Infographic: How to Calculate the Return on Your CMMS Investment

How to Calculate the Return on Your CMMS Investment

When our MPulse team talks with maintenance managers who are researching CMMS software, we get a lot of similar questions, such as…

  • How can we use CMMS to reduce our company’s equipment downtime?
  • How can CMMS help me control my costs of maintenance?
  • How does CMMS save us money?
  • How can we use CMMS to make our maintenance team more productive?
  • How can CMMS software help us manage our parts and inventory?

Although the questions are different, these maintenance managers are looking for the same thing—their return on investment (ROI) for purchasing CMMS software. For the business case and the numbers leadership will ask for, see the CMMS budget approval kit.

CMMS Software is an Investment

ROI measures the amount of return on an investment relative to the investment’s cost. And I believe CMMS software is an investment.

Organizations want to see the return on their money. Also, like most successful investments, CMMS benefits compound over time. As your maintenance data becomes more comprehensive, your organization becomes more efficient and the return on investment climbs.

Use Your Maintenance Data Effectively

CMMS software helps your employees use maintenance data more effectively. Organizations can improve their maintenance processes and reduce costs through these five major areas:

  1. Labor costs through improved efficiencies
  2. Parts and inventory management
  3. Equipment downtime and emergency repairs
  4. Equipment life cycle and replacement forecasting
  5. Manufacturing scrap and rework

It’s a great way to see the different components of CMMS ROI and how they can affect your maintenance operation.

This quote from H. James Harrington on the infographic sums it up nicely: “Measurement is the first step that leads to control and eventually to improvement. If you can’t measure something, you can’t understand it. If you can’t understand it, you can’t control it. If you can’t control it, you can’t improve it.”

That’s maintenance software in a nutshell. CMMS software helps you measure the productivity of your operations, which gives you a deeper understanding of your maintenance processes, and therefore the ability to improve them where necessary.

Have questions? Want to talk about the ROI of MPulse Software, Inc? We’re here. Give us a call.

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