> CMMS Return on Investment

Here is some data you will need to calculate the potential return on investment of a CMMS:

Equipment

CMMS systems generate preventive maintenance tasks that extend equipment lifespan and ensure they produce at optimal levels. Estimate how much equipment repair and replacement has cost your company annually and how automating preventive maintenance tasks could extend equipment life.

Overtime

Maintenance software allows you to forecast labor hours more accurately, avoiding unplanned overtime. Furthermore, when you do a better job of maintaining your assets, the need for emergency maintenance is reduced. Determine the number of unplanned overtime hours your company schedules, then estimate how much could be avoided through preventive maintenance software.

Inventory

A CMMS can help you manage inventory and avoid being under-stocked or over-stocked. Estimate how much excessive or insufficient ordering, expired stock, carrying costs, depreciation, etc., have cost your company.

Downtime

Downtime can have a direct impact on your profits because unplanned equipment breakdowns have a cost. Determine how much unscheduled downtime occurs annually in your organization, then calculate the amount of revenue lost due to this downtime.

Utilities

Calculate how much your organization spends on utilities in a year and what your annual utility costs would be if your equipment were running at peak efficiency. If your assets are properly maintained using a CMMS, your company will use less water, gas, and electricity.

Purchasing

Calculate the number of hours your employees spend creating purchase orders and performing other parts procurement tasks. Maintenance management software can automate purchase order generation and reduce purchasing overhead.

Productivity

By automating work order generation and optimizing task scheduling, maintenance management software reduces the time required to perform preventive maintenance. Calculate the number of labor hours your company could save with a CMMS system.

Document storage and handling

Determine how much your maintenance department spends on storing, copying, filing, searching, and retrieving documents and how much you would save by eliminating paperwork and manual tracking activities through a CMMS.

Examine each of the categories above to determine how much maintenance inefficiencies have cost your organization and estimate the potential savings of maintenance control software.