How a CMMS can increase your return on investment
CMMS programs can affect many aspects of your organization’s output. Your ROI is multi-faceted, so here are some basic ways that CMMS programs can and should have an impact on your bottom line. Your ROI can specifically be determined through your organization’s use of documentation, maintenance procedures, and energy use. All are addressed below.
Reduce the Cost of Handling Documentation
Whenever you manage a document, costs can be incurred. Documents like vendor communications or blueprints are costs that could be easily overlooked without the right organization. Over four weeks could be spent on locating lost documents every year, as well as costs up to two hundred and twenty dollars. This is time and money that could be better spent.
Studies have shown that a good balance of document costs is as follows: 70% for work costs, 19% for the space and assets used, and 11% for other supplies and services.
A good CMMS can help streamline the many processes involved in handling documents. Anything that needs to be sent, saved, or copied can be scanned into the software and associated with its asset. This efficiency can keep management from being a hassle.
A CMMS can help your organization focus on scheduling maintenance operations before problems occur. Many industries rely on the constant upkeep of their assets, making this preparation vital.
Establishing a flexible maintenance plan can improve cost-effectiveness. If a company who has previously relied on fixing errors instead of prevention switches their focus, they could save anywhere between 12% and 18%. The ROI can be determined by multiplying the annual cost of maintenance with the new percentage you have saved.
Your staff can also increase your potential if they are equipped with mobile devices. If tasks can be completed from anywhere, less time can be spent on maintenance tasks. In fact, up to forty-four percent of your time can be made up through mobility.
Depending on your industry, a significant portion of your money will go to energy use. Most business complexes have around 25% of their costs spent on utilities.
Maintaining an HVAC is a good place to start when considering energy efficiency. Changing filters often and scheduling routine inspections can lower costs dramatically. A well-maintained HVAC can save you between 15-20%.
The ROI can be determined by first multiplying the number of rooms in your building with the cost of energy for each of these rooms. Then multiply this number with your percentage saved.
In a realistic scenario, these simple math problems will not address all the financial concerns that an organization may face. Costs can come from anywhere and will require preparation beyond that of these guidelines. That said, if you keep these tips in mind when dealing with documentation, maintenance, and energy costs, you could save a lot of money.
It’s important to remember that there are a number of benefits from CMMS programs that don’t directly contribute to ROI, and are difficult or impractical to measure. Such as product quality, improved safety, meeting regulatory compliance and increased customer satisfaction.