Modeling the wasted value of data in maintenance investments

Abstract

Purpose

Big data and related technologies are expected to drastically change the way industrial maintenance is managed. However, at the moment, many companies are collecting large amounts of data without knowing how to systematically exploit it. It is therefore important to find new ways of evaluating and quantifying the value of data. This paper addresses the value of data-based profitability of maintenance investments.

Design/methodology/approach

An analytical wasted value of data model (WVD-model) is presented to quantify how the value of data can be increased through eliminating waste. The use of the model is demonstrated with a case example of a maintenance investment appraisal of an automotive parts manufacturer.

Findings

The presented model contributes to the gap between the academic research and the solutions implemented in practice in the area of value optimization. The model provides a systematic way of evaluating if the benefits of investing in maintenance data exceed the additional costs incurred. Applying the model to a case study revealed that even though the case company would need to spend more time in analyzing and processing the increased data, the investment would be profitable if even a modest share of the current asset failures could be prevented through improved data analysis.

Originality/value

The model is designed and developed on the principle of eliminating waste to increase value, which has not been previously extensively discussed in the context of data management.

Citation

Marttonen-Arola, S., Baglee, D., Ylä-Kujala, A., Sinkkonen, T. and Kärri, T. (2022), "Modeling the wasted value of data in maintenance investments", Journal of Quality in Maintenance Engineering, Vol. 28 No. 1, pp. 213-232. https://doi.org/10.1108/JQME-03-2020-0013