Modernizing Controls: 'Modernization' or 'Migration'–Which One Is Right for You?

Summary

Managing aging technology and infrastructure is a big challenge for many manufacturers. According to industry findings from TWI Institute, 80% of all unplanned downtime in the manufacturing environment can be linked to equipment failure. While modernization is top of mind for many organizations, how do you know when it is the right time to replace a machine component before it fails? And how do you determine whether you should simply update equipment or fully replace it?
 


Determining whether to update or fully replace industrial equipment comes with potential risks and rewards. But simply maintaining older equipment until it is on its “last leg” is no longer viable and leaves organizations open to numerous risks, such as:

• Compatibility and reliability: Legacy systems often aren’t compatible with modern equipment or require additional investment to get them to “talk” to the other machines on the plant floor. Depending on how old the system is, finding replacement parts could also be a challenge.
• Productivity: Not surprisingly, older equipment is more prone to failure, which leads to costly downtime and could pull workers away from critical tasks. Along those lines, aging machines aren’t as productive or efficient as modern equipment.
• Cybersecurity: Outdated equipment and systems can become prime targets for disruptive and costly cyberattacks. The financial ramifications are significant as industry figures note that the average cost of a data breach is $4.88 million and typical downtime after an attack is 24 days.
• Informed decision making: Older equipment might not be able to provide the data or insights needed to make informed business decisions. Without accurate data, plant managers could miss out on opportunities to enhance or streamline operations.

Modernization vs. migration

At a high level, organizations that are dealing with the challenges of legacy equipment or systems have two potential approaches: modernization or migration.
 
Modernization is upgrading an existing system by enhancing or replacing specific components while maintaining the core infrastructure. With this approach, sensors might be added to an existing machine in order to expand data collection or monitoring capabilities. This strategy generally requires a smaller upfront capital investment and can be easily modified to accommodate future facility needs. Plant managers that pursue this route are generally looking for a lower-cost option with minimal downtime, less risk and a faster return on investment.
 
Modernization leads to increased efficiency, enhanced quality control, improved flexibility and cost savings. Downtime may also be minimal. However, because this approach utilizes existing systems and equipment, additional upgrades could be needed in the future. Additionally, the realized benefits might be incremental when compared to the “migration” approach. It’s also critical to perform controlled testing to make sure any issues are ironed out before going online.
 
Migration, on the other hand, is a completely different approach that fully replaces an entire system with a new one. This strategy often involves a higher upfront cost, higher complexity, and may require significant downtime. However, the benefits are often longer term. Compared to a “modernization” approach, plant managers can realize greater scalability, data access, cost efficiency over scale, and enhanced disaster recovery. Once again, it’s imperative to conduct extensive testing before going live, and plant managers should ensure that operators are trained on how to use the new equipment or systems.
 

How to choose the right approach

Before choosing which approach to take, plant managers should conduct a comprehensive audit of their operations to understand their unique situation and needs. It may be helpful to bring in a trusted partner to provide an unbiased perspective, but any audit should at a minimum consider the following factors:

1. System or equipment status: If you’re working with older systems, a full migration may be a better solution. However, if your equipment is relatively newer, a modernization approach might get the job done. This part of the evaluation should also assess the “health” of any critical assets, as well as the current maintenance strategies.
2. Budget: This will obviously be one of the most important factors. As mentioned earlier, both approaches will have a different cost considerations. A modernization strategy may work better for organizations that need to contend with tighter budgets.
3. Downtime tolerance: Both approaches could require some downtime, but it’s important to understand how much downtime might be needed. It’s also important to fully understand how much training operators might need if new equipment or systems are installed.
4. Future needs: Can your equipment meet your future production needs? The answer to this question will greatly impact which approach you take.
5. Network infrastructure: Does your current network infrastructure have the bandwidth to handle new sensors, connected machines and other IIoT devices? If you anticipate adding additional connected devices, will you need to expand your network capabilities? Does your current network cover the entire plant floor, or are there dead spots? Do you have a robust cybersecurity program in place? Understanding these questions will be critical to maximizing ROI for any new systems or equipment.

The good news is, there is no wrong answer here. While each organization needs to assess their own situation and risk tolerance, a trusted partner can help put you on the right path to future-proofing, even as technology accelerates and operations evolve.