As a business owner, you want to keep your equipment running smoothly without breaking the bank. But let’s face it, maintenance can be a daunting task. From keeping track of the different parts to ensuring that the schedules are followed, it can all add up to high maintenance costs. This is where CMMS software comes in to help streamline the maintenance process and save you money.
However, implementing CMMS software is not always a walk in the park. Many businesses find it challenging to effectively use the software to track and manage their maintenance costs, as well as the hidden ones.
According to a survey by Plant Engineering, 60% of respondents had never used CMMS or only used it sporadically. But don’t worry, you don’t have to be part of this statistic.
Using CMMS software can bring significant benefits to your business. In a study by the Aberdeen Group, businesses using CMMS software saw a 16% reduction in downtime and a 20% increase in maintenance productivity. What’s more, CMMS software helped businesses reduce their maintenance costs by up to 25%.
But how do you use CMMS software to your advantage? Let’s explore five simple ways to reduce maintenance costs with CMMS. But let’s first understand what’s costing you money.
Reasons Why Reactive Maintenance is Costing You Money
Reactive maintenance is a common approach where equipment is only serviced after it breaks down. However, this approach can be costly in the long run, resulting in unnecessary expenses and downtime. Below are the top causes for unplanned equipment downtime:
Source: Plant Engineering
Here are four reasons why reactive maintenance can end up costing you money:
- Higher repair costs due to delayed maintenance.
- Increased downtime of equipment, leading to lost production.
- Increased safety risks for personnel and equipment.
- Lower equipment lifespan due to lack of preventative maintenance.
To avoid these issues, implementing a proactive CMMS maintenance plan can be a cost-effective solution. This approach includes regular inspections, preventive maintenance, and predictive maintenance, all of which can save time and money in the long run. Let’s understand deeper in below section.
Ways How to Utilize Cmms Software for Effectively Tracking and Managing Maintenance Costs
In the world of maintenance management, keeping costs under control is a top priority for any business. With the right tools, such as a computerized maintenance management system (CMMS), companies can effectively track and manage their maintenance costs. Here are 5 ways to use CMMS software to track and manage maintenance costs:
- Establish Maintenance Budgets for Accurate Cost Tracking
One of the most important steps in managing maintenance costs is establishing a maintenance budget. A CMMS can help you establish and track your maintenance budget by providing visibility into your maintenance expenses. To do this, follow these steps:
- Determine your current maintenance expenses by collecting data from previous years and looking at current expenses.
- Categorize expenses into different maintenance areas, such as corrective, preventive, and predictive maintenance.
- Identify areas where you can reduce costs, such as reducing corrective maintenance through preventive maintenance measures.
- Set a realistic maintenance budget for the year, and allocate funds to each area.
By establishing a maintenance budget, you can better track your expenses and identify areas where you can reduce costs.
- Track Maintenance Costs in Real-Time
Tracking maintenance costs in real-time is essential for effective cost management. With a CMMS, you can track maintenance costs in real-time by following these steps:
- Create a work order for each maintenance task.
- Include all expenses related to the task in the work order, such as labor costs, parts, and materials.
- Assign each expense to the appropriate maintenance category, such as corrective, preventive, or predictive maintenance.
- Update the work order in real-time as new expenses are incurred.
By tracking maintenance costs in real-time, you can quickly identify areas where costs are increasing and take action to reduce them.
- Monitor Key Performance Indicators (KPIs) for Maintenance Costs
Monitoring KPIs is an essential part of managing maintenance costs. A CMMS can help you monitor KPIs related to maintenance costs by providing real-time data on key metrics. Some key performance indicators (KPIs) to consider tracking include:
- Mean time between failures (MTBF)
- Mean time to repair (MTTR)
- Maintenance cost per asset
- Maintenance cost as a percentage of revenue
By monitoring these KPIs, you can identify areas where costs are increasing and take steps to reduce them.
- Use Preventive Maintenance to Reduce Corrective Maintenance Costs
Preventive maintenance is a proactive approach to maintenance that can help reduce corrective maintenance costs. A study by Plant Engineering found that preventive maintenance can reduce corrective maintenance costs by up to 50%. With a CMMS, you can set up preventive maintenance schedules for each asset, which will help you identify potential issues before they become major problems. To implement a preventive maintenance program, follow these steps:
- Identify assets that require preventive maintenance based on their criticality and usage.
- Set up a preventive maintenance schedule for each asset based on manufacturer recommendations and your own experience.
- Use the CMMS to schedule and track preventive maintenance tasks.
- Monitor the effectiveness of the preventive maintenance program by tracking key KPIs, such as MTBF and MTTR.
By implementing a preventive maintenance program, you can reduce corrective maintenance costs and increase the lifespan of your assets.
What’s the Bottom Line in Managing Maintenance Costs?
Efficient CMMS software is an essential tool for tracking and managing maintenance costs. With the right approach and the right system in place, you can significantly reduce your maintenance expenses while improving your overall operations.
By taking advantage of the many benefits of CMMS software, such as automated work orders, streamlined inventory management, and preventive maintenance scheduling, you can keep your equipment running smoothly while keeping costs under control. Whether you are running a small business or a large industrial operation, implementing an effective CMMS system can help you stay on top of maintenance costs, reduce downtime, and maximize the lifespan of your assets. So why wait? Start exploring the world of CMMS today and see the difference it can make for your business.
FieldCircle is a leading provider of CMMS and field service CRM software solutions. Our innovative software is designed to streamline your business operations, enhance customer experience, and improve your overall efficiency. Our comprehensive suite of features includes scheduling and dispatch, job tracking, invoicing, and reporting, making it easier than ever to manage your field service operations. At FieldCircle, we are committed to delivering the highest quality software and support to help our clients achieve their business objectives. Contact us today to learn more and start your free trial.