Skip to main content

Advertisement

Log in

A predictive maintenance cost model for CNC SMEs in the era of industry 4.0

  • ORIGINAL ARTICLE
  • Published:
The International Journal of Advanced Manufacturing Technology Aims and scope Submit manuscript

Abstract

Within the subject area of maintenance and maintenance management, authors identified a deficiency in studies focussing on the expected value from adopting predictive maintenance (PdM) techniques for machine tools (MTs). Authors identified no studies focussing on presenting a PdM value analysis or cost model specifically for small-medium enterprises (SMEs) operating computer numerically controlled (CNC) MTs. This paper’s novelty is addressing SMEs’ minimal representation in literature by explanatorily collecting data from SMEs within the focal area via surveys, modelling and analysing datasets, then proposes a cost-effective PdM system architecture for SME CNC machine shops that predicts cost savings ranging from £22,804 to £48,585 over a range of 1–50 CNC MTs maintained on a distributed numerically controlled (DNC) network. It affirms PdM’s tangible value creation for SME CNC machine shops with predicted positive impacts on their MT cost and performance drivers. These exploratory research findings corroborate SMEs pooling together to optimise their CNC MT maintenance cost through the recommended system architecture. Finally, it introduces opportunities for further PdM research taking into account SMEs’ perspective. The paper’s industrial application is confirmed from the surveyed SMEs that demonstrated their current utility of PdM; then anonymous positive feedback on the online dashboard, shared with participant companies, confirmed the research results supported SMEs in considering exploring the path to adapting PdM. It is anticipated that beneficiaries of this research will be maintenance managers, business executives and researchers who seek to understand the expected financial and performance impact of adopting PdM for a MT’s overall life cycle costs.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5
Fig. 6
Fig. 7
Fig. 8
Fig. 9
Fig. 10
Fig. 11
Fig. 12
Fig. 13
Fig. 14
Fig. 15
Fig. 16
Fig. 17

Similar content being viewed by others

References

  1. Ross S (2008) The industrial revolution. Evans, London

    Google Scholar 

  2. More C (2000) Understanding the industrial revolution. Routledge, London

    Google Scholar 

  3. Freeman C, Louça F (2001) As time goes by: from the industrial revolutions to the information revolution. Oxford University Press, Oxford

    Google Scholar 

  4. Schwab K (2017) The fourth industrial revolution. Crown Publishing Group, New York

    Google Scholar 

  5. Laird K (2017) Understanding the digital transformation called industry 4.0. Plast Eng 73:24–28

    Google Scholar 

  6. Bokrantz J, Skoogh A, Berlin C, Stahre J (2017) Maintenance in digitalised manufacturing: Delphi-based scenarios for 2030. Int J Prod Econ 191:154–169

    Google Scholar 

  7. Selcuk S (2017) Predictive maintenance, its implementation and latest trends. Proc Inst Mech Eng B J Eng Manuf 231:1670–1679

    Google Scholar 

  8. Mourtzis D, Vlachou E (2018) A cloud-based cyber-physical system for adaptive shop-floor scheduling and condition-based maintenance. J Manuf Syst 47:179–198

    Google Scholar 

  9. Monostori L, Kádár B, Bauernhansl T, Kondoh S, Kumara S, Reinhart G, Sauer O, Schuh G, Sihn W, Ueda K (2016) Cyber-physical systems in manufacturing. CIRP Ann Manuf Technol 65:621–641

    Google Scholar 

  10. Peng Y, Dong M, Zuo MJ (2010) Current status of machine prognostics in condition-based maintenance: a review. Int J Adv Manuf Technol 50:297–313

    Google Scholar 

  11. Toh KTK, Newman ST (1996) The future role of DNC in metalworking SMEs. Int J Prod Res 34:863–877

    MATH  Google Scholar 

  12. Ruschel E, Santos EAP, Loures E d FR (2017) Industrial maintenance decision-making: A systematic literature review. J Manuf Syst 45:180–194

    Google Scholar 

  13. Garg A, Deshmukh SG (2006) Maintenance management: literature review and directions. J Qual Maint Eng 12:205–238

    Google Scholar 

  14. Ridgway K, Clegg CW, and Williams DJ (2013) The factory of the future - (Future of Manufacturing Project: Evidence Paper 29).

  15. March ST, Scudder GD (2017) Predictive maintenance: strategic use of IT in manufacturing organizations. Inf Syst Front:1–15

  16. Haroun AE (2015) Maintenance cost estimation: application of activity-based costing as a fair estimate method. J Qual Maint Eng 21:258–270

    Google Scholar 

  17. Mobley RK (2002) An introduction to predictive maintenance, 2nd edn. Butterworth-Heinemann, Boston

    Google Scholar 

  18. Platfoot R (2014) Practical analytics for maintenance teams using computerised maintenance management system work history. Australian Journal of Multi-Disciplinary Engineering 11:91–103

    Google Scholar 

  19. Galar D, Sandborn PA, Kumar U (2017) Maintenance costs and life cycle cost analysis. CRC Press, Boca Raton

    Google Scholar 

  20. Zhang Z, Wang Y, Wang K (2013) Fault diagnosis and prognosis using wavelet packet decomposition, Fourier transform and artificial neural network. J Intell Manuf 24:1213–1227

    Google Scholar 

  21. Wang, J., Wang, P., and Gao, R.X. (2013). Tool life prediction for sustainable manufacturing. In 11th Global Conference on Sustainable Manufacturing, G. Seliger, ed. (Berlin: Universitätsverlag der TU Berlin), pp. 230–234.

  22. Baheti R, and Gill H (2011) Cyber-physical systems. In The Impact of Control Technology, T. Samad and A. M. Annaswamy, eds. (IEEE Control Systems Society), pp. 161–166.

  23. MacDougall W (2014) Industrie 4.0: smart manufacturing for the future, Berlin

  24. Liu C, Vengayil H, Zhong RY, Xu X (2018) A systematic development method for cyber-physical machine tools. J Manuf Syst 48:13–24

    Google Scholar 

  25. Lee J, Bagheri B, Kao H-AA (2015) A cyber-physical systems architecture for Industry 4.0-based manufacturing systems. Manuf Lett 3:18–23

    Google Scholar 

  26. Brettel M, Friederichsen N, Keller M, Rosenberg M (2014) How virtualization, decentralization and network building change the manufacturing landscape: an Industry 4.0 perspective. International Journal of Mechanical, Aerospace, Industrial, Mechatronic and Manufacturing Engineering 8:37–44

  27. IBM (2016). Are your preventive maintenance efforts wrenching away precious resources? Time to listen to your machines.

    Google Scholar 

  28. Mobley RK (2001) Plant Engineer’s Handbook. Butterworth-Heinemann, Boston

    Google Scholar 

  29. Parida A, Kumar U, Galar D, and Stenström C (2015) Performance measurement and management for maintenance: a literature review.

    Google Scholar 

  30. Kans M, Ingwald A (2008) Common database for cost-effective improvement of maintenance performance. Int J Prod Econ 113:734–747

    Google Scholar 

  31. Enparantza R, Revilla O, Azkarate A, Zendoia J (2006) A life cycle cost calculation and management system for machine tools. 13th CIRP International Conference on Life Cycle Engineering 2, pp 717–722

    Google Scholar 

  32. Reina A, Kocsis Á, Merlo A, Németh I, Aggogeri F (2016) Maintenance decision support for manufacturing systems based on the minimization of the life cycle cost. Procedia CIRP 57:674–679

    Google Scholar 

  33. Cheng T, Zhang J, Hu C, Wu B, Yang S (2001) Intelligent machine tools in a distributed network manufacturing mode environment. Int J Adv Manuf Technol 17:221–232

    Google Scholar 

  34. Bryman A, Bell E (2011) Business research methods 3rd ed. Oxford University Press, Oxford

    Google Scholar 

  35. Cohen J (1988) Statistical power analysis for the behavioral sciences, 2nd edn. Laurence Erlbaum Associates, Hillsdale

    MATH  Google Scholar 

  36. Panik MJ (2012) Statistical inference: a short course. Wiley, Hoboken

    MATH  Google Scholar 

  37. Curwin J, Slater R (2013) Quantitative methods for business decisions, 6th edn. Andover: Thomson Learning

  38. Tabachnick BG, Fidell LS (2007) Using multivariate statistics 5th ed. Allyn & Bacon, Boston

    Google Scholar 

  39. Robertson J (2012) Likert-type scales, statistical methods, and effect sizes. Commun ACM 55:6

    Google Scholar 

  40. Wilkinson L (2006) Revising the Pareto chart. Am Stat 60:332–334

    MathSciNet  Google Scholar 

  41. Todman JB, and Dugard P (2001) Single-case and small-n experimental designs 1st ed. (New York: Routledge).

    MATH  Google Scholar 

  42. Mislick GK, Nussbaum DA (2015) Cost estimation: methods and tools. Wiley, Hoboken

    Google Scholar 

  43. Bawa HS (2004) Manuacturing processes. Tata McGraw-Hill Education, New Delhi

    Google Scholar 

  44. Shagluf A, Longstaff AP, Fletcher S (2015) Derivation of a cost model to aid management of CNC machine tool accuracy maintenance. Journal of Machine Engineering 15:17–43

    Google Scholar 

  45. Shagluf A, Parkinson S, Longstaff AP, Fletcher S (2018) Adaptive decision support for suggesting a machine tool maintenance strategy. J Qual Maint Eng 24:376–399

    Google Scholar 

  46. Ungureanu AL, Stan G, Butunoi PA (2016) Reducing maintenance costs in agreement with CNC machine tools reliability. IOP Conference Series: Materials Science and Engineering 145:1–6

    Google Scholar 

  47. Houshyar A (2005) Reliability and maintainability of machinery and equipment, part 2: benchmarking, life-cyclecost, and predictive maintenance. Int J Model Simul 25:1–11

    Google Scholar 

  48. Houshyar A (2004) Reliability and maintainability of machinery and equipment, part 1: accessibility and assessing machine tool R&M performance. Int J Model Simul 24:201–210

    MATH  Google Scholar 

  49. Okoh C, Roy R, Mehnen J (2017) Predictive maintenance modelling for through-life engineering services. Procedia CIRP 59:196–201

    Google Scholar 

  50. Gu C, He Y, Han X, and Xie M (2017) Comprehensive cost oriented predictive maintenance based on mission reliability for a manufacturing system. In 2017 Annual Reliability and Maintainability Symposium (RAMS) (Orlando: IEEE), pp. 1–7.

  51. Needy KL, Nachtmann H, Roztocki N, Warner RC, Bidanda B (2003) Implementing activity-based costing systems in small manufacturing firms: a field study. Eng Manag J 15:3–10

    Google Scholar 

  52. Patil RB, Kothavale BS, Waghmode LY, Joshi SG (2017) Reliability analysis of CNC turning center based on the assessment of trends in maintenance data. International Journal of Quality & Reliability Management 34:1616–1638

    Google Scholar 

  53. Moeuf A, Pellerin R, Lamouri S, Tamayo-Giraldo S, Barbaray R (2018) The industrial management of SMEs in the era of Industry 4.0. Int J Prod Res 56:1118–1136

    Google Scholar 

  54. Vishwakarma G (2017) Sample size and power calculation. In: Research Methodology, pp 1–21

    Google Scholar 

  55. Kim, J.H. (2015). How to choose the level of significance: a pedagogical note how to choose the level of significance: a pedagogical note.

    Google Scholar 

  56. Figueiredo Filho DB, Paranhos R, da Rocha EC, Batista M, da Silva JA Jr, Santos D, M.L.W, Marino JG, da Rocha EC, Batista M, da Silva JA Jr et al (2013) When is statistical significance not significant? Brazilian Political Science Review 7:31–55

    Google Scholar 

  57. Yip PSLL, Tsang EWKK (2007) Interpreting dummy variables and their interaction effects in strategy research. Strateg Organ 5:13–30

    Google Scholar 

  58. Searle SR, Udell JG (1970) The Use of Regression on Dummy Variables in Management Research. Manag Sci 16:B–397-B-409

    Google Scholar 

  59. Marais KB, Saleh JH (2009) Beyond its cost, the value of maintenance: an analytical framework for capturing its net present value. Reliab Eng Syst Saf 94:644–657

    Google Scholar 

  60. Wright O (2018) Business population estimates for the UK and regions 2018, London

Download references

Acknowledgement

The authors would like to appreciate the colleagues Macvil J. Carvalho and Sumit Dilip Pawale for their assistance with data collection.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Mukund Nilakantan Janardhanan.

Additional information

Publisher’s note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Survey questions and response summary

Survey questions and response summary

Q1

Q2

Q3

Q4

1–5 employees

5–10 employees

10–100 employees

100–250 employees

1–5 machines

5–10 machines

10–50 machines

More than 50 machines

Owned

Leased

8 h

16 h

24 h

21%

5%

26%

47%

47%

21%

32%

0%

21%

79%

37%

26%

37%

Q5

Q6

£10,000

£20,000

£30,000

£40,000

£50,000

£60,000

None

Few

Some

Most

All

21%

11%

21%

11%

21%

16%

68%

11%

11%

5%

5%

  1. Q1

    What is the total number of employees in your organisation?

  2. Q2

    How many CNC machines does your company currently operate?

  3. Q3

    Do you currently own your CNC machines or lease them from another vendor?

  4. Q4

    What is the total operating hours of your CNC machines per day?

  5. Q5

    What is your current total annual maintenance costs for CNC machines in £GBP?

  6. Q6

    Are any of your CNC machines use data collection sensors or are internet connected?

Q7.1

Q7.2

Lowest

Low

Moderate

High

Highest

Lowest

Low

Moderate

High

Highest

26%

16%

47%

11%

0%

11%

47%

11%

21%

11%

Q7.3

Q7.4

Lowest

Low

Moderate

High

Highest

Lowest

Low

Moderate

High

Highest

11%

21%

26%

26%

16%

5%

26%

42%

5%

21%

  1. Q7

    On a scale from 1 to 5 (1 being the lowest, and 5 being the highest), how would you rate each of the following?

    1. Q7.1.

      Current maintenance costs of your CNC machines compared to total operations costs

    2. Q7.2.

      Loss of productivity due to maintenance

    3. Q7.3.

      Impact of down time due to machine breakdown

    4. Q7.4.

      Effectiveness of your current maintenance processes

Q8

Q9

Q10

Once weekly

Once every two weeks

Once every month

Once every quarter

Once every year

Corrective

Preventive

Predictive

Reduce maintenance costs

Reduce machine down time

Reduce labour costs

Increase machine reliability

16%

32%

26%

21%

5%

21%

74%

5%

25%

25%

25%

25%

  1. Q8

    On average, how often do you face a machine stop due to a performance issue or breakdown?

  2. Q9

    What is your current maintenance strategy for your CNC machines?

  3. Q10

    What were your primary motives of choosing a predictive maintenance approach (check all that applies)?

Q11

Q12

Q13

1–10%

10–20%

20–30%

30–50%

More than 50%

1–10%

10–20%

20–30%

30–50%

More than 50%

Yes

No

0%

0%

0%

100%

0%

100%

47%

11%

21%

11%

58%

42%

  1. Q11

    On average, what were your maintenance costs per machine as a percentage of total operations costs before using predictive maintenance?

  2. Q12

    On average, what are your current maintenance costs per machine as a percentage of total operations costs after using predictive maintenance?

  3. Q13

    Do you consent that I want to be contacted with a summary of the research results when the research is concluded on September 2018?

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Adu-Amankwa, K., Attia, A.K., Janardhanan, M.N. et al. A predictive maintenance cost model for CNC SMEs in the era of industry 4.0. Int J Adv Manuf Technol 104, 3567–3587 (2019). https://doi.org/10.1007/s00170-019-04094-2

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s00170-019-04094-2

Keywords

Navigation