CMMS Software – An Important Tool for Securing Long Term Cost Reductions

As published in EMS Magazine, February 2009

The current economic climate is forcing organisations to re-evaluate budgets, reduce costs and streamline processes. It is now more important than ever for companies to control and consolidate expenditure to ensure their future success.

When an organisation is examining its costs, typically the two key areas to review are payroll and maintenance / facilities expenditure, because these usually represent the largest controllable overheads within a business. However each requires very different strategies.

Substantial Maintenance / facilities cost savings can be rapidly generated by implementing a comprehensive and effective maintenance improvement program. However, leveraging these benefits will only happen if appropriate supporting systems are in place. If a business is operating without an effective CMMS/CAFM (Computerised Maintenance Management System / Computer Aided Facilities Management) application, then it runs the risk of incurring significant, unnecessary maintenance related costs every day.

Gary Watkins, Managing Director of Service Works Global, provider of leading CMMS application, QFM, gives an indication of the potential cost savings that software can make:

“Typically our customers report a 10 -15% reduction in maintenance related expenditure as a result of implementing QFM.”

Automating and streamlining facilities and maintenance activities via applications such as QFM enables companies to focus on their core business activity, whilst maintaining control over operational expenditure. QFM centralises all maintenance-related information to provide organisations with a clear view of planned and reactive maintenance spend. It provides the tools to successfully plan and execute maintenance schedules. In addition, asset management tools within QFM provide insight into the performance of plant and equipment, supporting reliability-driven maintenance strategies. Asset value is optimised through reduced downtime and lower cost of ownership. Key Performance Indicators enable senior management to evaluate the effectiveness of the current maintenance operations and support organisational and personnel decisions.

The benefits of CMMS applications such as QFM are tangible. Often the biggest hurdle for maintenance managers is securing the budget to acquire and successfully implement such a system. Justifying an investment in technology can be achieved by gaining a clear picture of where cost savings can be made across the business.

Service Works Global has developed an industry-driven Return on Investment calculation model, which demonstrates the value that can result from the installation of a CMMS application against total project costs. The report that it generates highlights the sustainable cost savings that can be leveraged across an enterprise, therefore acting as a vital tool to justify the budget to fund CMMS projects.

As Gary Watkins concludes:

“No-one knows how long the current economic downturn will last. If organisations are to weather the storm, it is critical that they focus on sustainable results, not just cutting costs. The importance of CMMS software in driving long-term, cost-effective maintenance strategies, should not be under-estimated.”