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18.06.26
Product Usage Data in Mechanical Engineering: How Real-World Usage Data Shortens Development Cycles

Mechanical engineering firms carry out their design work behind the scenes. Their engineers calculate loads, service life and efficiency based on standards, experience and simulation. This often works well. But sometimes it doesn’t. A component wears out faster than calculated. A particular type of machine is used in applications that the developers never envisaged. One feature is hardly ever used, whilst another is used much more frequently than anticipated.
How do you know this? These days, often only when customers report problems or provide feedback – months or years after the product has been launched. That’s too late. The next generation is already well into development.
Product usage data changes this dynamic. When machines are monitored via telemetry whilst in operation, and when real-world usage data flows back into the company, a new window of learning opens up. Design engineers don’t just see what might happen; they see what is actually happening. Based on this, they can iterate more quickly and with greater confidence.
This article shows how usage data impacts product development – and how d.u.h.Group supports you in this process.
Why usage data is crucial
The gap between theory and practice in mechanical engineering is wider than engineers are willing to admit. A conveyor belt is sized for its design load – but the operator regularly overloads it. A motor is designed for continuous duty – but the application involves 80 per cent peak load operation. A sensor is calibrated with a specific cut-off threshold – but the customer uses it in a temperature environment that was not taken into account.
The typical responses are: support tickets, warranty claims, and redesigns based on individual cases. This is expensive and time-consuming. With systematic usage telemetry, you can identify these scenarios in advance.
Specific examples from mechanical engineering: A hydraulic pump operates at partial load more frequently than the design specifications assumed. This reduces efficiency and increases heat generation. Usage data reveals this. The next generation of pumps can be controlled differently. A gearbox is operated under load differently to how it was simulated – the usage patterns show where optimisations are appropriate.
Another scenario: a particular machine type is used worldwide, but actual load profiles vary significantly by region and industry. European usage: 60 per cent idle, 30 per cent full load, 10 per cent overload. Asian usage: 40 per cent no-load, 50 per cent full load, 10 per cent above specification. Without usage data, you develop based on averages and fail to meet anyone’s needs properly. With data, you can offer customer-specific variants or tuning profiles.
The economic reality: companies that systematically utilise usage data report development times that are 20–30 per cent shorter. This is because assumptions are validated or refuted more quickly. Fewer design revisions based on surprises after launch. Faster iteration based on real demand.
Integration with PLM & Digital Thread
Usage data is useless in isolation. It needs context. Which machine variant? Which year of manufacture? Which serial number? Which design version? The link is the product’s digital identity – its digital thread.
The Digital Thread links requirements, design, simulation, production and operation. In mechanical engineering, it often begins in a PLM system such as Teamcenter. This is where the designs are stored in NX, along with bills of materials, variants, configurations and change history.
When usage data arrives, it needs a way into the Digital Thread. In practical terms, this means: a machine sends telemetry data (vibration, temperature, force, operating hours, faults). This data is linked to the serial number. Using the serial number, you can look up the following in Teamcenter: Which model series version? Which options? What specifications?
You can now carry out analyses: all machines from version 3.2 with the ‘High-Duty’ configuration show error rates 15 per cent higher than the average. Which components are affected? Teamcenter tells you what has changed from version 3.1 to 3.2. Was it a design change? A change of supplier?
With this context, design engineers can act quickly. They aren’t analysing in a vacuum. They have data, history and design context all in one place. The time to insight is drastically reduced.
Technically, this means that PLM must be open to external data. REST APIs or other integration methods allow usage data to be correlated with product metadata. This is now possible with Teamcenter and does not require a mammoth integration project. Middleware often connects the IoT platform to the PLM.
Data-driven product improvement
Usage data makes product development more empirical. It relies less on assumptions and more on facts.
A typical workflow might look like this: every month, you download usage data from installed machines. You aggregate it: average performance profiles by machine type, region and customer sector. You compare this with design specifications: where do the actual profiles deviate?
You identify patterns. For example: Hydraulic cylinder X is being operated at twice the cycle frequency specified. This shortens its service life. This option for these cylinders is popular with customers, but the performance profile is not healthy. The design team would need to respond.
Or: A sensor system Y is rarely calibrated by customers – even though the documentation provides clear instructions. The data shows that uncalibrated sensors systematically return incorrect values. This leads to substandard control. A constructive response: automatic self-calibration in the next version. A software update is rolled out to customers with older machines.
Or: Machine type Z is frequently used by customers in applications not covered in the specifications. The usage data clearly shows this. The design team could offer a specialised variant that better suits this application. This represents a new business opportunity.
These iterations often happen by chance or slowly at present. With structured usage data analysis, they can take place on a monthly basis. This significantly shortens development cycles.
The feedback loop is particularly valuable: your design engineer makes a change to the design. The version goes into production. You build the machines and install them. After three months of operation, you can see: is the change working? Have the objectives been achieved? Do you need to make adjustments? This is genuine learning by doing, only accelerated by data.

Challenges & Data Security
Product usage data is powerful, but not without its complications.
The first challenge: data volume and infrastructure. If you have thousands of machines worldwide, and each one sends data every five minutes – that quickly adds up to terabytes per year. You need infrastructure to manage this: cloud storage, databases, analytics tools. This is no longer a DIY project. You need partners with experience in Industrial IoT.
Second challenge: data security and data protection. Machine data can be sensitive – production volumes, efficiency metrics, fault patterns. Corporations do not want this data to be exposed. The GDPR and other regulations govern how you are permitted to handle customer data. Solution: cryptography in transit and at rest. Secure, authenticated interfaces. Audit logs. A transparent data policy towards customers.
Third challenge: Connectivity. Not all machines are online. Many older models lack a data connection. Even new machines may be located in environments where connectivity is problematic (industrial settings, radio interference, customer policies). Solution: Edge computing. An on-site IoT gateway collects data, buffers it locally and sends it in batches when connectivity is available.
Fourth challenge: Data quality. Sensors produce noise. Data is sometimes transmitted incorrectly or becomes corrupted. If you base designs on poor-quality data, this leads to poor decisions. Solution: Data validation and cleaning. Detect outliers. Perform plausibility checks. This takes work, but it is necessary.
Fifth challenge: Data privacy for customers. Your customer allows you to view their machine data – but does not want you to see who their biggest competitor is or at what capacity they are operating. Solution: Aggregation and anonymisation. You report trends across dozens of customers, not individual machines. Customers can see their own data, but not that of others.
The investment is real. You need an IoT platform, a data pipeline, analytics tools and security. But the ROI is usually positive, because faster development and better products lead directly to revenue.

Practical implementation and governance
How do you get started with usage data without getting in over your head?
Phase 1: Pilot programme. Select a machine type and a small number of customers. Instruct them to install a data logging module. Collect data for three to six months. Analyse the findings manually. This is a low-risk exploratory phase.
Phase 2: Set up a data pipeline. Based on the lessons learnt in Phase 1, define which data you need to collect systematically. Implement an automated pipeline: IoT devices send data to a cloud platform, which stores and aggregates it. Analysts can write queries and build dashboards.
Phase 3: Involve the design team. Design teams are given access to usage dashboards. They can see how their designs perform in the real world. This requires training and new processes – but it is the crucial step in translating data into design decisions.
Phase 4: Systematic feedback cycles. Usage data becomes part of the requirements process. When a new product generation is planned, a workshop is held: What have we learnt from the usage data? What improvements make sense? This may overlap with Phase 3.
Governance is key. Define: Who has access to usage data? How are insights communicated? Who makes decisions based on data? How are designers held accountable for data insights? Without governance, usage data remains an isolated data science exercise.
One final point: transparency towards customers. Explain clearly what data you collect, why, how you protect it and how customers can access their own data. Some customers have concerns and wish to opt out. Respect that. But many appreciate that you are able to develop their machines more effectively.
Industry examples: How usage data works
To illustrate the reality of the situation, here are three scenarios from the mechanical engineering sector:
Scenario 1 – Hydraulics: A manufacturer of hydraulic cylinders collects operational data from customers. The data reveals that, in the textile industry, cylinders are being operated at twice the specified cycle rate. In the mining industry, vibration levels are three times higher than those stipulated by standards. The engineers recognise this and develop variants: a lightweight version for standard applications, a robust version for the textile industry, and a vibration-damped version for mining. Revenue growth follows, as the product range now meets demand. Time-to-market for the variants: six weeks instead of the previous six months – because the data made the requirements clear.
Scenario 2 – Gearbox development: A gearbox manufacturer notices in the usage data that certain load profiles lead to tooth wear occurring earlier than simulations predicted. Design engineers analyse the data and discover that the actual tooth flank topography differs from the CAD specifications. A drift in the manufacturing process is to blame. However, the data also reveals that this drift actually performs better under certain load profiles. This leads to the idea of deliberately modifying the tooth profile to handle higher loads. A patent is filed. Usage data leads to innovation.
Scenario 3 – IoT machines: A manufacturer of production machines with built-in IoT observes from the data that many customers are not actively using the predictive maintenance function – even though it would reduce downtime. The usage data shows that the interface is too complex; customers do not understand it. The design team drastically simplifies the UI and calls it ‘Smart Mode’. Following the roll-out, 80 per cent of customers use it. Customer satisfaction rises as availability increases.
These scenarios are not utopian – they are happening today in companies that systematically utilise usage data.

Conclusion: From reactive to proactive
Machinery manufacturers find themselves in a difficult position today. Competitors from Asia and the East are putting pressure on prices. Customers expect faster innovation. Regulation is becoming more complex. The traditional approach – designing in the office, validating on the test bench, approving the design and hoping for the best – is too slow.
Product usage data is not a panacea, but it is a tool that shifts the balance. Instead of hoping that your designs work, you know how they work. Instead of waiting months for customer feedback, you have data within weeks. Instead of making design revisions after market launch, you make them before or shortly after launch – faster and more cost-effectively.
The investment in usage data infrastructure is substantial. But the ROI is usually positive: faster product development, better products, higher customer satisfaction.
d.u.h.Group supports you on this journey. We bring experience in PLM integration, IoT platforms and data pipelines. We help you capture, store and analyse usage data, and translate it into design decisions. Together, we develop the processes and governance needed to establish a data-driven culture.
Get in touch. We’ll show you how product usage data can shorten your development cycles.
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Technologies
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