A heavy equipment provider uses the Industrial IoT to cut customers’ downtime by 60%

Machine sensors embedded in Kaeser Kompressoren equipment deliver realtime analytics that predict and prevent system outages before they can occur. That’s provided a competitive advantage by enhancing customer care—and satisfaction.

Kaeser Kompressoren

Kaeser Kompressoren is one of the world’s leading manufacturers and providers of compressed air systems and services. The company offers products, services, and complete systems for the generation, treatment, and delivery of energy in the form of compressed air.

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Established in 1919 as a machine workshop, Kaeser currently has two manufacturing sites in Germany. Its customers include manufacturers across virtually all verticals, including oil and gas, transportation, defense, and construction. The company’s innovations include solutions to deliver predictive analytics and compression machinery that significantly reduces emissions.

1919

founded

5,500

employees

Failing parts, costly downtime

Every time a production system goes down in an industrial process, it creates a troubling ripple effect. Entire production processes grind to a halt.

Further downstream, the outage often disrupts factory output, which in turn upends production chains from supply through inventory and distribution. The bottom-line consequences: significant hits to revenue and to customer satisfaction. Other effects include unplanned costs incurred when service teams are deployed to troubleshoot the failure.

Kaeser Kompressoren was looking for a way to protect its customers from the damaging business consequences of unplanned parts failures and system outages in its installed compressor equipment. The company discovered a solution by leveraging the Industrial Internet of Things (IIoT).

IIoT is not just about technology. It’s about capturing data that’s important to your business and your customers, gaining insights into that data, and using those insights to improve business results.

Falko Lameter
CIO, Kaeser Kompressoren

Predicting failures, preventing downtime

Realizing the game-changing potential of the Industrial IoT, Kaeser Kompressoren equipment features sensors to capture key environmental and performance data such as temperature, humidity, and vibration.

The data is transmitted directly, and in real time, to a system that conducts ongoing predictive analytics to determine whether a part might be prone to failure. This allows Kaeser to identify and replace faulty parts during regularly scheduled maintenance—helping avoid unexpected, costly outages on customers’ production lines.

Because its legacy SAP application did not meet current Industry 4.0 / Industrial IoT requirements, Kaeser upgraded to SAP HANA running on HPE servers to implement this solution.

We’ve gained faster, deeper, real-time insight, and better control of our global supply chain. As a result, we can optimize customer satisfaction by continuously improving the availability and efficiency of our compressed air equipment.

Falko Lameter
CIO, Kaeser Kompressoren

Cutting downtime by nearly two-thirds

With real-time machine analytics delivering faster insights into the health of its installed air compressors, Kaeser helps customers predict device failures and take preventive action.

This has resulted in a 60% reduction in unscheduled system downtime and costly emergency service visits, giving the company a competitive marketplace advantage by enhancing its customer care—and satisfaction.

The ability to more accurately predict outage risk also allows Kaeser to efficiently manage inventory. The result: an estimated annual savings of $10 million in break-fix costs, since the company can better predict what inventory should be. The savings frees capital for re-investment in business innovations and product improvements that create customer value.

As a by-product, Kaeser gains insight into product design, enabling the company to make design changes that will result in fewer future device failures.

60%

Reduction in unscheduled equipment downtime for Kaeser customers

28.5%

Reduction in compressed air energy usage for building supplies manufacturer 1

30K

Annual savings realized by paint production manufacturer 2

We’ve also used this new IIoT infrastructure to launch an air-as-a-service business model, helping us move costs from capex to opex.

Falko Lameter
CIO, Kaeser Kompressoren

Solution recipe

Kaeser upgraded to SAP HANA running on HPE ConvergedSystem 900 and Superdome X servers. It migrated its SAP Business Suite software to five HPE AppSystems for SAP HANA, to orchestrate new business processes across the organization, improve supply chain management, and harness the power of big data analytics.