How an Installed Base Evaluation (IBE) Helped a UK Dairy Company be more Operationally Effective

Application Story

 

Why did we do an IBE
Whilst the site was only 6 years old and they only had a few failures, a change in operational management team led to a focus on downtime and operational costs caused by wear and tear. As well as looking at how the control system could reduce wear and tear on the mechanical components.

It was identified that the maintenance policy was "bin and buy new", which led to an explanation of cost benefit of repairs and asset management solutions. The presentations generated an intense interest in operational running costs, and a desire to compare current OEM support with proposed Strategic Maintenance Agreement (SMA) costs, a budget SMA using a Bill of Materials. As these comparisons held significant benefits for management team, the next step was to understand exactly what was on site.

Results of IBE
The IBE identified

• Very large installed base, more than £1.5m and larger than the      customer anticipated
•  Installed base was larger than the Bill of Materials
•  Obsolete / discontinued was relatively low, but some HMI & servo motors
•  Areas of lower criticality, such as large DC drive

The IBE was instrumental in assisting to create a support strategy, focusing on the real and not assumed risks, the criticality of equipment and helped refine the most cost effective solution.

Outcome
Through the criticality and obsolescence information, a cost effective SMA proposal was changed and accepted by the customer. The proposal provided a more appropriate and cost effective solution compared to the OEM "bin and buy new" early life support.

The operational effectiveness approach has enabled a stronger relationship with the engineering team and opened up communication with senior managers (plant and group directors and management), building a deeper customer relationship. The reduced operation costs and reduced downtime risks identified at this site, is being championed to a number of other sites across UK.

For more information, email: info@routeco.com or call: 0370 607 1000.