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CMMS Pundit– Maintenance Management Software Blog

2 Huge Reasons to Invest in CMMS Software during a Recession

These days many companies are scaling back on expenditures of any kind. And, why not? It just makes sense. Obviously, the severe economic downturn has impacted organizations across the United States and the Globe. Capital conservation has become the rule and cutbacks are inevitable. Yet, this is the just the kind of environment that completely justifies investment in Computerized Maintenance Management Software for organizations seeking to lower costs and protect vital plant and equipment assets. That's your responsibility, right?

1. Immediately Lower Operational Costs - Computerized Maintenance Management System (CMMS) Software provides an essential tool for managers working aggressively working to decrease downtime, inventory, material and contractor costs. Here's how:
2 Huge Reasons to Invest in CMMS Software during a Recession    a. Less Downtime - Simple: Decreased downtime means increased production. A 1% improvement in productivity has 10 times the positive impact than a 1% reduction in costs. Imagine the gain in a production facility running 24 hours per day: A conservative estimated gain of 24 hours of production per year pours thousands of dollars to the bottom line. Savings estimate: Downtime cost of $2,500/Hour x 24 Hours = $60,000 annual profit increase.
   b. Reduced Inventory - Elementary: Asset maintenance management allows you purchase inventory and parts when you need them instead of relying on guesswork. Without CMMS Software, managers might not know what is in their stockroom, can't find what they need and, frequently end up buying parts they already have. Of course, CMMS Software allows you to lookup parts, check stock and order only as needed. Savings estimate: Reducing an $800,000 inventory just 10% with a 10% interest rate results in an annual savings of over $8,000 in an annual profit increase.
   c. Eliminate Contractor Costs - Smart: Managed maintenance keeps repairs in-house using a more efficient work crew. CMMS Software focuses crew time on work orders designed to keep the plant moving. Result? No maintenance logjams requiring expensive contractor time. This outcome creates not only a savings on labor but also a savings on parts! Savings estimate: Using a realistic 10% annual reduction in labor and material costs on a budget of $680,000 you return another $68,000 to the bottom line.

2. Increase Maintenance Productivity Right Now - Better work planning and scheduling maximizes crew efficiency while focusing crew time on work orders designed to keep the plant moving. Productivity increases of 10% to 20% using modern CMMS Software are standard. Maintenance managers know that saving just 60 minutes (12.5%) per day for each worker in a six-person crew at a $30/hr labor rate for 250 days/year can preserve $45,000 annually for the organization.

When implemented properly, a Computerized Maintenance Management System using CMMS Software can be a huge cost and time saving addition to your organization's bottom line. Isn't that what your objective is?

Sure, CMMS Software costs money. Our company, MAPCON Technologies, Inc. can get you started for $495. In fact, you can download and evaluate MAPCON's CMMS Software free for 30 days. Realistically, though most sizable organizations invest several thousand dollars to get properly setup and have authorized personnel trained up. But, with a prudently estimated return-on-investment (ROI) of over 1000% (yes, one thousand percent!), your CMMS Software investment is intelligent, wise and - urgent!

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