FACT SHEET

5 things you need to know about Condition

Monitoring.

Maintenance is evolving.

The availability of new sensing technologies and products has enabled a move away from the older
Reactive Maintenance (run to failure) and Preventive Maintenance (time based) approaches to the
condition based strategy of Predictive Maintenance (PdM).

The rationale for PdM is that by carrying out maintenance only when it is required and by preventing
machinery failures, costs are reduced and productive output is increased.

However, PdM requires upfront costs for the sensors and their installation. So, here are five things we
feel support the case for condition monitoring and the return-on-investment it can offer.

1. Using case studies and cost justification exercises, the following comparative maintenance costs
relating to power generation are;
Reactive maintenance - $17.00
Preventive maintenance - $13.00
Predictive maintenance - $9.00
(costs in US$,per Horsepower per year – Source; The Electric Power Research Institute)

2. The following benefits have been attributed to condition monitoring;

• Maintenance costs reduced by 50%
• A reduction of 55% in unexpected failures
• Repair and overhaul times down by 60%
• A reduction of 30% in the spare parts inventory
• The Mean Time Between Failures (MTBF) rate increased by 30%
• Uptime increased by 30%
(‘Plant Engineer’s Handbook’ by Keith Mobley)

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FACT SHEET

These figures may seem high, but in a typical manufacturing plant, a 10% reduction in maintenance
costs has the same benefit to the bottom line as an increase in sales of 40%.

Additionally, studies have shown that a properly implemented Predictive Maintenance programme
supported by condition monitoring can replace up to 30% of Preventative Maintenance tasks.

3. Predictive Maintenance using one or more sensors is shown to decrease machine downtime four
times more effectively than other methods.
(Plant Engineering Magazine)

4. The measurable benefits Predictive Maintenance programmes in the oil and gas industry have
shown, on average, are;
• Return on Investment – 10 times
• Reduction in maintenance costs – 25 to 35%
• Elimination of breakdowns – 70 to 75%
• Reduction in downtime – 35to 45%
• Increase in production – 20 to 25%
(US Department of Energy)

5. In relation to oil analysis as a condition monitoring technique-

“6.3.5 Equipment Cost/Payback

For facilities utilising a large number of rotating machines that employ circulating lubricant, or
for facilities with high dollar equipment using circulating lubricant, few predictive maintenance
technologies can offer the opportunity of such a high return for dollars spent. Given the high
equipment replacement cost, labour cost, and downtime cost involved with a bearing or gearbox
failure, a single failure prevented by the performance of oil analysis can easily pay for a programme
for several years.”
(US Department of Energy’s O&M Best Practices Guide Release 3.0)

More information at gillsc.com

E support@gillsc.com
T +44 (0)1590 613900 Sensors & Controls