CMMS Return on Investment (ROI)

Considering implementing a computerized maintenance management software (CMMS) system? Maintenance managers recognize its value, however justifying the cost can be challenging. Demonstrating the ROI of CMMS systems is crucial if you want to seek budget approval from upper management.

Quantifying the Benefits of CMMS Software

Delaying implementation of a comprehensive maintenance management system will cost your organization more in the long run. Equipment downtime, emergency repairs, overtime costs, spare part costs, and time spent preparing for audits can all chip away at your organization’s bottom line. CMMS and enterprise asset management (EAM) solutions transform your maintenance operations from reactive to proactive. They reduce costs by helping you plan and schedule preventative maintenance, increase equipment life and reliability, and boost employee productivity.

cmms work requests

Key Benefits

  • Controls costs by preventing emergency repairs, reducing unnecessary spare parts inventory, and improving the use of labor resources

  • Ensures regulatory compliance by consistently including safety and precautionary steps in work order procedures

  • Generates preventative maintenance work orders designed to keep your equipment up and running and extend the life of your operating assets

  • Assures quality by keeping assets in peak operating condition

Save 15-30% on Your Maintenance Budget

Depending on the size and operating characteristics of your organization, this could translate into tremendous annual savings. A.T. Kearney, in conjunction with Industry Week magazine, published a customer satisfaction survey that sampled 558 companies who were using a maintenance management software package. The report revealed that by using a maintenance management system, a company could significantly reduce the number of breakdowns and lost time resulting from parts being out of stock. The companies surveyed reported the following benefits:

Justifying the Cost of DPSI’s CMMS Software

A maintenance manager of a mid-sized manufacturing plant with approximately 150 employees, and almost as many machines and spare parts, was challenged with proving the value of DPSI’s maintenance management software. In order to justify his decision to computerize the maintenance department along with inventory and purchasing, he created a chart depicting the amount of money the plant risked losing by not implementing a CMMS. The chart successfully convinced upper management that the cost of not having parts in stock was exorbitant, and that our CMMS software was 100% worth the cost.

Part Description Price for Part – Rush Days for Delivery – Rush Price for Delivery – Rush Downtime
Downtime Cost per Hour Total Cost of Rush Replacement Cost of Part if in Stock
Backup Variable Volume Pump $1,000 21 $1,100 508 $100 $53,000 $1,230
Backup Machine Nozzle $4,720 14 $4,900 355 $100 $43,120 $4,876
Backup Heat Exchanger (Small) $1,335 28 $1,485 680 $100 $70,820 $1,845
Backup Heat Exchanger (Large) $3,306 14 $3,456 344 $100 $41,162 $3,816
Backup Screw Repair $2,085 28 $3,085 678 $100 $72,970 $2,645

Additional Information on Measuring ROI

Looking for more content on measuring the return on investment of CMMS/EAM software, or maintenance management costs? We’ve got you covered.

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