Calculate the ROI of your CMMS

Most major industrial companies today consider the GMAO as an essential tool. On the other hand, it is often underestimated by SMEs, who do not always perceive the potential return on investment.

However, the profitability of this tool can be estimated fairly accurately, which makes it possible to assess the relevance of adopting or maintaining it. To do this, you have to calculate the ROI of its CMMS. This operation is not as complicated as it seems and can reveal significant opportunities for productivity gains...

Calculating the ROI of your CMMS: the basic principle

The KING (Return On Investment) is calculated by dividing the gains made by a maintenance management tool by the cost of it. So the summed up formula is as follows:

gains-cost of investment/cost of investment.

For example, if the implementation of a maintenance management solution allows you to save 100,000 euros and that its annual cost is 5,000 euros, the ROI of CMMS is 19%: (100,000-5,000)/5,000.

The relative difficulty of this calculation lies in identifying the gains. These must be well surrounded so that calculate the ROI of its maintenance management platform be effective.

The gains brought by CMMS

An effective solution such as Mobility Work allows gains in many areas of maintenance. It is important to identify them well before Calculate the ROI of your CMMS.

Optimizing human resources

One GMAO is primarily designed to allow maintenance teams to focus on their job. If the tool is efficient and relevant, they therefore spend less time MANAGING and more time MAINTAINING, which promotes their productivity.

Maintenance operators in fact save a lot of time on maintenance management thanks to a GMAO tremblant like Mobility Work. Everything is stored in the application: list of interventions, stock of spare parts, maintenance contracts, etc. All the documents useful for its maintenance can be attached to each piece of equipment. And all this information can be viewed and filled in from any location in the factory, on a smartphone, tablet or laptop.

Mobility Work is built around a community of users, who exchange and follow the activity of their factory thanks to the news feed

In addition, teams are much more likely to respect processes and instructions favorable to good maintenance management, thanks to the ergonomics of the application, which are very similar to everyday applications. Finally, schedules are very easy to manage and organize.

Facilitate inventory management

The use of a Latest generation CMMS makes it possible to make significant gains by optimizing the management of spare parts stocks. On the one hand, the number of spare parts in stock can be reduced, thanks to management that is perfectly aligned with the fleet of functional machines. By reducing the number of spare parts by at least 5%, you will: lower your storage costs.

Above all, the statistics show that a GMAO makes it possible to reduce, in the long term, the value of the spare parts stock by 10 to 20% and its procurement costs by 5 to 10%. One latest generation solution as Mobility Work in fact makes it possible to find the perfect balance between stock reduction and maximum maintenance responsiveness. As each intervention is systematically entered into the software and automatically transmitted to the inventory management department, only the parts that are strictly essential for maximum reactivity are kept in stock.

Keep an eye on your stocks from your maintenance management software, and manage stock exits and restocks

Finally, the implementation of predictive maintenance push makes it possible to anticipate the need for spare parts, without having to build up large preventive stocks. The possibility of consulting the community of users of the application to determine the number of spare parts available around you further reinforces this ability to anticipate.

Improve troubleshooting and increase the lifespan of equipment

Optimized inventory management naturally makes troubleshooting faster and more efficient, especially by avoiding stockouts. These are greatly reduced (by around 25%) thanks to an alert system alerting managers as soon as a certain number of rooms falls below a certain level.

In addition, better overall maintenance management increases the longevity of machines, which increases their amortization period and delays their replacement. CMMS thus makes it possible, in fine, to generate ROI. The statistics of theAFIM thus show that we can hope to extend the life of equipment between 20 and 50%.

Increase machine availability

Periods of unavailability of machines for maintenance are a major obstacle to maximum productivity in the production chain, because some equipment can completely block it when it is stopped.

Therefore, efficient software has a great potential for return on investment if it substantially reduces the frequency and duration of these periods. By setting up a preventive maintenance strategy, a Next generation CMMS allows, through the use of Big Data and community operation, to predict most maintenance interventions, and to plan them in such a way that shutdowns affect plant productivity as little as possible.

Find an analytics tool in Mobility Work to 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 quantity of energy — and therefore their operating costs — by 5 to 10%.

Calculate the ROI of a CMMS by trying it

As we have seen, a good GMAO has a significant potential ROI, as it allows savings in many areas of maintenance. But how can you be sure that this ROI will be real once you adopt it?

The only solution, for that, is to choose a CMMS solution which can be tested before being definitively adopted. This is not the case with traditional software, whose trial versions are limited in functionality, among others. On the other hand, a solution like Mobility Work can be fully tested free of charge. In addition, it works in the form of a subscription, which avoids having to make a significant investment without knowing if the KING will be at the expected level.

So you can use the app for a while and calculate the ROI of this new CMMS, then decide whether to adopt it for the long term or not. This is the best guarantee to avoid making a mistake in your investment.