There are many 24/7 operations which routinely suffer 5 – 7% unplanned downtime losses due to poor maintenance practices, and Emerson’s new global reliability management consulting practice is hopefully going to guide leaders on how to better manage maintenance costs, improve reliability and increase profitability.
Steve Sonnenberg, President, Emerson Process Management said, “chief executives are seeing the need to better manage physical assets for improve profitability. With the right strategy, the typical US$1 billion plant can save US$12 billion or more annually in maintenance costs, not including the corresponding operational and production benefits from reduced downtime. Extend that across a corporation’s network of facilities and soon reliability becomes the number one strategic lever for a safer, more profitable enterprise.”
By reducing scheduled and unscheduled downtime, companies can reduce their maintenance spend by 50% or more, according to Solomon Associates. Optimised reliability practices, such as increased condition monitoring and analysis based maintenance activities, drive down costs and also improve sales, quality, health and safety, and environmental compliance. These are all key factors affecting operational risk and shareholder value.
To expand its portfolio of reliability focused services, Emerson recently acquired Management Resources Group, Inc. (MRG). This strategic investment complements Emerson’s existing lifecycle services offering, as well as the company’s leadership in pervasive sensing which provides manufacturers with more operational insight through greater sensor based coverage of their plants and assets. Through its consultants, Emerson can advise global customers on enterprise wide reliability management programmes that connect the millions of data points collected in a plant, providing actionable information to trigger maintenance activities before equipment fails.
Robert DiStefano, MRG’s former CEO said, ‘if a company is not a top quartile performer, it is losing millions in revenue and spending millions of euros on unnecessary maintenance costs. Every euro not spend on maintenance goes directly to the bottom line. Our approach helps companies drastically reduce downtime and enhance safety and compliance, increasing the stature and reputation of a company and ultimately providing better value for shareholders.’
Edited from press release by Claira Lloyd
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