- Demand work orders running at 70% - 90% of the maintenance workload.
- Labor from Preventive Maintenance activities “pulled” in order “to put out fires”
- The lack of integration with the myriad of legacy systems and local programs.
- The inability to produce timely maintenance activity reports for customers.
- Lack of standardized procedures and methodologies.
- Efficient, documentable work order system
- Decreased equipment/facility downtime by implementing PM’s
- Improved labor productivity with job plans and procedures
- Ability to schedule and manage multiple resources
- Real time access to maintenance reports
- Integrate purchasing, inventory, and accounting systems
A work order based maintenance management system allows clients to have information available for many areas of inquiry. For example, a simple work order entry screen has information pertaining to a location, piece of equipment, labor, work order priority, GL Account, problem identification, scheduling, and assignment of tasks. Additionally, more advanced information can often be found that offers information about Job Plans, Safety Plans, PM’s, and service contracts (vendors).
In this way a CMMS database has information about equipment, labor, vendors, and accounting (purchasing) that relate to the maintenance function. From this information, evaluations can occur with information that will allow cost benefit analysis on equipment, locations, GL accounts, laborers, etc. (See Integrate purchasing, inventory, and accounting systems section below).
In a facilities environment, equipment downtime impacts the productivity of personnel to perform their job. If an overloaded circuit blows a panel that supplies an accounting database server, the accounting group would be unable to perform their job. If a managed PM program existed that set up routine maintenance and in this case, panel load tests, you can reduce or prevent the possibility of unscheduled downtime of equipment and personnel. Industry average uses 10-25% savings by implementing a solid PM program.
Improved labor productivity with job plans and procedures and Ability to schedule and manage multiple resources
Proper maintenance management improves the productivity of the labor force by assuring that there is a workload, parts or material available, equipment available, and coordination with operations. Several studies over the years have shown that average “wrench turning” time of maintenance workers is only 30% of their average day. Proper management and scheduling can improve this figure by 15% or more. This translates into about 22 minutes per day.
To determine the savings associated with increased productivity in maintenance labor, determine the total maintenance labor cost (including fringe, overtime, contract labor) and multiply it by 15%.
The benefit of a CMMS in this area can be best illustrated with the inventory portion. If all parts are in the system, especially critical parts, when a work order is submitted that requires a list of parts, that part gets “reserved” and can not be issued except to that work order. If another work order has a need for that same part, the inventory system indicates that there is no stock and the part must be ordered. Real time reporting can illustrate this function as well (report that show low or reserved stock) and provide the inventory clerk information on where that part may be in other storerooms, especially if it is a critical part.
Other maintenance reports of significance are related to Labor and scheduling of resources. If you try and over schedule a resource, the CMMS will indicate that conflict.
Vendor prices and delivery times can vary for the same item. Checking three vendors for price information can take too much time. Discounts are lost because quantity price breaks are not achieved. Whether an item is taxed depends on where in the plant parts are used and requires tracking. The solution: no tax and where used information on a master line item card in your CMMS. Have alternate vendors set up for all parts. Analyze vendor performance in dollar volume purchases. In some systems, fields for remarks and cost center charges for line items are set up in the requisition. Taxable information is copied automatically to the requisition from the inventory record. Rejections, invoice amounts, and other information can be noted on the invoice receipt. You have the ability to display PO line items to check the received amount against the original order.
Production lost to inventory shortages can be reduced with accurate inventory control by the system and the personnel. Warehouse inefficiencies related to unexpected stock outs or locator system errors can be dramatically reduced using hand held collection devices. Transportation and labor charges related to picking and shipping errors can also be reduced as well.
Part and Material Management are major portions of a maintenance management system. A good PM program will decrease the consumption of some parts and increase the consumption of other parts. Motor bearings, for example, may never fail and require replacement if properly lubricated. To properly lubricate them takes grease. So the bearing is never used as a part but the grease is consumed. Industry averages show a cost savings in non-consumable parts of 10-20% (use grease vs. replace bearings).
To determine the savings associated with decreased material requirements review the repairs over the last 3 months, determine which repairs would not have to be done with a good PM program, total the cost of these repairs, subtract it from the associated non-consumable repair cost, and the annualize it. Or look at your total parts cost, subtract consumables and multiply by 10%.
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