Decisions, Decisions: How to Decide Whether to Repair or Replace an Asset

Recently I toured a customer’s manufacturing facility—one of my favorite things to do. Seeing MPulse users working with our CMMS software for real-world maintenance tasks always gives me a clearer perspective on our work and why it’s so valuable.

Our tour guide, Dan, was proud of his maintenance team’s achievements. I had to ask, of course: “What’s the biggest benefit you’ve experienced from your MPulse Software, Inc so far?”

Dan didn’t hesitate. “Now we know when it’s better to repair or replace an asset,” he said. “Our CMMS data helps us make good decisions, and we’re more efficient as a result.”

Data-Driven Management

I’ve heard similar responses a lot lately. Maintenance managers have discovered the importance of data-driven management, where their decisions are backed by reliable data. It’s easy for upper management and other departments to see the value and efficiency of your team and their work when they can see the data—and the dollars—right in front of their eyes.

And nothing is better at gathering and analyzing maintenance data than CMMS software. With each purchase and every work order, Dan’s maintenance team uses their MPulse Software, Inc to document:

  • Labor costs
  • Parts costs
  • Energy costs
  • Purchase price and date
  • Life expectancy
  • Warranty information
  • Replacement costs
  • Other custom data

So when it’s time to decide whether to repair or replace an asset, Dan isn’t just guessing. He’s using his MPulse CMMS data to make a decision based on hard numbers. By running a few simple reports, Dan knows which assets cost the least amount of money to maintain and repair. He also can calculate when the increased efficiencies of newer models will pay off in the long run.

Asset Life Cycle

These decisions affect more than the replacement budget. Analyzing the life cycle of assets also helps Dan reduce downtime and prevent unexpected repairs. And when he does decide it’s time for new equipment, he also can estimate any training costs as employees get up to speed on the technology.

When you have the hard data about the age of the equipment and the miles, hours, life-to-date repair dollars, and other metrics—it easier to decide when it’s time to replace an asset instead of repair it. CMMS data changes the way you make decisions because you have all the information at your fingertips to determine the total cost of ownership.

If you are interested in learning more about how our asset management systems can help you with data-driven management, we are here to help. Contact us today.