CMMS Software ROI Calculator Webinar

In this helpful webinar: CMMS Software ROI Estimator, Mark Stellfox discusses areas that can be affected by using powerful, effective CMMS software. You’ll also be able to estimate how to reduce maintenance costs and what the Return on Investment can be with CMMS.

The webinar was recorded and is available for you to view below. Can’t access YouTube? You can also view the video here.

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Webinar Transcription

For today’s webinar, I’m going to be discussing the ROI Estimator. We’re going to identify the five areas affected by CMMS software. First, we’ll review the CMMS software functionality. Maintenance software gives you the ability to document, monitor, and report on critical areas. The data CMMS software provides you and gives you an opportunity to improve processes and performance while reducing cost. Next, we’ll walk through the ROI Estimator to provide you with an example of its use. Finally, you will have access to the ROI Estimator so that you can apply your company’s specific information. You’ll be able to get one of those from your customer account manager so contact them directly.

Evaluate your potential savings in these areas below: increasing asset life, maintaining proper inventory levels, increasing productivity, reducing overtime, reducing utility usage and also equipment downtime. Results are going to vary from company to company in the industry. Plug in your data to get accuracy out of the ROI Estimator.

Increasing Asset Life
Here is a basic example: All assets have a predicted life span. If a piece of equipment costs $50,000 and is expected to be in service for 10 years, the asset cost per year is $5,000. Asset failure even 6 months before predicted life end results in a loss of $2,500. Effective routine scheduled preventive maintenance helps ensure the predicted lifespan of assets is maximized. Review your company’s assets and measure the actual versus predicted lifespan. Focus on critical assets. How many assets will there be? What is the asset value? This information gives you the data you need to estimate improved asset life and savings achieved when effective preventive maintenance is scheduled and executed.

Maintaining Proper Inventory Levels
Effectively monitor and report on parts usage. Use collected data to maintain parts inventory at appropriate levels. Overstocking parts commits budget dollars before they are genuinely needed. Overstocking parts also opens the door to revenue loss should parts become obsolete. Depleted inventory slows maintenance performance so don’t run out of parts. Review your company’s parts usage, inventory levels and parts obsolescence to identify opportunities for improvement.

Increase Productivity and Reduce Overtime
Track and report on actual labor usage. Improve processes to best utilize labor assets and reduce overtime and contract labor costs. Automate the creation of work orders and scheduling of tasks using work order management software. Assign labor efficiency based on location, skills, or availability. How many maintenance people do you have on your staff? How much time is spent waiting on work orders or parts? How much time is dedicated to paperwork? You want to analyze your company’s labor usage. What savings would be created by 5% improvement in labor usage?

Reduce Utilities Usage
The HVAC system in commercial facilities accounts for a significant portion of energy use. Proper maintenance, inspection, and servicing can reduce utility cost. Review your company’s utilities usage and repair/replacement costs to identify opportunities for maintenance improvements and cost savings.

Equipment Downtime
Equipment downtime affects all companies. What are your key factors affecting your company? Loss of deliverable product, labor waste, scrap and rework costs for manufacturing. You want to increase property availability for hotel, apartment, office space. Decrease interruptions for facility users for tenants and students. Increase comfort of visitors and guests/reduce complaints. Increase facility access (hospitality like hotels and whatnot, schools, recreation areas). Improve compliance/fewer incidents (healthcare, other regulated industries).

The CMMS software provides the ability to improve your asset lifespan, manage parts and inventory, manage your labor, improve utility consumption and reduce downtime. Data gathered in CMMS software provides reports that measure current status, track maintenance activities and costs, and document information that helps you improve performance and reduce costs.

I’m going to go ahead and pull up the ROI Estimator. This is something you can contact your account manager for. They can get you a copy of it so you can plug in some calculations. You guys could see the direct savings from the CMMS implemented. The key points I covered before: labor, plug in the number of full-time employees, average hours, number of part-time employees, average hours worked. It will give you your labor cost per year and then give you an annual labor savings down here. You could just plug in the factors and you can plug in the different percentages. We have a little guideline, a little legend over here on the right you can follow.

Inventory – the value of your maintenance related inventory and inventory purchased last year. You estimate your percentage savings based on the current inventory system. We plugged in 5 percent as if it was just a manual system. If there’s no system, you could plug in 10 percent on the computer systems. Zero percent is going to give you your annual inventory savings. Next section is going to be the preventive maintenance. You’re going to plug in your capital equipment—your largest, most critical equipment first. We have the estimated average lifespan. I have 10 years in here. It’s going to increase the average life savings per year. I assume the 10 percent increase in life calculation plus your utility cost so your annual PM savings.

We have another section down here for other savings. Only fill in what is known. Some of it you might not have. It could be hours. Some costs so you could plug in some additional information to see what other savings you might get. It will give you a total at the bottom for the total estimated savings per year and also total estimating savings in year one including your inventory. We have it broken down here at the bottom by hosted versus purchased or hosted by MicroMain or purchased and installed locally on permit at your location. You can see the annual ROI down here at the bottom for hosted is 367 percent and purchased is 589 percent. Like I said, you’ll be able to get a copy from your account manager. They’d get you a copy of this so you can plug in your own factors. I’m going to go back up here to the work order list—a quick preview of our CMMS work order software where you can basically keep track of all your assets. Your parts inventory basically manages everything and streamlines the maintenance operation over here.

I’ll just close this screen here and give you a quick little tour on the facility where you’re going to basically build your database, put your equipment in here. I’ll open up this example here. Here’s an air handler. You can capture all the details related to that air handler—where it’s located, description of it, manufacturer, model number, serial number, grouping for reporting purposes, account codes for budgeting. You can add the asset’s pictures in here to keep up with other details—replaced by, replacement costs, salvage values, useful life. This is all that pertinent information. These will pull into reports. Also, we have over 500 standard reports within our system with the cost information, your purchase date, your install date, if you’re leasing it with a start date and end date.

Associate your parts inventory that we talked about. I linked that part right to that asset. I’ll just double click and drill it down and go right into the part records so you can keep up with all your parts that you keep in stock—manufacturer, model number, class, account code, category code. You can have one or multiple stock rooms, closet or another store room location. At the bottom, it will tell you what you have on hand, what’s reserved for work orders. There’s a built-in purchase order piece. If you have any order through the purchase order piece, it’s going to show up here as your calculation on what you have available—part pictures to keep up with your suppliers.

Your order page is going to set your min-max levels. You definitely want to keep that and set this up in the system while you don’t have a big inventory sitting on your shelf cost your money. And then you always have parts in stock so you don’t have that unnecessary downtime or that unnecessary time spending creating a PO or going over and not having to buy those parts. Get back at it here. You can also track warranty information within the system with expiration dates, and it will notify the technicians on the work orders so they know it is covered under warranty.

Any time the work order is created whether it’s scheduled work or unscheduled work, each asset has its own history file cabinet. It will get recorded back to there with a quick asset history report. Whatever date range you select, it will give you a total for the selected date range at the bottom. That cost information total would be on the work orders that did the work labor, any parts used out of your inventory or any other costs incurred to do that job.

The next thing you want to do is you set up your assets within the system and skip to those preventive maintenance task or any other task that you’re going to do to properly maintain and get a longer asset life out of the system. I have several tasks listed at the bottom. This is where you’re going to set these up. Once you set them up over here, they’re going to show up in your work orders list. I’m going to jump into actions and work orders. Here is a list of all the work orders whether it’s scheduled or unscheduled. In the top left up here, I’m looking at status of worked as requested open and on hold that I can check basically filter any way you can think of with the checkboxes, with the fields over here on the right or just within the different columns down here. Here is that annual air handler PM. A quick preview of what the paperwork looks like. This can also be sent over to our mobile interface. You can do paperless work orders on a smartphone, tablet or just basically browser-based device using MicroMain’s mobile CMMS. You could have a laptop or a desktop and just open up Google Chrome or Internet Explorer and access the mobile interface. The checklist will show up on that also. This one is an inspection checklist for work order 716.

It will list out whatever checkpoints you had set up within the system. If you do not have any checkpoints, it will just see the actual work order. Work order 716, air handler PM, it’s going to identify what the work order is, the property location. Here is your description: what work needs to be done, all the procedures, the asset information, description located for one mechanical room building three. It will notify it is under warranty. It does have the inspection checklist. Todd Bell’s assigned to that ticket. Here is the parts inventory he should take with them and then other costs incurred to do that job such as materials or you have to rent something. This is the paperwork order. It can also be updated on our mobile interface. I’ll just slide that on to the screen real quick.

Here is the mobile interface with the ability to update or create work orders out into the field and real-time right back to the database when you’re doing any updates. You can see the work order list. It’s going to tell the technician the service instead of the paper. Everything is going to be basically on this interface here—what the service is, description of the work that needs to be done. The technician can write any comments in over here.

Under the labor section, they can time in and time out or update their time spent on that job, add or update any parts that they used on that job. If you have inspection points, a checklist will show up here. You can collect meter readings and also track other costs if you bought some materials or rented something to do that job. You have to wait to do mobile-based work orders. I’m just going to pull up—now that we’re running short on time here—my report section.

We have over 500 standard reports. I’m just going to pull up a quick batch. I have one called key performance indicators. I selected several reports, put them into my batch. As you can see, I have a couple of batches here. I’m just going to do the preview and pull up some few example reports and then just wrap the webinar up. This just gets into the field that you’re using within the system and then be able to take care of your assets, get that longer asset life, make sure you have all your parts in stock and then to maybe analyze the whole business of what you’re doing.

TREVORIS: Thanks everyone for joining us today. Currently the only questions I have are related to access to the ROI calculator. That will be coming out to you later today in an email with a link to get that information. If anybody else has any questions, please chat to us now, and we’ll answer them. In addition to a link to the ROI calculator, we’ll also include in the email a link to the recording of this webinar if you wanted to go back and view anything or if you wanted to share it with others on your team.

MARK: Another question if it’s SAS. We can do it SAS, or we’ll sell it as a hosted solution hosted by MicroMain or you can purchase the software outright and install it at your location.

TREVORIS: We do have a question regarding hospitals that we work with in the Southeast. Danielle, we’ve got a list of references for you. We will get with you offline with that information.

MARK: And then the web-based interface, does it work on all platforms? I believe you’re referring to the mobile solution and basically it works with most browsers, web-enabled devices—smartphones, tablets, Android, iOS and Windows 7. Like I said, you can open up a web browser on your computer and access it also.

TREVORIS: Do we have any other questions? If we don’t have any questions, I think we’re going to sign off and look for an email from us later today. Thank you all for coming.

Micromain