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Gardner Denver Adopts a Smart Services Strategy

Industrial equipment manufacturer launches an initiative designed to monitor and reduce total cost of ownership for air compressor installations.

By John Teresko

May 1, 2008

Best-in-class OEMs are looking beyond product-based sales approaches to post-sale strategies that can build customer value during the product's entire installed operating life. That's the philosophy that initiated a smart services strategy at Gardner Denver, a $1.9 billion manufacturer of air compressor products and industrial equipment, explains Mike Bakalyar, manager of enhanced services, Gardner Denver Compressor Division.

Using smart service strategies, manufacturers can strengthen product support for owners and operators of industrial equipment, he explains. "With our air compressors it all started about four years ago when Gardner Denver intensified its energy conservation involvement by focusing on air compressors from a total cost of ownership approach."

Bakalyar says the approach was motivated by a desire to help customers monitor and control electrical power usage. He quips that compressed air is really an expensive form of reconstituted electricity.

"By leveraging on-board sensing and control devices with wireless Internet connectivity, we gain asset visibility that enables us to help our customers optimize operation of the product." Smart services solutions allow manufacturers to remotely capture and analyze asset performance data, identify root causes of failure and trigger corrective action. The results can be repairs, upgrades and the dispatch of repair technicians and parts.

Bakalyar says the air compressor initiative started with the selection of nPhase as the solution provider. "We knew what we wanted to do in terms of communicating with the asset and nPhase helps us develop and optimize the Web-based platform for data handling and our wireless approach. In our applications, asset information is conveyed via a cellular connection for gathering at a server level for presentation on the Internet." Bakalyar says the eight beta sites have concluded 18 months of evaluation and commercialization is the next step.

"The Gardner Denver VST series two stage, variable speed compressor is designed to accommodate varying levels of process compressed air demand while maintaining best practice energy efficiency. Smart services begin with applying the best available technology," says Gardner Denver's Mike Bakalyar.
Sensors monitor both energy consumption and operating functions such as unit run-time and maintenance intervals. Bakalyar says the focus is on being preemptive as opposed to reactive. "For example, when the unit's operating temperature climbs at a rate greater than ambient defined thresholds, the system will initiate advisories to the equipment owner as well as the service provider."

Bakalyar contrasts that approach with the more common reactive mode where nothing happens until equipment failure occurs. "At that point a frantic customer calls the OEM to report the unintended equipment shutdown. Our smart services concept will enable us to get ahead of the curve."

Bakalyar says Gardner Denver goes to market through distribution, the entity in the chain that also provides the smart services. Data access is given to anyone having a stake in the installation where data is being collected and monitored.

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