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EAM/CMMS ROI Analysis and Improvement

So you've spent the money and you have the system - now the question is "are you getting your money's worth?"

Most people Maintenance Managers would reply "no!". So what to do?

Step 1: Understand what the system can do for you.
Step 2: Understand what you have to do to get the value from the system.
Step 3: Understand what you are currently doing with the system.
Step 4: Do a gap analysis.
Step 5: Itemize tasks to be done to close the gap.
Step 6: Prioritize tasks based on both payback and cost and difficulty of implementing.
Step 7: Plan the tasks in detail - what has to be done, by when and by whom.
Step 8: Install a simple progress tracking process.
Step 9: Get on with it.

What if you don't know whether you are getting your money's worth? Here are the benefits you should see:

higher equipment productivity
higher equipment reliability
higher output predictability
more uptime
more quality work
fewer breakdowns
fewer unexpected problems
less material consumption
lower stores inventory
lower labour dollars
lower contractor dollars

How much higher or lower will depend on your individual business - the more maintenance intensive and capital intensive your business, the bigger the benefits.

How do you know when your system is working well for you? Try this test: (Go ahead - give yourself 5 points for each perfect yes and 0 for the reverse - any score under 65 doesn't rate.)

All critical equipments are in the system
All critical spares are in the system
All the data is accurate and reliable
All non-critical equipment and parts should be in the system
70+% of your work is done against PM WO's
All PM's are reviewed annually for relevance and accuracy
All corrective work is done from WO's
All breakdown work is recorded on templated WO's
WO's collect data on material and hours used
All WO's make sense
95+% of your work is scheduled
Parts pick-lists are prepared automatically from WO's
Parts replenishment is driven by automatic ordering
Overdue WO's are reviewed weekly
All breakdowns are scrutinized to update the PM program
The system prompts regular ABC counts
Reports are useful and accurate
The system ties into your performance management system
The system prompts maintenance improvement
You control the system, not the reverse

If you are feeling bad, then you won't be able to focus on maintenance improvement - too much of your life is spent scrambling from one crisis to the next.

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