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What are the challenges addressed?

The vast majority of factories operate at full capacity: 24 hours a day, 365 days a year. An hour of lost or reduced production capacity cannot be recovered.

Issues

The lack of control over assets threatens the realization of major investments. Industrial risks are significant. Especially since the majority of shutdowns are caused by avoidable breakdowns. There are several reasons for this:

  • The asset condition monitoring system is deficient.
  • The overall picture of the level of risk that all assets involve is non-existent.
  • Emergencies monopolize teams that can no longer focus on prevention.
  • Internal teams focus only on production equipment.
  • Breakdowns on assets auxiliary to production (tank, pipe, structure, etc.) are less frequent, but cause longer and more expensive shutdowns.
  • Climate change makes infrastructure vulnerable.

 

As a result, it is virtually impossible to monitor all assets simultaneously without adequate and adequate resources. Integrity managers must engage in routine tasks that lack value, which compromise the integrity, reliability, performance, and security of assets, such as:

  • Recover the data scattered in the various systems.
  • Read the numerous and voluminous reports from various inspection firms.
  • Digitize and centralize data that lacks consistency.
  • Between cutting the results obtained according to the different methodologies of inspection firms.
  • Analyze the different trends according to the plot data obtained.
  • Manually structure and update an asset condition monitoring system.

Reduce unexpected downtime caused by avoidable breakdowns

What are the costs associated with the issues addressed?

The vast majority of factories operate at full capacity: 24 hours a day, 365 days a year. An hour of lost or reduced production capacity cannot be recovered.

Avoidable downtime costs*

  • (~$6.4M annually) 30 unexpected breakdowns causing a partial reduction per year on average.
  • (~$5.5 million annually) 10 unexpected breakdowns causing one complete shutdown per year on average.
  • (~$21 MILLION) 1 unexpected breakage causing a major complete shutdown every 3 years on average.

These net losses do not paint the full picture. We need to combine them with expenses for repairs or replacements. However, it is difficult to quantify these costs due to the great disparity in breakages. However, we know that emergency work costs between 6 and 10 times more than planned work. We can also calculate the time lost in the disorganization of teams.

The lack of control over production also has an impact on intangible losses, in particular the reputation of the organization for recruiting and the credibility of managers with shareholders and investors. These aspects can create effects that are sometimes insurmountable.

External cost approach*

Typically, according to our experience, for a metallurgical plant, a complete shutdown costs $90,000 per hour in lost production.

Typically, according to our experience, for a metallurgical plant, a partial reduction of 35% represents a loss of $31,500 per hour in production.

Typically, according to our experience, for a metallurgical plant, 85% of breakages are categorized as avoidable.

30 unexpected breakdowns causing a partial reduction per year on average.

  • Partial reduction times last an average of 8 hours, 85% of which are avoidable breakdowns = ~$6.426M annually.

10 unexpected breakdowns causing one complete shutdown per year on average.

  • The average time to write a report is 72 hours, 85% of which are avoidable breakdowns = ~$5.5 million annually.

1 unexpected breakage causing a major complete shutdown by 3 years on average.

  • Full downtime lasts an average of 10 days = ~$21M.

For a medium-sized metallurgical plant with a large number of tanks, chimneys, buildings, pressure vessels, pipes and other critical assets.

Solution to the challenges - Stelar

The functions of the Stelar platform and mobile application allow you to:

  • Standardize inspection forms according to a directed methodology.
  • Collect relevant data digitally.
  • Automate report generation according to your criteria.
  • Centralize information by asset (design plan, materials, year of installation, positioning, past report).
  • Qualify the health of the asset (health score, risk index).
  • Evaluate the residual life of an asset.

Stelar benefits

Au-delà des bénéfices chiffrables, Stelar offre une vaste gamme de bénéfices tangibles permettant aux organisations d’améliorer la fiabilité et l’intégrité des actifs afin qu’elles deviennent plus performantes.

Avoiding net losses is certainly a sufficient justification for the implementation of an adequate monitoring system. There are certainly other tangible benefits to consider:

  • Accelerate the search for relevant data.
  • Check the condition of your assets.
  • Improving decision making.
  • Intervene proactively according to the real health of the assets.
  • Guarantee control over the integrity and reliability of assets.
  • Ensuring the safety of people and the environment.
  • Improve communication between departments and managers.
  • Increase the value of your professional efforts.
  • Ensure control over the delivery of your subcontractors.
  • Maintain the accountability and responsibility of managers.