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Frequently asked questions
How do you calculate predictive maintenance ROI from downtime data?
Establish a baseline for unplanned downtime, estimate the share that a predictive maintenance program could address, and assign a financial value to the downtime avoided. Compare the resulting benefit with the total program cost. ROI is calculated as (financial benefit minus program cost) divided by program cost, multiplied by 100%.
What downtime data should be included in the baseline?
Track unplanned downtime duration, frequency, affected equipment, and recorded causes over a representative period. Use consistent definitions so that results before and after the program can be compared fairly.
Why does the addressable share of downtime matter?
Not every downtime event can be prevented through predictive maintenance. Estimating the addressable share helps keep the business case focused on failures the program could realistically detect early enough for maintenance teams to act.
What costs should be included in a predictive maintenance business case?
Include monitoring equipment, software, installation, integration, training, and ongoing program management. Also account for the labor and maintenance work required to investigate alerts and address equipment issues.
How can a pilot help validate predictive maintenance ROI?
A pilot can compare downtime results against an established baseline and test whether the program identifies actionable equipment issues. Track avoided downtime and actual program costs before expanding. Current-based production evidence alone does not establish diagnostic or predictive coverage.
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