Most of today’s large industrial companies consider CMMS as an essential tool. On the other hand, it is often underestimated by SMEs, which do not always perceive the potential return on investment.
However, the cost-effectiveness of this tool can be estimated fairly accurately, making it possible to assess the relevance of adopting or maintaining it. To do this, the ROI of the CMMS must be calculated. This operation is not as complicated as it sounds and can reveal significant potential for productivity gains…
Calculating your CMMS’ ROI: basic principles
ROI (Return On Investment) is calculated by dividing the gains brought by a maintenance management tool by the cost of maintenance. The formula is summarized as follows: gains-cost of investment/cost of investment.
For example, if the implementation of a maintenance management solution saves 100,000 euros and its annual cost is 5,000 euros, the CMMS ROI is 19% : (100,000-5,000) / 5,000.
The relative difficulty of this calculation lies in the identification of earnings. These must be well identified in order to calculate the ROI of its maintenance management platform effectively.
The gains brought by the CMMS
An efficient solution such as Mobility Work allows gains in many areas of maintenance. It is important to identify them well before calculating the ROI of your CMMS.
Optimizing human resources
A CMMS is above all designed to allow maintenance teams to concentrate on their job. If the tool is efficient and relevant, they spend less time MANAGING and more time MAINTAINING, which increases their productivity.
Maintenance operators save a lot of time on maintenance management thanks to a mobile CMMS such as Mobility Work. Everything is stored in the application: list of interventions, stock of spare parts, maintenance contracts, etc. To each piece of equipment can be attached all the documents useful for its maintenance. And all this information can be consulted and filled in from anywhere in the factory, on a smartphone, tablet or laptop.
Mobility Work CMMS is based on a community of users who exchange and follow their plant’s activity thanks to the newsfeed
In addition, teams are much more inclined to respect the processes and instructions that are conducive to good maintenance management, thanks to the ergonomics of the application, which are very similar to everyday applications. Finally, schedules are very simple to manage and organize.
Facilitating stock management
The use of a next-gen CMMS enables significant gains to be made by optimizing the management of spare parts inventories. On the one hand, the number of spare parts in stock can be reduced, thanks to a management perfectly aligned with the functional machine park. By reducing the number of spare parts by at least 5%, you will thus lower your storage costs.
Above all, statistics show that a CMMS can ultimately reduce the value of spare parts inventory by 10 to 20% and its supply costs by 5 to 10%. A next-gen solution such as Mobility Work enables the perfect balance to be found between reducing stocks and maximum maintenance responsiveness. Since each intervention is systematically entered into the software and automatically transmitted to the inventory management department, only those parts that are strictly essential for maximum reactivity are kept in stock.
Keep an eye on your inventory from your CMMS software, and manage outgoing inventory and replenishments.
Finally, the implementation of advanced predictive maintenance allows us to anticipate spare parts needs without having to build up large preventive stocks. The ability to consult the application’s user community to determine the number of spare parts available around you further enhances this ability to anticipate.
Improving troubleshooting and increasing equipment lifespan
Optimized inventory management naturally makes troubleshooting quicker and more efficient, especially by avoiding out-of-stock situations. These are greatly reduced (by around 25%) thanks to an alert system that warns managers as soon as a certain number of parts falls below a certain level.
In addition, better overall maintenance management increases the longevity of the machines, which increases their amortization period and delays their replacement. CMMS thus ultimately generates ROI. Some maintenance experts’ statistics even show that it is possible to hope to extend the service life of equipment by 20 to 50%.
Increasing machine availability
Machine downtime for maintenance is a major impediment to maximum production line productivity, as some equipment can completely block the production line when stopped.
Therefore, high-performance software has great potential for return on investment if it substantially reduces the frequency and duration of these periods. When implementing a preventive maintenance strategy, a next-gen and community-based CMMS makes it possible to foresee most maintenance interventions, and to plan them in such a way that shutdowns have the least possible impact on the plant’s productivity.
Mobility Work is provided with an analytic tool to help you analyze all your maintenance data and adapt your strategy
Reducing energy consumption
Finally, optimizing the preventive maintenance of machines makes it possible, for most mechanical equipment, to reduce the amount of energy – and therefore their operating cost – by 5 to 10%.
Calculate the roi of a CMMS by trying it out
As we have seen, a good CMMS has a significant potential ROI because it allows savings in many areas of maintenance. But how can you be sure that this ROI will be real once you adopt a solution?
The only solution for this is to choose a CMMS solution that can be tested before being definitively adopted. This is not the case with conventional software, whose trial versions are limited in functionality, among other things. On the other hand, a solution such as Mobility Work can be fully tested free of charge. Moreover, it works on a subscription basis, which avoids having to make a significant investment without knowing if the ROI will be at the expected level.
This way, you can use the application for a certain period of time and calculate the ROI of this new CMMS and then decide whether or not to adopt it in the long term. This is the best guarantee to avoid making a mistake in your investment.