The current economic climate is exposing businesses to unusual challenges. Inflation rates are soaring, leading to increased costs of goods and services. Supply chain disruptions have become the norm, causing delays and uncertainty in receiving essential maintenance supplies, labor shortages and rising wages are putting operating budgets under increasing pressure. These factors create a difficult environment for businesses striving to maintain efficiency and control expenses.
Despite these economic hardships, investing in CMMS software presents an opportunity for businesses aiming to optimize operations and reduce costs. CMMS software is designed to streamline maintenance processes, improve asset management, and enhance overall facility management. By implementing CMMS systems, businesses can manage maintenance schedules, minimize unexpected breakdowns, and extend the lifespan of their assets. This not only helps in reducing immediate operational costs but also supports long-term financial stability. In tough economic times, the adoption of CMMS software can be a significant step, enabling businesses to navigate financial uncertainties caused by unexpected breakdowns with greater resilience and efficiency.
Understanding Economic Trends and Their Impact on Organizations’ Preventive Maintenance
Overview of Economic Trends
The present economic landscape is characterized by significant inflation, driving up the costs of goods and services. This inflationary pressure directly impacts operating costs, making it more expensive to procure materials and maintain facilities. Additionally, ongoing supply chain disruptions have created difficulties in obtaining necessary parts and supplies promptly, affecting maintenance schedules and operations. Concurrently, labor shortages and increased wages are straining budgets as businesses struggle to attract and retain skilled workers.
Impact on Businesses
These economic trends result in higher operational costs, compelling businesses to find ways to cut expenses without compromising efficiency. The increased need to maintain efficiency and reduce downtime is obvious, as unplanned equipment failures can lead to costly disruptions. Therefore, businesses must maximize the lifespan and efficiency of their existing assets to stay competitive. Implementing preventive maintenance and facility management strategies becomes important. By leveraging CMMS software, businesses can automate maintenance tasks, streamline facility management, and utilize preventive maintenance software to predict and prevent equipment failures. This strategic use of CMMS systems helps reduce the adverse effects of economic challenges, ensuring smooth operations and cost savings even in a tough economy.
Why Investing in CMMS Software Makes Sense During Tough Times
Cost Efficiency
CMMS systems are instrumental in tracking maintenance costs and aiding in budgeting. By providing detailed insights into maintenance expenses, these systems enable businesses to identify cost-saving opportunities and allocate resources more effectively. The use of CMMS software leads to long-term savings by minimizing the need for emergency repairs and reducing equipment downtime. With a CMMS, businesses can transition from reactive to proactive maintenance strategies, thereby lowering the total cost of ownership of their assets and achieving significant cost efficiencies.
Preventive Maintenance
Preventive maintenance involves regular, planned maintenance activities aimed at preventing unexpected equipment failures and ensuring smooth operations. This is a key approach for maintaining the reliability and efficiency of assets. Preventive maintenance software plays a vital role in this process by automating the scheduling and tracking of maintenance tasks. By predicting potential issues before they lead to breakdowns, preventive maintenance software helps minimize downtime and extend the lifespan of assets. This maintenance strategy is essential during tough economic times when businesses must avoid costly interruptions and maximize the value of their investments.
Image courtesy Click Maint
Data-Driven Decisions
One of the significant advantages of CMMS software is its capability to leverage data analytics for informed decision-making. During the measure of reliability for repairable items, CMMS systems track various maintenance KPIs, such as mean time between failures (MTBF), mean time to repair (MTTR), mean time to acknowledge (MTTA), and overall equipment effectiveness (OEE). By analyzing these KPIs, businesses and organizations can gain valuable insights into their maintenance processes, identify trends, and implement improvements. Data-driven decisions enabled by CMMS software lead to optimized maintenance schedules, better resource allocation, and enhanced asset performance.
Facility Management
Efficient facility management is important for controlling operational costs and enhancing productivity. Facility management software aids in organizing and managing the various aspects of facility operations, from maintenance schedules to resource allocation. This software streamlines operations by providing a centralized platform for managing tasks, ensuring that maintenance activities are carried out efficiently and on time. The use of facility management software results in improved coordination, reduced operational bottlenecks, and enhanced overall productivity, which are key benefits when economic pressures demand greater operational efficiency.
Image courtesy Click Maint
Scalability and Flexibility
CMMS solutions offer scalability to adapt to the changing sizes and needs of businesses. During tough economic times, investing in CMMS solutions offers cost-saving advantages due to their scalability and flexibility. These systems can easily adapt to the changing sizes and needs of businesses, whether a company is expanding or downsizing. CMMS systems can be tailored to meet evolving requirements, allowing for the addition or removal of users, integration of new functionalities, and adjustment of features as necessary. This adaptability ensures that businesses can maintain operational efficiency and productivity, making CMMS solutions a smart investment in fluctuating economic conditions.
Implementing Cloud-Based CMMS
CMMS software provides flexibility in deployment options, with both cloud-based and on-premises solutions available. Cloud-based CMMS systems offer the advantage of remote access, automatic updates, and lower upfront costs, making them suitable for businesses looking to manage maintenance efficiently without significant capital investment. On-premises solutions, on the other hand, offer greater control and customization options, catering to businesses with specific regulatory or security requirements. Cloud-based CMMS solutions typically have lower upfront costs, as there is no need to invest in hardware and servers. Instead, users pay a subscription fee, which usually includes software updates, maintenance, and support. During economic hardship, organizations can consider adopting a cloud-based CMMS solution as a cost-effective choice. This approach helps minimize initial expenditures while ensuring ongoing support and updates, making it a sensible investment in challenging financial times.
Tips for Negotiating Contract Terms with CMMS Providers
Free Trials
CMMS Free trials offer businesses the opportunity to evaluate the suitability of CMMS software before committing to a purchase. During the trial period, it’s essential to thoroughly test the software’s features and functionalities to ensure it aligns with specific business requirements. Organizations can maximize the free trial by creating test scenarios of daily operations, involving key stakeholders in the evaluation process, and encouraging regular feedback from facility managers and maintenance managers to gauge usability and effectiveness.
Flexible Payment Schedule
Negotiating a flexible payment schedule, such as month-to-month options, provides businesses with greater financial flexibility, particularly during economic challenges. Instead of committing to annual upfront payments, businesses can spread out the costs over time, aligning expenses with cash flow availability. This approach aids in cash flow management and reduces the financial burden of large, upfront investments, making it easier for businesses to adopt CMMS software without straining their budgets.
Customization and Scalability
Organizations planning to invest in CMMS should ensure that the CMMS software can be customized to meet specific business needs and workflows. Inquire about the provider’s ability to tailor the software to accommodate unique requirements and integrate with existing systems seamlessly. Additionally, ask about the scalability of the software to accommodate future growth and expansion, ensuring that it remains a viable solution as business needs evolve.
Support and Training
Comprehensive support and training are essential for the successful implementation and utilization of CMMS software. Organizations should negotiate for included or discounted training sessions to ensure that users are proficient in using the software effectively. Additionally, inquire about ongoing support options, including technical assistance and software updates, to address any issues or concerns that may arise post-implementation.
Contract Clauses
Key contract clauses to include for protection include termination clauses, performance guarantees, and service level agreements (SLAs). Termination clauses should outline conditions under which either party can end the contract, protecting businesses from being locked into agreements that no longer serve their needs. Performance guarantees and SLAs ensure that the CMMS provider delivers on promised functionalities and support levels, holding them accountable for meeting agreed-upon standards of performance and service quality. These clauses provide businesses with peace of mind and recourse in case of any contractual disputes or shortcomings.
Conclusion – Investing in CMMS Software
Investing in CMMS software during an economic crisis offers numerous advantages that can help businesses navigate challenging times more effectively. Key benefits discussed include the enhancement of preventive maintenance through preventive maintenance software, which reduces unexpected breakdowns and extends asset life. Facility management software streamlines operations, improves productivity, and helps control costs. CMMS systems provide robust tools for tracking maintenance costs, facilitating better budgeting, and achieving long-term savings through reduced emergency repairs and downtime. Additionally, data-driven decision-making, enabled by CMMS software, allows businesses to optimize maintenance schedules and resource allocation, enhancing overall operational efficiency. The scalability and flexibility of CMMS solutions ensure they can adapt to changing business needs, and considering Cloud-Based CMMS helps reduce the cost of implementation.
Businesses should consider the long-term advantages of investing in CMMS software, especially during economic uncertainties. The ability to maintain and extend the lifespan of assets, streamline facility management, and make informed, data-driven decisions are critical factors for sustaining operational efficiency and reducing costs. When negotiating with CMMS providers, it is essential to carefully evaluate free trials, negotiate flexible payment schedules, and ensure the software offers the necessary customization and scalability. Additionally, securing comprehensive support and training, along with protective contract clauses, will maximize the value and fit of the CMMS investment. Strategic investments in the CMMS system are important for maintaining competitiveness and efficiency during tough economic times. By utilizing CMMS, businesses can easily navigate tough economic challenges, and also position themselves for future growth, ensuring businesses remain resilient and agile in an ever-changing economic landscape.
Reena Sommer
Reena Sommer has written extensively about CMMS and maintenance management best practices since 2018. Reena has been a contributor for Hippo CMMS, Click Maint among others. She has her Ph.D. in Psychology from the University of Manitoba. Reena hails from Winnipeg, Canada and currently resides in Chicago, Illinois, USA.
Many smaller companies feel maintenance management software is overkill for their organizations. Nothing could be further from the truth. In reality, even a one-person maintenance department can reap the benefits of maintenance management software. The same benefits realized by the maintenance crew in larger companies are there for smaller maintenance departments also.
Many smaller companies feel maintenance management software is overkill for their organizations. Nothing could be further from the truth. In reality, even a one-person maintenance department can reap the benefits of maintenance management software. The same benefits realized by the maintenance crew in larger companies are there for smaller maintenance departments also.
Information technologies (IT), in the context of this paper, include all computer systems and networks, plant automation systems such as distributed control systems and programmable logic controllers, design drawing databases, procedures databases, and diagnostic monitoring systems. The role of information technology is critical for maintenance optimization because it relies on the ability of the plant personnel to bring all data together in a coherent fashion for optimum analysis and decision-making.
Information technologies (IT), in the context of this paper, include all computer systems and networks, plant automation systems such as distributed control systems and programmable logic controllers, design drawing databases, procedures databases, and diagnostic monitoring systems. The role of information technology is critical for maintenance optimization because it relies on the ability of the plant personnel to bring all data together in a coherent fashion for optimum analysis and decision-making.
We now have the ability to automate many of our standard maintenance processes, analyse in detail various parts of our businesses, and the performance of our equipment. We are able to plan shutdowns, technical change projects and operational maintenance procedures down to a very fine level of detail. As maintenance management generally makes up around 40 - 50 % of operational budgets, the savings made possible from increased efficiency and reduction of waste are staggering.
We now have the ability to automate many of our standard maintenance processes, analyse in detail various parts of our businesses, and the performance of our equipment. We are able to plan shutdowns, technical change projects and operational maintenance procedures down to a very fine level of detail. As maintenance management generally makes up around 40 - 50 % of operational budgets, the savings made possible from increased efficiency and reduction of waste are staggering.
Facility management personnel in all industries have waited a long time for computer technology to become applicable and affordable enough to implement in their respective maintenance efforts. In recent years, flexible, dependable and economical computerized maintenance management systems (CMMS) have become available to help fight the never-ending struggle to operate and maintain buildings of all shapes, sizes and functions.
Facility management personnel in all industries have waited a long time for computer technology to become applicable and affordable enough to implement in their respective maintenance efforts. In recent years, flexible, dependable and economical computerized maintenance management systems (CMMS) have become available to help fight the never-ending struggle to operate and maintain buildings of all shapes, sizes and functions.
Training for users of a computerized maintenance management system (CMMS) is a multiple-phase process. There are three areas of training needs: basic training, application (CMMS) training, and internal training.
Training for users of a computerized maintenance management system (CMMS) is a multiple-phase process. There are three areas of training needs: basic training, application (CMMS) training, and internal training.
Trelleborg has developed a product, that can withstand a jet fire - the cause of the Piper Alpha disaster. The product is already in use on several platforms, primarily in the North Sea. To date, some NOK 7 million in development costs- has been invested annually. These costs are shared by the project sponsors, comprising the Norwegian government and a number of oil companies. Continued development is not expected to be as costly and will focus more on handling other derivatives, such as gas and oil, and possibly being able to offer a material in other colors for customers who wish to customize their equipment using their own color schemes.
Trelleborg has developed a product, that can withstand a jet fire - the cause of the Piper Alpha disaster. The product is already in use on several platforms, primarily in the North Sea. To date, some NOK 7 million in development costs- has been invested annually. These costs are shared by the project sponsors, comprising the Norwegian government and a number of oil companies. Continued development is not expected to be as costly and will focus more on handling other derivatives, such as gas and oil, and possibly being able to offer a material in other colors for customers who wish to customize their equipment using their own color schemes.
The effectiveness of maintenance can make the difference between success and insolvency, between limping by financially and organizational excellence. Many companies and organizations consider their computerized maintenance management system (CMMS) and processes as catalysts for achieving a competitive advantage. Yet, good intentions are only part of the recipe for success.
The effectiveness of maintenance can make the difference between success and insolvency, between limping by financially and organizational excellence. Many companies and organizations consider their computerized maintenance management system (CMMS) and processes as catalysts for achieving a competitive advantage. Yet, good intentions are only part of the recipe for success.
The degree to which RCM analysis can contribute to profitability is directly variable with the quality and accuracy of the CMMS data on which the analysis is based. Because the technique is rigorous, its over-use will defeat the purpose and lead to cost overruns instead of savings. The way to optimize the RCM return is to apply the analysis strictly to the equipment and systems that will pay off from it, and to know this we must rely on the CMMS. This paper provides guidance for ensuring that the equipment data and history residing in a CMMS are complete and accurate; so that RCM analysis will be a success and positively impact a company’s bottom line, not hurt it.
The degree to which RCM analysis can contribute to profitability is directly variable with the quality and accuracy of the CMMS data on which the analysis is based. Because the technique is rigorous, its over-use will defeat the purpose and lead to cost overruns instead of savings. The way to optimize the RCM return is to apply the analysis strictly to the equipment and systems that will pay off from it, and to know this we must rely on the CMMS. This paper provides guidance for ensuring that the equipment data and history residing in a CMMS are complete and accurate; so that RCM analysis will be a success and positively impact a company’s bottom line, not hurt it.
Maintenance management is an around-the-clock challenge. Equipment failure can (and does) happen at inconvenient times–times when maintenance managers may be off-site and must rely on communication from technicians to convey problems and act efficiently. Mobile computerized maintenance management systems (CMMS) and applications provide live, synchronized status reports and other key features that can dramatically improve reaction time and efficiency.
Maintenance management is an around-the-clock challenge. Equipment failure can (and does) happen at inconvenient times–times when maintenance managers may be off-site and must rely on communication from technicians to convey problems and act efficiently. Mobile computerized maintenance management systems (CMMS) and applications provide live, synchronized status reports and other key features that can dramatically improve reaction time and efficiency.
The latest ARC Advisory Group study of the enterprise asset management (EAM/CMMS) software market profiles more than 80 maintenance application suppliers. This number of choices is enough to make any plant manager shudder. How can you pick the tool that is right for you? The tug-of-war between decision makers can make or break the success of an EAM/CMMS implementation. This article addresses the delicate balance of wants and needs, and how they apply in the application selection process.
The latest ARC Advisory Group study of the enterprise asset management (EAM/CMMS) software market profiles more than 80 maintenance application suppliers. This number of choices is enough to make any plant manager shudder. How can you pick the tool that is right for you? The tug-of-war between decision makers can make or break the success of an EAM/CMMS implementation. This article addresses the delicate balance of wants and needs, and how they apply in the application selection process.
Now that the best EAM/ CMMS application for your business has been selected, the deployment phase begins. But an EAM system is not a plug-and-play application. Will you miss out on some real operational savings? Will the data be clean enough to provide value in a production environment? Will processes be tailored to match the new system, or will they be optimized to improve business? Is the vendor knowledgeable about your specific industry or regulatory requirements?
Now that the best EAM/ CMMS application for your business has been selected, the deployment phase begins. But an EAM system is not a plug-and-play application. Will you miss out on some real operational savings? Will the data be clean enough to provide value in a production environment? Will processes be tailored to match the new system, or will they be optimized to improve business? Is the vendor knowledgeable about your specific industry or regulatory requirements?
A whopping 94.7 percent of plant maintenance managers feel they are not using their computerized maintenance management software system to its maximum capability, according to the results of a national CMMS survey conducted for Reliable Plant magazine by educator, consultant and author Kris Bagadia. “I knew that it was going to be a high percentage. I didn’t know it was going to be that high,” says Bagadia.
A whopping 94.7 percent of plant maintenance managers feel they are not using their computerized maintenance management software system to its maximum capability, according to the results of a national CMMS survey conducted for Reliable Plant magazine by educator, consultant and author Kris Bagadia. “I knew that it was going to be a high percentage. I didn’t know it was going to be that high,” says Bagadia.
What is a failure code? Quite simply, it is a code that illustrates why an asset failed or the reason that the asset failed. Codes can be a number which is cross referenced to a list of actual code descriptions or more conveniently a series of alphanumeric characters that are a logical abbreviation of their descriptions. However, with modern database technology and available disk space, the full descriptions are increasingly being used instead of alphanumeric codes.
What is a failure code? Quite simply, it is a code that illustrates why an asset failed or the reason that the asset failed. Codes can be a number which is cross referenced to a list of actual code descriptions or more conveniently a series of alphanumeric characters that are a logical abbreviation of their descriptions. However, with modern database technology and available disk space, the full descriptions are increasingly being used instead of alphanumeric codes.
An elephant is a large animal and it is doubtful anyone would want to eat one. But the old proverb, with a little twist, has a similar paradox to implementing a computerized maintenance management system (CMMS). Not developing the proper steps to implementation may lead a company to failure.
An elephant is a large animal and it is doubtful anyone would want to eat one. But the old proverb, with a little twist, has a similar paradox to implementing a computerized maintenance management system (CMMS). Not developing the proper steps to implementation may lead a company to failure.
Most, if not all, companies use CMMS systems to oversee their maintenance activities. From home-grown systems to complete ERP systems, leveraging technology allows companies to more efficiently and effectively manage their maintenance, repair and operations activities. So as a core maintenance function, surely routine, lubrication-related preventive and predictive activities such as regreasing motor bearings, taking oil samples, and executing oil top-offs and inspections belong in the CMMS system like any other maintenance task, right?
Most, if not all, companies use CMMS systems to oversee their maintenance activities. From home-grown systems to complete ERP systems, leveraging technology allows companies to more efficiently and effectively manage their maintenance, repair and operations activities. So as a core maintenance function, surely routine, lubrication-related preventive and predictive activities such as regreasing motor bearings, taking oil samples, and executing oil top-offs and inspections belong in the CMMS system like any other maintenance task, right?
In this year literally billions of dollars will be spent, in many different countries, on implementing CMMS and enterprise level systems. Some corporations, such as RIO TINTO and BHP, have attempted to circumvent a lot of this cost by developing implementation templates for use across their global operations.
In this year literally billions of dollars will be spent, in many different countries, on implementing CMMS and enterprise level systems. Some corporations, such as RIO TINTO and BHP, have attempted to circumvent a lot of this cost by developing implementation templates for use across their global operations.
Defining the real need for new software and staying focused is tricky. There are so many variables along the way to a good software implementation that falling off the track is easy. There has to be a central theme to guide the decisions that will be made during the process. Simple steps early in the project keep decisions simple when times get tough.
Defining the real need for new software and staying focused is tricky. There are so many variables along the way to a good software implementation that falling off the track is easy. There has to be a central theme to guide the decisions that will be made during the process. Simple steps early in the project keep decisions simple when times get tough.
Good Computerized Maintenance Management Software (CMMS) that schedules preventive maintenance work orders on your equipment is an integral component of any efficient maintenance department. Preventive and scheduled maintenance, efficiently scheduled, will not only reduce your maintenance costs, but will minimize emergency repairs and downtime, resulting in an increase in overall profitability.
Good Computerized Maintenance Management Software (CMMS) that schedules preventive maintenance work orders on your equipment is an integral component of any efficient maintenance department. Preventive and scheduled maintenance, efficiently scheduled, will not only reduce your maintenance costs, but will minimize emergency repairs and downtime, resulting in an increase in overall profitability.
Industry pacesetters use real-time equipment data to prioritize and optimize their maintenance resources. The process is straightforward in concept: use real-time data to determine the equipment health, but only inform the Computerized Maintenance Management System (CMMS) when maintenance is actually necessary. From there, the CMMS automatically produces the work order and uses the workflow that is already familiar to all maintenance personnel.
Industry pacesetters use real-time equipment data to prioritize and optimize their maintenance resources. The process is straightforward in concept: use real-time data to determine the equipment health, but only inform the Computerized Maintenance Management System (CMMS) when maintenance is actually necessary. From there, the CMMS automatically produces the work order and uses the workflow that is already familiar to all maintenance personnel.
CMMS systems, as we have come to know them, come basically from two distinct families. These are ERP systems such as SAP, JDE and the PRONTO system and EAM systems such as Epac, MIMS and a plethora of other systems. When most maintenance practitioners refer to CMMS systems they are in reality talking about EAM systems.
CMMS systems, as we have come to know them, come basically from two distinct families. These are ERP systems such as SAP, JDE and the PRONTO system and EAM systems such as Epac, MIMS and a plethora of other systems. When most maintenance practitioners refer to CMMS systems they are in reality talking about EAM systems.
For most companies, gone are the days when users were forced to conform to a rigid framework dictated by the CMMS vendor and strictly controlled by the Information Systems department. Users today enjoy freedom to customise the content, look and feel of their CMMS environment on a variety of devices, from handhelds to desktops. With modern computers and software, users are overwhelmed with choices.
For most companies, gone are the days when users were forced to conform to a rigid framework dictated by the CMMS vendor and strictly controlled by the Information Systems department. Users today enjoy freedom to customise the content, look and feel of their CMMS environment on a variety of devices, from handhelds to desktops. With modern computers and software, users are overwhelmed with choices.
Much has been written in the past about the implementation of maintenance software (CMMS systems). This article takes a slightly different approach in that it attempts to explain some of the pitfalls associated with first time implementation in SME's. It suggests a "try before you buy" approach, which stages the maintenance software implementation to reduce both risk and cost. Tales of failed implementations abound and failure rates of 40% to 80% are commonly quoted. Real statistics are hard to come by but the following data is both relevant and current.
Much has been written in the past about the implementation of maintenance software (CMMS systems). This article takes a slightly different approach in that it attempts to explain some of the pitfalls associated with first time implementation in SME's. It suggests a "try before you buy" approach, which stages the maintenance software implementation to reduce both risk and cost. Tales of failed implementations abound and failure rates of 40% to 80% are commonly quoted. Real statistics are hard to come by but the following data is both relevant and current.
