The Financial Side of the CMMS Equation

The Financial Side of CMMS Equation

Computerized maintenance management system (CMMS) yields many benefits. It facilitates a data-driven approach for proactive system maintenance to maximize asset performance, extend system lifecycle, increase labor efficiency and produce return on investment. The financial benefits of CMMS success are spread throughout an operation and drive continual savings, year after year.

Inform decisions on asset depreciation and capital replacement

Beyond the initial cost of acquisition and installation, an automated system’s true cost is represented by the total cost of ownership throughout its lifecycle. The CMMS fuels decisions on asset replacement, modification or upgrades based on aggregated system data, OEM wear and tear guidelines, and maintenance requirements.

Enable more efficient staffing allocation

Maintenance staff can work more efficiently thanks to all procedural and compliance documentation located in a single portal. The system’s workload data and staffing projections use historical data from the complete pool of Honeywell Intelligrated installations to ensure the most efficient scheduling and labor allocation.

Reduce parts inventory by 10-15 percent

CMMS captures historical data to enable smarter parts stocking based on real usage trends and recommended spare parts inventory levels. As an added bonus, CMMS can be integrated with an OEM parts database to trigger automatic replenishment to ensure parts availability, without excess inventory.

Return on investment

CMMS is a tool that drives efficiency for decades, thanks to the power of continuous improvement and cross-facility comparisons and updates. However, operations can typically reap complete return on investment in less than two years from overtime costs alone, thanks to improved work planning, reduced unplanned jobs and more efficient maintenance processes. Example calculation below:

For more information, read the full white paper, Five Steps to a Successful Material Handling CMMS Implementation. Learn more about how the IRIS computerized maintenance management system collects and analyzes system data to help plan and execute an effective preventive lifecycle maintenance program.

To subscribe to our blog and receive exclusive communications and updates from Honeywell Intelligrated, click here.