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ASSET MANAGEMENT


CHOOSE A HOLISTIC APPROACH OVER ‘RIP & REPLACE’


David Pownall, VP of Services at Schneider Electric, describes three ways asset modernisation is preferable to ‘rip and replace’ culture


assets; they often do not take advantage of all available repair possibilities. Understandably, this is because there are a variety of priorities to consider when deciding whether to repair or replace. From reducing downtime and costs for the


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organisation to ensuring compliance with sustainability and carbon reduction targets, managers are often left to figure out how to augment the investments that have already been made. By not taking all opportunities to repair, businesses may find themselves wasting operational costs as a result of not fixing when possible, as well as missing an opportunity for sustainability through the circular economy. When critical assets are on the line, what


approach can facilities professionals take to ensure they maximise cost, efficiency, sustainability and long-term resilience? Here we explore how rip and replace culture is being challenged and what steps to take to maximise assets now, and in the future. 1 - Paint the full picture; from reactive repair


to proactive modernisation It starts with a full asset assessment,


tracking assets down to serial number level, identifying repairable assets. That way, any failures inside the warranty period can be recovered. Don’t underestimate the scale of losses due to unrecovered warranties. Using the latest Asset Performance


Management tools, it is now easy to track and assess the equipment's lifecycle and proactively monitor what is coming to the end and what is already obsolete. With a 24/7 view of assets, this smart snapshot is constantly updated with the latest lifecycle information when it becomes available. Furthermore, with cloud-based monitoring services, critical assets are monitored and analysed 24/7 by a dedicated team of professionals. With a complete picture of the current state


of assets, it is easier to approach broader modernisation strategies. For example, the explosion of connected data is leading to increases in energy consumption, placing a


48 NOVEMBER 2022 | PROCESS & CONTROL


acilities managers recognise the importance of maintenance of the ‘rip and replace’ strategy for old or faulty


Many customers looking to ‘lean up’ their maintenance operations are turning to eternal experts to help drive down costs and make sustainability gains


greater burden on electrical distribution substations. As a result, many facility managers are seeking ways to modernise power systems and accelerate automation assets, calling on professional experts to aid this journey. Having audited the existing electrical distribution network, the experts offer recommendations for appropriate modernisation, alongside an adaptive maintenance plan. This insight answers whether refurbishment, retrofit, or replacement – or a combination – makes the most business sense. Combining the power of data and analytics,


24/7 remote monitoring and power system expertise through modern asset management, makes it possible to avoid costly ‘rip and replace’. Failure can be predicted and necessary action taken to avoid the asset failure by transforming data into intelligence. These gains can be made in business resiliency by anticipating risk and reducing downtime by performing maintenance only when needed. 2 - Total cost considerations; beyond new


vs repair So, “What’s the consequence of the asset


failing?”. The consequence in terms of cost of repair versus new is not always clear cut and requires analysis beyond the upfront costs. Always compare the cost of repair and buying new; don’t assume repair is the lowest cost option. It is wise to set a reasonable threshold for repair vs buying new. Typically, this would be around the 60-70% mark. With today’s sustainability imperative and


an expanding focus on circular economy principles, it is crucial to evaluate this decision in line with sustainability targets. It is worth considering increasing the cost of repair limit to 70-80% of the new. Additionally, tracking


carbon savings contributes to sustainability goals and Net Zero targets. And, with the current supply-chain


challenges, it has never been more important to repair rather than buy new. As a total consideration, the cost of new


compared to repair can be complicated. Consider working with a wider team of experts to explore assets holistically and understand how to utilise the latest connected technologies to drive down costs and improve asset reliability, alongside audit and broader monitoring and modernisation. 3 - ‘Like-new’ remanufacture As the Ellen MacArthur Foundation describes:


“in a circular economy, growth comes from 'within', by increasing the value derived from existing economic structures, products, and materials.” Embracing asset remanufacture instead of


basic repair falls squarely within this description. Remanufacturing goes beyond a repair by not just replacing the faulty component but restoring it to its original condition: ‘Remanufacturing is a form of a product recovery process that differs from other recovery processes in its completeness: a remanufactured asset should match the same customer expectation as new.’ Along with high-quality repair and exchange


services, it is also possible to use this as an opportunity to receive detailed reports to help minimise the risk of reoccurring failures while extending the lifecycle of critical assets and reducing the carbon footprint associated with buying new. Another key benefit is that warranties are often longer on remanufactured parts, providing further assurance and protection.


Schneider Electric www.se.com


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