By Robert Brieck, Sr. " DPSI Professional Services Consultant " : -
"Show me the money" has been a rallying cry for many since Cuba Gooding Jr's. Character, Rod Tillwell, uttered those words in the 1996 movie “Jerry McGuire.”
Reports available from a CMMS system can help managers substantiate achievements, quantify goals, and pinpoint areas that add to the bottom line. However, many organizations use only a small portion or a single module of their software’s capability. For example, if they are using preventive maintenance work orders and have not populated pay rates or parts associated with assets/equipment; n the resulting repair history will not provide an accurate financial history for their assets.
Organizations that record basic information such as labor repair cost, material repair cost, miscellaneous cost (contractor labor, material and incidentals) and equipment downtime for each asset can determine those needing more detailed historical analysis. Once this is done, corrective action can be taken, allowing the asset to achieve its intended performance.
Managers at the department level and above have access to various basic reports from their CMMS including:
- Inventory and purchasing Equipment history
- Cost analysis (actual vs. budget)
- Asset downtime
- Labor overtime
- Emergency maintenance
- Maintenance backlog
- Cost of maintaining asset vs. its estimated replacement value and remaining life
- Scheduling effectiveness
- Work distribution
- % of PM Work
- % of CM Work
- % of Emergency Work
- % of Project Work
The next step is to ensure that the reports provided support your organizations KPIs (Key Performance Indicators).
Standard Maintenance Scorecards or KPI’s should be discussed, agreed upon and routinely populated and reported to upper management, as well as the work force, that has either achieved the pre-set indicator or has missed that target.
For organizations that clearly define their KPIs, the task of gathering the necessary data becomes relatively simple. KPIs should be viewed as the establishment of a minimal acceptable baseline for the specific metric being measured or reported against. Most if not all KPIs are financially driven. Every KPI has a financial implication associated with it. When the results of a reported KPI falls below the pre-established baseline, it is important to determine the cause and get the performance back on track. If your CMMS reports module provides the proper information, you are on the way to correcting the downturn of the metric.
Once you begin managing, measuring, and making progress, you, too can say “Show me the money!”
For more information about how maintenance software can improve your bottom line, contact DPSI today or sign up for a free trial of our computerized maintenance management software!