How Does CMMS Cut Operational Costs?

How CMMS cut costs for all of Operations

Your senior management team will always be looking to increase both their profit margin and the overall value of the company.  While this can be carried out by price increases to the consumer, this is usually seen as unsustainable and liable to drive customers away in the long term.

The second option available to managers is to reduce the overall running costs of a company by reducing stock, equipment, and internal services or headcount. This is increasingly seen as a preferred option for many businesses as it holds the possibility of making a company leaner, increasingly flexible, and more able to deal with an uncertain business world.

In many cases reducing running costs means cutting back on elements not directly involved with the manufacture of products or delivery of services and automating processes wherever possible and that is where Computerized Maintenance Management Software – CMMS – can make a huge difference within the maintenance department.

Maintenance is often seen as an ancillary department that adds no value.  That is mostly because a well-run maintenance team ensure that production breakdowns and factory issues are dealt with before they either occur or become serious; a good maintenance department is the one that no one realises is there because they never have to feel the effects of not having a good maintenance department!

To achieve that, maintenance operations need to be seamless, and that means employing tools such as CMMS. A good and well-used CMMS program will help you run a smooth, integrated maintenance operation and offers a number of distinct advantages.

Reduced Production Down Time Through Planning

Reduce random incidents and improve equipment reliability with proactive and preventive maintenance processes across both production and infrastructure.  When machinery or plant systems fail, it means lost production time, and possibly resulting in additional labor or overtime payments, potentially late deliveries to customers, and increased costs in replacement parts.

By using CMMS in a preventive maintenance capacity and to identify in advance the equipment that needs parts replaced more frequently, and setting up a preventive maintenance schedule, repairs can be made before the machine malfunctions. A planned system is a well-controlled system.

Extended Equipment Life

Well maintained equipment improves operational reliability with proper managed and monitored maintenance activities when they are needed. If you are running CMMS, you have the ability to organize a combination of service and maintenance programs, so that equipment with different requirements can be catered for and this can ultimately increase its service life and reduce the need to purchase replacement equipment prematurely.

Analysis of this nature helps determine a baseline for projected capital spending and helps establish the return on investment (ROI) both on the production equipment but also demonstrates ROI on the CMMS system that is helping you support it.  CMMS systems also have an inherent cost and but its justification is in the many different ways in which it can help you keep a control on the maintenance budget, and possibly even reduce it through increased efficiency.

Allow Organization Visibility of Results & Goals

Senior management will always ask for visibility of the overall Performance of the system and benchmarking with KPI’s based on assets, personnel, processes, and maintenance management are all possible.

By using a CMMS system, you can extract the required information in a succinct form that explains the value of the maintenance program, and how well your team is conforming to the plan.  KPI’s are becoming increasingly important as businesses try to seek out the weak points of their organization, and with the ability of a CMMS system to accurately report against your goals.

Gives Measure Performance

The system can be monitor by specific SMART (Specific, Measurable, Assignable, Realistic, & Timely) goals to include workforce productivity, compliance to preventive maintenance plans, overall downtime, overdue maintenance tickets and work packages and service level violations.

The list of measures is flexible and may vary greatly from company to company, but what they are is immaterial provided that they give a true picture of the departments performance within the company and shows the value of the what the department is doing.

Establishes a Standards Service

CMMS can manage all the contracts, compliance, safety procedures and other operations standards used throughout the organisation, workforce, worksite and sub-contractor’s units.

You will have to be complying to certain standards – probably general, possibly bespoke to the type of operation that you are running – and you need to ensure that the CMMS system reflects the right standards at the right issue level.  Most systems can be automated to do this.

Improve Maintenance Planning

All scheduled and managed maintenance activities can be monitored and managed thereby increasing efficiency and eliminating idle time wastage.

CMMS can be set to give you prompts to highlight upcoming maintenance tasks, and drives you towards a healthy preventive maintenance plan where appropriate, meaning that you can focus reactive maintenance work with elements which cannot be planned in.

Available Across Multiple Locations

CMMS offers the ability to manage operations in parallel across many different sites with ease, enabling better utilization of resources and planned actions.

If you are in a position where you need to establish plans across more than one site, the CMMS system can carry the information centrally so you can access the specific requirements of each plant – which may vary quite widely – and only apply the level of service needed for each.  This in itself is likely to help streamline the maintenance task overall, as only the level of effort required at each site is broken out.

All of these are important factors, there are some aspects of a well-controlled CMMS system that really make the case for it particularly when senior management are looking to reduce overheads.

CMMS brings a level of control to work packages and maintenance costs that is almost impossible to achieve through any other means, and that alone should be sufficient to justify the cost associated with installing and training it out. Plainly, the ability to improve planning will make your department more streamlined and able to run without excess cost, and that is sure to please the senior management team.

Everything you need to know about CMMS: