4 Ways CMMS Implementation Proves High ROI and Cuts Maintenance Costs

4 Ways CMMS Implementation Proves High ROI and Cuts Maintenance Costs

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.

>> Read more information on the cost savings benefits of CMMS.

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 2017 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? Download The 2017 State of CMMS Report for more insights.

How The New York Times Improved Asset Organization and Performance Reporting with CMMS

With 64 newspaper print facilities across the world and more than 10,000 assets to sustain, The New York Times maintenance team is nothing short of busy. And with more than 1 million weekly readers, the well-respected news source realized its need for a more reliable maintenance strategy enabled by a CMMS.

The New York Times sought a user-friendly system to organize its assets and track equipment health across sites. After finding gaps with its legacy software, the company chose Maintenance Connection’s CMMS. Since implementation, the maintenance team has seen improvements on asset uptime and plant productivity.

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What Benefits Will I Gain From Spare Parts Management and CMMS Integration?

Picture this: you schedule maintenance for a quick repair and discover a spare part is not on-hand, forcing operations to a sudden standstill. What do you do? Chances are, you submit an emergency work order to get operations in motion and then figure out where to find another part.

In the scenario described above, it’s likely that you’re experiencing inventory stockout. This is not unusual, considering most organizations will experience stockout at some point in time. What’s surprising? You don’t have to. Continue reading

Key System Considerations Before Implementing a CMMS

One of the best decisions a company can make is to implement a CMMS software for their asset, inventory and maintenance management needs.  Just as a the foundation of a house ensures the house is standing strong, so a proper system foundation will aid in successful company operations.  To create a successful beginning, here are some key system considerations to know before implementing a new CMMS.

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Report Reveals that 67% of Healthcare Respondents Link Better Compliance & Reduced Risk Directly to CMMS Implementation

Maintenance Connection, an industry leading computerized maintenance management software (CMMS) provider, released its 2017 Healthcare Facility Maintenance Report that aims to guide healthcare professionals towards greater operational reliability and continuous improvement. Continue reading

Top 8 Healthcare Resources to Improve Facilities and Guide Maintenance Strategy

Changing regulatory standards and evolving industry trends are causing healthcare facilities to re-strategize to keep patient care in the forefront and maintenance in order. A sampling of current healthcare trends and regulations affecting the industry and maintenance team, include:

How do you stay up on the top industry trends and regulations to keep your maintenance team in the know? At Maintenance Connection, we trust many resources to ensure our CMMS platform meets the needs of healthcare maintenance pros.

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