Fast ROI and Hard Savings Keep the CMMS Software Market Healthy
The success of a Computerized Maintenance Management System (CMMS) solution can be directly related to a strong corporate focus on profitability and productivity. A CMMS can provide a substantial and quick ROI.
In an effort to become more competitive, managers are turning over every stone to find areas for improvement and cost savings. As they study the maintenance function, companies have found that maintenance makes up anywhere from 15% to 40% of total product cost. They are also discovering that dollars saved in maintenance can avoid significant expanse later. In larger companies, reducing maintenance expenditures by $1 million contributes as much to profits as increasing sales by $3 million. In the competitive markets that most companies find themselves, being able to improve maintenance and decrease unnecessary maintenance expenditures by $1 million is much easier and likely to occur than finding $3 million in new sales.
Realizing ROI
Every day when dealing with prospective clients we get into discussions on the potential Return on Investment (ROI). Since every organization uses the majority of their time directly on improving productivity and reducing operation costs, let’s look at how a CMMS solution can play a critical role in both of these areas.
Here are four key areas a CMMS can show significant gains:
Unified Data Collection and Reporting
The adage “garbage in garbage out” pertains to any software solution. CMMS Software allows you to reduce the amount of manual data entry to ensure consistency across the company. This is most important in measuring assets such as equipment and related performance. Records such as failure history, repair records, overhaul, preventative maintenance, labor, related costs and all resources used, should be measured and reported on in order to make short, mid, and long-term decisions. The reporting module in a CMMS will allow everyone involved to quickly and easily report on all aspects of equipment history and make viable forward looking decisions. This information can lead to increases in equipment effectiveness from 50 to 85%
Enhanced Workflow Management
A CMMS should be implemented following a “Best Maintenance Practices” methodology. The benefits allow you to minimize downtime for regular inspections and repairs by developing and coordinating associated labor and materials required. A Web Based architecture also allows you to give access to third party partners such as contractors and other crafts to share pertinent work order information and requests. The many built in planning tools help to coordinate and manage workflow that can lead to further savings of 5-15% of overall maintenance costs
Improved Equipment Uptime and Reliability
With CMMS, you can more effectively manage the preventive maintenance schedules to optimize equipment uptime and reliability. Most organizations manage in a reactive mode due to lack of pertinent preventive maintenance practices. The PM Module manages all scheduling of manpower, pertinent procedures and materials necessary to perform the necessary maintenance. By increasing the availability of pertinent equipment many organizations realize a 20% gain in equipment uptime resulting in improved productivity and resource allocation.
Inventory Cost Reduction
Getting a handle on your entire parts inventory is simplified in a CMMS through the Purchasing Package consisting of the Inventory, Item Request, Purchasing and Receiving Modules. The CMMS software allows you to determine the appropriate inventory levels, manage the procurement process and manage obscure parts for older pieces of equipment needing specialized parts. The cost savings from optimizing inventory and purchasing would be 20% of the total inventory value.
The Azzier system represents “a new era” in CMMS and will provide substantial improvements in your asset maintenance management operations. Azzier also provides an opportunity for significant ROI when fully implemented and integrated into your corporate network
