Like any other software implementation, a Computerized Maintenance Management System (CMMS) needs to demonstrate a positive return on investment (ROI) to be justified. When it comes to investing in a Computerized Maintenance Management System (CMMS) or Enterprise Asset Management Software (EAM), one of the first questions asked is usually “What’s the return on investment (ROI)?”
It’s a valid question, particularly for organizations that are struggling to maintain their equipment and may be considering CMMS to improve maintenance operations. In this article, we’ll show you how to calculate the ROI for a CMMS implementation and offer some tips on how to improve the value you get from your investment.
Any business decision should be made with a clear understanding of the return on investment (ROI). When it comes to enterprise infrastructure and maintenance, a Computerized Maintenance Management System (CMMS) is no different. In fact, the ROI for a CMMS can be quite substantial.
There are several factors that contribute to the ROI of a CMMS. First, a CMMS can help to optimize maintenance protocols and workflows. By automating and streamlining maintenance tasks, a CMMS can help a business to improve its overall efficiency. This can lead to reduced labour costs, as well as reduced downtime due to maintenance-related issues.
In addition, a CMMS can help to improve the quality of maintenance data. This data can then be used to make informed decisions about future maintenance needs. As a result, a CMMS can help to reduce the number of unplanned downtime events.
Finally, a CMMS can help to improve communication between maintenance staff and other departments within a company. By automating maintenance tasks and workflows, a CMMS can help to ensure that all stakeholders are kept up to date on the status of maintenance activities. This can help to avoid potential conflicts and improve overall collaboration.
The ROI of a CMMS can vary depending on the type of system implemented and the size of the company. However, the potential benefits of a CMMS are clear. When considering a CMMS, it is important to consider the potential return on investment.
ROI is determined by taking the present value of benefits and subtracting the present value of costs.
The first step in calculating the ROI for a CMMS implementation is to quantify the direct and indirect benefits in terms of cost savings. Direct benefits are those that are quantifiable and can be attributed directly to the CMMS, such as time savings from improved maintenance scheduling. Indirect benefits are those that are more difficult to quantify, such as improved morale among maintenance staff.
Direct benefits can be quantified using data from the CMMS itself, as well as other sources such as downtime records and invoices for repairs and replacements.
Indirect benefits are more difficult to quantify but should not be ignored when calculating the ROI for a CMMS implementation. Some of the most common indirect benefits of a CMMS include:
The cost of a CMMS implementation must also be considered when calculating the ROI. This includes the cost of the software, as well as any other costs associated with the implementation, such as training and support.
The ROI for a CMMS implementation can be calculated using the following formula:
ROI = (Gain from CMMS – Cost of Investment) / Cost of Investment
where Gain from Investment is the total monetary value of the direct and indirect benefits of the CMMS implementation, and Cost of Investment is the total cost of the CMMS implementation.
For example, if the total cost of a CMMS implementation is $10,000 and the total monetary value of the direct and indirect benefits is $15,000, the ROI would be 50%.
Some of the key factors that will affect the return on investment (ROI) for a Computerized Maintenance Management Software (CMMS) system can be divided into 2 parts – organizational and the systems.
The organizational factors include:
The system’s factors include:
A CMMS software implementation can bring significant benefits to a company in terms of return on investment. A well-designed and executed Cloud CMMS Software implementation can improve asset utilization, equipment reliability, and workforce productivity while reducing maintenance costs. In turn, these improvements can lead to increased profitability and competitiveness. Additionally, a CMMS software implementation can also help a company to improve its environmental performance by reducing energy consumption and waste generation.
For more information about CMMS ROI, contact the Cryotos team or sign up for a free trial of our software.
How to Effectively Transform Your PM Schedule from Time Based to Condition Based and What Are Its Benefits?
The best thing about Cryotos CMMS software is that it always tells me when something needs to be fixed - before it breaks and cost me a fortune!
The software is very user-friendly, and even if I don't know how to do something, the support team is always there to help me out.
Most importantly, unlike other such software, Cryotos is editable and hence the user can modify how the software works as per their need, we made several changes in the workflow & flowchart with the help of development team.
I don't know what I would do without Cryotos! I've been using it for years, and it has saved me so much time and money. I highly recommend it to anyone who wants to manage their assets efficiently.
Since we've been using Cryotos CMMS Software, our asset maintenance management has been running more smoothly than ever. We're able to track and optimize our preventive maintenance with ease, thanks to the customized process workflow. This has been a lifesaver for our team!
The Cryotos CMMS software has allowed us to manage our assets more effectively and efficiently. It has helped us to improve our asset utilization. The software is user-friendly and easy to navigate, and the support team is always quick to help with any questions we have. We're very happy with the results we've seen so far and we're confident that we'll continue to see improvements in our asset management as we use the Cryotos CMMS software.
Cryotos goes above and beyond when it comes to customer satisfaction. Planys Technologies use Cryotos for preventive/ corrective maintenance of our critical systems and not once did we face a problem that was not dealt with immediately. The team is extremely professional and helpful. We can rely on Cryotos when it comes to the operations and processes.
Thanks to the whole team for the amazing performance and thought leadership. It's rare to see teams that can put themselves in the customer's shoes and think from their perspectives - Cryotos team doesthat and more.
We recommend Cryotos if you are looking to put an end to your preventive maintenance problems and sign up with them!
Thanks to the team for an awesome job.
On behalf of Xpert FMS we would like to express our sincere appreciation for the excellent support Cryotos team have provided us for our building and facility management. Cryotos has always provided support that is timely and meets our expectations. Professionalism and quick response are the hallmarks of this team.
Sincere appreciation for the team's brilliant performance and wish them continued success. We highly recommend Cryotos as they have executed well on all assigned tasks and continue to outperform.
Thanks to all the hard work, our lives have become easier.
We are able to raised the workorder and tracking of these till the closure as helped us to provide better services our beneficiaries. Workflow-based work order management has helped us to define processes for each locations separatley. System provide notification once order is raised for assignment to engineer.