Nine Ways CMMS Cuts Operational Costs

The maintenance department doesn’t always get credit for how they save money. But the powerful combination of CMMS software and your maintenance team can cut operational costs, making your organization more efficient and productive.

How CMMS Cuts Operational Costs

Here are nine ways CMMS cuts operational costs.

Preventive Maintenance

  1. CMMS software generates a schedule of preventive maintenance (PM) tasks. Therefore, it’s simpler to follow the manufacturer’s guidelines. Properly maintained assets perform more efficiently, use less energy, and fail less often—thereby, extending their usable life.
  2. When you use CMMS software to schedule and track PMs, you’ll reduce emergency maintenance issues and unexpected production stoppages. This also cuts overtime costs for emergency repairs and reduces production losses. You can also schedule maintenance for off hours by tracking equipment use time.

    Labor Management

  3. Work order management features in CMMS software can automate schedules for both employees and contract workers. Therefore, you get the highest priority work done, while making sure lower priority work doesn’t slip through the cracks. This information also eliminates lost information between shifts, reducing confusion and errors.
  4. CMMS software helps you accurately estimate labor hours for PM tasks, making sure your staffing levels match the workload, and decreasing overtime costs. This type of labor cost analysis also can determine when it’s more efficient to add more staff members instead of paying your current employees more overtime.
  5. Employee performance tracking helps you determine which employees are most efficient at which tasks, enabling managers to balance the workload. By tracking repair times, you can create benchmarks for your organization as well.

    Inventory & Parts Management

  6. CMMS software’s ability to manage your parts inventory prevents under-stocking and over-stocking and streamlines reordering. CMMS software can determine your current inventory levels and automatically generate purchase orders based on need, reducing purchasing overhead.
  7. You can take your inventory management to the next level and track parts to stock based on availability. For example, if a part has a three-week lead time, you can adjust stocking levels to make sure it is available when your staff needs it.


  8. CMMS data helps organizations make effective replace-or-repair decisions. Maintenance software can track not only the age of the equipment, but the miles, hours, life-to-date repair dollars, and many other metrics. Therefore, it’s easier to when it becomes cheaper to replace an asset instead of repairing it.
  9. In manufacturing industries, CMMS software helps reduce scrap and rework by keeping equipment operating efficiently. That helps reduce emergency production breakdowns, and avoid catastrophic material losses.

Learn More

Contact us to learn more about how CMMS software can cut operational costs for your organization.