Increase Equipment Uptime and Achieve Operational Goals With Outcome-based Services

Most organizations utilize three different models to help them achieve their overarching business goals, including strategic, tactical and operational goals. Measurable and quantifiable, strategic goals are high-level objectives that include things such as company vision and mission, financial objectives and overall market strategy. Tactical goals are concrete and actionable, designed to measure performance and ensure that overall strategic goals are met. Finally, operational goals are departmental — or even individual — and linked to key performance indicators (KPIs) that demonstrate the degrees of progress being made.

Operational goals often include reduction of maintenance costs, high equipment availability and overall equipment efficiency. Linked to strategic and tactical goals, operational goals establish milestones and include planning that addresses the current state, the desired state and the fundamental steps in between. The benefits of operational goals include accountability, established guidelines for decision-making in day-to-day tasks, and results-driven objectives that set the bar for all personnel to target.

Maximizing equipment uptime is an essential KPI for all organizations, and many operational goals drive toward an uptime metric in three primary ways:

• Process goals, which prescribe specific actions or steps to be followed. For example, the in-house maintenance team performs a daily walk-through to inspect all equipment prior to the start of the first shift.
• Performance goals, which are based on a standard and focused on an end result. An example would be achieving 99% equipment availability.
• Outcome goals, which are focused on the big picture, such as ensuring all equipment within the material handling processes provide sufficient capacity (and uptime) to handle daily outbound order fulfillment requirements.

In a recent webinar, Achieve Operational Goals With Outcome-based Services, we explored how engaging a provider of lifecycle support services (LSS) to apply this methodology can deliver a range of benefits beyond a need for increased equipment uptime.

Four Automation Support Options

Historically, there are four different types of automation support services. These include:

Product Only – A traditional transactional service model, this method provides low-level (or no) services and is solely about delivering equipment to an operation without offering additional support. The provider is not held to any KPIs or service level agreements (SLAs).

Product With Added Services – The next step up, this method includes basic maintenance and repair services based on time and materials associated with specific equipment. The service provider is required to meet minimal KPIs and SLAs.

Services With Systems – The service provider supports the equipment or system under a defined set of KPIs. Bundled offerings may include providing one or more resident in-house technicians and service parts, typically over a multi-year contract.

Guaranteed Outcomes – Focused on a long-term partnership between the equipment or system owner and the service provider, this model is based primarily on achieving a facility’s overarching operational or business outcome goals. How those goals are reached is up to the service provider (in-house staffing, addition of multiple sensors across equipment for condition monitoring, implementation of internet of things [IoT] connectivity and analysis), who is paid either partially or totally on achieving specific, defined, targeted outcomes (such as 99% uptime).

The Benefits of Outcome-based Services

Leveraging outcome-based services to achieve operational goals not only maximizes equipment uptime, but also delivers numerous operational advantages. These include:

• Cost savings through pricing that includes risks and rewards, as the service provider is incentivized to meet an operation’s defined outcomes and business goals
• Enhanced innovation through the deployment of additional equipment monitoring sensors and data analytics
• Closer alignment between equipment owner and service provider, as both are working toward the same outcome
• An overall focus on activities that bolster business success, rather than task-based objectives
• Application of measurable standards tied to required outcomes for verification of results
• Greater efficiency and flexibility in delivery and adaptation of technological advancements, such as the implementation of IoT programs

To learn more about engaging Honeywell Intelligrated’s outcome-based methodology to achieve your operational goals, please view this webinar.

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