2S10: Calculating ROI on Predictive Maintenance Programs and link to Key Performance Indicators



This presentation will focus on the technical and engineering aspects of maintenance and reliability into business terms – essentially into the concept of a financial business case – Return on Investment [ROI]. This will help communicate the strategy and tactics to communicate to top executives and people not directly involved in maintenance, the tremendous business value associated with elevating maintenance and reliability practices in the organization. PdM programs bring value to an organization by detecting potential failure and determining how to correct them before the failure can occur. Many PdM programs are under-resourced or abandoned because the ROI generated by PdM groups is not obvious to management. If PdM programs are measured by their ability to avoid failures, and the resulting Failure Avoided Cost [FAC] are quickly calculated and reported to the management, the ROI will become evident. Additionally, using the results of these savings from each predictive technology, i.e. vibration analysis, oil analysis, thermography, ultrasonic leak detection, etc. a determination can be made to decide if the technology is properly applied and if the frequencies of the inspections are appropriate to produce the highest possible ROI.

As a continuation, leading into the importance of Asset Condition Monitoring [ACM] Key Performance Indicators [KPI’s], which provide evidence that when presented can convince decision makers if the PdM program investment should sustain and new technologies need to be introduced to enhance reliability. Decision makers at all levels from executive to first line leaders need to have continuing information on status of each assets monitored to determine if allocation of resources (e.g. tools, personnel, competencies) is adequate to achieve the goals for which the overall ACM strategy established. Some of the key KPI’s to assess ACM are described further in this presentation and you would see the link to ROI for PdM program implementation. Without the right KPI’s sustainability of ACM programs becomes a challenge, and cuts in PdM program begins and impacts reliability of the organization.


Krishnan has 31 years’ experience in field of manufacturing and operational excellence, asset management implementation through maintenance and reliability management, lean six sigma implementation with focus on value add on business work processes. Lead regional maintenance management, lean six sigma black belt, operations advisory roles and responsibilities for Asia Region.

Krishnan has worked extensively in areas of process safety with focus on Mechanical Integrity and Quality Assurance, Contractor Safety Management, Management of Change, RCM, Lifecycle cost analysis, with relevance to large chemical, petrochemical, refining industries. Applied concepts of lean management with cross-functional and high performance work force development arena.

Worked in India, Kuwait, Syria, Indonesia and Singapore apart from providing consulting services in few other countries like China and South Africa.

•Asset Management ISO 55001 certification from IAM, UK
•Certified Maintenance & Reliability Professional (CMRP) from SMRP USA
•Lean Six Sigma Black Belt with focus in asset management arena
•RCM 2 practitioner / Expert in Routine Maintenance, Improved Equipment Reliability, Project work processes from Sinclair Corporation, USA
•Certified Project team leader academy, DuPont USA
•Independent Technical Expert (Asset Management) of Certification Body Accreditation for SAC (Singapore Accreditation Council)
•Certified Maintenance Excellence Recognition Process (MERP) auditor for Asia region – DuPont USA
•BE Mechanical Engineering, Bharathiar University India
•MBA from Western Michigan University, USA