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02 Sep 2013      |      by Carol Owens

    


Successfully Justifying EAM/CMMS Software to Upper Management

Are you trying to switch to new equipment maintenance software because the system you’re currently using isn’t meeting your needs? Maintenance managers understand the benefits of EAM/CMMS software, realizing that it helps them control costs and better manage their equipment and assets. Nevertheless, few managers are capable of articulating and translating the benefits of equipment maintenance software to senior management in a meaningful and persuasive way, especially in the face of competing priorities.

 

Upper management often views maintenance as a cost that must be minimized rather than an arm of the organization that increases profitability. However, the market demands efficiency in all areas, including maintenance. An organization that fails to upgrade its EAM/CMMS software will be at a major disadvantage if its competitors take a more proactive approach to eliminating maintenance inefficiencies. An effective EAM/CMMS system ensures that your assets are fully optimized and that maintenance is completed in a timely and efficient manner, leading to a reduction in costs.

 

Consequences of Maintaining the Status Quo

 

No organization should tolerate poor equipment maintenance software. Some of the consequences of neglecting to implement a new EAM/CMMS maintenance system when one is needed include:

 

  • Under utilization of assets
  • Inefficient allocation of resources
  • Poor management of planned maintenance
  • Increased downtime
  • Inability to plan and predict future costs
  • Non-compliance penalties

 

If you’re looking to purchase equipment maintenance software, you likely have a system in place already but want to make a change either because you’re seeking newer technology, improved ease of use, or additional functionality. Perhaps you want a product that could accommodate a larger base of users or that provides you with more add-on options.

 

One thing to keep in mind is that purchasing a new CMMS won’t fix poor processes or procedures. Installing new software won’t change anything if the underlying problems persist. However, if confidence in the existing CMMS is lost, an organization may need to install a new system in order to force a change in routine.

Issues that could affect your CMMS’s performance include a lack of user training, lack of meaningful reports, and mistrust among users. It is up to the maintenance manager to create a meaningful strategy for improvement and value-added processes when implementing new EAM/CMMS software.

Convincing Upper Management of the Need for New EAM/CMMS Software

 

Upper management needs more information before it will allocate dollars to a new software investment. In order to cost-justify an upgrade to a new CMMS, you must be able to demonstrate a strong return on investment (ROI). While EAM/CMMS software vendors can provide you with information about the features and functions of their software, it is up to the maintenance department to develop a comprehensive utilization plan.

 

Aligning maintenance management initiatives with the needs of executive management is the key to convincing them that new EAM/CMMS software is needed. Ownership, shareholder, and stakeholder interests drive the needs of upper management. One of the most common mistakes that maintenance managers make is justifying the investment in equipment maintenance software from a technical or operational perspective rather than from a financial perspective.

 

The cost-savings opportunities of a CMMS are mostly related to the way that the software improves processes. Implementing a CMMS achieves cost benefits by reducing unplanned breakdowns and delays, enhancing worker productivity, improving materials management, improving outage planning, and helping maintenance managers develop an effective maintenance strategy. The savings that a CMMS achieves free up money in the annual maintenance budget to be spent elsewhere. For example, upper management could use the funds gained to expand research and development, build more products, or purchase new technology and equipment.

 

For more information about cost-justifying EAM/CMMS software to upper management and to learn how the software could improve the efficiency of your maintenance operations, contact DPSI today to set up a free trial.



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