A major problem for automotive manufacturers is equipment repair costs?and its associated externalities such as?defective products?caused by poorly operating machines and productivity loss due to machine downtime. This can lead to significant increases in operating costs and downward pressure on profitability.?
In a post-COVID?economy, this problem means cost savings matter more than ever before. Companies seeking to remain competitive and gain the financial flexibility to meet changing customer expectations and higher performance levels must eliminate unnecessary costs.?In a contracting market, competition is cutthroat.?Reducing operating expenses is the most effective way to survive.?
Success begins with data.?Executives enabled with?predictive maintenance and?real-time data tracking of machine performance are?not only?able?to?find the root cause?of machine failure and?eliminate it ahead of time—identifying?equipment issues before a breakdown takes?place—but also choose an accounting model, change a maintenance strategy, and become more profitable?
3 ways predictive maintenance is the?OpEx?killer?every?business needs
Flexibility: Switch easily from an OPEX model to a CAPEX model?
To?achieve operational excellence while driving down?OpEx?costs like—consumables, fabric, maintenance, and waste—automotive companies will need to?invest in?cloud platforms, which make it possible to perform data analysis on their business operations.???
Forecasting?when equipment might?need repairs and?performing?maintenance tasks before failure occurs?enables?automotive companies to?minimize long-term costs and?maximize machine uptime up to 98%. Because these?improvements?substantially prolong?the?useful life?of the?equipment, its costs are?on the balance sheet?as a Capital Expenditure (CapEx)?and?the company can depreciate them?for tax purposes.?
Adaptability: Develop a responsive maintenance strategy??
Predictive maintenance, in addition to?adding?value?to?an existing asset, enables companies to develop an asset maintenance strategy that is responsive to market changes. Balancing equipment uptime against acceptable costs is easier with the right data, tracking,?and reporting tools.??
Automotive manufacturers can quickly modify their maintenance management plans to increase machine availability when market conditions demand more products and reduce maintenance activity when equipment is approaching end-of-life. “Depending?on the facility, a predictive program, according to a recent report?by the US Department of Energy,?could?.”?
Profitability: Increase revenue and decrease operating costs?
Increased equipment longevity and accurate performance data enable manufacturers?to reduce operating costs without jeopardizing productivity.??Based on?the?aforementioned US Department of Energy?report, a “: a tenfold increase in ROI, 25%-30% reduction in maintenance costs, 70%-75% decrease of breakdowns and 35%-45% reduction in downtime.”?
By identifying and examining gaps between predicted and actual performance, manufacturers are able to minimize machine downtime and take appropriate course?of action if a failure occurs.?As a result, companies are able to produce more products faster with fewer defects.?The marked improvement in product quality and delivery speed?also?leads to a decrease in waste, eliminates repeat production costs, and increases profitability.??
In an increasingly competitive economy,?automotive?manufacturers must?be skillful in how they manage?their resources.?By choosing predictive maintenance?technology to?identify areas of improvement and?reduce operational costs,?manufacturers are able to make better decisions to?boost innovation, strengthen resilience, and increase sales.??
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Predictive Maintenance: Audi Maintenance uses data to predict the future?|??
