Implementation of Predictive Maintenance at Finning: A Case Study

This report presents a comprehensive analysis of predictive maintenance (PdM) implementation within Finning, a major caterpillar dealer. The study explores the concept of PdM, its impact on Finning's operations, and the current maintenance system in place. The report aims to understand how PdM can be implemented to improve the existing maintenance strategies. It includes an introduction outlining the background, aim, objectives, research questions, rationale, and scope of the study, followed by a review of relevant literature. The methodology section details the research philosophy, design, approach, data collection methods, sampling framework, and data analysis techniques. The data analysis and interpretation chapter presents the findings, leading to conclusions and recommendations regarding the implementation of PdM at Finning. The report emphasizes the importance of PdM in reducing equipment failures, minimizing downtime, and enhancing operational efficiency, making it a valuable resource for students and professionals interested in maintenance strategies.

PREDICTIVE MAINTENANCE

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
Background of the study.........................................................................................................1
Aim ........................................................................................................................................2
Objectives...............................................................................................................................2
Research questions.................................................................................................................2
Rationale.................................................................................................................................2
Scope of the study..................................................................................................................3
Research methods...................................................................................................................3
Data Analysis..........................................................................................................................4
Resource requirement.............................................................................................................4
CHAPTER 2: LITERATURE REVIEW.........................................................................................5
Introduction............................................................................................................................5
Literature Review...................................................................................................................5
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................10
Introduction..........................................................................................................................10
Research philosophy.............................................................................................................10
Research design....................................................................................................................10
Research Approach...............................................................................................................11
Methods of data collection...................................................................................................11
Sampling framework............................................................................................................11
Data Analysis........................................................................................................................11
Reliability and validity.........................................................................................................12
Ethical consideration............................................................................................................12
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION....................................................13
Introduction..........................................................................................................................13
CHAPTER 5 CONCLUSION AND RECOMMENDATION......................................................28
REFERENCES..............................................................................................................................29
Appendix.......................................................................................................................................32

CHAPTER 1: INTRODUCTION
Background of the study
Predictive maintenance (PdM) is one of the major tool that is used by organizations to
monitor condition of equipments. This technique identifies occurring problems in machines by
looking upon their symptoms. Main goal of predictive management is to keep frequency of
maintenance performed low so that unplanned breakdown can be minimized. In the modern
competitive era companies have facing huge competition so for sustaining in the market for
longer duration they have to be prepared all time. Poor maintenance strategies can harm the
overall production capacity of entity (Ye and et.al, 2013). PdM is the great tool that can support
entities in maintaining standard and reducing failure risk of equipments and machines. This
technique help in maximizing useful life of machines and avoiding risk of unplanned downtime.
It is one of the beneficial tool for manufacturing firm because by this way they can save their
cost and can enhance their profitability. It analyses the data related to equipment sand predict
when it will require repairing or maintenance. Once problems has been analysed then manager
repair he parts before they needed repairing so that unnecessary issues can be minimized (Fowler
and et.al, 2013).
Finning is the largest caterpillar dealer which is popular for delivering unrivalled services
to corporate consumers. Its infrastructure, excellent services has helped the consumers in
reducing their operating cost. Its main agenda is on earning customer loyalty, provide excellent
services and improve asset utilization. It provides products and services as per the requirement of
clients. That supports the cited firm in selling its products to corporate clients.
The main requirement of consumers is to minimize equipment failure in their
organization so they need proper solution through which they can maintain their equipments for
longer duration. Predictive maintenance is the main issue in the workplace because that influence
operational process and production of the firm to great extent (6 benefits of using predictive
maintenance, 2014).
Predictive maintenance is essential for the organization, with the help of this technique
company can minimize its repairing cost and can increase its revenues as well. By this way it can
reduce chances of failure of equipment thus, operations will not get stopped suddenly and no
accident will take place. Predictive maintenance can help in gaining competitive advantage to the
entity.
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Present dissertation is based on Finning company which is world's largest caterpillar
dealer. It offers parts, engines, equipments to industries like mining, construction etc (Defining
Preventive & Predictive Maintenance, 2017). It is proudly providing exceptional services to
service users in vast market. Current study will develop understanding about implementation of
predictive maintenance in current maintenance system (Danyluk and Provost, 2014). Finning pan
will be undertaken in the production process. In the production process it is essential to maintain
equipments so that no issues occur. By implementing this plan in the production company can
minimize errors and disturbance. It will describe the concept of predictive maintenance in the
Finning. Impact of PdM on the Finning will be illustrated in this dissertation. Furthermore, It will
analysis current maintenance system of organization.
Aim
“ To understand implementation of predictive maintenance in current maintenance system: A
case study of Finning”.
Objectives
 To understand the concept of predictive maintenance (PdM).
 To identify impact of PdM on the Finning.
 To analysis current maintenance system of Finning.
 To determine the ways of implementation a predictive maintenance strategy for
improving current maintenance system of the organization.
Research questions
 What is the meaning and concept of the Predictive maintenance?
 How implementation of PdM impact on the Finning.
 What is the current maintenance level of machines and parts in the Finning. What are the ways of implementing predictive maintenance strategy for improving
current maintenance system of the organization.
Justification: Researcher has focused on the predictive maintenance system and its effectiveness.
For developing better understanding scholar will use literatures of other authors that has helped
in knowing implementation of predictive maintenance in current maintenance system in the
Finning. In addition, investigator will also primary sources such as questionnaire in order to
know about benefits of implementing the PdM in the organization. By this way scholar will be
able to answer the research questions.
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Rationale
Predictive maintenance is the essential part of the business. There are many companies
which are facing issue of equipments failure. They do not pay attention on maintenance that is
why many accidents occurs in the organization. Companies are trying to deal with this issue so
that they can make effective control over their operational process and can minimize failure of
equipments. By implementing this method in the workplace firms can be able to reduce failures
and accidents. It may help in reducing operational cost and increasing revenues as well.
Scope of the study
Present study on implementation of predictive maintenance in current maintenance
system very effective. Now-s-days companies are facing the problems of poor maintenance that
causes unplanned downtimes and harm production capacity of the machines (Del Rincon and
et.al, 2013). This critical situation has become problematic for the big organizations and they are
required to maximize useful life of parts which are at high risk. By addressing their problems
before time companies can enhance life of machines and can make effective control over cost.
PdM can resolve this problem of entities and can support in maximizing useful life of
equipments (Defining Preventive & Predictive Maintenance, 2017).
It will be beneficial for the entities in reducing sudden failure of machines and by this
way life of equipments will be maximized (Nurjono and Lee, 2013). By identifying impact of
predictive maintenance entire industry will be able to enhance life their machines and they will
be able to get high profit. It will support in addressing problem and reduce these issues before
they need repairing so that production or manufacturing do not get stopped at any movement
(Defining Preventive & Predictive Maintenance, 2017).
Limitation
Researcher has limited time duration for completing this study, in such a small time
period it is quit difficult to finish it but research skill of the person is good thus, individual will
be able to complete it on time. Apart from this researcher has limited financial resources that is
why individual is unable to use advanced technologies for getting the results. But to manage the
work researcher will use thematic analysis tool which is suitable for the study and able to give
quality results on predictive maintenance.
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Research methods
Research methodology is one of the essential part of dissertation that supports in
gathering in-depth information about the subject matter and getting results related to subject
matter. In the present study individual will take support of descriptive research design. Through
questionnaire individual will be able to describe predictive maintenance system effectively
(Pouliezos and Stavrakakis, 2013). Furthermore, scholar will use interpretivism philosophy that
would support in gathering deep details about research topic. It is qualitative research thus,
scholar will use inductive approach that would be the best suitable for the present investigation.
Random sampling will be used in the current study and 10 managers of Finning company will be
chosen randomly as respondents in order to get information about PdM maintenance system of
equilibrium and its impact on the organization (Dennis, 2016).
In order to find out the result scholar has taken support of questionnaire technique for the
study. It is considered as one of the effective technique through which scholar can gather in-
depth detail about predictive maintenance. Through questionnaire individual will gather detail
about the topic and will determine the advantage and disadvantages of this system in the
corporation and how implementation of predictive maintenance in the current maintenance
system can be beneficial for the Finning company (Guerrero and et.al, 2013). scholar will also
take support of secondary data collection sources and through books, journals, internet articles
individual will develop better understanding about the research topic (Predictive maintenance
and the smart factory?, 2017).
Data Analysis
Data Analysis can be considered as effective tool that support the scholar in getting
results. Use of appropriate data analysis tools are depended upon the type of investigation. If its
is quantitative then individual has to include facts and figures and can use SPSS, T-test etc. in
order to get valid results (Kylili and et.al, 2014). On other hand in the qualitative study scholar
uses thematic analysis tool for getting outcome. Present investigation is qualitative thus
investigator will use thematic analysis tool and through graphs individual will present the results.
It will develop better understanding about implementation of PdM and effectiveness of
predictive maintenance system in the organization (Defining Preventive & Predictive
Maintenance, 2017).
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Resource requirement
For completing the dissertation successfully and accomplishing objective of the
investigation, scholar will require several sources. One of the major source that is essential for
the study is availability of sufficient financial resources. Individual will require monitory support
so that person can use advanced technologies and can test benefits of PdM technique in the
organization (Sachs and Clevers, 2014). Furthermore, scholar will also require human resource
so that relevant information can be gathered about the subject matter. Apart from this, scholar
will also require physical resources so that individual can test the effectiveness of predictive
maintenance system. Time is one of the most important resource without it individual can not
complete its dissertation. Investigator will need sufficient time so that person can investigate
about PdM and can know its impact of business units (Guillot and Rousset, 2013).
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CHAPTER 2: LITERATURE REVIEW
Introduction
It is second chapter of dissertation in which scholar has to review literatures of other
authors. It is one of the essential part of the study through which individual can develop better
understanding about the subject matter (Rani, Singh and Gupta, 2013). Critical review supports
in gathering relevant information about topic and getting in-depth knowledge about the study. In
this chapter scholar will look upon the literature of other researchers on PdM system (Predictive
maintenance and technologies, 2017).
Literature Review
Concept of predictive maintenance
According to Li and et.al, (2015) predictive maintenance is the effective tool in which
companies predict the failure that might occur in any equipment and then it prevents the machine
from occurrence of such failure so that it can perform with consistency (Defining Preventive &
Predictive Maintenance, 2017). . Author has stated that every tool or equipment has specific time
duration after that period machine requires repairing. If companies do not repair them on time
then it will cause problem suddenly. By this, entities will have to stop their manufacturing for
certain time duration and that will cause financial harm to the corporation. As per the view of
Parida and et.al, (2015) mining industry, agriculture field, plants regularly use many tools in their
workplace in order to produce quality products for consumers. If these equipments get failed in
middle of production then organization will not be able to produce quality goods on time. That
would decrease satisfaction level of consumers and will harm its brand image as well. As per the
view of scholar for keeping machines working all the time entities are required to use predictive
maintenance strategy so that they can maintain the parts and can keep them working every time.
It is an effective way of producing quality products to its consumers and enhance their
satisfaction level.
Jasiulewicz-Kaczmarek, (2013) has stated that traditionally there were not that much
advanced technologies that can identify problem in the equipments but recently there are many
advanced technologies that are capable and inexpensive enough in order to maintain machines
effectively. As per the view of Sliva and et.al., (2015) In the modern business world computer
power, bandwidth has helped the organizations in making PdM as viable option for the entities
through which they can maintain their company parts and can run the operations smoothly.
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According to Vogl, Weiss and Helu, (2016) predictive maintenance is completely differed from
the preventive maintenance strategy, in this method company can relies actual condition of the
available equipments and analysis the problem that can cause in coming duration (Defining
Preventive & Predictive Maintenance, 2017). By this way upcoming problems of issues of
failure can be come out in front of organization and authorities can take immediate action to
resolve these occurring problems. Maintaining the equipments before it requires maintenance is
the cost effective way that helps in increasing life of machines and by this way firms will be able
to produce quality products. As per the view of scholar predictive maintenance is suitable for big
or large sized organizations because they can maintain and afford such type of expenses. But if
any small size company use this method to reduce errors in the machines then it would be
negative and will harm its financial position to great extent. scholar has said that it is costly
process so only those firms which has strong financial resources can use this technique.
Finning company uses advanced technologies in order to find out the errors or requirements of
maintenance in the machines. It supports in addressing mistake before time period. By this way
production does not get hampered because management replace the old machine with the correct
one. Apart from this, it also monitors performance of these machines continuously that assist in
minimizing errors and accidents due to loop fall in the equipments.
Li and et.al, (2015) has argued that analysis of data is one of the crucial function for the
management team of the corporation. They need capable employees, highly advanced
machineries those which can identify problems in the parts and can resolve them on time. It can
support in minimizing the future problems due to this company's brand image can get affected.
PdM is the method in which company identifies the problems and through networks relevant
information get circulated to related persons. As per the view of Benkedjouh and et.al,
(2013Analytics tools predict which part of machine is going to fail in near future. This
information then circulated to workers. After that they take immediate action to repair the
equipments so that sudden failure situation can be avoided in the company. It helps the
organization in maintaining parts, machines, equipments fit all the time so that it can help in
producing quality products for the consumers (Defining Preventive & Predictive Maintenance,
2017).
Impact of PdM
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Finning is the largest organization and caterpillar dealer that delivers unrivalled services
to the mining, construction, forestry industries. According to Kylili and et.al, (2014) digital and
physical technologies impact on the business units to great extent. It mainly affects two major
objective of entities; these are business operations and business growth. Author has stated that
PdM has become one of the best options for the organizations those which are operating in the
same industry. Predictive maintenance impact positivity on the business growth of the firm. With
the help of this tool firms can avoid sudden failure and can examine the problems that can occur
in coming future (Defining Preventive & Predictive Maintenance, 2017). By this way they will
be able to take immediate action to maintain such machines so that operations can not be stopped
in middle of the period and they can deliver quality products to consumers.According to Kylili
and et.al, (2014) argued that By maintaining the equipments on time companies can resolve
unnecessary expenses on machines. On other hand scholar has viewed that for delivering quality
products to consumers company can do more research and can use marketing strategies.
Maintenance of machines only help entity when sudden problems in operations get arisen
otherwise it is not that much effective in improving quality of products.
On other hand Ye and et.al, (2013) has argued that PdM helps in running business
operations in smooth manner. It is the tool that can help in increasing life of these equipments
and by this way operations will not get stopped at any movements (Defining Preventive &
Predictive Maintenance, 2017). It repairs the machines before it needed repairing that helps in
keeping them alive and fit so that through these parts firms can produce quality standards
products and can satisfy needs of target consumers. Corporations spend huge time in machine
inspections so that trouble shooting unplanned downtime issues can be minimized. But
traditionally companies inspect the equipments once in a year. Sometimes some parts stop
working before inspection gets finished. To avoid such type of condition in the organization,
now-a-days firms are using PdM methods in which they identify cause that can occur in near
future and before it requires maintenance, firm repair machines so that company can save its time
and cost (Defining Preventive & Predictive Maintenance, 2017). By this way entities are able to
minimize such type of unplanned downtime that enhances operational efficiency of the firms. It
is positive impact of predictive maintenance system.
As per the view of Kylili and et.al, (2014) finsight system of predictive maintenance
helps in giving appropriate solution to the company in order to improve wind turbine reliability
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and minimizing the maintenance cost. This system helps in continuous monitoring of the
equipments so that main bearings can be identified on time. Parida and et.al, (2015) has argued
that onshore and offshore operations require regular monitoring. In the absence of this company
can not be able to identify maintenance needs of machines. Thus, operations can get badly
affected. Finsignt system is the world class engineering technology that helps in understanding
the operational capacity of equipment. It identifies potential issues that may arise in the system in
near future. Thus, repair these parts before their maintenance need. By this, errors and failure of
operations type situation get minimized to great extent.
On other hand as per the view of scholar predictive maintenance system is not that much
effective because it consumes too much time and due to this production gets delay. It is essential
to monitor the machines time to time so that their issues can be identified on time. Scholar has
argued that predictive maintenance requires lots of money to invest that may harm the financial
position of the firm to great extent. As per the view of Parida and et.al, (2015) connected
technologies of predictive maintenance system can pull data and legacy helps in providing
insights information about tools and equipments. By this way managers can deploy their
resources and can utilize them more effectively (Defining Preventive & Predictive Maintenance,
2017).
As per the view of Li and et.al, (2015) caterpiller dealer finning has signed contract of
equipment management with Cemex UK. This contract has improved the performance of
company and has improved financial situation of the entity as well. It is fact that with the help of
predictive maintenance cited firm has saved £1.4m in the fuel cost. Stone production of the
Finning company has been increased by 15% with the use of PdM. In addition to this, 10%
reduction has occurred in the machine operating hours. Predictive maintenance has supported in
reducing the fleet size by 6%. According to Parida and et.al, (2015) predictive maintenance is
beneficial for the industries that improves efficiency of equipments and detect fault in early
stages. Thus, it helps in increasing productivity and improving quality of machines as well. In the
above diagram of the predictive maintenance system within the fining company it has been
analysed that there are several kinds of cost incurred in the predictive maintenance system. With
help of these costs, company can improve its equipment and technological arrangement through
which productivity and quality of the services and commodities can improve within the
company.
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Illustration 1: financial benefit of PdM
Source: (6 benefits of using predictive maintenance, 2014)
Implementation of Predictive maintenance
According to Guerrero and et.al, (2013) manufacturing industry maintains first level and
then go to reactive, it tries to reach to predictive level as soon as possible. In this industry there is
separate technical department presents which keep monitor activities and performance of all
machines so that unplanned failure can be minimized. It is the main function of the firm that to
provide working and fit equipments or products to the end users. This separate department has to
schedule necessary services in the organizations so that it can reduce chances of failure in the
business units. As per the view of Li and et.al, (2015) firms that operate in the manufacturing
industry has fluid laboratory in which skilled people check condition of oil and particles. It helps
in identifying problems in the machines so that its maintenance can be done before critical
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