CMMS ROI Calculator

Justifying the Cost of Computerized Maintenance Management Software

So you have heard about the benefits of Computerized Maintenance Management Software (CMMS), and now you are faced with discovering ways to offset the cost. At eMaint, we have helped thousands of customers achieve savings in areas such as labor, inventory, downtime and asset lifecycle costs using our CMMS solution. By implementing a CMMS, organizations can increase technician wrench time, improve planning and scheduling parts, reduce downtime by preventing failures, and extending the life of assets.

To that end, we have assembled a framework to assist you in calculating your estimated return on investment (ROI) with CMMS. Estimating your ROI using detailed data about your business can help illustrate the quantifiable benefits of implementing CMMS with crystal-clarity.

How Much You Can Save By Implementing CMMS

By estimating the reduction in cost for issues that a CMMS works to improve, you can determine how much your organization can save per year. To calculate the total for your CMMS savings, we start by breaking up the cost benefits of CMMS into four major categories:

1. Labor/Productivity
2. Parts/Inventory
3. Downtime
4. Asset Health

Looking at these separately and considering the potential reductions, you can calculate your total annual savings from implementing CMMS.

1. Labor / Productivity

Labor and Productivity are of the utmost importance in every business. Various factors can impact productivity, such as downtime, manual data entry, not having the correct parts on hand, and a “fire fighting” maintenance mode, where technician time is tied up in unplanned corrective maintenance. Without tools like a proper work scheduling solution, you might be wasting more resources than you realize.

eMaint’s planning and scheduling tools can help you increase efficiency through better work management. By using these tools, organizations are able to use maintenance resources more efficiently, improve service and responsiveness to internal and external customers, standardize work procedures and avoid rework. In addition, a CMMS can help you save in the following vital ways.

Reduce Data Entry through Real-time Mobile Maintenance

With CMMS, gone are the days of being tied up in the office, entering work orders and requests, spare parts and equipment into a spreadsheet or on paper. Using MX Mobile, eMaint’s wireless mobile solution, you can access your real-time CMMS data on-the-go. To find how much money your company could be saving with real-time mobile entry, follow the steps below.

Pure Fishing
A leading global provider of fishing tackle, lures, rods and reels, Pure Fishing operates in 19 countries with a workforce conversant in 28 languages. Pure Fishing wanted a web-based, paperless CMMS solution that suited their need to track thousands of monthly work orders and nearly 2,000 assets. eMaint has helped greatly improve the company’s labor and productivity with MX Mobile. “I can be just about anywhere- at home, on the road, in a hotel room and I can still have real-time access to the mechanics of our PM system, along with consistent communication with the maintenance team. Assigning work orders and sending instructions to technicians through my mobile device is even quicker than calling them on the phone,” Paul Murphy, Facilities Engineering Manager for Pure Fishing.

Maximize Labor Resources through Better Planning and Scheduling

Unnecessary downtime or lack of the right resources on-hand bogging down your productivity? Minimize downtime by making sure the right equipment is available when you need it, using eMaint’s work order scheduling software solution. If your company does not track preventative maintenance, your team might be inundated with corrective maintenance work on your equipment. eMaint has built-in tools to help you efficiently plan and schedule your work orders to decrease non-wrench time, or time spent on non-productive maintenance work. To calculate the savings that can be found by eliminating this issue, follow the steps below.

Reduce Time Spent Manually Assembling Reports and KPIs

Consider the time your team spends assembling, editing, finalizing and distributing reports. eMaint’s fully-customizable reporting and dashboard tools make it easy to create and modify reports (or select from over 95 pre-loaded reports), output them as text, PDFs, charts or graphs, add them to dashboards or generate and email them automatically on a pre-determined schedule. To calculate how much money you could save from a reduction of time spent assembling reports, follow the steps below.

Engineering Material Solutions (EMS)
Engineered Material Solutions (EMS) is a leading provider of clad metal solutions, located in Attleboro, Massachusetts. EMS began looking for a new maintenance management system that would allow the maintenance department to create their own reports with minimal turnaround time. They chose eMaint, and they quickly began to cut costs by using CMMS to auto-generate reports tailored to EMS’s exact specifications. They were also able to see a 50% decrease of administrative staffing.

2. Parts / Inventory

Mismanagement of inventory can be costly. Critical parts can be misplaced, lost or broken, and production cannot afford to wait. On the flipside, your inventory may have too many of the wrong parts. Using the inventory management tools within eMaint, managers are able to purchase and receive parts, associate parts with PMs and quickly locate items. eMaint has full requisitioning, purchasing and receiving capabilities, which you can use to auto reorder parts based on minimum/maximum levels, manage multiple inventory locations, track cost of parts issued and returned against work orders and manage stock and non-stock parts. CMMS can also help you cut costs in the following ways.

More Effectively Coordinate Part and Equipment Availability

Knowledge of inventory is vital, no matter a company’s focus. Without the proper system, keeping track of parts and making sure they are available when necessary could be a full time job. eMaint makes it easy for organizations to track inventory across work sites worldwide. With inventory management and tracking capabilities, managers are able to associate parts with PMs, automatically reorder parts and quickly locate items. Wonder how much revenue you might be able to save without the issue of ineffective coordinating of part and equipment availability?

Reduce Expedited Shipping Costs through Better Coordination of Part Availability

When you cannot locate necessary parts and equipment for a particular project, expediting shipping may be your only option. This can be a very costly expense. CMMS makes expedited shipped charges unnecessary by providing better coordination of part availability.

Crown Holdings, Inc.
Crown Holdings, Inc. is a leading supplier of packaging products to consumer marketing companies around the world. With CMMS, Crown wanted to elevate their preventive maintenance activities to a predictive capability, with real-time data. Crown chose eMaint, and found a solution that supports its continuous improvement process and contributes to its quality maintenance operations. Crown’s Repair Parts Inventory was reduced by $1.02 million due to centralized part accessibility, and their Repair Parts Inventory turnover has improved 34%.

3. Downtime

For any company, is important to minimize the combined cost of downtime to avoid a negative impact on revenue. This can be done by establishing an effective preventive maintenance program. eMaint’s software can be used to design, implement and manage your company’s PM program. CMMS software can help you save in these ways and many others, including the following.

Reduce Cost of Lost Production

When equipment fails, how much downtime collects between when machines go down to when they get ramped back up? With improved planned maintenance and tracking, you can be proactive in avoiding these time consuming situations, and automatically schedule maintenance as needed based on analysis of asset condition data. To calculate how much money you can save by avoiding unexpected machine failure, follow the steps below.

Reduce the Amount of Time Production Staff Stays Idle

Technicians stay idle during downtime in the midst of equipment failures. By utilizing condition monitoring, not only do you avoid emergency maintenance, but you can also see a reduction the amount time technicians stay idle, boosting productivity and efficiency. To get a better understanding of how this idle time impacts profit, follow the steps below.

Hoyt Archery
Hoyt Archery Company has manufactured bows and archery accessories in the United States since being founded by Earl Hoyt and Earl Hoyt Jr. in 1931. Hoyt began using eMaint in 2009. Categories for work orders were established so work orders and costs could be grouped by department. By tracking downtime, labor, work orders, and maintenance by type, they were able to build a maintenance history that assisted in determining future maintenance costs. The company saw a 40% reduction in downtime and 77% increase in PM compliance.

4. Asset Health

What if you could extend the life of your most important assets for several years while improving the bottom line for your stockholders? As you may know, maintaining asset health is a critical mission of any maintenance department. The features within an effective CMMS work together to make asset management easy and seamless. An effective CMMS solution helps organizations see substantial savings, make data-driven repair vs. replace decisions, and experience on vital metrics such as Return On Net Assets (RONA).

Extend Life of Equipment by Tracking Preventive Maintenance

Asset life can be cut short without proper tracking and analysis of repairs and planned maintenance. eMaint’s preventive maintenance tools and inventory and reporting/dashboard features provide a complete solution to help decrease capital expenditures on premature replacements and extend the life of your equipment.

Cintas
Cintas Corporation, a top manufacturer of corporate identity uniforms, entrance mats, document management services and more, saw their Return On Net Asset percentage double with the help of eMaint’s features. With this increase, the Cintas maintenance team is making an impact on what is important to stockholders. With improved maintenance on equipment, they are showing stockholders that with each investment comes a better return than ever before.

Improve Return on Assets by Gaining Insight into Repair vs. Replace Decisions

There is a bucket of savings that can come from supporting repair vs. replace decisions. Gaining insight into how your equipment runs using data provided by your CMMS is the first step in getting started. By tracking how much a particular piece of equipment costs to repair over the course of a year, you can determine whether or not it costs less to replace that piece of equipment.

Health and Hospital Corporation
The mission of Health and Hospital Corporation of Marion County is to promote and protect the health of everyone in the community and provide healthcare to those who are underserved, and needed a CMMS solution to work for them. They chose eMaint due to the flexible interface with exceptional support at an affordable price. With this powerful CMMS software, they were able to rack time and expenses by building and department for budget reconciliation, and experienced repair vs. replace justification by closely tracking asset maintenance.

Calculating Your CMMS ROI

Using these categories and percentages of CMMS Savings, you can calculate your return on investment to discover how profitable implementing CMMS would be for your company!

How to Calculate Your CMMS ROI:

Conclusion

In addition to saving you money and providing a positive ROI, implementing a CMMS can help facilitate improved customer service and increased accountability, resulting in a long-term boost in productivity and efficiency. Thousands of diverse customers have agreed: once they implemented a CMMS, they would never go back. With quantifiable savings in crucial aspects of business, such as labor, parts/inventory, downtime and asset life, the results are hard to ignore.

Are you convinced that CMMS is the right maintenance solution your company? Get started on the path to CMMS success by getting in touch with an eMaint advisor at 239-494-8928 or sales@emaint.com, or visiting www.emaint.com.

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