HOUSTON, Sept. 13, 2016 /PRNewswire/ -- A recent
survey of manufacturing executives indicates many respondents (67
percent) are pressing ahead with plans to invest in data analytics
even as they pare back spending in other areas to combat tough
business conditions.
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The reason: Many say they view data analytics – a key component
of the Industrial Internet of Things (IIoT) – as a viable solution
to a cycle of problems that lead to downtime and lost revenue.
More than 200 North American manufacturing executives took part
in the survey titled "Data's Big Impact on Manufacturing: A Study
of Executive Opinions." The survey was jointly conducted by
Honeywell (NYSE: HON) Process Solutions (HPS) and KRC
Research Inc., from May 23 to June 8,
2016.
"Executives need to keep their businesses running smoothly and
safely, and they're banking on IIoT technologies to help navigate
challenges, even during cash-strapped times," said Andrew Hird, vice president and general manager,
HPS Digital Transformation. "For more than 40 years, Honeywell has
provided leading automation technologies that help manufacturers
meet those goals. The IIoT by Honeywell is the next step in that
evolution."
Among other key findings of the survey:
- Some companies are feeling pressure to continue working under
the threats of unscheduled downtime and equipment breakdowns, which
are viewed the most detrimental to maximizing revenue.
- The majority of companies say they are already investing in
data analytics technology.
- More than a quarter said they don't plan to invest in data
analytics in the next year; of that group, not understanding the
benefits of data analytics and inadequate resources are among the
most cited reasons for this lack of investment.
A TOUGH CYCLE OF DOWNTIME
Unscheduled downtime was
ranked as the top threat to maximizing revenue, but 42 percent of
respondents admitted to running equipment harder than they should.
When asked how often their companies experienced a list of issues
in recent years, 71 percent of respondents said they experienced
equipment breakdowns at least occasionally, while 64 percent said
the same for unscheduled downtime.
"Running plant equipment harder than appropriate presents a host
of issues ranging from equipment breakdowns to potential safety
incidents," said Hird. "Those issues inevitably lead to more
downtime, which leads back to lost revenue. It's easy to see how
many companies feel they're caught in a vicious cycle. Predictive
analytics achieved through an effective IIoT by Honeywell solution
can help companies break out of that cycle."
Forty percent ranked unscheduled downtime as the biggest threat
to maximizing revenue. Other threats included:
- Supply chain management issues (39 percent)
- Inadequate staffing (37 percent)
- Off-spec products (36 percent)
- Equipment breakdowns (32 percent)
DATA ANALYTICS AS A VIABLE SOLUTION
Data analytics is
a key component of a successful IIoT implementation for
manufacturers. Most respondents had favorable views of the benefits
of data analytics as a solution. For example, the executives said
they agreed big data analytics can reduce the occurrences of:
- Equipment breakdowns (70 percent)
- Unscheduled downtime (68 percent)
- Unscheduled maintenance (64 percent)
- Supply chain management issues (60 percent)
Respondents said they believe data can enable well-informed
decisions in real time (63 percent), limit waste (57 percent), and
predict the risk of downtime (56 percent).
"It's easy to put that puzzle together – these executives
correctly believe data analytics can help them combat the biggest
threat they see to business: unscheduled downtime," Hird said.
"This is why they feel it makes sense to continue investing."
Additionally, more than two-thirds of respondents (68 percent)
said they are currently investing in data analytics, and 50 percent
said they believe their companies are right on track in their use
of data analytics. Fifteen percent said they believe their
companies are ahead of the curve as it relates to data analytics
usage.
NOT EVERYONE IS SOLD
While the majority of respondents
said they are already investing and/or planning to increase their
investments in data analytics in the coming year, 32 percent said
they are not currently investing in data analytics. Meanwhile, 33
percent said their companies are not planning to invest in data
analytics in the next 12 months, or are unaware of any plans to do
so.
Of those who currently have no plans to invest:
- 61 percent believe their organizations already have systems in
place to ensure safety, yield and success
- 45 percent said their companies have seen some growth without
data analytics
- 42 percent said they don't fully understand the benefits of big
data
- 35 percent believe people are overstating the benefits of big
data
Sixty-three percent of respondents who said they have no
investment plans indicated they just don't have the resources to
appropriately do so, while 39 percent said they don't have the
right staff to make the most of data analytics.
"For some companies, hurdles remain before the IIoT can be fully
adopted," explained Hird. "Some don't believe they need it while
others say they lack the resources to do it right. The good news is
that IIoT is something that doesn't require a wholesale change – it
can be phased and scaled depending on an individual company's
circumstances. This is precisely why Honeywell says IIoT represents
an evolution, not a revolution."
For information about Honeywell's IIoT comprehensive
technologies and solutions, go to www.hwll.co/iiot.
Honeywell Process Solutions (www.honeywellprocess.com) is a
pioneer in automation control, instrumentation and services for the
oil and gas; refining; pulp and paper; industrial power generation;
chemicals and petrochemicals; biofuels; life sciences; and metals,
minerals and mining industries. It is also a leader in providing
software solutions and instrumentation that help manufacturers find
value and competitive advantage in digital transformation through
the Industrial Internet of Things (IIoT). Process Solutions is part
of Honeywell's Performance Materials and Technologies strategic
business group, which also includes Honeywell UOP (www.uop.com), a
leading international supplier and licensor of process technology,
catalysts, adsorbents, equipment, and consulting services to the
petroleum refining, petrochemical, and gas processing
industries.
Honeywell (www.honeywell.com) is a Fortune 100 diversified
technology and manufacturing leader, serving customers worldwide
with aerospace products and services; control technologies for
buildings, homes, and industry; turbochargers; and performance
materials. For more news and information on Honeywell, please visit
www.honeywell.com/newsroom.
Contacts:
Don Empie
+1 832-252-3619
donald.empie@honeywell.com
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SOURCE Honeywell Process Solutions