Generally speaking, maintenance falls into one of three categories: reactive, preventive and predictive. Reactive, or corrective maintenance, is the process of repairing and/or replacing equipment after breakdown occurs. Alternatively, preventive and predictive maintenance (PM) is the process of preventing equipment failure through regularly performed maintenance before downtime occurs.
With PM schedules in place, maintenance teams can reduce the number of repairs and replacements. As a result, asset lifetime increases, emergency work orders are reduced, budgets stay on track and personnel put in fewer overtime hours.
What’s your reactive to preventive maintenance ratio? That’s just one of the questions we asked when we surveyed 1,000+ maintenance pros on their PM operations.
Read below to learn what we uncovered about maintenance teams’ PM procedures. And, remember to download our full 2018 State of CMMS Report for even more insights on the benefits of PM.
Preventive Maintenance Drives CMMS ROI.
PM is possible with proper computerized maintenance management software (CMMS) implementation. When a CMMS is fully rolled out, facilities report significant cost savings.
For example, 73% of facilities that have 50% or greater preventive ratio report significant cost savings from their CMMS, according to our 2018 State of CMMS Report. The following industries have been most successful in bringing about positive ROI thanks to CMMS-enabled PM procedures:
- Manufacturing: 74% of respondents have saved tens of thousands of dollars or more with CMMS implementation.
- Facilities: 69% of respondents have saved tens of thousands of dollars or more with CMMS implementation.
- Healthcare: 66% respondents have saved tens of thousands of dollars or more with CMMS implementation.
With a PM-enabled CMMS, users gain an abundance of cost-saving advantages. In particular, routine maintenance before a breakdown equates to less downtime. This saves maintenance teams money on inventory and manpower costs. By regularly servicing equipment, asset lifetime also improves. Not only does this improve overall operations, but it also reduces the number of emergency work order requests. As a result, technicians can spend more time in the field and less time responding to unscheduled equipment failures.
Therefore, organizations that perform more preventive, versus reactive or corrective maintenance, realize a stronger ROI on their CMMS investment.
Preventive Maintenance Reduces Downtime.
A common goal for maintenance professionals is to prevent equipment failure, while improving maintenance performance. This is due to the fact that a single hour of downtime can cost maintenance teams upward of $100,000.
By implementing PM schedules on a CMMS, maintenance teams decrease asset downtime and reduce costly repairs. This is because all PM information resides in one place and can be associated with multiple assets. By having access to these metrics, maintenance can make better decisions about how and when PMs are performed through automation.
For example, CMMS users who rely more on PM than reactive maintenance measures also reported the following:
- 82% of respondents report improved system reliability and reduced downtime.
- 80% of respondents report extended asset lifetime.
- 82% of respondents report improved work scheduling and labor efficiency of personnel.
- 81% of respondents report improved visibility of important information and performance measurement.
It’s no surprise to see a correlation between strong ROI and improved system reliability with CMMS implementation.
Calculating Your Preventive vs. Reactive Maintenance Ratio.
As developing and advanced markets mature, PM remains critical to a variety of industries from industrial to healthcare to government to education. To get a better understanding of your preventive vs. reactive maintenance ratio, follow these steps:
- Calculate your average annual maintenance cost. This helps maintenance teams determine total cost of asset ownership, as well as total cost of site-wide and organization-wide operations.
- Calculate your average annual downtime. This helps maintenance teams determine the number of hours of downtime occurred or expected to better predict costs.
For even more help in understanding your organization’s preventive vs. reactive maintenance ratio, check out this simple tool for calculating machine downtime. This will give your team the information you need to better control maintenance costs.
>>> How are you measuring success for your organization?
Are you ready to streamline your operations and see a return on investment from using a maintenance software. Check out our cutting edge CMMS ROI Calculator created from over 19 years of industry experience and customer data.