection rate (BDR) is assessed over a range of assets over a short period of time such as a month. A high initial BDR such as 15% creates a business case that is financially viable. Moreover, when extended to a large production facility such as a steel plant, a 15% BDR can translate to an annual potential productivity improvement of $4 million. Conducting a study to establish the BDR is an activity many of our customers have been going through. This is one of the best ways to provide visibility to executives about the results of their decisions to adopt AI.

Combined with trust in the explanation for AI’s findings, a robust detection rate provides the necessary impetus for adoption. With beneficial detection of events that are worth hundreds of thousands of dollars and dozens of hours of human effort, our customers see payback opportunities within the first months of Falkonry AI adoption.?

Our customers consistently emphasize that when Falkonry highlights an issue, they pay attention. Trust in the AI means operations teams act on the findings, whether instantaneously or in the long term by incorporating the insights into continuous improvement. Beneficial detection doesn't only encompass acted-upon problems; it also includes detections that enhance future problem avoidance.

If you’d like to find out how well anomaly detection can work for your operations, let’s tailor a study for your data and set you on the path toward Smart operations.

Original Content

Why Predictive Maintenance in Manufacturing is at a Crossroads. Learn about the challenges of implementing predictive maintenance in complex manufacturing settings and explore emerging proactive solutions like anomaly detection and Smart operations that can address these challenges effectively.

Upcoming Events

SMRP Annual Conference [Orlando FL | 16-19 Oct] Join us on October 18 at SMRP for an engaging and enlightening discussion led by Kevin Clark . We'll delve into Asset Management and AI, examining it from X/Y/Z generational perspectives, making it both informative and fun!

MRO Europe [Amsterdam NL | 17-19 Oct] Join Brian Shimkaveg from Falkonry and Scott Helmer from IFS for a joint session on how AI is Revolutionizing Aviation Maintenance. This presentation explores the pivotal role that AI plays in enabling proactive and intelligent decision-making within Maintenance, Repair, and Overhaul (MRO) teams.

IAS Maintenance Seminar [Virtual | 24-25 Oct] Join us at the IAS Maintenance Seminar, a two-day virtual event by Instituto Argentino de Siderurgia. Don't miss an insightful presentation by Falkonry's Keval Bhanushali on the topic of Hands-Free, Fully Autonomous, Plant-Scale Anomaly Detection AI.

CESMII SOUTHTEC Annual Meeting [Greenville SC | 24-26 Oct] Amid leadership and technology workshops, we have a special treat in store. Come by the CESMII booth on Oct 24 for an exclusive knowledge bar presentation. Join us as we share insights on how AI can help manufacturers attain their smart manufacturing goals.

Asset Performance Conf. & Exhibition [Antwerp, Belgium | 25-26 Oct] This year's conference theme revolves around sustainability, resilience, and human-centered innovation. Join Falkonry to explore the role of AI in achieving greater equipment reliability and cost performance.

Operational Excellence in Oil & Gas Summit [ Houston, TX | 7-10 Nov] Join leading Oil and Gas producers from across the globe as they share use cases that have transformed their operations. Learn how Falkonry's automated anomaly detection is improving reliability and monitoring in Oil and Gas production.

High Performance Computing Conference [Denver, Colorado | 12-17 Nov] Join high performance computing community members from across the globe to experience technical deep-dives into high performance computing, networking, storage, and analysis.

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