What’s the measurable return on investment (ROI) and cost savings achieved with computerized maintenance management software (CMMS) implementation?
We recently asked maintenance and facility professionals to identify how CMMS software delivers value to their operations programs. We were glad to learn that 88% of facilities with substantial CMMS rollout report significant cost savings, from tens of thousands to millions of dollars. These professionals are armed with insights that prove ROI, improve decision-making, and keep facility assets, processes and labor-aligned.
Here’s how system-wide CMMS implementation can result in significant cost savings for your organization.
CMMS ROI: Reduced costly downtime.
Asset downtime can impact an entire organization’s operational output. Downtime includes the period during which an asset is unavailable for use, and needs either repaired or replaced. It puts production schedules (and incoming revenue) at a grinding halt.
According to the 2018 State of CMMS Report, the following three industries report the greatest improvements in system reliability and reduced downtime with CMMS implementation:
- Energy: 87% of respondents in this industry report improved system reliability and reduced downtime with CMMS implementation.
- Facilities: 85%
- Transportation: 84%
So how do you measure the potential ROI of lessened downtime? A CMMS enables maintenance teams to track and report downtime down to the plant, process and part. It helps your company better understand where inefficiencies or underperformance occurs. And it takes the guesswork out of benchmark data, and (hopefully) improvements overtime.
>>Related Resource: To access your average downtime and overtime costs to find bottom-line budget effect, read: 3 KPIs to Measure CMMS ROI.
CMMS ROI: Improved labor utilization.
Establish a more effective maintenance planning and scheduling function with a CMMS.
Maintenance techs using a CMMS receive work orders instantly, troubleshoot on the go, and report on progress in real time. Mobile CMMS features also enable maintenance techs to work with more precise tracking of repair information.
With CMMS, maintenance managers are set up for success, and can make more informed decisions related to overtime, technician efficiency and labor costs.
Our research shows organizations that invest in CMMS training see improvements in labor efficiency. Specifically, we asked respondents about the number of maintenance and operations personnel were trained and using the software, along with how their work scheduling and labor efficiency has improved. According to the report, 82% of respondents who use a CMMS report strong improvements to work scheduling and labor efficiency of personnel.
To measure productivity in your organization, track the following KPIs in your organization:
- Downtime and overtime loss
- Inventory tracking and organization
- Reduced asset/machinery lifespan loss
>Related Resource: How to Measure CMMS ROI & Performance.
CMMS ROI: Increased asset reliability.
Preventive maintenance (PM) is essential for improving the performance and reliability of maintenance operations. With PM schedules on a CMMS, organizations can automate PMs, keep track of when maintenance is performed, and if it’s getting done on time and in the correct way. Since all PM information resides in one place, maintenance managers have access to unlimited amounts of manufacturer-related specifications and metrics. This is essential for identifying problem areas and opportunities within your organization.
According to the report, 73% of facilities that have 50% or greater preventive ratio report significant cost savings from the CMMS, from tens to thousands to millions of dollars. In addition, organizations that configure most assets in their CMMS report strong improvements to equipment reliability. This is due to the fact that PM schedules on a CMMS routinely service equipment, preventing downtime from occurring.
CMMS ROI: Modernized inventory management.
With a CMMS, maintenance teams achieve accurate and efficient inventory control. Take it from the survey: 67% of facilities that have most spare parts managed in their CMMS report strong improvements to parts availability and time to fix.
With a smart inventory and parts managed strategy, organizations save time and avoid mistakes. Technicians can keep track of equipment in the field without having to run back to the office to get parts. Not only does this trim time spent tracking parts, but it also optimizes inventory control operations. As a result, organizations improved speed and accuracy with repairs, as well as cut costs associated with stockout.
Ready to learn more about cutting maintenance costs with CMMS adoption? Use the New Maintenance Connection Cost Savings Calculator to measure your ROI.