IoT in Asset Management: Trends, Benefits, and Use Cases
Manufacturing | 7 min READ
    
What Is IoT Powered Asset Management?
Post pandemic period will be defined by known and unknown challenges, aftermaths of the ongoing uncertainty. As a combative measure, companies can accelerate their return to normal operations by aggressively using advanced Industry 4.0 technology and the Internet of Things (IoT).
Shamdutt Kamble
Shamdutt Kamble

Global Practice Director

Digital Manufacturing

Birlasoft

 
Asset management is one of the differentiating factors that help a manufacturing entity gain a competitive advantage. Innovating IoT-based solutions to empower asset management drives quality business operations. Availability, performance, and quality are the three critical drivers for overall equipment effectiveness (OEE) for a manufacturing entity. IoT-powered solutions will help monitor and detect specific problems, such as missing parts, faulty areas, and scope of improvement. With these improvements, the firm can achieve 80% OEE.
Successful business operations consist of interconnected processes working in coherence with each other. A fault in asset management and production would ultimately cause a lag in the supply chain.
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Companies then use IoT tools to improve OEE by discovering all these challenge areas, for example, low-volume, high complexity, discrete manufacturing set-ups, and turn them into favorable opportunities.
Key Trends in IoT Based Asset Management
IoT-based smart asset management is a step up from the traditional. It is what the traditional solutions did, plus a lot more. These new-age smart solutions transform workflows and processes into an integrated one, building a ‘single strategic system.’ It adds intelligence with real-time data analysis, alerts, dynamic edge control of assets, predictive maintenance, and real-time visibility, along with automated workflows. Here are some of the key trends in IoT based Asset Management:
  • Remote Asset Tracking: IoT uses cloud-based technology, helping employees to retrieve information on the various assets anytime, anywhere.
  • Asset Health/Condition Monitoring: Cost-efficient and proactive method to evaluate the various health indicators and associated risks, events, policy execution history, and recommendations for improved asset health.
  • Asset Lifecycle Management: Comprehensive record of asset portfolio optimizing the profit generated by the various assets throughout their lifecycle.
  • Asset Workflow Automation: Taking care of mundane and monotonous work to accelerate business processes, reduce errors, and increase team productivity through powerful automation capabilities.
  • Predictive Asset Maintenance Stay alert of your asset shutdowns and downtime by understanding the performance threshold and planning backup measures accordingly.
Trends in IoT Based Asset Management
Trends in IoT Based Asset Management

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The Need for IoT Based Asset Management
The IoT solutions empower businesses to establish a connection between human capital and assets through automated systems and process flows. It is a leg up to the overall work productivity, maintenance of regulatory compliance, risk mitigation, asset monitoring from anywhere, anytime, and on any device.
Likewise, IoT enables a centralized, cloud-based environment for automated collection, updating, and maintaining all data in one place rather than spread across multiple databases. The IoT-enabled tracking system allows concerned employees to access data at once, thereby bringing coherence within departments.
IoT-based solutions can assist companies to remain updated about all their assets, recovery and maintenance, problem areas, inventory stock, establish a replenishment system, effectively measure risk and compliance, and interpret asset use and condition.
Business entities will now have the time and capabilities to assess the quality, quantity, location of assets to improve work processes, reduce waste, and prevent sudden equipment failure to maintain a cost-efficient system.
Smart industrial IoT
IoT Asset Management Use Cases
Traditionally driven by innovation, the manufacturing industry is now undergoing the ‘Industry 4.0’ revolution. Disruptive technological growth in manufacturing, enhanced by modern sensors, robotics, drives, and actuators, has infused a revolution in the supply chain, transportation, communication, housing, energy, production, and asset management. Asset management is a prominent area to focus on influences the overall workflow and processes. In this light, let us look at a few use cases where IoT solutions help in improved asset management:
Enhancement of Overall Equipment Effectiveness (OEE)
OEE is one of the essential metrics to measure a plant’s efficiency. Failure or scheduled breakdown and maintenance weigh heavily on the equipment availability.
Plant maintenance becomes a priority to ensure availability and almost no downtime of manufacturing plants. Instead of scheduled and preventive maintenance, direct data collection from the equipment, historical data maintenance, and inputs from OEMs can now be predicted with the help of IoT-enabled solutions. Hence, predictive maintenance reduces 30% - 35% of maintenance costs for the manufacturing equipment and ensures increased availability of that equipment.
Proposing New Business Model for Service Business
IoT in manufacturing and asset management will change the proportion of product and services revenue mix from the recent 80:20 to 60:40. Prompt after-sales service and remote diagnosis during the equipment failure is the need of the hour to drive decision making and facilitate deployment of the right resources at the right time. These changes induce reduced downtime and decreased cost in areas of support, warranty & mobility.
Leveraging IoT technology and operational data metrics, manufacturers now can innovate outcome-enabled service models and ensure greater chances of equipment. Manufacturers can now offer models based on rentals instead of selling the entire product to the customers.
Besides, the asset management group can use the feedback from the quality assurance team for taking corrective measures in the subsequent product releases, thereby reducing the development and testing time.
Performance Management of Remote Assets
The operational cost of the asset reduces with the improvement in the uptime, utilization, and availability of the asset. IoT helps accomplish such a framework. IoT solutions are effective in asset tracing and tracking. It helps collect inputs around operational and health parameters of different sub-systems operating inside or around the asset.
With these additional data made available, one can achieve higher asset utilization and uptime through predictive maintenance and usage. Additionally, external parameters assist in the in-depth analysis of the patterns of use that drive strategic decisions like buying and renting these assets. This could open more opportunities for the equipment vendor.
IoT Asset Management Use Cases
IoT Asset Management Use Cases

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Benefits of IoT Based Asset Management
Empowering software stack with Industrial Internet of Things (IIoT) and applications for predictive analytics, 5G connectivity, artificial intelligence, machine learning, and edge computing prove valuable assets for manufacturers. However, for many manufacturing companies, technology selection is the easiest part, while value capture, use case identification, and scalability are the major challenging areas. Implementation of IoT could help streamline the entire asset management process, helping businesses to stay competitive. Here are some of the benefits for IoT based asset management:
Taking proactive measures
Instead of waiting for sudden breakdown followed by chaos, manufacturers and line managers could identify problem areas using predictive maintenance solutions.
Agile solutions boosting productivity
IoT-based asset monitoring provides real-time visibility into the asset utilization and insights into load distribution and operations cycle times that enhance productivity.
Enhance energy and cost-efficiency
Process of procurement to shop floor maintenance to supply chain and operations, quality assets induce improvement across the entire workflow.
Benefits of Building Connected Factories
Benefits of Building Connected Factories

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Real-life examples of IoT Based Asset Management
  • Reduced dependency on human power and step up device efficiency: IoT can automate the end-to-end process and continuously share asset status, health, and other parameters with the centralized system.
  • Optimized repair and replacement, increasing the asset’s lifecycle: Using predictive maintenance sensors to track data performance and prevent sudden machine failure.
  • Automate location data, geofencing solution, and GPS tracking for tracing assets: While on the move, tracking locations to identify and fix hidden losses and roadblocks.
  • Reporting automation and tracking of asset flow: Consistent and automatic tracking of the parts used to produce the assets.
  • Automatic update of warehouse inventory and stock: Staying alert on the inventory stocks and replenishment to avoid going out of stock at any given point in time.
Real-life examples of IoT Based Asset Management
Real-life examples of IoT Based Asset Management

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Metrics to Track the Efficacy Of Asset Management With IoT
  • Overall Equipment Effectiveness (OEE): OEE is the most common metric to track plant efficiency and is a part of every plant manager’s KPI. It identifies the percentage of highly productive manufacturing time within the entire process. By measuring OEE, manufacturers would gain significant insights on how to be at their productive best
  • Asset uptime and downtime: This is one of the most crucial metrics to reduce maintenance costs. The aim here is to study the data carefully to increase uptime, reduce downtime, thus, leading to optimal utilization.
  • Cost efficiency and Asset Optimization: Opex is reduced by preventive maintenance, and Capex is reduced by improving the lifecycle of the machine and better utilizing the assets.
IoT-based asset tracking enables effective and efficient asset management, which improves the organization’s operational efficiency. It also enables the innovation of business models for tracking asset performance across the asset lifecycle. It further helps organizations identify areas of improvement for cost optimization.
 
 
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