Predictive Maintenance ROI

Step 1: Identify and quantify the benefits of the system.  

To calculate the benefits, consider the positive impacts of implementing a predictive maintenance system (PdM) which may include:

• Reduced unplanned downtime: PdM helps identify potential equipment failures before they occur, allowing for scheduled maintenance and minimizing costly unexpected shutdowns.
• Quantify this by estimating the lost production, revenue, and labor costs associated with previous unplanned downtime events, and the reduction in these costs due to PdM.
• Lower maintenance costs: PdM can decrease maintenance expenses by optimizing schedules, reducing emergency repairs, and lowering spare parts inventory needs.
• Improved asset lifespan: By identifying and addressing minor issues early, PdM can extend the lifespan of equipment, deferring costly replacement investments.
• Enhanced operational efficiency: Predictive maintenance can lead to increased production output and better resource utilization.
• Better safety and compliance: PdM can identify safety hazards and help ensure equipment meets regulatory maintenance requirements.

Step 2: Identify and quantify costs.

Consider all costs associated with implementing and maintaining the PdM system, such as:

• Software and hardware costs: Licensing fees, sensor installation, etc.
• Implementation costs: System setup, integration with existing systems.
• Training costs: Educating staff on using the new technology and adopting new maintenance procedures.
• Ongoing maintenance and support: Fees for technical assistance, software updates, etc.

Step 3: Perform the ROI calculation.

Once you’ve quantified the benefits and costs, plug them into the ROI formula to determine the return on your predictive maintenance investment.