Why IIoT and asset management go hand-in-hand

The Oil & Gas industry is one that relies on a large scope of assets, and as such, asset management and optimisation is one of the foremost priorities of innovation in the industry. 

As part of an asset-intensive industry, owners of Oil & Gas companies face an assortment of challenges to ensure that they do not experience unnecessary downtime (and so lose a lot of revenue), while maximising the reliability and performance of their assets. At the same time, capital spent on acquiring and managing assets also makes up the bulk of expenditure, meaning that Oil & Gas plant owners must try to maximise their return on assets (ROA). 

What, then, are some of the challenges those in the Oil & Gas industry face in their pursuit of a high ROA? 

1. Breakdowns or downtime and a resultant loss in productivity/output
2. Asset underutilisation
3. Demand and supply imbalance
4. Lack of synchronicity in inter-asset communication.
5. Asset recall, defective assets, and warranty pursuits.

The Industrial Internet of Things (IIoT) will be instrumental in addressing these challenges in an ever-changing, increasingly competitive industry. IIoT is the key to unlocking better asset management and, subsequently, a higher ROA. The reason for this is that IIoT allows the digitizing of data to be converted into useful information and automation of processes when utilising said information. Naturally, a high ROA is expected to lead to greater profit, but that is not the only ‘return’ that good asset management and optimisation has as a result. In fact, a greater profit margin is only possible because of a variety of individual benefits that include: 

1. Decreased downtime
2. Enhancedpredictive and preventative maintenance 
3. Process finetuningthrough better decision-making 
4. Tracking assets andcargo on the move
5. Increasedinformation availability 
6. Quicker information sharing
7. Less resource wastage
8. Improvedsafety 
9. Data collection from more remote places
10. 10. Cost minimisation
11. 11.Greater efficiency
12. Increasedproductivity

The Internet of Things in the Oil & Gas industry 

In 2015, technology giant Cisco conducted a survey in which they asked companies to consider the areas of operation where they needed to improve their use of connected technologies. They found that most of the inadequacies of the technological frameworks of those surveyed lie in data, processes, and people. These are the three areas that IIoT addresses with great efficacy. Surprisingly, many company owners in the Oil & Gas industry have not yet utilised this technological tool. 

How then does IIoT address these shortcomings in data, processes, and people? 

Data drives decision-making in most industrial settings. As soon as a company stops innovating, improving their systems, and maximising the usefulness, capacity, and ability of their assets, they will fall behind in the industry. Sensors and other devices can help companies collect data on a large scale and then use the data to review assets and systems, and make adjustments where necessary to optimise performance. In this way, expenditure can be minimised as well, giving Oil & Gas companies the competitive edge in their price structuring. 

When it comes to processes, IIoT can go a long way to make your Oil & Gas plant more reliable, ensuring that maintenance is done as is required – with both preventative and predictive approaches. The digitisation of the industry through IIoT will also turn many previously labour-intensive processes into processes that can be automated. 

Lastly, IIoT implementation requires knowledgeable individuals at the helm of operations that know how to interpret the data and derive meaning from it. With a strong IIoT team, the implementation of cross-asset communication is made simpler, the information is processed in real-time and is sent where it is of best use.  

Cyntech can help you optimise your plant operations, and help you manage your supply chain through the implementation of IIoT. Our use of MindSphere, an IIoT system developed by Siemens, gives you access to a platform through which you can convert your raw data into information that bolsters your operations. Our technicians are also able to provide the relevant support to ensure you make the most of your IIoT solution. Why wait? Speak to us today about the right solution for you.

This is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted. (E&OE)