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CWF
Posted
My company is currently pursuing the idea of implementing a CMMS. They understand the big picture and recognize the value that it can bring to us but where we struggle is on cost justification side. The current management philosophy when it comes to maintenance labor is that we are going to pay them the same whether they are working on our most critical piece of equipment or if they are working on handrails. I have tried to change their opinion on the matter but have hit a brick wall.

So, when it comes to cost savings realized by implementing a CMMS and you throw out labor efficiency you are left with reducing downtime and reducing MRO inventories. Are there typical results from CMMS implementations that I could reference? Am I missing something that could influence the ROI for such a project?

I know that results are going to be specific to the facility, but I am thinking that there are standards or norms out there. It boils down to I need help making a business case.
 
Posts: 1 | Location: Louisiana | Registered: 21 February 2008Reply With QuoteEdit or Delete MessageReport This Post
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quote:
Originally posted by CWF:
The current management philosophy when it comes to maintenance labor is that we are going to pay them the same whether they are working on our most critical piece of equipment or if they are working on handrails. I have tried to change their opinion on the matter but have hit a brick wall.


Giving differentiated wages for critical equipment, will start a lot of noise from the workers. The guy who is "sentenced" to "low budget work" will not be happy working on critical equipment while the "star players" get the "money" credits.
First you have to define the work type, if painting a piece of piping on the boiler, cost more than painting the "piping handrail" close to the fence.... In both cases use a painter, with his fixed price.
Your proposal will transform maintenance in an accounting department Big Grin


Steven van Els, CMRP
 
Posts: 818 | Location: Suriname | Registered: 16 June 2004Reply With QuoteEdit or Delete MessageReport This Post
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From a big picture standpoint your Return on Investment (ROI) from a CMMS or EAM is $0.

Your ROI will come from automating an EFFECTIVE maintenance process.

The result or outcome - is a function of the process - not the technology.

Of course technology can empower a process but it can also make a dysfunctional process even better at being dysfunctional.

Terry O
 
Posts: 725 | Location: Southwest Florida Gulf | Registered: 03 April 2004Reply With QuoteEdit or Delete MessageReport This Post
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If you search Google for CMMS ROI there are lots of results that may help you.

http://www.google.co.uk/search?source=ig&hl=en&rlz=&q=c...=Google+Search&meta=
 
Posts: 129 | Location: Scotland, UK | Registered: 13 April 2004Reply With QuoteEdit or Delete MessageReport This Post
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You can search Google for anything discussed on this or any other forum.

Why do we need a forum if we have Google?

Terry O
 
Posts: 725 | Location: Southwest Florida Gulf | Registered: 03 April 2004Reply With QuoteEdit or Delete MessageReport This Post
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