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MAINTENANCE COSTS MODELING

USING MACHINE LEARNING


« EASYKOST PERFORMANCE BOOSTER »

2019
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What is the context ?

GLOBAL INDUSTRIAL COMPANY 35 PLANTS ACROSS THE WORLD

+100 M€ MAINTENANCE COSTS


6 MAJOR PRODUCT LINES
PER YEAR

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10
20
30
40
50
60
70
80
90
100

0
Plant 1

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Plant 2
Plant 3
Plant 4
Plant 5
Plant 6
comparison challenging

Plant 7
Plant 8
Plant 9
Plant 10
Plant 11
Plant 12
Plant 13
Plant 14
Plant 15
Plant 16
Plant 17
Plant 18
Plant 19
Plant 20
Plant 21
Plant 22
Plant 23
Plant 24
Plant 25
COST PER UNIT PRODUCED

Plant 26
Plant 27
Plant 28
Plant 29
Plant 30
Plant 31
Plant 32
Plant 33
Plant 34
Plant 35
A great variability in maintenance costs is observed across different plants, making the
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Three main objectives were defined for this project

Identify key drivers impacting most maintenance


1 efficiency

Run an internal benchmarking of maintenance


2 costs across plants with their specificities

Quantify potential gains and improvement


3 opportunities

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The process took 2 months

Data
Launching collection &
& Scoping consolidation Conclusions

Preparation Internal
comparison
& modeling
(EasyKost)

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EasyKost, a cost modeling tool based on Machine Learning was used and 41 cost
drivers were identified in maintenance

• Factory size
• Maintenance Organization
• Process Technologies

Performance cost
• % Planned Maintenance
Structural cost

• Labour cost
• Procurement practices
• Number of work stations
drivers
drivers

• Maintenance Excellence System


• Product Line
Implementation
• Yearly Production Volume
• CAPEX amount • CMMS deployment…
• % of outsourced maintenance …
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Plants were assessed and compared on 5 key outputs

Total Maintenance Cost

Number of Maintenance
Worked hours

Number of Maintenance FTE

Indirect Material Cost

Maintenance External costs

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Through this modelization, 8 to 10% of savings were calculated on two levels

4% 4-6% 8-10%

Mechanical Savings

Actual Cost Vs EasyKost estimated Cost Level 2


(everything else identical)
Total

(Level
1+2)
Improved performance parameters
Level 1
• % planned maintenance hours
• Organization Maturity Level
• % of spend controlled by purchasing
• Maintenance Org. compliant

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The level 1 savings accounted for 4% of total maintenance costs

10 plants identified as underperforming compared to the easykost model

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The level 2 savings represented 4 to 6% of total maintenance costs

Negotiated contracts by procurement is


not considered for Level 2 Savings jet

100%
Negotiation by
procurement

Organization
compliance
Detail by
Savings impact plant/
of each cost driver
driver comes as
Organization
indication
maturity

% Maintenance
planned hours

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There were 5 key achievements on this project

8 to 10% identified savings Robust maintenance cost


broken down by levers / region model to monitor plants
/ plants efficiency

Identified and prioritized Identified best practices as


drivers that are impacting well as opportunities for deep
maintenance costs dive

Qualitative and quantitative


insight to support Maintenance
Excellence Program

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At KEPLER, we power our expertise with EasyKost technology to generate more value
for our clients

• A consulting firm specialized in • A cost modeling SaaS software


operational margin optimization based on Machine Learning
• 4 areas of expertise: Innovation – • Estimates the cost of a new
Procurement – Supply Chain - product/service in less than 5 sec,
Operations with < 3% error
• 50 employees • Multi-cost driver analysis &

• Offices in Paris, Shanghai, Chicago modeling

and Chennai • Datamining & visualization

• A global network of experts • Real time and anonymous

• 60% of projects are global benchmarking

www.kepler-consulting.com www.easy-kost.com
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FOR FURTHER INFORMATION, CONTACT US

FRANCE CHINA
8 rue Volney 27F, no 828 Zhangyang Road,
75002 Paris - France Pudong - 200122 Shanghai - China
info@kepler-consulting.com china@kepler-consulting.cn
Tel.: + 33 (0)1 44 75 05 35 Tel.: + 86 (0)21 38 75 10 85

USA INDIA
325 W Huron Street #223, DBS Center, 31A,
CHICAGO, IL 60654, USA Cathedral Road - Nungambakkam,
Chennai – 600034 - India
usa@kepler-consulting.com
Tél : + 1 (312) 219 1765 india@kepler-consulting.com
Tel.: + 91 (0) 44 40 50 92 00

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