What are the benefits of a CMMS / EAM system? What is the ROI? Where is the payback in tangible terms? Am I getting all I should be out of my systems? CFI can help.
The tangible benefits and savings derived from properly implementing a comprehensive maintenance improvement program can be substantial, not the least of which is an overall improvement of maintenance efficiency and asset management. If your organization is currently working without a properly supported, modern, comprehensive CMMS or EAM program, you're spending money you don't need to every day. Companies and organizations of all sizes are seeing these changes to their organization make significant in-roads into their largest single controllable expenditure - maintenance costs. They have been able to streamline their processes and resulting in immediate savings in both time and money. Taking advantage of these potential savings can only happen by actually implementing the programs and that means convincing management to fund the project.
So how do you justify the initial investment and where can the cost savings be seen across the enterprise? The best way to justify the initial costs of implementing a comprehensive maintenance improvement program and build the business case is to quantify the benefits. An ROI calculation just represents the value of benefits received from a project against the total costs of the project. This calculation shows up loud and clear on the balance sheet any possible savings.
The standard ROI (or CMMS ROI) calculation used here can be simply expressed as follows:
ROI% = (Total Benefits – Total Costs) X 100
Total Costs
So the first step in calculating an ROI is putting a dollar figure on the potential savings of implementation is to identify the tangible benefits. The second is to determine the cost of the project: labor, software, and hardware. Many maintenance departments will not be able to provide any accurate figures. In that case you will have to use whatever figures you have available.
Our proven Results Accelerator methodology, CMMS Best Practices Audit tools and our ROI calculators help identify and quantifies the benefits and costs associated with both CMMS and overall maintenance improvement program for use in building your business case. Based on best practices and industry standards for both savings and implementation times, we provide summary and detailed information on best practices, costs, ROI areas, and cash flow. Most importantly, our methods help you implement industry best practices and realize the productivity and financial benefits you are looking for. |
