How to calculate the return of investment (ROI) for your CMMS project?
Maintenance managers that we are in contact with understand the great potential in investing a CMMS. The tricky part is to anchor this in your organization. In most cases this is crucial in order to get approval for the investment. Our experience is that most of the companies can save up to 15-30 % of their maintenance budget which of course translates into huge annual savings.
Estimating the return of investment for a CMMS project is hard. Most of us understand that all kind of production totally rely on the maintenance. Basically, without the right maintenance, production will be affected and the costs for downtime, waste and quality defects can be huge. Add to that how the value of your customer relations will be hit when delivery is being delayed. Another aspect is also the safety and work environment for your maintenance and production crew. It is very hard to put a correct value on all of this.
Throughout the years we have created a tool that very quick gives you an idea on the money that can be saved. The trick is to exclude all the factors that can´t be calculated and focus on the ones that can. Only then the result will earn credibility and will be treated as a fact rather than an estimation. All the other factors will only add up on the positive side which means that the result rather is a worst-case scenario than a wishful thinking.
We focus on three dimensions
- Production operational reliability
- Effective maintenance processes
- Safety risks/ work environment
We have helped a lot of companies on calculating their ROI for their project. Get in touch with us if you want us to help you calculate your conditions. Most of the times you won´t need all data our model threats. We can simply use what you already have and you can evaluate it from there. The report will highlight all the areas not being threated which will only add up to the upside.
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