Alarm management: How to reduce stress in a critical business environment

Poor alarm management is estimated to cost the global industry about $20 billion annually in lost production and productivity. That’s painful. What’s even more painful, is that alarm saturation leads to alarm fatigue.

Alarm management: How to reduce stress in a critical business environment
December 2, 2024

By David Pfeifer, Head of Solutions for the DACH region at Ascom.
In an industry survey, conducted with facility managers, respondents said they receive an average of 12.5 alarms per day. More than half receive up to 30 alarms a day. It’s not without reason that no less than 76 percent of the respondents wanted to see improvement in alarm management approaches.

Strategic alarm management

Smart alarm management can prevent production incidents, reduce maintenance costs, improve efficiency, and lower insurance premiums. For instance, many European manufacturers have seen a 30% reduction in their risk operations insurance by implementing EEMUA-compliant alarm improvement strategies.

The burden of alarm overload

One of the greatest challenges is alarm overload. As mentioned, half of the operators receive more than 30 alarm calls a day, with the vast majority being non-urgent. This is unsustainable and places excessive demands on already overworked colleagues. Worse, the frequent “Cry-Wolf” effect can lead to operator errors or critical alarms being missed.

Consequences of poor alarm management

The repercussions of ineffective alarm management are extensive. It can lead to operational disruptions. Frequent false alarms can interrupt workflows and reduce productivity. Failure to manage alarms properly can result in non-compliance with industry regulations, leading to fines and legal actions. Moreover, inefficiencies and errors resulting from poor alarm management can lead to substantial financial losses.
Apart from the regulatory and financial consequences, there is also risk of damaged brand image and trust. Repeated operational issues can truly harm a reputation. Last but not least, constant alarm flooding can cause stress and fatigue among operators, reducing job satisfaction and increasing turnover, which in turn leads to higher recruitment and training costs.