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In today’s data-driven world, access to real-time and accurate data is crucial for facilities to make informed decisions. Having reliable data is necessary to implement a successful predictive maintenance program and optimize facility productivity and assets.
However, facility managers may debate whether to outsource or keep predictive maintenance activities in-house. Understanding key factors can help organizations decide if business process outsourcing (BPO) is the right choice.
This article explores the role of BPO solutions in predictive maintenance, its key advantages and potential challenges, and factors to consider when choosing a provider.
Why Outsourcing Makes Sense for Predictive Maintenance
According to industry estimates, downtime costs facilities at least 5% to 20% of their production capacity. A solution to avoid this expensive problem is predictive maintenance.
Predictive maintenance programs help determine the conditions of assets and equipment to forecast when maintenance activities are necessary. This strategy results in cost savings via routine-based preventive maintenance, where maintenance is only performed when justified.
So, what is BPO? BPO solutions for predictive maintenance leverage multiple technologies, including predictive analytics, artificial intelligence (AI), and the Internet of Things (IoT). Outsourcing vendors help with the following:
- Monitoring a network of connected assets
- Automating parts of maintenance activities
- Integrating maintenance management tools
Maintenance management tools include a computerized maintenance management system (CMMS), enterprise resource planning (ERP), and manufacturing execution systems (MES).
Outsourcing predictive maintenance and asset optimization can be a strategic move to improve the reliability, efficiency, and longevity of your equipment and infrastructure.
BPO Solutions for Predictive Maintenance
Here are key predictive maintenance tasks BPO providers can take on:
Outsourced Process | Functions |
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Data Collection and Monitoring |
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Data Analysis and Predictive Modeling |
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Condition Monitoring and Assessment |
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Maintenance Planning and Scheduling |
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Inventory Management |
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Asset Performance Metrics |
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Root Cause Analysis |
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Vendor and Contractor Management |
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Compliance and Regulations |
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Cost Control and Budgeting |
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Technology Updates |
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Training and Skill Development |
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Risk Management |
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Reporting and Communication |
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Benchmarking and Best Practices |
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Emergency Response and Crisis Management |
|
Critical Advantages of Leveraging BPO Solutions for Predictive Maintenance
According to Plant Engineering’s 2021 Industrial Maintenance Report, 88% of facilities outsource some or all maintenance activities. The primary reasons for outsourcing include a preexisting arrangement with a manufacturer or supplier, a lack of skills within the current workforce, and the need for more time or staff resources to allocate to maintenance tasks.
Facility management teams like outsourcing maintenance tasks since many view maintenance as an overhead. Outsourcing minimizes overhead and improves the bottom line. Outsourcing predictive maintenance and asset optimization services can offer significant short- and long-term benefits to facility management teams.
The cost advantages mentioned earlier are applicable in both time frames, as outsourcing maintenance can yield immediate cost savings compared to hiring full-time internal staff. Over the long term, these benefits manifest in reduced overhead costs and a streamlined operational structure.
Here are some key advantages of utilizing BPO solutions for predictive maintenance and asset optimization:
- Gain real-time, valuable insights from your business operations through advanced software and analytics algorithms.
- Utilize various predictive tools and statistical techniques to make precise business forecasts without substantial financial and resource investments.
- Receive assistance in analyzing available data to comprehend the current situation and anticipate future maintenance scenarios.
- Enjoy access to faster and more cost-effective services that increase efficiency as the third-party team handles maintenance and repairs.
- Rely on the specialized expertise of the BPO provider’s technical team whenever and wherever needed.
- Reduce the necessity of managing personnel, allowing you to concentrate on your core competencies instead of training and supervising technicians.
- Increase uptime and machine availability while reducing material costs and maintenance labor.
- Move the ownership, leadership, hiring, training, and workforce responsibilities off your plate to minimize the total cost of ownership.
Potential Challenges of Predictive Maintenance Outsourcing
While BPO opportunities offer many benefits, facility managers may encounter potential challenges when implementing BPO solutions for predictive maintenance.
Outsourced predictive maintenance comes with upfront costs. The exact cost of the BPO solutions depends on various factors, such as the complexity of the tools used, the type of facility asset being monitored, and the amount of data analysis needed.
Although outsourcing requires an initial investment, it can ultimately cut facility expenses by lowering overall repair costs and minimizing downtime.
Other potential challenges include:
- The BPO team can misinterpret data, resulting in false maintenance requests.
- Timelines may trigger preventative maintenance activities instead of genuine asset and machine conditions.
- The third-party team’s predictive maintenance approach may not consider contextual information such as weather and asset age.
- The internal team may be discouraged from conducting proactive asset maintenance and physical inspections.
Considerations When Choosing a BPO Partner for Predictive Maintenance
When leveraging BPO solutions for predictive maintenance and asset optimization, selecting a reliable service provider with a strong track record of implementing similar programs is crucial. Clear communication and a well-defined SLA ensure the outsourced provider aligns with your organization’s goals and expectations.
A reliable predictive maintenance outsourcing vendor follows best practices such as:
- Utilizing and leveraging essential technologies such as ML, sentiment analysis, big data, and analytics
- Examining historical data to assist clients in identifying crucial maintenance issues within established patterns
- Predicting potential future challenges based on identified patterns and developing plans to either prevent or address them if prevention is no longer possible
- Employing ML algorithms and regression techniques extensively to enhance the accuracy of all predictions
- Monitoring maintenance and asset data along with log files to obtain the latest insights for informed decision-making
- Leveraging client intelligence to enhance strategic decision-making and cultivate deep and meaningful client relationships
- Identifying and comprehending specific client needs and tailoring experiences for them using the power of data
- Providing access to detailed insights from business operations to facilitate more informed decision-making
Real-life Example of Successful Predictive Maintenance Outsourcing
Walkers Deli and Sausage Co., a prominent deli meat producer in the UK, operates a facility with four refrigeration compressors dedicated to cooling multiple blast chillers. In cases where all chillers are in operation, three compressors are required. Recognizing the critical role of chilling in production, the site maintains an additional fourth compressor as a backup in case of failure.
When one of the compressors malfunctioned and the replacement took two months, the remaining three were in continuous use.
To address this challenge, BPO engineers collaborated closely with Walkers’ site team to devise an optimal strategy. Vibration sensors were strategically placed on the compressor heads and drive motors, providing detailed vibration information related to bearings and drive shafts.
This data empowered the site’s engineering team to monitor performance in real time, allowing them to plan for condition-based maintenance proactively.
Shortly after installation, abnormal vibration levels were detected on the drive motor of one compressor. Although this did not immediately lead to a failure, engineers could closely monitor the compressor for further degradation while awaiting the delivery of the new compressor.
The Bottom Line
Different facilities outsource predictive maintenance and asset optimization for various reasons.
Consider outsourcing now if tasks need rechecking and redoing, your internal teams are overworked, you cannot find the technical talent for maintenance roles, and hiring or training technicians takes too much time.
Let’s connect if you want to learn more about how BPO solutions can empower your predictive maintenance tasks.