The Key to Calculating CMMS ROI

There’s a lot to consider when checking out a new maintenance solution.

To start, you need to know the value a new solution would add to your operation. This is a lot more than factoring together unexpected downtime and overtime hours.

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Each factor differs depending on the maintenance team’s industry. From manufacturing and distribution to healthcare facilities and mining operations, Computerized Maintenance Management Software (CMMS) is great for a number of work environments that care for high capital assets.

The Value of CMMS

There are many opportunities to cut costs when it comes to tracking asset information.

All types of facilities can gain direct insight into the bottom line. Data that should be tracked for measuring maintenance improvements include:

  • Asset lifespan expectancies
  • Average overtime hours
  • Emergency inventory purchases
  • Unscheduled downtime
  • Utility efficiencies
  • Paper-based document management processes

For a closer look at reducing the excessive time, energy and cost many of these metrics leads to, check out this detailed graphic:

The Cost of CMMS

Proving the value of a new CMMS purchase is only half the battle.

Once you know the difference between what’s happening on the shop floor compared to the improvements made possible through CMMS, it’s time to consider the upfront costs that come with purchasing software.

Maintenance departments must carefully determine the long-term benefits of a more proactive maintenance operation. This area of business has generally been named a “cost center” and budgeted based on emergency fixes. When looking at the cost of CMMS, it’s much more than another added expense maintenance teams seek funds for.

Switching from a reactive repair cycle to a proactive one leads to a more reliable operation that supports the growth of the rest of the business.

The Impact

In the end, there’s still just one more hidden cost that many facilities forget to consider.

When investing in a better maintenance solution, no matter how much is spent on the technology, it’s only worth as much as the people operating it.

Any technology upgrades are an investment back into your people, providing them with better tools to get the job done faster and easier than they did before. CMMS allows maintenance teams to take a firsthand look into the data that makes the operation run smoothly and should be motivated from the top down to take control.

With engaged team members and a tool for preventive maintenance, business leaders are able to rest easy with a reliable operation.

For a closer look at reducing the excessive time, energy and cost many of these metrics leads to, check out the Definitive Guide to Maintenance Software ROI.

Author Bio: Julia is an editor with Better Buys, a trusted source on enterprise software news and research. Follow her @JuliaScavicchio for more insight on how technology is changing the workforce.