How to Measure CMMS ROI & Performance

 It can be challenging to monitor maintenance operations across your entire company. Without the proper systems in place to keep track of equipment usage and resource allocation, revenue may be lost and overall productivity will drop.

With a CMMS, organizations gain management and insight into assets and work orders, reducing costs and increasing efficiencies across departments.

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CMMS users have reported that their system suited their needs, but how do you prove the worth of this investment before it’s implemented? Investment in a CMMS may seem costly if your organization has yet to reap the benefits.

Prove the value of your CMMS by determining its ROI and overall performance. Continue reading to learn how you can calculate your CMMS ROI.

Consider hard upfront costs.

Before digging into the ROI via specific KPIs, it’s important to understand a few initial costs, which will include initial software purchase, training, and implementation. These are costs that, most likely, are a one-time purchase cost.

Upfront costs put the initial sticker shock into perspective, as the ROI of a CMMS will increase over the next few years after purchase and implementation. Keep in mind that purchasing a CMMS is a long-term investment.

Measure productivity losses and preventive care benefits.

At Maintenance Connection, we recommend tracking the following KPIs over the past three years’ worth of data (broken down annually or quarterly):

  1. Downtime and overtime loss
  2. Inventory tracking and organization
  3. Reduced asset/machinery lifespan loss

A longer time frame enables proper assessment for the long-term benefits of a CMMS. Keep in mind that the first year may have a lower ROI due to upfront system costs and employee onboarding.

Maintenance Connection Tip:

It may be easier to break out each calculation by the department, and then add together for a company-wide total. Using this method will not only make your calculations easier, but it will allow you to identify the departments that would benefit most from a CMMS implementation. Consider multi-department involvement in the decision-making process when it comes to choosing a software provider.

Are you ready to get started with a CMMS that drives top-notch ROI and boosts performance?   Read our new ebook, The Definitive Guide to CMMS ROI.