CMMS Solution Saves Money & Increases ROI

A CMMS Solution Saves Money & Increases ROI

In today’s world, companies are always looking for new ways to increase productivity and work more efficiently within very tight budgets. A CMMS software solution is intended to help maintenance and facilities professionals do their jobs more effectively, lower costs, boost productivity and make the workplace safer. It is easy for maintenance managers to quickly see the advantages of using a Computerized Maintenance Management System (CMMS). However, the challenge is trying to get decision makers to see that investing in a CMMS solution provides cost-saving opportunities and increases Return On Investment (ROI). How can you justify this to upper management?

Implementing a CMMS Solution and Uncovering Cost-Saving Opportunities

•  Extending the Life of Equipment

A CMMS software solution provides maintenance teams with easy to use tools to manage their preventative maintenance plans. The CMMS software provides an automated process for scheduling necessary inspections and planned maintenance activities, which keeps equipment operating efficiently. Some of the other benefits include:

o Implementing a preventive maintenance plan prolongs the life span of assets and equipment.
o Moving from a reactive to a proactive maintenance plan.
   *  Saves money on unplanned maintenance activities such as repairs and replacements.
   *  Having an insight on repairs and replacement costs improves your return on assets.
o Ability to analyze the complete history of assets to determine their reliability and stability.
o A preventive maintenance plan keeps equipment running at peak performance and reduces energy costs.
   * Equipment running at optimum performance saves on downtime, repairs, labor hours, expenses and more.

• Work Order Management

The CMMS work order module gives users the ability to quickly log and respond to issues.

o Everything is stored and accessible in one centralized database.
o Prioritize work orders instantly.
o Real-time information.
o Notifications when work orders are closed out.
o View work order status at any time from anywhere.

• Increasing Labor Productivity

Time tracking is a critical component of CMMS. It factors into labor availability, reporting, costs on work orders, etc.

o Optimize employee work day and maximize employee work hours.
o Accurately estimate labor hours for preventive maintenance (PM) tasks, making sure your staffing levels match the workload, and decreasing overtime costs.
o Employee performance tracking helps determine which employees are most efficient at which tasks, enabling managers to balance the workload.
o CMMS eliminates employee hours spent on creating purchase orders by automating the process.
o Using the full power of a CMMS to improve processes gives organizations better control and management of employee time and reducing labor costs.

• Managing Parts and Inventory More Efficiently

Inventory is a key component to optimizing a maintenance department. Businesses can’t afford to have downtime because spare parts are not available. Trying to plan ahead and stock the right parts can also be a problem. Having parts sitting in inventory for a long period of time can be very expensive. With CMMS, organizations can:

o Take control over their parts and inventory management, keep accurate records, prevent under-stocking and over-stocking and reordering.
o Automate cycle inventory counts can determine your current inventory levels and automatically generate purchase orders based on need and reducing un-necessary purchases. This improves cash-flow, and hence, results in greater ROI.
o Streamline ordering processes ensuring that parts will be ordered in optimal quantities at the optimal time.

• Meet Regulatory Compliance

CMMS helps organizations meet regulatory compliance, ensuring that maintenance standards for grounds, facilities, and equipment are established and followed.

o CMMS software helps companies comply with safety and environmental regulations through its automated process of scheduling tasks and work orders.
o Tracking employee health and safety information.
o Documenting work procedures to show proof of presence.
o Keeping production equipment safe and reliable.
o Ensuring all inspections and tests are done properly and on-time.
o Ability to analyze the lifespan of any asset.
o Documenting preventive maintenance on key assets.
o Generating reports for unexpected audits.
o Archiving work history.
o Storing employee training and documentation.
o Tracking incidents.

• Reporting and KPIs

The reporting features within the CMMS software gives users the ability to see the overall performance of their assets. With the ability to run detailed reports, users can analyze asset failures, downtime, resource utilization, and expenses to get a better understanding of their asset performance.

• Customer Satisfaction

Investing in the right tools to regularly manage your maintenance department, equipment and assets, plays a big part in the success of your business. The growth of your business depends on your reputation to provide good and reliable customer service. Your future is dependent upon the quality of the goods and services you provide, and their quality is dependent upon how well you take care of your equipment.

Implementation of a CMMS saves organizations money due to the organization and streamlining of processes. When decision makers realize how maintenance inefficiencies, such as equipment downtime and overtime labor have cost them, it’s easy to see that CMMS saves money and is a worthwhile investment.

Want to know more how you can save by implementing a CMMS software solution?