15 Benefits of CMMS That Justify the Investment

Published on:
March 14, 2024
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If you're a maintenance manager or responsible for the upkeep of a facility, you know firsthand the importance of keeping things running smoothly.

From HVAC to plumbing to electrical systems, the maintenance of a building is a never-ending task.

That's where a Computerized Maintenance Management System (CMMS) comes in. A CMMS is a software program that helps you organize and streamline your maintenance tasks, making your job easier and your facility more efficient.

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But is it worth the investment? According to a recent Mckinsey report, the majority of businesses must incorporate digitalization into their business model to stay economically viable. So, why are so many reluctant to convert to the digital world?

In this blog post, we'll explore the benefits of a CMMS and why it's worth considering for your maintenance management needs. So, if you're tired of struggling to keep track of maintenance tasks and assets with spreadsheets and pen and paper, it's time to consider investing in a CMMS. Not only will it make your job easier, but it will also save you time and money in the long run.

What are the core benefits of CMMS?

CMMS is a software program that creates and maintains a database of actionable data to improve operational functions.

By optimizing the utilization of equipment, communication, and other plant infrastructure, a company can expect to see increased profits.

Today you’ll find CMMS software operating within several industries. Here are a few that have taken advantage of the benefits of CMMS:

  • Manufacturing
  • Retail
  • Construction
  • Education
  • Hospitality
  • Government
  • IT
  • Sports

To implement CMMS software successfully, it’s essential to understand its main features. Let’s highlight the most critical aspects seen across most CMMS software.

  • Work order management
  • Preventive Maintenance
  • Checklists, Logs, and SOPS
  • Inspections with images
  • Asset and parts management
  • Data Collection and Reporting

An organizational data reporting system gives decision-makers more time and knowledge to complete operation maintenance tasks. For frontline workers and management teams, extra business time leads to innovation.

Production needs continually change, and staying on top of market trends will create immediate tangible results. Increasing CMMS features will help optimize your business’ capabilities to meet output goals.

CMMS Value

If you want to cut production costs by 10% and operational expenditures by 10%, then you need a CMMS. It's obvious why they're valuable. To fully understand the benefits of a CMMS for your business, however, you need to examine the following metrics:

  • Lifespan of assets: Count of years you anticipate that an asset will be used
  • Overtime: Total time lost due to wasteful hourly labor
  • Stock: Mean amount of time wasted because to low stock
  • Utilities: Total expenditure on utilities as compared to projected expenditures under peak efficiency operations
  • Efficiency: Time invested in managing work orders and scheduling
  • Management of documents effectively: How much time is required to make, save, duplicate, find, and get important documents?

After you've calculated the value and expenses, you may plug the numbers into this formula: Returned on Investment (ROI) for CMMS is calculated as follows: (Value - Costs) divided by Cost.

3 Most Prominent Maintenance Strategies Used by CMMS

According to the Plant Engineering 2018 Maintenance Study, which polled industry specialists, three key maintenance techniques have emerged as the most popular options for manufacturing companies looking to simplify their operations.

Preventive Maintenance

According to the report, 80% of industrial facilities have chosen preventative maintenance as their preferred method. Regular inspections, service, and component replacements are performed at predefined intervals as part of this proactive strategy. This method considerably decreases the chance of unexpected failures and accompanying production disruptions by addressing prospective equipment faults in advance.

Run-to-Failure Method

The study found that 57% of manufacturing plants use a run-to-failure strategy. Running equipment until it breaks, then repairing or replacing it, is the reactive method. When the expense of maintenance surpasses the cost of failure, the run-to-failure strategy is often used for assets with lower criticality. While it reduces normal maintenance costs, it also increases the possibility of unanticipated downtime and productivity losses. As a result, its applicability is determined by the equipment's special qualities and relevance.

Predictive Maintenance (PdM) with Analytical Tools

According to the report, 51% of industrial facilities have used predictive maintenance, using analytical tools for increased productivity. This technique provides real-time monitoring of equipment health by using modern technology such as sensors and data analytics (CMMS). Potential failures can be anticipated using data patterns and trends, allowing for preemptive actions. This data-driven strategy enables manufacturers to optimize maintenance plans, which reduces downtime and improves overall equipment efficacy.

Advanced benefits of CMMS upgrades include

Internet of Things (IoT) sensors for predictive maintenance

The Department of Energy indicates that predictive maintenance strategies can increase your return on investment ten times over. IoT sensors provide computerized data on machinery anomalies. This information can predict equipment failure and create an algorithm to reach desired output levels.

Inter-organizational communication

Frontline workers often disengage with a lack of communication. By streamlining information through your employee directory, you essentially build a positive workplace culture. Team members can build a support system and frequently communicate on specific agendas. CMMS boosts company morale, leading to increased production, less employee turnover, and positive customer relations.

Advanced Analytics Dashboards

Customize your analytics dashboards to find insights on almost anything in your maintenance department. Export to PDF and Excel for sharing in meetings and email communications.

Time and Cost tracking

Record hours spent and supplies used on every work order to understand the cost of maintenance. Use the data to automatically create budget forecasts and send purchase orders to vendors.

Does Your Business Need a CMMS Solution?

It’s safe to say that your business could benefit from CMMS. But does that benefit warrant the expenditure? 

The cost of CMMS software can range from basic to expensive. However, when you’re business is starting to lose money, it’s time to find a solution.

Problems that Lead to Looking for a CMMS

Here are a few instances when CMMS might be precisely what you’re looking for:

You realize that Excel is very limited for maintenance

Spreadsheets are a poor tool for maintenance management because they are not designed specifically for that purpose. They are a general-purpose tool that can be used for many different types of tasks, including maintenance management, but they lack the specialized features and functionality that are necessary to effectively manage maintenance processes.

There are several reasons why spreadsheets are a poor tool for maintenance management:

  1. Data organization: Spreadsheets do not have the ability to easily organize and categorize data in a way that is relevant to maintenance management. This can make it difficult to track and manage maintenance activities and assets.
  2. Data security: Spreadsheets do not have the same level of data security as specialized maintenance management software. This means that there is a greater risk of data loss or corruption, which can have serious consequences for maintenance operations.
  3. Data accuracy: Spreadsheets are prone to errors, such as incorrect data entry or formulas that are not correctly entered. This can lead to incorrect data, which can have serious consequences for maintenance operations.
  4. Collaboration: Spreadsheets do not have the same level of collaboration capabilities as specialized maintenance management software. This can make it difficult for multiple users to work on the same maintenance tasks at the same time.
  5. Reporting: Spreadsheets do not have the same level of reporting capabilities as specialized maintenance management software. This can make it difficult to generate reports and track the performance of maintenance activities.

Overall, while spreadsheets can be used for maintenance management, they are not the most effective or efficient tool for this purpose. There are many specialized maintenance management software systems that are specifically designed to manage maintenance activities and assets, and these systems are typically a better choice for this purpose.

You’re falling behind on data tracking

Congratulations! This is a great problem to have. This means that your business is expanding. When inventory increases, so does its management. At a certain point, pen and paper stop doing the job. Poor management is one of the main reasons why businesses fail. CMMS will provide a database to maintain data tracking plus give your business the tools to grow.

You want to move away from reactive maintenance 

Waiting until equipment fails to fix it costs companies money in downtime, labor costs, repairs, and maintenance fees. When employees constantly react to shutdowns and defects, the atmosphere is stressful, and production suffers. One of the fantastic benefits of CMMS software is preventive maintenance tools. This is a great place to start saving costs and promoting a positive work environment.

Cannot find the root cause of system downtime

If you’re struggling with constant equipment failures and defects, it might be time to lean on CMMS systems. Get to the core issue quickly by tracking and monitoring maintenance data. CMMS software can also provide systems to to help guide data to eliminate root causes. This data will ensure that machinery is running at peak performance capabilities.

Unmotivated workforce

Repetitive work can be easy to brush off without full attention and commitment. Whether your deskless workers or your management team is disconnecting, it’s likely wreaking havoc on your bottom line. The alignment of management to the maintenance process is crucial to its overall success. Management teams need to communicate with data-driven cohesiveness and clarity.  

CMMS software connects employees through the palm of their hand. Easily deliver recurring meetings all employees or individually chat to collaborate on specific projects.

Business Details to Consider Prior to CMMS Purchase

When deciding which CMMS solution to invest in, it’s imperative to do your research. Think about the following:

Asset quantity

  • CMMS software allows companies to condense asset inventory into one database. How much space you will need for inventory could possibly affect the price. 
  • If you’re business spends a lot of time tracking, monitoring, and maintaining a large number of assets, CMMS will be beneficial. A centralized data hub will save management time and increase more time for production.

Value of Assets

  • Not only does CMMS software organize asset information, but it will also create data on longevity and health.
  • This tool will predict equipment failure and create an approach to optimize assets at peak performance.
  • This predictive maintenance approach will be more cost heavy but worthwhile for larger businesses aiming for zero failures.

Size and requirements of maintenance team

  • CMMS utilization within a large maintenance team produces cohesion by streamlining communication.
  • An open communication policy encourages accountability while maximizing problem-solving strategies.
  • Start-ups can easily onboard new clients with training at their fingertips.
  • Provides clarity on company standards and clear direction of work order scheduling.
  • CMMS software generally costs more per employee but monthly options are available.

The complexity of your business operation

  • Predictive maintenance CMMS systems are best for complex manufacturing issues. 
  • AI capabilities complete analytic data that humans cannot.
  • For example, advanced IoT sensors mitigate equipment defects by tracking acoustic factors that humans cannot hear.
  • These processes help find the root cause of system issues and predict future problems.
  • CMMS with AI will be the most advanced service available but incredibly useful to reduce human error.

Team accountability

Basic CMMS software will provide performance indicators that track:

  • Workforce Efficiency: Track individual performance to create a baseline estimate of cost/time for each repair.
  • Backlog Management: Identify issues to reduce backlogs.
  • Schedule compliance: Follow work orders to track PM strategy success rates.
  • Repair Time: Create a mean time to repair (MTTR) to analyze efficiency.
  • Frequency of Repairs: The mean time between failure (MTBR) data will help focus PM standards.
  • Maintenance cost in relation to the asset value: This number should be less than 2%.
  • Cost per production unit of maintenance
  • Track maintenance spending

These maintenance metrics aren’t necessarily for punishment but ways CMMS will begin to utilize maintenance actions to guide better practice creation.

15 Benefits of CMMS Programs In 2023 & Beyond

According to market research, CMMS systems will become a $1.7 billion market by 2028. Therefore, this trend will only add to the increasing digitalization in the business realm. 

The traits of a successful CMMS application stem from its holistic approach to market evaluation. This analysis has established best practice policies among several industries. 

Let’s review the 5 major benefits of CMMS software.

Downtime Reduction

  1. Schedule preventive maintenance to minimize unexpected breakdowns and increase asset uptime.
  2. Use digital work order creation and assignment to speed up corrective action start time.
  3. Chat to streamline information while working.
  4. Use pre-built SOPs (standard operating procedures) to provide clarity and proper equipment corrective maintenance.

Increase Asset Lifespan

  1. Implementing preventive maintenance strategies will increase asset efficiency and lifespan.
  2. SOPs ensure exemplary work is done every time.

Improve Maintenance Oversight

  1. Real-time progress tracking increases accountability.
  2. Easy to organize reporting by the team, individual, asset, location, time period, priority, category, etc. 

Clarify Cost Forecasting

  1. Track and report all maintenance analytics regarding time and costs.
  2. Keeps a record of the number of unexpected breakdowns to forecast corrective maintenance costs needed to meet project goals.

Ensure Data Accuracy

  1. Reliable data collection.
  2. Safeguard data from cyber threats within the cloud.
  3. Access historical data with ease to generate progress reports and future performance guidelines.

Make Maintenance Decisions Based on Data

  • You can modify the data generated in your CMMS to help you manage the KPIs. 
  • Information such as overall maintenance repairs, time spent on work orders, average resolution times, and inventory and maintenance costs can help you justify labor expenditures and costs, determine when to replace assets, and identify the resources needed for your maintenance department to run efficiently.

Keep Track of Employee Hours

  • The advantages of adopting CMMS software include the ability to monitor your team's hours, calculate the labor costs associated with each work order, and get a better knowledge of how your team is doing. 
  • Using this knowledge, you can fix and reinforce any flaws in your processes, resulting in increased efficiency.

Predictive Maintenance Through Data Collection

  • A data-driven factory prefers this predictive maintenance technique, so your CMMS will collect information about inventory consumption, maintenance, repairs, and inventory utilization to determine when maintenance projects should be carried out.
  • This strategy alerts maintenance staff to potential problems before they occur. 
  • It also results in minimum downtime and maintenance that addresses the issue rather than just taking place on time.

Meet Compliance and Safety Regulations

  • When performing an audit to establish whether an item is properly maintained, CMMS software is useful since it keeps a detailed record of every maintenance performed on each asset or piece of equipment in your company. 
  • It also allows you to save essential details about each piece of equipment you possess, such as product specification documents, warranty information, safety instructions, and much more. This information is easily accessible to your staff, making it easier to conform to compliance and safety regulations.

Organize Maintenance in a Centralized Location

  • Maintenance management software stores all of your service orders, preventative maintenance, inventories, equipment, and other stuff in one location. This makes it easy to associate certain pieces of machinery or supplies with specific maintenance requests and tasks. 
  • Everything from asset efficiency to inventory levels to maintenance schedules is optimized in this way. With a mobile CMMS, your maintenance team will find it much easier to access maintenance since they can access jobs on their phone or tablet.

Boost Efficiency and Accountability

  • By centralizing all maintenance and facilities operations, your team may have a better knowledge of priority tasks and allocate the maintenance plan. 
  • This promotes team accountability and efficiency by allowing each team member to bring you up to speed on their daily actions and giving you insight into their work.
  • Your company's CMMS administrator also stays well-versed on what is going on at each plant and when.

Process Simplification and Improved Workflow

  • CMMS software provides users with real-time updates while directing requests to certified technicians or staff members. 
  • Furthermore, the system allows you to create an approval method that corresponds to your company's chain of command, ensuring that no request is neglected. 
  • Work order attachments such as photographs or videos, as well as the development of checklists for technicians to utilize when completing preventative maintenance chores, are two additional capabilities that improve processes.

Performance Improvement

  • Efficiency and safety are two areas where CMMS systems really shine. They facilitate compliance with rules and provide a real-time perspective of operations for enterprises. 
  • Remote monitoring and alerting of malfunctions or other issues may be used as a safety element inside a CMMS. Managers can get a better grasp of their company's performance by continuous monitoring, even if the information isn't always useful.
  • The use of CMMS has several advantages, one of which is the ability to detect and address problems such as increasing energy usage, low efficiency, worn components, etc. 
  • When combined with predictive maintenance tools, CMMS has the potential to automatically alert personnel when a component's usable life is approaching its endpoint. Because of this, they can move swiftly to avoid a collapse.
  • Full job reports are available to employees, and managers can use this data to see how different teams are working together.

Better Communication

  • By ensuring that all workers are aligned and have the same information, CMMS features enhance communication inside teams, across departments, and even with external suppliers. 
  • You and your company will have more time for what matters most when you improve your communication and cut down on unnecessary work.

Increased Reliability

  • Enhanced reliability is a key advantage of CMMS software. Additional capabilities offered by CMMS technology systems enhance maintenance work planning and administration. 
  • The tools in this set allow maintenance managers to schedule preventive maintenance according to certain dates, times, or equipment use based on diagnostic data or standards.

To Round Up

With CMMS software's many benefits, including reduced expenses and more productivity, it's possible that everything may change for you and your business. You can keep ahead of your organization's maintenance operations with a CMMS solution that is extremely versatile for managers and workers in the field.

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