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The Economic Dimension of Implementing Industry 4.0 in Maintenance and Asset Management

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Book cover Advanced Manufacturing and Automation IX (IWAMA 2019)

Part of the book series: Lecture Notes in Electrical Engineering ((LNEE,volume 634))

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Abstract

The fourth industrial revolution is expected to bring substantial changes to how maintenance will be conducted in the upcoming years. In this paper three main areas of technology innovation related to how Industry 4.0 can change maintenance and asset management have been identified: smart maintenance, smart working and smart products. However, implementing new technology is only part of the picture, and several resent papers have pointed to the importance of organizational factors. But it is also important to include economic factors when developing strategies to implement Industry 4.0 in maintenance and asset management. In this paper a model that does just that is proposed. This is done by utilizing a concept called Economic Value Added (EVA) and a more recent offspring in the domain of maintenance and asset management labeled Value Driven Maintenance (VDM) sensitivity analysis. An example of how the recent technology development in combination with economic preconditions can be used as input to strategy for implementing Industry 4.0 in maintenance and asset management is presented in this article. This can be a valuable input to help practicing managers develop strategies that generate economic value for the company.

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Authors and Affiliations

  1. Norwegian University of Science and Technology, Trondheim, Norway

    Tom I. Pedersen & Per Schjølberg

Authors
  1. Tom I. Pedersen
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  2. Per Schjølberg
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Corresponding author

Correspondence to Tom I. Pedersen .

Editor information

Editors and Affiliations

  1. School of Business, Plymouth University, Plymouth, UK

    Yi Wang

  2. Department of Manufacturing and Civil Engineering, NTNU, Gjøvik, Norway

    Kristian Martinsen

  3. Shanghai Second Polytechnic University, Shanghai, China

    Tao Yu

  4. Department of Mechanical and Industrial Engineering, Norwegian University of Science and Technology, Trondheim, Sør-Trøndelag Fylke, Norway

    Kesheng Wang

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Pedersen, T.I., Schjølberg, P. (2020). The Economic Dimension of Implementing Industry 4.0 in Maintenance and Asset Management. In: Wang, Y., Martinsen, K., Yu, T., Wang, K. (eds) Advanced Manufacturing and Automation IX. IWAMA 2019. Lecture Notes in Electrical Engineering, vol 634. Springer, Singapore. https://doi.org/10.1007/978-981-15-2341-0_37

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