The smart services connection

Magazine Article, Source : The Manufacturer US
Zone : Operations and maintenance

Combine intelligent products, innovative technology, and the opportunity to get closer to your customer. Rich Weissman looks at the concept of smart services

Mike Bakalyar is passionate when he discusses the cost of ownership of a standard industry air compressor. “Over the 10-year life of the standard shop floor air compressor, electric costs can reach more than a $500,000 at five cents per kilowatt-hour, and over $1,000,000 at a dime,” says Bakalyar, manager of enhanced services for the compressor division of Quincy, IL–based Gardner Denver. “The cost of operating an air compressor improperly, using it in the wrong application, or not paying attention to service can really add up quickly.”

Bakalyar knows the compressor business inside and out, but he is often at a disadvantage when the compressor leaves the Gardner Denver factory en route to one of its manufacturing, food processing, or pulp and paper customers. “We build a great compressor, but once it leaves our dock we’re never quite sure if it is used efficiently or not.” That was until Gardner Denver added some onboard intelligence to its compressors to allow it to stay in touch with its equipment, either around the block or around the world.

“There is a growing awareness that compressed air, also known as the fourth utility, can be terribly inefficient, and we want to make sure that customers are making the most of their compressors by running them properly,” says Bakalyar. “By monitoring the equipment with system management tools, we can often spot problems before they occur and tip off customers of an impending issue that might cause some unplanned downtime, or let them know their operating costs are out of kilter.” Bakalyar adds that onboard intelligence can also track maintenance schedules, examine temperature and oil pressure, and even remotely examine filter efficiency. “The system can also send emails to the maintenance engineer, the service center, and even Gardner Denver if a problem develops.”

But above all, these smart services keep Bakalyar and Gardner Denver’s authorized distributors engaged with customers far longer than in the past. “Smart services allow us to provide a level of value-added services to our customers while keeping us very much in the mix,” says Bakalyar. “Not all our customers want the services, but those that are serious about equipment optimization certainly do, which is a win for us and the customer.”

The concept of networked assets and machine-to-machine communication is not new, but it has taken on renewed life with the advent of cellular and Web-based technology. “We’ve seen what was once called M2M, or machine-to-machine communication, evolve to the concept of smart services, a networked process,” says Steve Pazol, vice president and general manager of Chicago-based solutions provider nPhase, a Qualcomm business. “We work to keep product manufacturers connected to their assets.” Gardner Denver, which uses nPhase as its smart services provider, monitors the functionality of its air compressors on the Web.

The foundation for the nPhase smart service offering is in wireless technology, providing the ability to collect data remotely from products and turn it into valuable information for both the customer and the OEM. “Our smart services approach allows for a virtual onsite presence of round-the-clock knowledge experts and access to critical information of any product from anywhere,” says Pazol. “We can also establish corporate dashboards for key performance indicators.” He adds that smart service solutions can be designed in during the manufacturing process or retrofitted in the field. Retrofits create the opportunity to network existing equipment, immediately gaining benefit from a larger population. It also provides access to equipment that may have fallen off service contracts.

Pazol looks at smart services both as a differentiator and as an opportunity for companies to make money through extended services. “There is a growing commoditization in the industrial market, and companies are looking for opportunities to make additional revenue in the service segment of their businesses,” he says. “Staying connected to their equipment at the customer’s site is one way to build revenue for the manufacturer. I call it continual involvement.”

Another smart services benefit described by Pazol is the opportunity for data mining and information gathering, which contribute to improved product development. Gardner Denver uses performance data in a continuous feedback loop that finds its way into equipment improvement and also new product development. “It’s important to see how products are being used in the field, to determine not only how efficiently a piece of equipment is running but also what features and benefits are being used,” says Pazol. “Smart services open a window into how the customer uses the equipment on a real-time basis.”

Pazol also sees the need for better service. “There is a trend toward aftermarket services that may not be in the best interests of the customer,” he says. “Many of the aftermarket services out there are reactive rather than proactive because they don’t have visibility to the product.” He adds that the OEM knows its equipment better than anyone, and smart services can be a benefit to both the manufacturer and the customer. “One side can save money through improved equipment efficiency, and one can make money through increased service revenue.”

Steve Pazol and Mike Bakalyar will take your questions about smart services at The Manufacturer LIVE, www.themanufacturer.com/us/live

Comments on this story

click here to add a comment

Loading