As a business owner, you are constantly seeking ways to improve your bottom line and increase your profits. One often overlooked area where significant cost savings can be achieved is maintenance management. Maintenance, repair, and operations (MRO) expenses can add up quickly and impact your business’s financial health. However, with the right tools and strategies, you can effectively manage your maintenance processes and save more money. One such tool that can help you achieve this is a Computerized Maintenance Management System (CMMS).
In this article, we will explore the ways in which your business can save more money with CMMS.
Asset Life
New equipment is expensive. So, extending the life of existing equipment with the help of effective asset management software like CMMS can make a substantial positive difference to your financial bottom line. The software enables you to make data-driven decisions regarding repairs or replacement of costly parts of critical equipment. The right CMMS software can help you extend the life of equipment by tracking preventive maintenance and improve return on assets by gaining valuable insights into repair v/s replace the type of decisions.
Inventory Management
A mismanaged inventory increases the risk of unnecessary expenses. You may end up having too many wrong parts and insufficient amounts of the right ones which means you cannot get the critical assets fixed when required. With the help of a CMMS, you can coordinate part and equipment availability more effectively. The software can help you manage multiple inventory locations, manage stock and non-stock parts, auto-reorder parts based on their availability levels and monitor costs of issued and returned parts against work orders. An added benefit of managing your inventory with CMMS is reduced expedited shipping costs through better coordination of part availability.
Productivity
Manual tools used for tracking and scheduling maintenance tasks increase the risk of expensive downtime and affect productivity as well. As a result, you are forced to undertake a reactive approach rather than a proactive one and this costs you time, effort and money. With the right CMMS in place, you can boost productivity and avoid such expenses by –
- Optimizing resources through enhanced scheduling
- Reducing time spent manually assembling reports and KPIs
- Using real-time mobile maintenance for minimizing data entry
Downtime
CMMS plays an important role when it comes to reducing costly downtime. You can set up a profitable preventive maintenance program with the help of a CMMS. It will help the facility managers take calculated decisions rather than carry out maintenance tasks based on guesswork. This is achieved with a systematic preventive maintenance schedule and reduced idle time of the workers.
Reactive Maintenance
Reactive maintenance also costs your business a lot. In case of an unprecedented breakdown of equipment, you have to take into account the cost of the maintenance crew, the cost of parts which may include expedited shipping charges and the cost of extra time it takes for diagnosis of the problem. Preventive maintenance software like CMMS can help you avoid such expensive reactive maintenance. Your maintenance team can perform routine inspections and planned maintenance of equipment at convenient times with the help of CMMS.
You can easily calculate an approximate ROI of a CMMS to justify the investment in the software. You can pin down numbers with the help of an online ROI calculator which explains how a CMMS can help reduce costs and provides simple equations which allow you to calculate your annual savings from a CMMS.
Equipment Performance Monitoring
CMMS can also help you monitor the performance of your equipment and assets. CMMS allows you to track and analyze key performance indicators (KPIs) such as asset utilization, downtime, and repair costs. By monitoring equipment performance, you can identify underperforming assets, detect potential issues early, and take corrective actions to optimize asset performance. This helps you to reduce equipment failures, minimize downtime, and lower maintenance costs associated with emergency repairs.
Data-Driven Decision Making
CMMS provides you with a wealth of data and insights that can help you make informed decisions about your maintenance processes. CMMS generates reports and analytics on maintenance activities, costs, and performance metrics. By leveraging this data, you can identify trends, patterns, and areas for improvement. For example, you can identify assets that are costing more in maintenance than their value warrants and consider options such as repair vs. replacement decisions. You can also identify recurring maintenance issues and take preventive measures to address them. Data-driven decision-making with CMMS enables you to optimize your maintenance processes, reduce costs, and improve overall operational efficiency.
Compliance and Safety
CMMS can also help you ensure compliance with regulatory requirements and safety standards. CMMS allows you to track and manage compliance-related tasks such as inspections, certifications, and permits. By ensuring timely compliance, you can avoid fines, penalties, and legal liabilities, which
Author Bio:
Lindsey Walker is the marketing manager for NEXGEN, a Sacramento-based industry leader in designing advanced computerized maintenance management systems and asset management software tools for utilities, facilities, public works, manufacturing, and fleet industries. In her free time, Lindsey enjoys traveling and reading, which allows her to gain new perspectives and inspiration for her work. She is committed to creating content that connects well with her readers, enhancing their digital experiences.
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