A simple computerized maintenance management system that captures all areas of your maintenance activities is key to increasing departmental transparency, workflow efficiency and creating better resource planning throughout your entire maintenance department.
Did you notice a missing benefit in that list?
Cost savings, or cost cutting, is arguably one of the most important benefits that a CMMS can provide an organization. Although some financial barriers may exist to acquiring such a system at the beginning, the rewards have been well documented as maintenance repair costs are said to decrease by 20% when you implement maintenance software and utilize its preventive maintenance module. Depending on the degree of inefficiency in your current operations, a CMMS can pay for itself in the first year of implementation.
But don’t take our word for it! Hippo has created a simple ROI calculator that shows the estimated return on investment in year 1 and year 2+ from implementing a CMMS. Although the ROI calculator is only meant to demonstrate an estimate, it allows users a better understanding of the importance of a CMMS and it delivers a breakdown of three key areas you can expect to save money in; reduced labor costs, extending the longevity of your assets, and reducing your administration costs.
Reduce Your Labor Costs
Implementing a CMMS increases the efficiency of your resources (or internal maintenance staff). More specifically, a CMMS will work to schedule or plan each resource’s day by decreasing the amount of time they spend on non maintenance work activities such as going from job to job, downtime in between jobs, and an overall disorganized job queue. With proper sorting of priority work orders, making sure no resource is particularly over or under utilized, and presenting each resource with a planned schedule, each resource will be able to optimize their work day and maximize their work hours. This allows them to get more work done in less time, thus reducing your labor costs. (For more info about PM management read our article here).
Extend the Longevity of Your Assets
When you utilize a powerful preventive maintenance module you ensure timely upkeep of your equipment and assets. This reduces the unexpected downtime that occurs when your equipment suddenly needs repair. There is an obvious correlation between downtime of your assets and decreased production time. The side effect is swift and hard felt in any organization, a loss of money. Avoid constant reactionary measures to your operations and become proactive by scheduling PM’s in your CMMS.
Reduce Your Administration Costs
This cost-cutter example can be harder to quantify, but is definitely an important aspect to explore. By getting your CMMS to do the heavy lifting, you save a lot of time on administrative duties and are able to redirect your attention to other more pressing issues such as strategic planning and new program creation. These higher level tasks have added benefit to a company and ultimately saves your organization both time and money. No longer will management have to suffer through tracking and managing work orders on paper, collecting work order requests via sticky note, or generate their own reports after laboriously collecting data and inputting it into a spreadsheet.
Implementing a CMMS can save you money in several key areas of your operations. Try the Hippo ROI Calculator today to see how much you can save! After you’ve determined your estimate, share the report with other members of your operations by clicking on the “share report” button.