Condition-Based Maintenance / Maintenance / Maintenance KPIs / Maintenance Work / Preventive Maintenance / Reliability-Centered Maintenance

Optimizing plant maintenance at Fonterra: real ROI by the numbers

By Den Howlett, for Diginomica

Jul 02, 2019

Once in a while, I hear a customer story that is packed full of data rather than the more common stories that talk to vaguely defined benefits. Such was the case at Neptune Software's annual customer event where Fonterra, the world's fifth largest dairy producer talked about optimizing plant maintenance operations.

To give you an idea of scale, the Fonterra asset footprint is spread across 10,000 farms, plant maintenance consumes about $70 million in labor and a total of $225 million in R&M with an additional $150 million in capital investment to maintain the $15.6 billion asset base.

In order to assess real-world effectiveness of the solution, Fonterra deployed a control group that didn't use the solution and then measured against environments where the solution was in place. This helped demonstrate the value potential over time. They discovered that following the pilot, savings of $3.08 million were achievable split up into $2,308 on rework, $3,193 on travel and $7,562 on SAP related admin tasks per technician per year.

Read the full story, "Optimizing plant maintenance at Fonterra: real ROI by the numbers," at www.diginomica.com.

 

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