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Please read the Hermitage Escalator Company case in the Daft text (page 395), and complete the question at the end of the case: "How might Hermitage codify and manage the knowledge of experienced maintenance technicians into the new rules to be written for handling maintenance responses under the upcoming deluge of big data from the Internet of Things? Explain." Please have an answer of TWO pages

Hermitage Escalator Company is an independent division the top, which pulls and rotates the chain loops, similar to of a large international manufacturer that sells and provides the chain mechanism on a bicycle. A typical escalator uses maintenance of elevators and escalators. Hermitage was a 100-horsepower motor to rotate the gears. The motor started by an entrepreneur living in Hermitage, Tennessee and chain system are housed inside a metal structure in 1954, just as the demand for the "magic staircase" began extending between the two floors. to take off. In 1989 Hermitage was acquired by an elevator The chain loops move a series of steps. As the chains company that wanted to provide a full line of lift devices. move, the steps stay level. At the top and bottom of the Hermitage was able to maintain substantial autonomy as a escalator, the steps collapse on each other, creating a flat separate division and to retain its brand name. platform. This makes it easier for riders to get on and off Hermitage sells over 2,000 escalators each year. Principal the escalator. Each step in the escalator has two sets of wheels that malls, airports, transit system stations, convention centers, roll along on two separate tracks. The set of wheels near hotels, arenas, stadiums, office buildings, and government the top of each step are connected to the rotating chains, buildings. At the extreme, an escalator may carry people and hence are pulled by the drive gear from the top of the up multiple stories or hundreds of feet horizontally along escalator. The other set of wheels at the bottom of the step corridorssuchasinanairportconcourse.eachstepalwaysremainslevel.Atthetopandbottomofsimplyglidealongitstrack.Thetracksareplacedsothat each step always remains level. At the top and bottom of How Escalators Work tening the stairway. Each step has a series of grooves so it will fit together with the step behind it and in front of it In its simplest form, an escalator is like a conveyor belt during the flattening. with a pair of long chains, one on each side, looped around The electric motor in an escalator also moves the gears at each end. An electric motor turns the drive gear at handrail. The handrail is simply a rubber conveyor belt that is looped around a series of wheels. This belt is decide what action should be taken in response to a probprecisely configured so that it moves at the same speed as lem, such as how to provide data or a data visualization to the steps to give riders some stability. decision-makers, or even how to create decision algorithms An escalator is much better than an elevator for mov- that would automatically decide what action should be ing people a short distance because of the escalator's high taken in response to a problem. loading rate. Escalator speeds vary from about 90 feet per minute to 180 feet per minute. An escalator moving 145 feet per minute can carry more than 10,000 people Concerns at Hermitage an hour, many more people than a standard elevator can Although escalators are simple in concept, like all machin- and reduce labor costs. I would really like to see our ery there are many parts involved that may break down at a aility to fix a problem before it happens. Prediction and ery there are many parts involved that may break down at ability to fix a problem before it happens. Prediction and any time. Safety mechanisms include inlet guards, an oper- prevention, as opposed to reaction, is where the industry is ating panel, safety switches, and step switches. The top and headed. We are driving toward preventative and predictive bottom operating units include a control panel, drive unit, maintenance out of necessity. If we can install sensors and main gear, drive chain, sprocket, and safety switches. The Internet of Things components, we could dispatch the right truss between floors includes the main track, trailing track, people to fix the right problem at the right time. Or better moving handrail drive unit, sprocket, moving handrail yet, prevent the problem from occurring at all." drive chain, and inlet guard. Other elements include the Low-rise escalator equipment can be maintained with moving handrail, its interior panel, deck board, and skirt competent technical know-how. Competent maintenance guard. The steps include the tread, riser, step demarcation workers make about $50 per hour and can earn over line, driving rollers, and step chain. $100,000 a year with overtime. An IoT package is costEscalator maintenance is important for customer sat- effective on new escalators but expensive to retrofit on legacy escalators. "It will take several years to replace leg. isfaction because nobody likes to climb a broken escalator. legacy escalators. "It will take several years to replace leg- Maintenance can also be a serious issue. There are horror acy escalators," Anderson said. "In the meantime, we are Maintenance can also be a serious issue. There are horror acy escalators," Anderson said. "In the meantime, we are stories of people falling into broken escalators that opened learning the weak spots in our escalator systems and where up when people were climbing up the stairs. Moreover, sensors would have the best payoff. It would be great if escalators have collapsed sending people tumbling to the we had information coming from the equipment to tell us bottom. Escalators have caught fire, such as in 1987 when which mechanics to send and when to send them but that an escalator in a London Underground station actually is several years away on our installed maintenance base. It exploded, sending flames into the ticketing office, killing could be 10 years before we have all of our installed esca31 people. The cause was the accumulation of pounds of lators talking and communicating in a meaningful way." tiny bits of paper and lint that had collected in the inner Anderson wanted to be creative in his approach to workingsandundercarriageofthemachine.TheloTtodoabigdata-typeeffort,evenbeforeescalatorshavemaintenanceduringthe10-yearinterim."Isitpossibletofindanotherwaytoachievepredictivemaintenance?Wehavealotofrepairandcallbackhistorythatwecoulduse Approximately 28,000 new escalators and elevators are percentage of our callbacks are related to electric motors installed each year in the United States. Hermitage, like all and chains, for example, is important. I want us to get betmanufacturing companies, was facing an industrial revo- ter at using the data we already have as we move toward lution, popularly known as Industry 4.0 or the industrial big data analytics." Internet of Things, as manufacturing converged with the "A really good mechanic can troubleshoot an escadigital economy, specifically with emerging big data col- lator over the phone by just asking questions," Anderson lection systems and analytics. There is much discussion of says. "There are not millions of things that can go wrong. how to create profitable business models using big data There is a finite number of questions for every escalator necks and other problems, determine what real-time data knowledge needs to be part of our predictive maintenance necks and other problems, determine what real-time data knowledge needs to be part of our predictive maintenance is needed to overcome the problem, and then apply appro- system." then selecting the right things to measure in order to what we call "noise" from a problem that requires action? arrive at predictive capability. Measuring the right things In addition, once it is determined that an action has to be using well-placed hardware and connecting it to the cloud taken, what should that action be? Could a certain maintewould not achieve our goal without clear rules. The rules nance action be bundled together with other maintenance of maintenance are not derived from a rulebook, but from items and then addressed as part of the next regularly the accumulated knowledge and expertise of hundreds of scheduled maintenance service?" maintenance and repair mechanics over decades of service. "When you move to a predictive model, you can easAs part of the remote monitoring program, our rules for ily drive up costs. If you take every single thing that was data collection and remote monitoring will allow the first sensed and automatically send a technician to check it generation of rules to be written that help dispatch the out, you spend money for each visit with no benefit. That right person to the right problem." would cost a lot. If there is a safety issue or an error that "Now we are taking this knowledge to the next level could cause a shutdown, then dispatch the technician right to do predictive analytics. We want to capture and trans- away. But, if we are being smart, some issues detected can fer knowledge that we have in our most talented techni- be bundled into our next maintenance visit to the location." cians down to the next generation that will lead us into our "So, my thinking is that when we write our rules for future service model. With seemingly unlimited IoT data maintenance and maintenance calls, we should start with on the horizon from sensor technology, we will use this analyzing the callbacks and repairs in our history, because information to rewrite the rules on how we dispatch and that is where we can influence costs and outcomes. The who we send on service for maintenance calls." "Predictive maintenance analytics will not be easy to know on which type of equipment each callback or repair put into practice. For example, with new data coming in, occurred." we can expect to see 'false positives' - meaning indicators At Hermitage, all new installations will have an IoT that something was wrong when nothing was wrong. With sensor package installed. A big question is how the Intermatters of safety and satisfaction, how could a technician net of Things can be used to increase revenue and decrease know if the alarm was a false one? False positives have rather than increase costs, all the while providing betthe potential to increase our costs, not decrease them. Then ter customer service. How can Hermitage capture all the there is the issue of natural variability in our operating promise of loT to deliver more value to the customer and equipment. How can we set parameters on distinguishing to itself? Hermitage Escalator Company is an independent division the top, which pulls and rotates the chain loops, similar to of a large international manufacturer that sells and provides the chain mechanism on a bicycle. A typical escalator uses maintenance of elevators and escalators. Hermitage was a 100-horsepower motor to rotate the gears. The motor started by an entrepreneur living in Hermitage, Tennessee and chain system are housed inside a metal structure in 1954, just as the demand for the "magic staircase" began extending between the two floors. to take off. In 1989 Hermitage was acquired by an elevator The chain loops move a series of steps. As the chains company that wanted to provide a full line of lift devices. move, the steps stay level. At the top and bottom of the Hermitage was able to maintain substantial autonomy as a escalator, the steps collapse on each other, creating a flat separate division and to retain its brand name. platform. This makes it easier for riders to get on and off Hermitage sells over 2,000 escalators each year. Principal the escalator. Each step in the escalator has two sets of wheels that malls, airports, transit system stations, convention centers, roll along on two separate tracks. The set of wheels near hotels, arenas, stadiums, office buildings, and government the top of each step are connected to the rotating chains, buildings. At the extreme, an escalator may carry people and hence are pulled by the drive gear from the top of the up multiple stories or hundreds of feet horizontally along escalator. The other set of wheels at the bottom of the step corridorssuchasinanairportconcourse.eachstepalwaysremainslevel.Atthetopandbottomofsimplyglidealongitstrack.Thetracksareplacedsothat each step always remains level. At the top and bottom of How Escalators Work tening the stairway. Each step has a series of grooves so it will fit together with the step behind it and in front of it In its simplest form, an escalator is like a conveyor belt during the flattening. with a pair of long chains, one on each side, looped around The electric motor in an escalator also moves the gears at each end. An electric motor turns the drive gear at handrail. The handrail is simply a rubber conveyor belt that is looped around a series of wheels. This belt is decide what action should be taken in response to a probprecisely configured so that it moves at the same speed as lem, such as how to provide data or a data visualization to the steps to give riders some stability. decision-makers, or even how to create decision algorithms An escalator is much better than an elevator for mov- that would automatically decide what action should be ing people a short distance because of the escalator's high taken in response to a problem. loading rate. Escalator speeds vary from about 90 feet per minute to 180 feet per minute. An escalator moving 145 feet per minute can carry more than 10,000 people Concerns at Hermitage an hour, many more people than a standard elevator can Although escalators are simple in concept, like all machin- and reduce labor costs. I would really like to see our ery there are many parts involved that may break down at a aility to fix a problem before it happens. Prediction and ery there are many parts involved that may break down at ability to fix a problem before it happens. Prediction and any time. Safety mechanisms include inlet guards, an oper- prevention, as opposed to reaction, is where the industry is ating panel, safety switches, and step switches. The top and headed. We are driving toward preventative and predictive bottom operating units include a control panel, drive unit, maintenance out of necessity. If we can install sensors and main gear, drive chain, sprocket, and safety switches. The Internet of Things components, we could dispatch the right truss between floors includes the main track, trailing track, people to fix the right problem at the right time. Or better moving handrail drive unit, sprocket, moving handrail yet, prevent the problem from occurring at all." drive chain, and inlet guard. Other elements include the Low-rise escalator equipment can be maintained with moving handrail, its interior panel, deck board, and skirt competent technical know-how. Competent maintenance guard. The steps include the tread, riser, step demarcation workers make about $50 per hour and can earn over line, driving rollers, and step chain. $100,000 a year with overtime. An IoT package is costEscalator maintenance is important for customer sat- effective on new escalators but expensive to retrofit on legacy escalators. "It will take several years to replace leg. isfaction because nobody likes to climb a broken escalator. legacy escalators. "It will take several years to replace leg- Maintenance can also be a serious issue. There are horror acy escalators," Anderson said. "In the meantime, we are Maintenance can also be a serious issue. There are horror acy escalators," Anderson said. "In the meantime, we are stories of people falling into broken escalators that opened learning the weak spots in our escalator systems and where up when people were climbing up the stairs. Moreover, sensors would have the best payoff. It would be great if escalators have collapsed sending people tumbling to the we had information coming from the equipment to tell us bottom. Escalators have caught fire, such as in 1987 when which mechanics to send and when to send them but that an escalator in a London Underground station actually is several years away on our installed maintenance base. It exploded, sending flames into the ticketing office, killing could be 10 years before we have all of our installed esca31 people. The cause was the accumulation of pounds of lators talking and communicating in a meaningful way." tiny bits of paper and lint that had collected in the inner Anderson wanted to be creative in his approach to workingsandundercarriageofthemachine.TheloTtodoabigdata-typeeffort,evenbeforeescalatorshavemaintenanceduringthe10-yearinterim."Isitpossibletofindanotherwaytoachievepredictivemaintenance?Wehavealotofrepairandcallbackhistorythatwecoulduse Approximately 28,000 new escalators and elevators are percentage of our callbacks are related to electric motors installed each year in the United States. Hermitage, like all and chains, for example, is important. I want us to get betmanufacturing companies, was facing an industrial revo- ter at using the data we already have as we move toward lution, popularly known as Industry 4.0 or the industrial big data analytics." Internet of Things, as manufacturing converged with the "A really good mechanic can troubleshoot an escadigital economy, specifically with emerging big data col- lator over the phone by just asking questions," Anderson lection systems and analytics. There is much discussion of says. "There are not millions of things that can go wrong. how to create profitable business models using big data There is a finite number of questions for every escalator necks and other problems, determine what real-time data knowledge needs to be part of our predictive maintenance necks and other problems, determine what real-time data knowledge needs to be part of our predictive maintenance is needed to overcome the problem, and then apply appro- system." then selecting the right things to measure in order to what we call "noise" from a problem that requires action? arrive at predictive capability. Measuring the right things In addition, once it is determined that an action has to be using well-placed hardware and connecting it to the cloud taken, what should that action be? Could a certain maintewould not achieve our goal without clear rules. The rules nance action be bundled together with other maintenance of maintenance are not derived from a rulebook, but from items and then addressed as part of the next regularly the accumulated knowledge and expertise of hundreds of scheduled maintenance service?" maintenance and repair mechanics over decades of service. "When you move to a predictive model, you can easAs part of the remote monitoring program, our rules for ily drive up costs. If you take every single thing that was data collection and remote monitoring will allow the first sensed and automatically send a technician to check it generation of rules to be written that help dispatch the out, you spend money for each visit with no benefit. That right person to the right problem." would cost a lot. If there is a safety issue or an error that "Now we are taking this knowledge to the next level could cause a shutdown, then dispatch the technician right to do predictive analytics. We want to capture and trans- away. But, if we are being smart, some issues detected can fer knowledge that we have in our most talented techni- be bundled into our next maintenance visit to the location." cians down to the next generation that will lead us into our "So, my thinking is that when we write our rules for future service model. With seemingly unlimited IoT data maintenance and maintenance calls, we should start with on the horizon from sensor technology, we will use this analyzing the callbacks and repairs in our history, because information to rewrite the rules on how we dispatch and that is where we can influence costs and outcomes. The who we send on service for maintenance calls." "Predictive maintenance analytics will not be easy to know on which type of equipment each callback or repair put into practice. For example, with new data coming in, occurred." we can expect to see 'false positives' - meaning indicators At Hermitage, all new installations will have an IoT that something was wrong when nothing was wrong. With sensor package installed. A big question is how the Intermatters of safety and satisfaction, how could a technician net of Things can be used to increase revenue and decrease know if the alarm was a false one? False positives have rather than increase costs, all the while providing betthe potential to increase our costs, not decrease them. Then ter customer service. How can Hermitage capture all the there is the issue of natural variability in our operating promise of loT to deliver more value to the customer and equipment. How can we set parameters on distinguishing to itself

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