Financial Analysis of Condition Monitoring Programme

Cost benefit analysis of a 12 month condition monitoring programme in a Pharmaceutical plant based in Ireland experiencing high levels of unexpected downtime

Outline of Condition Monitoring Programme & Savings

Site description:

15 years old Pharmaceutical plant based in Ireland

  • High levels of unexpected downtime
  • Two-week Summer shutdown period in place
  • Regular PM schedules being carried out.

Condition Monitoring Programme:

  • Monthly vibration analysis - Covering 270 assets
  • Quarterly mechanical thermography - Covering 120 assets
  • Bi-annual electrical thermography - Covering 180 panels

Total Annual costs

€45,500

Potential Cost Savings* from Condition Monitoring Programme:

€236,500

Unforeseen downtime savings: €205,000
Maintenance cost savings: €31,500
Savings from reduction in requirement for time-based overhauls: €€€€€€€

Fault Number 1

Air intake fanMachine type: Air Intake Fan
Inspection method: Vibration analysis
Frequency of inspection: Monthly
Fault detected: Motor Drive Bearing Wear
Timeline:

  • First signs of wear reported in May 2015
  • Monitored monthly for a further 2 months
  • Motor drive bearing replaced in July 2015

Repair savings based on planned versus emergency repair:

€9,000, comprised of:

  • Inventory cost savings: No secondary damage to the motor or fan
  • Labour cost savings: No emergency repair crews required

Downtime saved: 10 hours unexpected downtime
Downtime cost per hour: €5,000 per hour
Downtime savings: €50,000
Total potential savings: €59,000

Fault number 2

Refrigeration compressorMachine type: Refrigeration compressor
Inspection method: Vibration analysis
Frequency of inspection: Monthly
Fault detected: Compressor Drive Bearing Wear
Timeline:

  • First signs of wear reported in Aug 2015
  • Monitored monthly for a further 3 months
  • Compressor overhauled and bearing replaced in Dec 2015

Repair savings based on planned versus emergency repair:

€12,000, comprised of:

  • Inventory cost savings: No secondary damage to the compressor or motor
  • Labour cost savings: No emergency repair crews required

Downtime saved: 16 hours unexpected downtime
Downtime cost per hour: €5,000 per hour
Downtime savings: €80,000
Total potential savings: €92,000

Fault Number 3

Electrical Control Panel

Machine type: Electrical Control Panel for Filtration Unit
Inspection method: Thermography
Frequency of inspection: Bi-annual
Fault detected: Overheating contactor connections (>100°C)
Timeline:

  • Excessive heat detected in April 2015
  • Contactor and cables replaced in May 2015

Repair savings based on planned versus emergency repair:

€2,000, comprised of:

  • Inventory cost savings: No secondary damage to any other components in the panel
  • Labour cost savings: No overtime labour required

Downtime saved: 3 hours unexpected downtime
Downtime cost per hour: €5,000 per hour
Downtime savings: €15,000
Total potential savings: €17,000

Fault number 4

Machine type: Motor Belts for Cooling Tower Fan 
Inspection method: Thermography
Frequency of inspection: Quarterly
Fault detected: Misaligned belts / pulleys
Timeline:

  • Excessive heat detected in Feb 2015
  • Belts replaced and pulleys aligned in Mar 2015

Repair savings based on planned versus emergency repair:

€1,500, comprised of:

  • Inventory cost savings: No secondary damage to any other machine components
  • Labour cost savings: No overtime labour required

Downtime saved: 3 hours unexpected downtime
Downtime cost per hour: €5,000 per hour
Downtime savings: €15,000
Total potential savings: €16,500

Fault number 5

Jacket cooling pumpMachine type: Jacket cooling pump
Inspection method: Vibration analysis
Frequency of inspection: Monthly
Fault detected: Coupling Wear
Timeline:

  • First signs of wear reported in Feb 2015
  • Monitored monthly for a further 5 months
  • Coupling replaced in July 2015

Repair savings based on planned versus emergency repair:

€2,000, comprised of:

  • Inventory cost savings: No secondary damage to the pump or motor
  • Labour cost savings: No emergency repair crews required

Downtime saved: 4 hours unexpected downtime
Downtime cost per hour: €5,000 per hour
Downtime savings: €20,000
Total potential savings: €22,000

Fault number 6

Panel for ReactorMachine type: MCC Panel for Reactor
Inspection method: Thermography
Frequency of inspection: Bi-annual
Fault detected: ‘T’ phase connection overheating on contactor
Timeline:

  • Excessive heat detected in Nov 2015 (Burn marks evident)
  • Contactor and cables replaced in Dec 2015

Repair savings based on planned versus emergency repair:

€5,000, comprised of:

  • Inventory cost savings: No secondary damage to any other components in the panel
  • Labour cost savings: No overtime labour required

Downtime saved: 

  • 5 hours unexpected downtime
  • Potential fire averted

Downtime cost per hour: €5,000 per hour
Downtime savings: €25,000
Total potential savings: €30,000