How much can a single digital twin impact your bottom line?
For leading automotive manufacturer Renault, the answer is millions each year over 5 years on a €10 million annual budget.
In a new video for Cosmo Tech, Renault’s Expert Leader Industrial System 4.0 Jean Goutierre explains how Cosmo Tech’s Simulation Digital Twin brought a new approach to asset obsolescence management and maintenance and reduced capital costs over 5 years from €10 million per year down to 2 and 5 million euros per year.
Renault is one of the world’s largest automakers maintaining 40 manufacturing plants in 17 countries. Renault asset managers are responsible for more than 20,000 assets across those manufacturing plants.
“Asset obsolescence is one the most important topics in production engineering and 15 to 35% of assets in our plants are aging or can be considered obsolete,” says Goutierre. “Without the support of technology, it is now too complex to manage thousands of assets and find the optimal trade-offs between investment levels and risk management across several plants.”
Goutierre explains that Renault’s asset obsolescence management strategy is tied to a wider, company-wide strategy of digital transformation. He believes digital transformation is “at the core of effective obsolescence management” and is enthusiastic about the part that Cosmo Tech plays in that transformation.
Renault approached Cosmo Tech at a critical moment for the company.
“When we started working with Cosmo Tech, we had no global visibility on the impact of the decisions we were making when developing our strategic plans while facing CAPEX constraints.” explains Goutierre.
Cosmo Tech’s Digital Twin technology allows companies in the world’s most complex industries to model and simulate their operational and strategic systems. These simulations take into account all of the constraints of a business, including the CAPEX budget constraints.
Thanks to Cosmo Tech’s Simulation Digital Twin, Goutierre and his team were able to rapidly gain visibility at the plant level and develop a plan to effectively manage their assets. At the company level, too, Cosmo Tech’s digital twin helped Renault develop a holistic strategy.
Discover more about Cosmo Tech Simulation Digital Twins and asset obsolescence management here.
“At a global level, this tool provided tangible knowledge of how we can ensure the robustness of our strategy, knowing what the budget amount and the timing should be,” says Goutierre.
By modeling and simulating their asset obsolescence management strategies and using Cosmo Tech’s Digital Twin technology to develop an optimal asset management strategy, Renault was able to generate enormous returns with real bottom-line impact.