MAINTENANCE

4.0
IMPLEMENTATION
HANDBOOK
David Almagor, Deddy Lavid,
Avi Nowitz and Eitan Vesely

IoT
 MAINTENANCE 4.0
IMPLEMENTATION
HANDBOOK
David Almagor, Deddy Lavid (Ben lulu),
Avi Nowitz and Eitan Vesely
ISBN 978-1-941872-92-5
HF012020

© 2019-2020, Reliabilityweb, Inc.

All rights reserved.
Printed in the United States of America.

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do not necessarily reflect the views of the Publisher.

Publisher: Reliabilityweb, Inc.

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E-mail: [email protected]

10 9 8 7 6 5 4 3 2
TABLE OF CONTENTS
FOREWORD ....................................................................... vii
PREFACE ............................................................................ ix
INTRODUCTION................................................................ xi

CHAPTER 1
STRATEGY ............................................................................. 1
1.1 The Definition of Maintenance 4.0 ................................ 2
1.2 The Guiding Principles of a Maintenance 4.0 Strategy .. 5
1.3 Strategy Under Uncertainty Model................................ 8
1.4 Audit the Current State / Maintenance 3.0 and 4.0 ...... 12
1.5 Benchmark Research on Maintenance 4.0 Strategy ..... 18
1.6 The Future of Maintenance 4.0 ..................................... 19
1.7 Expert Practitioner Perspective ..................................... 22
1.8 Chapter Template ........................................................... 23

CHAPTER 2
PLANNING FOR MAINTENANCE 4.0 ................................. 25
2.1 Formalize Planning Processes ....................................... 26
2.2 Define SMART Goals...................................................... 31
2.3 Allocate Planning Resources ......................................... 33
2.4 Initiative Prioritization .................................................... 36
2.5 Maintenance 4.0 Roadmapping .................................... 39
2.6 Risk Planning .................................................................. 41
2.7 Benchmark Research on Maintenance 4.0 Planning .... 43
2.8 Chapter Templates ......................................................... 44

iii
TABLE OF CONTENTS

CHAPTER 3
SOLUTION SELECTION AND ROLLOUT ........................... 51
3.1 Requirements for Maintenance 4.0 ............................... 52
3.2 How to Conduct a Maintenance 4.0 PoC ...................... 59
3.3 Asset Prioritization ......................................................... 65
3.4 AI-Driven Industrial Analytics Options: Build or Buy .... 66
3.5 Integrating Maintenance 4.0 with Existing
Maintenance Practices ................................................... 69
3.6 Critical Success Factors for Rollout ............................... 77
3.7 Benchmark Research on Maintenance 4.0
Deployment Readiness .................................................. 78
3.8 Chapter Templates ......................................................... 79

CHAPTER 4
MEASUREMENT ................................................................ 81
4.1 Quantify the Financial Return of Maintenance 4.0
Using TCO ...................................................................... 82
4.2 Cost Savings from Lowering Wrench Time ................... 88
4.3 Cost Savings from Reduction in Preventive
Maintenance ................................................................... 90
4.4 Nonfinancial Considerations (Long Term) ..................... 96
4.5 Rationalizing Current Predictive Maintenance
Programs ........................................................................ 100
4.6 Total Maintenance Cost as a Percentage of
Replacement Asset Value .............................................. 100
4.7 Capturing the Value from Improved Uptime ................. 101
4.8 Benchmark Research on Measuring
Maintenance 4.0............................................................. 101
4.9 Expert Practitioner Perspective ..................................... 102
4.10 Chapter Templates ......................................................... 103

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 TABLE OF CONTENTS

CHAPTER 5
SCALING MAINTENANCE 4.0 ............................................... 107
5.1 Organizational Alignment .............................................. 109
5.2 Organizational Feedback Loops .................................... 111
5.3 Incorporate Automated Machine Learning
in Applications ................................................................ 113
5.4 Institute Data Governance ............................................. 115
5.5 Select a Flexible Industrial IoT Platform for
Maintenance 4.0............................................................. 116
5.6 Develop Vendor Ecosystem with Complementary
Technologies .................................................................. 118
5.7 How to Mitigate Employees’ Concerns ......................... 121
5.8 Benchmark Research on Scaling Maintenance 4.0 ....... 125
5.9 Expert Practitioner Perspective ..................................... 125

CHAPTER 6
OEM GUIDE TO MAINTENANCE 4.0 .................................. 127
6.1 Strategy .......................................................................... 128
6.2 People and Organization ............................................... 140
6.3 Process ........................................................................... 143
6.4 Technology ..................................................................... 148
6.5 Recommendations ......................................................... 148
6.6 Expert Practitioner Perspective ..................................... 152
6.7 Conclusion ...................................................................... 153

ABOUT THE AUTHORS .......................................................... 155

v
 APTER
CH

1
STRATEGY
So companies have to be very schizophrenic.
On one hand, they have to maintain continuity of strategy.
But they also have to be good at continuously improving.
~ Michael Porter, author and educator

T
here is no common definition of Maintenance 4.0 or Industry
4.0. Before considering solutions or engaging with external
vendors, senior management must define its strategic vision
for Maintenance 4.0. This vision must align with overall business goals.
When it comes to devising strategy, every organization has its own
preference. Whether you chose to rely on BOGSAT (bunch of guys/
gals sitting around a table) or to hire consultants, the results must be
the same: The strategy must be easy to understand and communicable
throughout the organization, and the results must be measurable.

1
CHAPTER 1

This chapter covers the following topics:

 The definition and guiding principles of Maintenance 4.0;
 The difference between Maintenance 3.0 and Maintenance 4.0;
 How to select the right Maintenance 4.0 approach for your
organization;
 Planning tools to define how your organization defines Mainte-
nance 4.0.

1.1 The Definition of Maintenance 4.0

Before diving into the details, let’s start with a definition of Mainte-
nance 4.0 that is broad enough to cover your industrial assets.
Maintenance 4.0 is the application of Industry 4.0 to operations
and maintenance (O&M) activities. The goal is simple: To maximize
production uptime by eliminating unplanned, reactive maintenance.
Let’s look at a simplistic depiction of common O&M work streams.
Figure 1-1 shows a graph depicting the activities that occur after an
industrial asset unexpectedly fails.

Figure 1-1: O&M work streams in Industry 3.0 vs Industry 4.0

2
 STRATEGY

Once the failure event occurs and is reported, a series of activities

occurs. First, repair crews are assigned and then travel to the worksite
where they receive repair instructions. Parts must be ordered and trans-
ported to the site.
Typically, root cause analysis (RCA) is performed and valuable time
expended on identifying it. Working under pressure to resume produc-
tion, work crews engage in trial and error activities to identify the cause
of the failure. After repairs and an inspection, production resumes.
Maintenance 4.0 brings artificial intelligence (AI) and machine
learning (ML) to the production line. Instead of waiting for the equip-
ment to fail, sophisticated algorithms are applied to big data from
embedded sensors in the equipment. The algorithms are trained to
identify correlated patterns of anomalous machine behavior and warn
of evolving machine failure.

Figure 1-2: Core elements of Maintenance 4.0 (Source: Presenso)

3
CHAPTER 1

DECLINING COST IN STORAGE, BANDWIDTH AND COMPUTING

$1,245 per Gbps

$569 per GB
Cost of Performance

Bandwidth
<$10
Storage
$222 per million <$0.01
transistors
Computing
<0.06

1991 Today

Figure 1-3: Cost comparison for storage, bandwidth and computing from
1991 to 2019 (Source: Deloitte Consulting)

Within Maintenance 4.0, AI-driven industrial analytics is the game

changer.
Until recently, machine learning was a study confined mostly to
academia. A confluence of multiple factors has lowered the cost of
data transportation, bandwidth, storage and analysis. For example, data
storage has fallen from five hundred and sixty-nine dollars per gigabyte
in the early 1990s to less than one cent today.

Figure 1-4: Detection of evolving failures using machine learning

(Source: Presenso)

4
 STRATEGY

Figure 1-5: Reactive maintenance processes (Source: Presenso)

As a result of the cost decline, machine learning can now be applied

to vast amounts of sensor-generated big data that can be analyzed in
real time.
The first component of Maintenance 4.0 is that while the failure is
evolving, repairs can be scheduled and parts ordered. Tracing the failure
to the original root cause eliminates guesswork and trial and error.
With Maintenance 4.0, machine uptime can be maintained while
all non-repair activities are executed.
The second component of Maintenance 4.0 is the adoption of a com-
puterized maintenance management system (CMMS) and automated
workflows. Although a CMMS is not new, until now, its implementa-
tion has not been considered of strategic importance.
The third element of Maintenance 4.0 is the use of robotics and
drones for inspections and repair activities.
In 2018, research was conducted to gain insight into industrial
plants’ plans for the adoption of Maintenance 4.0. Figure 1-6 shows
the results of that study.

1.2 The Guiding Principles of a Maintenance 4.0

Strategy
It is not uncommon for organizations to struggle with many issues
related to implementation. With the hype around digitalization at

5
CHAPTER 1

FUTURE ADOPTION OF MAINTENANCE 4.0 TECHNOLOGIES

To what extent will these maintenance solutions be adopted

in the next five years (five-point scale)?

Accelerated adoption of CMMS & automated workflows

Automated Failure Automated Repair Automated Tool and Parts

Reporting Scheduling Inventory Management

Delayed adoption of drone & robotics maintenance activities

Machine Learning for Drone and Robotics Robotics

Predictive Analytics Assisted Inspection Assisted Repair

Figure 1-6: Survey results regarding industrial plants’ plans for Maintenance
4.0 (Source: Emory University and Presenso)

fever pitch, it is easy to become overwhelmed by the multitude of

options available in the marketplace. But the strongest contributing
factor to implementation challenges is a failure to devise a strategy for
an extensive period of uncertainty.
Formulating a Maintenance 4.0 strategy is not easy. An aggressive
strategy based on overinvesting in unproven technologies or a con-
servative strategy of waiting on the sidelines for absolute certainty are
both unrealistic options.
Rather, the seven guiding principles for a Maintenance 4.0 strategic
plan are:

1. Investments Based on Business Case: The primary obligation to

shareholders does not change just because of the changes occur-
ring within the manufacturing arena. What does this mean from

6
 STRATEGY

a practical perspective? Strategic choices require due diligence and

investments must be made based on expected returns to the busi-
ness. If you cannot justify the investment to your shareholders, it
should not be made.
2. Incrementalism: Adopting Maintenance 4.0 does not mean elim-
inating existing maintenance processes and technologies. Yes, there
are legacy systems that are no longer effective, but the default should
be to adopt existing practices. In fact, it is most likely that part of your
organization already implements certain so-called Maintenance 4.0
practices. Big bets on new, still evolving solution categories should
be minimized.
3. Upgrade Existing Maintenance Practices: In support of incremen-
talism, industrial plants should evaluate maintenance best practices
that can be adopted in parallel to Maintenance 4.0.
4. Adaptability: The fast pace of innovation has significant implica-
tions for industrial plants adopting a new strategy. Will a solutions
breakthrough that occurs in 2020 be redundant by 2025? An accel-
erated speed of change is the new normal and companies must
adjust their mind-sets and identify opportunistic ways to incorpo-
rate new Maintenance 4.0 solutions while minimizing disruptions
to operations.
5. Data as an Asset: Big data is the oxygen of Maintenance 4.0.
Although vast amounts of data are generated by sensors embedded
within industrial machinery, most of the data is not yet used today.
A guiding principle for a Maintenance 4.0 strategy is that data
governance practices must be instituted and the underlying value
of operational data should be captured.
6. O&M Collaboration: Successful implementation of Maintenance
4.0 cannot happen unless the views of plant-level employees are
considered as part of the requirements process. Without allocating
resources to training and onboarding, Maintenance 4.0 will be stuck
in the planning phase.

7
CHAPTER 1

7. Share Risk with External Vendors: Industrial players are unable

to keep up with the rapid pace of change. Fortunately, OEMs and
other service providers are finding ways to address market opportu-
nities and overcome challenges to their own underlying businesses.
Industrial plants should spend the time understanding the strate-
gic roadmap of their most important OEM suppliers and consider
mutually beneficial ways to align investments and plans.

PRACTITIONERS’ WARNING:
THE BIGGEST STRATEGIC MISTAKE TO AVOID
In Understanding Michael Porter: The Essential Guide to
Competition and Strategy by Joan Magretta, Michael Porter
argues that the lack of a strategy is the biggest strategic mistake

X
an organization can make.
Our definition of Maintenance 4.0 is a starting point, but not a
substitute for the heavy lifting of defining a Maintenance 4.0
strategy for your organization. Of equal importance is how to
fit this Maintenance 4.0 strategy into existing processes.

1.3 Strategy Under Uncertainty Model

In this section, the S curve of technology innovation model is applied to
the Maintenance 4.0 strategy. The S curve refers to the stages of a new
technology’s performance as it matures. In the first phase, it evolves
slowly. However, after a breakthrough occurs, performance improves
rapidly. In the third phase, the pace of performance improvement
declines. Finally, as the technology matures, additional performance
is difficult to achieve.
It should be noted that the S curve is not an exact model and not
all technologies follow the curve. Given the pace of innovation, even if
Maintenance 4.0 follows the S curve, there is no way of knowing the
duration of Rapid Improvement 4.0 (Stage 2). In fact, one can look
back at this period as merely the beginning of emergence. This can
be attributed to the existence of new areas of innovation in the data
science discipline, specifically automated machine learning (AutoML).

8
 STRATEGY

Performance Characteristics Stage 1 Stage 2 Stage 3 Stage 4

Rapid Declining
Emergence Improvement Improvement Maturity

Time

Figure 1-7: The S curve of technology evolution

A Harvard Business Review article titled, “Strategy Under Uncer-

tainty,” published in the November-December 1997 issue, can be
applied to industrial plants adopting Maintenance 4.0 practices.

Three strategic postures can be adopted:

1. Shape the Future – Shapers are organizations that drive their industry
toward new structures.

Shape the Future Adapt the Future Reserve the Right to Play

Figure 1-8: Strategic postures adapted from the Harvard Business Review
article, “Strategy Under Uncertainty”

9
CHAPTER 1

2. Adapt to the Future – Adapters choose where and how to compete

within the given structure.
3. Reserve the Right to Play – Organizations invest incrementally to
“stay in the game” without committing to new strategies.

How is this relevant for Maintenance 4.0? With Maintenance 4.0

in its infancy, industrial plants may be tempted to wait on the sidelines
until the solution winners and losers can be easily identified. This is a
bad idea. The average industrial plant misses seventeen days in pro-
duction every year, costing billions of dollars in lost revenue. If the cost
of downtime for one minute of production in the automotive industry
can reach fifty thousand dollars, the risk of not pursuing Maintenance
4.0 is far greater than the risk of waiting.
Let’s review each approach separately.
With “reserve the right to play,” industrial players build intelligence
around new solution offerings without altering current practices.
Although this option seems to be the safest approach, it may be the
riskiest. Plants that wait and expect to catch up at a later date may miss
the financial and competitive advantages of adopting Maintenance 4.0.
Sometimes, strategic patience is a virtue; other times, it is a mistake.
Similarly, there is an obvious downside for industrial plants that
pursue “shape the future.” Industrial plants that have built their own
internal machine learning capabilities fit into this category. It requires
significant investment in recruiting big data scientists and building
out Maintenance 4.0 competencies. At the same time, the level of
investment and risk may not justify the potential reward, especially
because newer solutions may provide the same value at a lower cost.
“Adapting to the future” is the middle path for industrial plants.
These organizations recognize the uncertainty associated with disrup-
tive technologies and position themselves to react when opportunities
emerge.

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 STRATEGY

DISCUSSION TOPIC:
Where Does Your Organization Fit In?
Where does your organization view its Maintenance 4.0 strategy within the
S curve continuum? Does it have the resources for “shape the future?” Can it
wait for “reserve the right to play?”

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CHAPTER 1

1.4 Audit the Current State / Maintenance

3.0 and 4.0
For starters, ignore the marketing collateral from Industrial IoT ven-
dors. Only in a make-believe world will Maintenance 4.0 replace
Maintenance 3.0 practices overnight. Significant investments have
been made in current systems and tools. Most importantly, O&M
employees are already trained on processes that are delivering results.

TABLE 1.1 – CURRENT MAINTENANCE SOLUTIONS

Category Definition Solution Highlights
Acoustic Ultrasonic sensors detect • Sensor is wireless and can
Monitoring sound related to behavioral detect ultrasounds that
anomalies. The solution humans cannot perceive
can process multiple, (up to 100 kHz)
simultaneous acoustic
• Can compute multiple
streams and compare
concurrent sounds
them to previously labeled
sounds. This is done to
predict upcoming failure.
Vibration The system uses sensors to • Combination of vibration/
Monitoring detect vibrations, compares sound data and expert
the sensor data to previous knowledge for thorough
vibration patterns, and analytics
identifies unusual vibration
• Real-time analysis with
patterns as potential
automated alerts
anomalies. Algorithms are
developed by vibration • Interface with live status of
analysts, machine diagnostic monitored devices displayed
expert developers and
big data experts to detect
changes indicative of
upcoming failure.

12
 STRATEGY

TABLE 1.1 – CURRENT MAINTENANCE SOLUTIONS [CONTINUED]

Category Definition Solution Highlights
Network The solution “listens” to • Rapid connection to existing
Listeners the plant’s machine to systems with no disruption
machine (M2M) network, of production
more specifically, to M2M
• Factory-wide visibility
communications using
network hubs. It detects all
anomalies and gives plant
managers the opportunity
to react before failure
or to identify the origin
of each machine failure.
This technology works
autonomously. Once installed,
it functions independently
of human intervention or
customization.
Thermal The thermal imager • Does not disrupt production,
Imaging captures an object’s entire as thermal imaging is
temperature profile as a measured from a distance
two-dimensional image. that does not affect the
The thermal image can then machine’s actual state
be compared to a baseline
thermal image of a healthy
machine for detection of
an anomaly. This allows
technicians to predict an
upcoming failure.
AI-Driven Advanced algorithms • No need for manual
Industrial analyze data generated intervention or installation of
Analytics from sensors embedded in additional hardware within
industrial assets. Emerging the industrial plant
signs of failure are identified
through the detection
of anomalous machine
behavior.

13
CHAPTER 1

TABLE 1.1 – CURRENT MAINTENANCE SOLUTIONS [CONTINUED]

Category Definition Solution Highlights
Digital The virtual clone of a piece • Data is extracted from the
Twin of machinery, it collects servers in all parts of the
data from the whole asset, asset and is transmitted to
including all the parts, the digital twin
components and systems,
• A cloud-based infrastructure
to create a simulated
and platform is used
clone. The collected data
is filtered based on the
requirements for analysis.
To complete the analysis,
it may be combined with
other sources of data,
such as the weather or
the humidity level. This
exact representation of an
asset on a virtual platform
enables simulations to
determine the best way to
optimize the use of assets,
predicts upcoming asset
failure and provides visibility
of the current asset’s health
status.

Maintenance 4.0 needs to fit into existing O&M processes. In some

cases, elements of Maintenance 4.0 may already exist within the orga-
nization. Before you evaluate new solutions, it is important to audit
existing solutions to determine where they fit.

14
 STRATEGY

EXERCISE #1: Use the Maintenance Audit template to list the cur-
rent maintenance practices within your organization and identify the
owner(s) of the different solutions.
MAINTENANCE AUDIT TEMPLATE
Solution What is the current state Who within the
of this solution within organization is
your organization (e.g., responsible for
nonexistent, defined, the solution?
planned, partially deployed,
mostly deployed)?

Acoustic Monitoring

Vibration Monitoring

Network Listeners

Thermal Imaging

Digital Twin

AI-Driven Industrial
Analytics

Automated Failure
Reporting

Automated Repair
Scheduling

Automated Tools
& Parts Inventory
Management

Robotics Assisted
Repairs

Drone & Robotics

Inspection

15
CHAPTER 1

EXERCISE #2: Use what you filled out in the Maintenance Audit to
complete the Maintenance 4.0 Audit Worksheet on the current state
of each element of Maintenance 4.0. What are the implementation
goals in three and five years? Figure 1-9 is an example of a completed
worksheet. A blank template is provided in Section 1.8.

MAINTENANCE 4.0 AUDIT WORKSHEET

Category Nonexistent Defined Planned Partially Mostly
Deployed Deployed
Machine Learning
Predictive Maintenance
Automated Failure
Reporting
Automated Repair
Scheduling
Automated Tools & Parts
Inventory Management
Robotics Assisted
Repairs
Robotics and Drone
Assisted Inspections

Digital Twin

Current State 2 Year Plan 3 Year Plan

Figure 1-9: An example of a completed Maintenance 4.0 audit worksheet

16
 STRATEGY

FOCUS TOPIC: Where Does Your Current CMMS

Fit Into Maintenance 4.0?
Computerized maintenance management systems contain detailed
operational information, including asset performance data and work
order management. Given the disruptive nature of Industry 4.0, does a
CMMS that dates back to the mid-1990s belong in the smart factory
of the future?
Ideally, a CMMS contains root cause analysis (RCA), including
failed component, component problem and cause code. In many cases,
it is not possible to extract consistent RCA data from the CMMS.
These are challenges that are typically identified:

• The CMMS often competes with other tools. Very often, RCA
data is stored by technicians in a spreadsheet, but is not inputted
into the CMMS.
• When RCA data is inputted, it is often mislabeled. Mandatory
fields are used inconsistently and business rules are not applied.
We have seen anything ranging from a two word cryptic code to a
mini encyclopedia. Neither of these can be used systemically.
• RCA data within the CMMS is not considered accurate and, there-
fore, is not used operationally.

The result is that valuable information that can be used to predict

the likelihood of machine failure is wasted. Not surprisingly, the cul-
prits are obvious – either there are no consistent processes and rules
for inputting RCA data or O&M employees are not trained on them.
Even without an industrial analytics solution, existing computerized
maintenance management systems are simply not being used optimally.
The remedy is not technical and does not require an investment in new
software. First, the problem will not be addressed until the importance
of RCA is understood and prioritized by plant management. Second,
O&M employees need to understand the benefit of inputting RCA

17
CHAPTER 1

information: how learning from one failure can be applied broadly

with the plant(s) and improve overall equipment effectiveness (OEE).
Finally, change does not happen without formalizing the process, job
performance metrics and ongoing training.
Ironically, the most forward-thinking industrial plants apply a
completely nontechnical approach to RCA by relying on human
intelligence. This includes interviewing repair crews, photographing
damages, reviewing previous incident reports and performing physical
assessments, including raw materials analysis. Although this level of
inquiry is not always necessary or feasible, its application is indicative
of a culture that prioritizes a systematic understanding of RCA.
Without advocating a specific CMMS solution, those industrial
plants with legacy computerized maintenance management systems
that are decades old may wish to update them in parallel to other solu-
tion upgrades. Without advocating for or against upgrading a plant’s
CMMS, there are best practices that can be implemented today that
are independent of the Maintenance 4.0 adoption.

PRACTITIONERS’ WARNING

Don’t Allow Vendors to Frame the Strategic Vision

Because industrial plants lack experience with Industry
4.0, the temptation may arise to rely on large vendors’

X expertise. This is a mistake. A strategy should be developed

independently of outside influence, especially that of third
parties whose agendas (and incentives) do not align with
those of the plant.

1.5 Benchmark Research on Maintenance 4.0

Strategy
With all the hype associated with Maintenance 4.0, it is understandable
that some organizations are concerned that they are lagging their com-
petitors. But don’t panic. When asked about whether industrial plants
have clearly communicated Maintenance 4.0 strategies, forty-three
percent of O&M employees surveyed claim their organization has no

18
 STRATEGY

formal Maintenance 4.0 strategy. Although they may not be personally

aware of the strategy, this is a significant percentage. Furthermore, thir-
ty-seven percent state that senior management has devised a strategy,
but has not articulated it.

Which of the following statements reflects the Maintenance 4.0 strategy

within the industrial plant in which you are most familiar?

To the best of my knowledge, there is no formal

Maintenance 4.0 strategy
11%
9% Senior management has developed a strategy, but it
has not been clearly articulated
43%
A Maintenance 4.0 strategy has been communicated
throughout the organization, but there is NO
37% employee buy-in

A Maintenance 4.0 strategy has been communicated

throughout the organization and there IS employee
buy-in

Figure 1-10: O&M survey responses on maturity of Maintenance 4.0 strategy

(Source: Emory University and Presenso)

What does this indicate? It can be argued that Maintenance 4.0

is still in its infancy and that most O&M professionals are either
unaware of the strategy or do not believe it has been communicated
to the organization. The good news is that other industrial plants are
figuring this out at the same time.

1.6 The Future of Maintenance 4.0

…There are known knowns. These are things we know

we know. We also know there are known unknowns; that
is to say, we know there are some things we do not know.
But there are also unknown unknowns – the ones
we don’t know we don’t know.
~ Donald Rumsfeld, former U.S. Secretary of Defense

19
CHAPTER 1

How do you adopt Maintenance 4.0 when there are so many moving
parts? For instance, although 3-D printing of spare parts is still in the
beginning phase, do you incorporate this into your planning?
This handbook references current practices in Maintenance 4.0, but
let’s consider for a bit the direction it is heading.
First, let’s consider trends in data science. The future of Maintenance
4.0 will track innovations in artificial intelligence (AI) and how it is
applied to root cause analysis. Access to big data relating to machine
failure will deepen organizations’ understanding of the underlying
contributing failure factors, which will further improve the ability to
remediate failure proactively – even before evolving failure. The next
wave of Maintenance 4.0 is a prescriptive model based on a coalescence
of AI and automated repair processes.
Second, OEMs will most likely assume some of the maintenance
responsibilities currently performed by O&M groups. This is not a
new concept. Rolls-Royce adopted the Power-by-the Hour™ service
agreement model in the 1960s. The model is based on charging a fixed
hourly rate for jet engines without the need to purchase the engine
itself.
This model is increasingly referred to as hardware-as-a-service
(HaaS). More OEMs will seize the opportunity to analyze the big data
generated by the sensors embedded in the industrial equipment they
manufacture. By applying machine learning to this data, an OEM can
monitor its industrial equipment remotely and dispatch technicians to
fix evolving failure before occurrence.
Although HaaS is still in its infancy, research indicates a growing
recognition that OEMs will likely adopt a service model.

20
 STRATEGY

OEMs will monitor the data from

embedded sensors 7.0

OEMs will take responsibility for

6.2
predictive analytics

OEMs will lease equipment to industrial

5.6
plants instead of selling it

OEMs will perform maintenance

roles currently performed by plants’ 5.3
O&M employees

Figure 1-11: Research results on the impact OEMs will have on digitalization
(Source: Emory University and Presenso)

No manufacturer can survive the Industry 4.0 tsunami with

a business as usual mentality. Big data is more than the new
oil of the twenty-first century. For OEMs, it is the gateway to
long-term, sustainable growth.

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CHAPTER 1

1.7 Expert Practitioner Perspective

For this handbook, we asked a seasoned industry practitioner to share
his insights into Maintenance 4.0 maturity. The questions we posed
to him:
To what extent has Maintenance 4.0 become an integral part of
the strategy of the industrial plants with which you are familiar? How
are plants integrating Maintenance 4.0 into their overall strategy?

Here are his responses:

Jack R. Nicholas, Jr., P.E., CMRP, CRL, IAMC: “Current literature

on big data, advanced analytics, cloud computing technology, and
related subjects spells out the need for the merger of OT [operational
technology] and IT [information technology], tying the mill deck
to the boardroom. While this is desirable in many ways, it often
requires a significant change in culture in organizations with a large,
if not dominant, IT influence on digital transition. Many C-level
executives (if not all by this time) are scared to death of a career
ending data breach.
“Cybersecurity in most companies is assigned to IT personnel as a
collateral duty and may be based on just a week or two of training –
totally inadequate in today’s cyberspace climate. While methodologies,
such as reliability-centered maintenance and total productive main-
tenance have been around for decades, they still haven’t been adopted
to the degree needed for personnel in plants to have a firm knowledge
of failure modes being experienced and to link them to data needed to
provide advance warning of onset at stages where economic mitigation
can be planned and executed in an orderly fashion. Thus, there is no
way for them to justify the adoption of AI-driven industrial analytics.”

22
 STRATEGY

1.8 Chapter Template

As referenced in Section 1.4, you can copy this Maintenance 4.0 Audit
Worksheet template and use it for conducting your own audit.

MAINTENANCE 4.0 AUDIT WORKSHEET

Category Nonexistent Defined Planned Partially Mostly
Deployed Deployed
Machine Learning
Predictive Maintenance

Automated Failure
Reporting

Automated Repair
Scheduling

Automated Tools & Parts

Inventory Management

Robotics Assisted
Repairs
Robotics and Drone
Assisted Inspections

Digital Twin

Current State 2 Year Plan 3 Year Plan

23
CHAPTER 1

Chapter Quiz
Please answer the following questions before moving on to the next
chapter.

 What are the key differences between Maintenance 3.0 and 4.0?
 How does the S curve apply to your strategy?
 Can you define the future state of Maintenance 4.0 for your
organization?

24
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s the industrial world embarks on a path toward Maintenance 4.0 –
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