Case Study: Upgrading Predictive Maintenance for Distribution Facility

MSAI was approached by a Fortune 50 online retailer and manufacturer who was experiencing regular 
unplanned downtime caused by unexpected failures of critical equipment throughout their distribution facilities, despite monthly inspections with handheld thermal imaging devices. To address these failures, MSAI installed a continuous monitoring solution that leverages thermal imaging and proprietary software, MSAI Connect. After one month, the savings had already paid for the cost of the solution.

The Industry

Online retailers and large manufacturers rely on complex supply chains, highly efficient distribution systems, and processes to deliver millions of products worldwide. In a distribution facility, even a short stoppage of one or two hours results in tens of thousands, if not hundreds of thousands of dollars in lost throughput and wasted wages of stagnant workers. 

Oftentimes, these production stoppages are caused by the failure of a mechanical system, such as a conveyor belt or motor, that is critical to distribution or manufacturing processes. MSAI's continuous monitoring solutions monitor critical assets 24/7 and send alerts to help businesses schedule repairs before major breakdowns occur. Typical applications include: monitoring motors, belts, and bearings; inspecting electrical equipment and controllers; security and human detection; early fire detection; leak and spill detection; and more.

The Challenge

A major online retailer was experiencing issues in its distribution facilities, with frequent unplanned downtime due to failures of three high-criticality conveyance assets that moved and sorted thousands of packages daily. The facility calculated that the average cost to pay warehouse employees during 1 hour of downtime was $ 5,000/hour, and the average time to repair or replace equipment after an unexpected failure was 2 hours. This $10,000 cost from stagnant wages represents only a fraction of the waste, as downtime also led to lost productivity and reduced product throughput. Overall, waste and lost productivity were measured in the hundreds of thousands of dollars within the facility. These critical failures persisted despite the use of handheld infrared cameras for routine inspections.

MSAI's Solution

MSAI's solution included three FMX 400s paired with the MSAI Connect software platform for continuous monitoring of critical assets. The constant monitoring of these assets enabled 24/7 monitoring and automated alerts should a temperature anomaly be detected, indicating a potential maintenance requirement. The solution was specifically designed to identify issues before failure, making the most of scheduled facility downtime and reducing costs. The solution also enabled the customer to access live video feeds globally, receive instantaneous alerts and notifications, and maintain data archival to improve management's decision-making process.

The Results

At a system cost of $30,000 for three FMX 400 thermal imaging devices and three MSAI Connect subscriptions (one year in length for each camera), MSAI's solution provided a positive ROI after approximately one month for this 24/7 continuous monitoring project. MSAI Connect identified three imminent critical failures during that time:

• A conveyor belt that was running ~20°C hotter than usual. Finding and repairing the issue before failure saved the retailer an estimated $10,000.
• The system identified a motor 30°C above the expected temperature range. The motor was replaced during scheduled maintenance, saving the retailer nearly $15,000.
• An angled induct belt alarmed the system, and workers found it had tracked and was starting to rub. The belt was repaired and realigned, saving the company $10,000.

The customer has since socialized this product internally to other facilities and has engaged ICI to install these solutions worldwide in their distribution facilities.

Learn more about MSAI Connect's solution for distribution facilities or schedule a demo today.