APM 2-0 with Industrial IoT

ARC Advisory Group developed its Asset Performance Management (APM) concept almost a decade ago to provide our clients with a framework to analyze their asset management needs, develop effective strategies, and ultimately optimize their asset availability and utilization.

Asset Performance Management (APM) 2.0

Asset Performance Management 2.0, which now incorporates emerging Industrial IoT (IIoT) approaches and technologies and new analytics solutions, uses information from production management and control systems in asset management applications to provide new opportunities to optimize asset availability and operational performance. 

Reliability studies show that, on average, 82 percent of assets have a random failure pattern. Preventive maintenance assumes that the probability of equipment failure increases with use, which applies to just 18 percent of assets. IIoT and analytics, using engineered algorithms and/or machine learning techniques, provide a new means to predict failures. This can enable organizations to drive down unscheduled downtime to near zero – with a positive effect on a broad range of KPIs.

Consumer electronics, including more than a billion mobile phones, drove the creation of infrastructure and provided economies of scale for the sensors, networking and cloud computing used in IIoT. APM 2.0 leverages this new capability to enable new business processes and business models in industrial organizations.

APM 2.0 incorporates IIoT, analytics, and other predictive and prescriptive technologies to bring performance to a higher level. It provides a means to systematically improve key metrics like uptime, mean time to repair (MTTR), asset longevity, cost, quality/yield and safety for maintenance; and on-time shipment, quality, and inventory for operations. This optimization goes beyond functional silos and occurs between silos where significant inefficiency, waste and sometimes dysfunction often reside. Rather than accepting waste among APM functions, ARC recommends that industrial organizations develop a disciplined approach for improvements.

Table of Contents

• Executive Overview
• Asset Performance Management Scope
• APM 2.0: Impact of Industrial IoT
• Getting to APM 2.0
• APM 2.0 Business Process Automation
• Recommendations

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Keywords: Asset Performance Management (APM), Industrial IoT (IIoT), Production Management, Control Systems, Asset Management, Preventive Maintenance, Cloud Computing, ARC Advisory Group.