How to Calculate the Total Cost of Ownership for Your Assets
When it’s time to buy or replace an asset, it’s easy to focus purely on the initial purchase price. But digging deeper could save your organization a lot of time and money in the long run. The key is to calculate both the direct and indirect costs, which is called Total Cost of Ownership (TCO). TCO is the full cost of an asset over its life cycle or “cradle to grave”—a number that might look very different from the initial purchase amount. Calculating Total Cost of Ownership Total cost of ownership is a simple equation. TCO = [Initial Cost] + [Operating Expenses] + [Maintenance Costs] + [Downtime Costs] + [Production Costs] – [Resale Value] Initial Cost: The amount of the initial purchase. Operating Expenses: Cost of installation, testing, and training, plus energy usage and insurance (if applicable). Maintenance Costs: Cost of repairs and maintenance, including both PMs and unexpected repairs. Downtime Costs: Labor costs of delayed work, lost production, lost revenue, etc. Production Costs: Output levels or production levels as well as environmental costs. Resale Value: The amount that could be recouped by selling the equipment after a certain timeframe. Finding TCO Data Let’s look at an example. Kai needed to buy his maintenance shop a new generator. He looked at three—and the price of one was about 20% higher than the others. It should be an easy decision, right? Pick the least expensive one. But Kai knew he had to dig deeper by looking closer at the TCO for each one. While the TCO equation seems easy, getting that information isn’t always simple. Kai had a good start within his MPulse Maintenance Software. First, he found the existing data for his current compressor. Then he could compare that information against the new compressors and estimate the operating expenses, projected downtime costs, and production costs by pulling some key reports. The maintenance costs and resale value took a little more research. After comparing the manufacturer’s recommendations, he discovered the more expensive generator required less maintenance. Additionally, its resale value was significantly higher—making its TCO lower than the others. Kai knows it would be hard to calculate the TCO without his CMMS software. His numbers would be based more on assumptions than hard data. It’s likely your purchasing or accounting department is familiar with TCO, so tap into that resource if it’s available to you. Have you found a surprising result from your TCO calculations? Contact us to learn how MPulse can help.
Does Your Outdated CMMS Software Cost Too Much?
After two decades in maintenance management, Jose had seen a lot of changes in the field. But it really hit home when he started a new job last year. His new employer—a state agency—had CMMS software. But it was close to a decade old, and it didn’t have many of the features he’d come to expect. “It was eye-opening to see how far technology has come in a relatively short time,” he said. “The old software just couldn’t do what I needed it to do.” The Hidden Costs of Outdated CMMS Software Perhaps the most dramatic example of the problem was when Jose discovered a fleet vehicle had gone missing—and no one knew where it was. “We actually reported it as stolen,” he said. “And then we found it a few months later, parked at another site. That should never happen. We should know who had it and when, so we’d know who to ask and where to look.” Jose soon realized the lost vehicle was just the beginning. His new maintenance team was spending a lot of time and effort trying to work around the old software’s limitations—which was costing the organization far more than the price of new software. For example, Jose found… Key data wasn’t being gathered, making it hard to spot areas where productivity and efficiency could be improved Lack of data integration capability meant entering data manually, sometimes in more than one place Paper workorders were easy to misplace or lose Reporting took far longer—and was sometimes impossible—because the data wasn’t easily available or accessible Data security wasn’t up to modern standards, putting the organization at risk for viruses, malware, hacking, etc. The original software manufacturer wasn’t supporting this version, and hadn’t for some time, so help was limited The Growing Cost of Workarounds If that wasn’t enough, Jose’s team had developed some workarounds—which helped them get the job done, but took even more time away from their work. For example, the lack of historical data meant the techs often stopped working on a job to seek out others who had worked on the asset before, so they could ask questions. “This is information we should have captured—simple things like what was done and when,” he explained. “Our techs should be able to find this at a glance in our CMMS software, not spend more time searching out coworkers to ask.” Once your organization makes the leap to CMMS software, upgrades and updates may feel like more trouble than they’re worth. But software upgrades offer more functionality as technology advances, and that helps you meet the changing needs of the maintenance field. And, as Jose discovered, once you’re spending far more time and money on working around their software than the cost of the upgrade, it just makes sense. What’s changed in CMMS software? Leave a comment or contact us. We’re here for you.
How CMMS Software Can Help You Achieve ISO Certification—And Keep It
If your organization is striving for ISO certification—or needs to keep it up—CMMS software is a vital tool for your maintenance department. ISO certification verifies a company’s management system, manufacturing process, service, or documentation procedure has met the requirements for standardization and quality assurance. Two of the most common are ISO 9000/9001 for quality management and ISO 14001 for environmental standards. Many companies use ISO certification to assure customers of credibility. But some industries require it, and certain contracts will depend on it. Maintenance & ISO Certification ISO certification requires a traceable history of completed maintenance tasks and documented policies to prove you’re acting in accordance with ISO standards. Mike Goldman’s company became ISO 9000 certified without CMMS software before he was hired, but Mike knows CMMS data from facility management software is key to maintaining that certification in the future. “ISO certification is all about the process,” Mike explained. “MPulse helps you provide objective evidence that your processes are being followed—preventive maintenance tasks, lock-out tag-out, hot work permits, etc.” So, Mike set up his MPulse Maintenance Software with ISO certification in mind. “The scheduled maintenance and task functions of MPulse generate work orders for ISO quality control inspection routines,” he said. “You can create tasks for QA process audits, inspections of final product, completed tasks, HSE requirements, HAZMAT—anything really. I also generate work orders for ISO quality assurance auditing requirements and schedules, which provides objective evidence that we completed internal ISO auditing tasks.” MPulse also helps Mike’s team in other ways. “The media attachment capability ties any relevant documentation to the work order. This is a great way to keep your objective evidence handy and connected to the relevant scheduled audit trigger events.” And that documentation looks impressive to an auditor, Mike said. “Game over, you win. Hands down.” CMMS Software for ISO Certification MPulse Maintenance Software can help your organization get—and keep—ISO certification by… Recording preventive maintenance on key assets Documenting work procedures to make sure they are being followed Verifying all safety inspections and tests are done properly and on schedule Determining when it’s time to repair or replace malfunctioning equipment Creating reports and other documentation for audits Tracking employee health and safety information, trainings, and certifications Archiving work history Documenting incidents Preparation is Half the Battle The complexity of ISO certification makes it difficult—if not impossible—to simply pull the paperwork together at the last minute. That’s why CMMS software is essential for maintenance operations. Once you set up your CMMS software correctly, documentation takes care of itself because the every work order captures the data. You can quickly access this information when it’s time to pass the scrutiny of an audit—which saves a lot of time and prevents a last-minute scramble to pull reports together. Have questions? Contact us for more information about how MPulse can help your organization achieve ISO certification—and keep it.
CMMS Software Helps Public School District Take Maintenance to the Next Level
School maintenance isn’t just about taking care of buildings and equipment. Maintenance plays a huge role in the well-being of students, teachers, and administrators. When school districts like St. Mary’s County Public Schools (SMCPS) use facility maintenance software to manage maintenance tasks, they are protecting the taxpayer’s investment in public education. “We have a great team that’s committed to safeguarding the mission of SMCPS, which is to provide the best learning environment that we can,” said Sharon Dvorak, SMCPS work order specialist. “Our goal is to always ensure the comfort and safety of all our students and staff, and provide the best possible outcome for our community. MPulse helps us do just that.” Fixing What Broke For many years, the SMCPS Department of Maintenance operated in the way it knew best. The phone rang. Someone answered it and took a few notes, and then a maintenance technician went to fix the problem. There was little documentation, no preventive maintenance program, and limited historical data or background information. SMCPS wasn’t unusual. Many school districts adopted a maintenance strategy of simply fixing what broke to work within budget restrictions. In July 2004, Sharon Dvorak, work order specialist, was tasked with improving the way the Department of Maintenance handled the growing needs of the school system. Sharon implemented the biggest change just a few months later—the department’s first CMMS software system, MPulse Silver. MPulse Silver gave SMCPS the ability to schedule preventive maintenance tasks and manage work orders as well as the capacity to receive, manage, and update service requests from unlimited requesters. Sharon started using MPulse’s school maintenance software the same way most new CMMS users do—setting up the database with all the district’s building assets, employees, maintenance tasks, work order types, trades, and departments. In the autumn of 2004, with the basics in place, SMCPS began receiving and processing their first computer-generated work orders with school CMMS. By 2006, MPulse CMMS maintenance software was widely accepted throughout the organization. Fast forward to August 2016, and Sharon hit a major milestone—surpassing 100,000 opened work orders. Work Order Management Like most MPulse administrators, Sharon’s day centers around work order management. MPulse helps the SMCPS maintenance team get the highest priority work done while making sure lower priority work doesn’t slip through the cracks. “We needed to prioritize,” Sharon said. “Over the years our budgets have started to dwindle, so we needed to make sure we were spending our time—and our money—wisely.” Prior to their MPulse implementation, 100% of the Department of Maintenance’s repairs were unplanned. “Our scheduled maintenance program has taken us from a completely reactive work force to a balanced 48% planned and 52% unplanned,” Sharon said. “It’s taken our organization to a whole new level.” Download our customer success story or contact us to learn more about how MPulse customers are using our CMMS software to improve their maintenance operations.
Next Level Maintenance Reports with Turn-Key Data Integration
CMMS software captures key maintenance data to help you create reports or documents with details of your team’s maintenance work. But often other departments need access to that data, or have their own data that’s useful to maintenance managers. That was the situation facing Saint-Gobain Ceramics High Performance Refractories (HPR) maintenance department in their Worchester, Massachusetts, facility. At the request of the management team, application developer Gary Potter was tasked with finding a way to integrate data from the company’s SAP ERP system with CMMS data in their MPulse Maintenance Software. Gary needed a simple solution that was effortless for users and integrated easily with the company’s local network. Data Integration Solution Since 2014, Saint-Gobain Ceramics HPR has used MPulse Platinum—our most comprehensive software package designed for the largest, most complex maintenance operations. Gary worked closely with MPulse during the initial implementation process, and he turned to MPulse again for a data integration solution. Working with our support team, he quickly determined the MPulse DataLink Integration Adapter was the way to go. DataLink offered Gary a way to easily move data in and out of MPulse using a familiar, intuitive interface. Now when maintenance technicians create a purchase requisition, the company’s SAP ERP software associates the purchase order with the specific work order. When the parts are received, SAP sends the costs and stock information to MPulse, giving managers access to the numbers they need to make important decisions. As a result, the maintenance crew and the accounting department are in sync and their inventory stock levels are updated and accurate. Best of all, “it’s all automatic,” Gary explained. “MPulse DataLink checks for new information every few minutes. We don’t have to do anything else.” Benefits of Turn-Key Data Integration DataLink enables Saint-Gobain to leave the accounting to the financial application, and synchronize the results back to MPulse for informational and reporting purposes. As a result, Saint-Gobain maintenance managers can use financial data and CMMS data to accurately calculate maintenance costs. After an easy implementation process, Saint-Gobain plans to expand the use of DataLink by using MPulse’s advanced inventory capabilities in the future. The company anticipates big benefits, like the ability to… Accelerate and track the complete purchase lifecycle Leverage MPulse’s reporting and forecasting capabilities to drive business intelligence Eliminate manual double entry of inventory and purchasing information Increase accuracy and freshness of data Reduce emergency non-stock situations by improving usage planning Implement standardized data and improve vendor management And Gary emphasized something else that is close to any IT professional’s heart: “It just works.” Download our customer success story, or contact us to learn more about how MPulse customers are using our software to improve their maintenance operations.
Achieving 100% Preventative Maintenance Completion Rate
Preventive maintenance scheduling is one of the top reasons maintenance departments buy CMMS software. Everyone’s goal is to accomplish achieving 100% Preventative Maintenance completion rate. Many MPulse customers want a 100% preventive maintenance task completion rate. We asked a new MPulse customer, Matt, how his team achieved it. Matt’s goal when his organization purchased MPulse was to move from reactive approach to a more balanced proactive approach. With more than 1,200 assets at his company’s plant, however, his old method of spreadsheets and a homegrown database couldn’t get him there. CMMS software was clearly the way to go. But after buying the software, what’s next to have that success? Set Up PM Schedules Setting up his CMMS software properly was the first step. Matt had some asset information in his old spreadsheets, so that was easily imported into MPulse. He took the time to add new information as well—including warranties and parts information. Then for each asset, he set up a schedule of PM tasks—changing oil and filters, cleaning vents and screens, inspecting equipment, checking performance metrics, replacing parts, etc. Here’s the magic of CMMS software. Automated scheduling meant that every time a task was completed, MPulse simply used Matt’s parameters to determine when it needed to happen again in the future. Matt didn’t have to do a thing. The task popped up again at the appropriate time. “It’s tough to get much easier than that,” he said. PM scheduling helped in another way as well. Matt’s team spent less time on paperwork—entering information and updating spreadsheets—because everything was captured in one place at one time. “Not to mention, we had fewer complaints because paperwork is definitely one of the less popular parts of the job,” he said. “Reducing the data entry alone was enough to get the team’s buy-in.” Spot Issues After the PM schedules are set up, it was easier for Matt to spot problems with the workflows. Using his MPulse CMMS data, he changed a few things in his department, by… Redistributing some tasks to employees with stronger backgrounds in that skill set Training other employees so they could take on new and different tasks Hiring another tech to focus primarily on PMs for key assets Streamlining the inventory ordering process so his techs weren’t waiting for frequently used parts After a few months, Matt succeeded in his goal to get to 100% PM completion rate. But he also discovered that his metric didn’t give him the whole picture. Next time, we’ll share another PM performance metric that helped Matt—and can help you too.
Why Spreadsheets Don’t Cut It Anymore
Maintenance management in the past relied on pencil and paper and/or spreadsheets to track maintenance work. And it worked. But maintenance management has changed. Organizations have discovered maintenance affects the entire operation. And that means they’re paying attention in ways they weren’t in the past. You used to get phone calls when something broke. Now you’re getting phone calls asking for details about your maintenance operations: costs, productivity, inventory turnover, replacement forecasting, etc. That means you need a new approach. As one MPulse customer said, “Our spreadsheets just don’t cut it anymore.” Maintenance Management Has Changed As more organizations move from a reactive maintenance strategy to a proactive one, the focus of maintenance teams has changed too. It starts with preventive maintenance (PM). PM is one of the biggest reasons maintenance managers turn to CMMS software because it simplifies creating PM tasks, automating PM schedules, and building maintenance reports to find areas that need more attention as well as those that are working well. And that’s just the beginning. From inventory control to condition-based maintenance to the Industrial Internet of Things (IIoT), CMMS software helps maintenance managers improve reliability and take their operations to new levels. Technology Has Changed Once computer technology was scarce in the maintenance department. Those days are long over. Now even desktop computer systems are passé and mobile devices are commonly found on the shop floor, at the construction site, or in the plant. And it’s still changing. IIoT devices are opening up new opportunities for monitoring assets and automating data collection. That means maintenance work will shift even more from reactive to preventive… and towards predictive maintenance. CMMS software gives you the information you need to meet the challenges ahead. Workforce Has Changed It’s tough to find the right people with skills we need in the maintenance department. If that wasn’t hard enough, our aging workforce requires rethinking your recruitment strategies. Maintenance managers need to reach out to younger employees, who expect modern technology in the workplace. Emphasize the technical aspects of this career path, and create a professional growth/training program for your maintenance staff. These things are important to younger workers, and they’ll make your positions more appealing. The Future of Maintenance Management So, what does the future of maintenance management look like? It’s going to involve more technology and a stronger push towards data-driven decision making. So maintenance managers need to adapt. Starting now means you’ll be in a good position down the road. Ready to ditch the spreadsheets? Contact us.
Is the MPulse 0% Finance Program Right for Your CMMS Software Purchase?
If you’ve been researching your first CMMS software purchase (or an upgrade), you’ve realized most vendors want you to buy software as a service (SaaS) solutions. But here at MPulse, we believe SaaS isn’t for everyone. So if you’re looking for a way to purchase CMMS software outright, take a look at our new MPulse 0% Finance Program. Is SaaS Right for You? First, let’s look at SaaS. Simply stated, SaaS is just another method of paying for CMMS software. When you opt for a SaaS subscription you’re choosing to rent software for a specified period of time instead of buying a license to use it indefinitely. The licensed purchase price for a maintenance management software package is typically equal to two or three years of SaaS payments. If you’re on the fence about a new solution, SaaS may provide you a beneficial trial period to determine if the software meets your needs. You can change vendors at any time without abandoning a large investment—or you can purchase the software you’re using. It also may allow you to pay for software without going through a formal procurement process. If your company divides departmental funding into operational expenses (OPEX) and capital expenses (CAPEX), you may be able to spend OPEX money on your software without making a CAPEX request. SaaS has advantages, which is why MPulse offers our SaaS option to customers. In particular, those lower initial costs are attractive. But the disadvantage is you never really own the software—so you need to keep paying for your subscription. And if you stop paying, you lose access. Is MPulse 0% Finance Program Right for You? Here at MPulse, we believe our customers should have purchase options that fit their needs. So we launched a new program that allows our customers to enjoy the lower upfront costs of SaaS, but to own the software outright in just 36 months. MPulse provides financing through Marlin Business Services Corp.®, a nationwide provider of equipment and software financing. With the MPulse 0% Finance Program, you’ll have better payment terms than most SaaS contracts, and the software will be yours to keep. Benefits include… Finance 100% of your purchase 0% interest rate for 36 months No substantial cash outlay or down payment Finance training and support services too Monthly payments Instant financing approval process Easy electronic application Turns your CAPEX into OPEX for easier management approval in many organizations Significant tax advantages No effect on your bank lines of credit How Long Does It Take? With our expedited approval process, we can get most financing approved in less than one business day. Because our financing is lease-based, inquiries don’t impact your credit rating. We can finance many businesses who may not qualify for traditional bank loans. Contact us to learn more about the MPulse 0% Finance Program. We’re here to help.
What Are Your CMMS Reports Telling You?
With CMMS software, every work order builds up a treasure trove of maintenance data in your CMMS database. The next step? Turning your maintenance data reports into actionable insight. That’s the real value of CMMS software. Read on for this CMMS solution. Find Out What’s Working… and What’s Not CMMS reports help you see your maintenance operations in a new light. It’s easier to see what’s working… and what needs more attention. That was Miguel’s experience. Once his MPulse Software, Inc was working, it didn’t take long before he saw his operations in a new light. CMMS maintenance data reports helped Miguel understand… What work is getting done. And what’s falling through the cracks. Who’s doing what and how long it takes them to do it. How much that asset really costs, and when it’s more cost effective to replace it. Which parts are overstocked, which parts are understocked, and which parts need longer lead times. What’s the inventory turn rate. How much the department is spending and on what. Which assets are pulling their weight, and which ones aren’t. How much a breakdown really costs. What to do to prevent those breakdowns before they happen. Make Good Decisions Based on Hard Data CMMS reports aren’t just about the numbers, however. It’s what those numbers mean. “I knew MPulse would help us manage work flows and track inventory,” Miguel said. “But the data showed me things I didn’t anticipate, like which asset was costing us more than it’s giving back.” Here’s where the real value lies. Armed with solid data and strong reporting features, CMMS software enables you to make good decisions based on hard evidence. No assumptions. No guesswork. Just data. That means you’ll know what’s working well in your maintenance department—and where you should focus your efforts to make improvements. We call that data-driven decision making. In modern maintenance organizations, it’s this type of maintenance management that helps organizations compete in increasingly complicated and competitive markets. Set Up Your CMMS Software for Success It takes more than just buying software, however. Miguel set up his team for success with our CMMS solutions by defining what he wanted to know from his CMMS software, so the work orders collected the data he needed. For example, “we knew we needed to get our inventory costs under control,” Miguel explained. “So we made sure our work orders including parts and supplies information. That extra effort paid off later when we got deeper into inventory management.” You don’t know what you don’t know. Maintenance data reports can help you see what you’ve been missing. What do you want to know? Contact us to see how CMMS software can help you find the answers.
Time for a Parts Room Audit? CMMS Software to the Rescue!
It’s common for public agencies to have their parts inventory audited on a regular basis. Typically, these audits occur annually by taking a random selection of items and comparing the inventory numbers in the computer to the actual items on a shelf. The purpose isn’t really to find problems or assign blame. Instead, the goal is to use our software audit tools to determine if an agency’s inventory audit procedures are in place and effective, so you can make changes to improve. An audit also can reduce overstocking and understocking because of inaccurate data, plus it helps reduce the opportunity for theft. CMMS Software Helps You Prepare Inventory has a reputation for being “a can of worms” in our field. And that’s not without reason. The key? Finding the type of inventory audit procedure that works for your organization and using the power of your CMMS software audit tools to implement it. CMMS software is the best way for maintenance and facility management teams to prepare for inventory audits. CMMS software helps in several ways… Preparation Time: Scheduled audits require gathering paperwork beforehand, which can be tedious and time-consuming when it involves sifting through stacks of paperwork. With CMMS software, accurate reports are easy to pull together in just minutes—saving a lot of time and frustration. Verifiable Data: CMMS software records all your parts tracking, stocking, ordering, and inventory processes with every work order. When it’s time for an audit, the data is easier and faster for auditors to verify. Easy Access: Instead of pulling out binders of paperwork, auditors can sit down at a computer to find the information they need. With CMMS software, the answers are at their fingertips. CMMS Software Improves Inventory Management Here at MPulse, we recommend making inventory as easy as possible with barcodes, scanners, and our new smartphone camera barcode scanning feature. Scan the part. Scan the asset. That’s all you need to do to link inventory to a new or existing work order record. Plus, your team can enter inventory items as they arrive and automatically track who is performing work. Often, I hear customers worry about the effort involved in implementing an inventory control management system. Setting up the system does take time, but the gain far outweighs the initial pain. Let the power of CMMS do the hard work, and you’ll see the rewards when it’s audit time. As with most things, being prepared makes the experience easier and a positive outcome more likely. How can CMMS software help your maintenance department improve inventory management? Leave a comment below or contact us.