The use of artificial intelligence (AI) and digital information (DX) has revolutionised the way businesses manage their operations. This is particularly true in the case of capital spare parts flow optimisation, which can have significant implications for operational costs and customer satisfaction.
An excellent example of this is Datrix‘s work with Baker Hughes, one of the world’s largest oil field services companies. The project focused on maintaining gas turbines for an LNG site based in Oman, during which Baker Hughes delivered a 15-year O&M contract full of challenges: maintaining business continuity, reducing working capital tied up in spare parts inventory, keeping costs low, and finding ways to reduce residual value on spare parts.
Datrix addressed this problem by developing an AI software solution based on Reinforcement Learning to help manage and anticipate parts needs, minimise warehouse replenishments, and guarantee business continuity. This solution was formulated as a sequential decision problem with the objective of reducing the purchase of new spare parts and stocks compared to the traditional ‘rules of thumb’ approach such as Most Residual Cycles (MRC).
This solution enabled Baker Hughes to save over 10% in capital costs for the site over the course of the project. With the successful implementation of this project, DATRIX intends to scale up the solution to encompass many components, further streamlining operations, and eventually integrating into enterprise resource planning systems. The same approach has been exported to other industries characterised by similar needs for managing spare parts, and Datrix AI models yielded significant savings.
Fabrizio Milano d’Aragona, CEO of Datrix | Source: Milano Finanza
The success of Datrix’s AI-based solution is further proof that intelligent technology is not just capable of transforming operations but is also capable of delivering real business value. However, the journey doesn’t end here. The integration of modern digital solutions into everyday operations is an ongoing process. To truly reap the benefits offered by AI and DX, companies need to move away from traditional methods that rely heavily on heuristic rules.
If you would like to know more about the solutions that could be tailored to your organisation with these technologies, join us for our virtual panel discussion next week, where Datrix will be one of our panellists to provide practical advice on how to use these technologies, or how to get started if you haven’t already. You’ll also get the latest insights into AI and ML and have the opportunity to ask questions and get answers from real data science experts.
For more information on the event, including registration, click on the image below.
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