Calculating the ROI for any program is certainly difficult and can be estimated to some degree. There are a lot of tools that can help you estimate this, but it is always dependent on your current business and workflow.
The formula for ROI is simple:
CMMS ROI = (CMMS Value – CMMS Cost) / CMMS Cost
Once we get past all of that, we realize that ROI value on CMMS systems are completely dependent on how your team adopts a CMMS and if they follow through with using it. Often cases there is a net negative ROI on CMMS because implementations fail, adoption doesn’t pick up, and money is poured down the drain. At the end of the day what is most important is–are we getting actionable insight into our workflow using a CMMS and is this making our jobs easier?
We helped create one easy way to measure the value of a CMMS.
Measure Productivity Increases
How much time is wasted running back and forth to a desktop inputting information in? Is there is an issue of double entry with your desktop solutions? At UpKeep, we’ve noticed that technicians wind up writing notes on a pencil and paper, and then come over to a desktop to enter all of their information into their web based CMMS. With iPads and tablets out in this field they can completely eliminate this step. So ask yourself, how more productive would your team be if communication was seamless?
Here are some additional things that factor into productivity increases:
- Communication between technician, requester, and facility manager
- Allow your team to focus purely on wrench time and not repeating the same information to different people
- Document storage
- Keeping all files in one seamless digital system
- No more paper files and searching through manuals
- Preventative maintenance checklists
- Spare parts
- Know exactly where your spare parts are at all times from any device
Through our research, we’ve created averages depending on what type of system they had prior to UpKeep
- Paper and pencil → Mobile CMMS : ~21% increase in technician productivity
- Desktop CMMS → Mobile CMMS : ~12% increase in technician productivity
Here’s how we can now find the value of a CMMS–all we need are two more numbers:
- What is the average hourly salary of your maintenance team?
- How big is your maintenance team?
We now have all of the numbers we need to get a rough estimate on the value of a CMMS and to calculate the ROI.
For this example, let’s say on average we pay our technicians $30 an hour and we are moving from a paper based system to a mobile CMMS and expect to see a 21% increase in productivity. In addition, we have 8 people on our maintenance team.
$30 /hr 8 hours/day *261 working days / year *8 people * 21% Productivity = CMMS Value
On an annual basis, you’d be saving $105,235!
This is just one example of measuring ROI! Of course, we made some assumptions about your maintenance team size and the current state of your maintenance programs. If you’re interested in learning more, visit us on the web at
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