How a CMMS Helps Save Maintenance Dollars with Better Budgeting
Computerized maintenance management system ensures efficient and effective maintenance management of work orders, labor, repairs, replacements, inventory, and purchasing. According to statistics, CMMS systems help organizations save at least 10-15% of their annual maintenance budget with accurate funding forecasts, condition assessment histories, optimal asset management plans and accurate risk analysis. Advanced CMMS solutions also let maintenance managers drill down on the budget and establish future funding needs accurately. But the benefits of deploying computer maintenance management systems go way beyond sustainable asset management and life cycle funding.
Here are 4 ways a CMMS helps organizations develop a better budget:
- Funding Forecasting
To help organizations support their service levels and establish appropriate strategies, a CMMS eliminates guesswork with real-time data and also shows what will be needed in the future based on how the maintenance operations have performed in the past. A computerized maintenance management system makes operations cost-efficient with a plan that outlines the funding forecast in comparison to the asset condition, risk of equipment failure, and the impact of failure. In the event where an organization does not have adequate funding, facility managers can also predefine scenario planning to determine the “what if” impact of a specific project that is not funded. Computerized maintenance management solutions are a powerful tool for forecasting preventive, predictive, corrective, as well as emergency maintenance costs for preventing unplanned repairs and unexpected downtime.
- Cost Management
Using asset management software, budgets can be easily established for any defined accounting period and once the budget for the maintenance cost center has been determined, the next step is cost tracking. Enterprise asset management software immediately identifies a deficit and helps organizations utilize asset management risk principles to prioritize lifecycle funding. The budget tracking feature of a CMMS also helps organizations apply:
- Asset inventory purchases for special projects to their appropriate accounts
- Purchases for replacement parts to their respective budget account
- Labor costs of the maintenance work to a budget account that includes supplies, parts, labor as well as miscellaneous expenses.
- Risk Management
Risk management for funding and capital prioritization require an accurate budget analysis. Since maintenance is a big expense and also important to the bottom line, a fully-implemented maintenance management software is needed for making informed decisions concerning the forecasted budget, its adequacy for various accounts, re-allocation of resources, miscellaneous labor, and asset inventory costs. Only a computerized maintenance management system provides maintenance managers the ability to drill down into mission-critical data at all levels and line it up with the short-term and long-term budget for accuracy in risk management and precision in lifecycle funding.
- Capital Improvement Prioritization
Using a fully-loaded computerized maintenance management system, organizations can generate capital improvement programs that calculate everything from the asset impact index to asset risk index automatically based on PM schedules and condition assessments. The reports generated using a CMMS can help detect problems and facilitate corrective action with real-time insights into enterprise assets, asset inventory, work progress, and maintenance schedules. Over time the data generated using asset management software positively impacts future decision-making and helps keep a pulse on the maintenance management. Relying on features and functionalities that allow maintenance managers to define costs with absolute correctness thereby reduces the risk of equipment failures that bring operations to a grinding halt.NEXGEN Asset Management software comes with real-time dashboards that auto-generate accurate reports using real-time data to drive efficiency across departments. Effectively manage your maintenance with a CMMS solution that offers implementation assistance, customer support, and ongoing upgrades.