{"id":164320,"date":"2023-02-02T09:00:21","date_gmt":"2023-02-02T13:00:21","guid":{"rendered":"https:\/\/fiix.wpengine.com\/?p=164320"},"modified":"2023-07-04T14:28:42","modified_gmt":"2023-07-04T18:28:42","slug":"how-to-justify-the-cost-of-a-cmms","status":"publish","type":"post","link":"https:\/\/fiixsoftware.com\/blog\/how-to-justify-the-cost-of-a-cmms\/","title":{"rendered":"How to justify the cost of a CMMS"},"content":{"rendered":"<p><em>Guest blog by Elizabeth Mazenko from\u00a0<a href=\"http:\/\/BetterBuys.com\" target=\"_blank\" rel=\"nofollow noopener\">Better Buys<\/a><\/em><\/p>\n<p><em>Elizabeth is an editor with <a href=\"https:\/\/www.betterbuys.com\/\" target=\"_blank\" rel=\"nofollow noopener\">Better Buys<\/a>, a trusted source of maintenance software news and research. Follow her at <a href=\"https:\/\/twitter.com\/ElizMazenko\" target=\"_blank\" rel=\"noopener\">@ElizMazenko<\/a> for more on enterprise software and related technology research.<\/em><\/p>\n<p>Change isn\u2019t easy. So it makes sense that getting people on board with any sort of change comes with a unique set of challenges.<\/p>\n<p>This is true in any industry but can be especially true in the maintenance industry. In many cases, maintenance teams still rely on <a href=\"\/blog\/cmms-spreadsheets\" target=\"_blank\" rel=\"noopener\">outdated forms<\/a> of tracking tasks that slow them down, like paper work orders. We get it, you\u2019re already so busy, and switching your process and workflows is probably low on your list of things you want to do.<\/p>\n<p>Many times, maintenance managers stick with paper forms for four reasons:<\/p>\n<ol>\n<li>They don\u2019t want to train employees on new technology and processes<\/li>\n<li>They\u2019ve had issues working with electronic or mobile forms before<\/li>\n<li>They need a solution that works in the office and in the field<\/li>\n<li>They don\u2019t want to pay for all the features of software when the facility will only use a few of them<\/li>\n<\/ol>\n<p>In this article, you\u2019ll see how to calculate the cost and ROI of maintenance software. You\u2019ll find out how to use that information to convince your boss and their boss that you need a <a href=\"\/cmms\">CMMS<\/a> for your maintenance department.<\/p>\n<p style=\"max-width: 600px; padding: 20px 0;\"><a target=\"_blank\" class=\"blog-link track\" href=\"https:\/\/resources.fiixsoftware.com\/goal-template?utm_source=resource\" rel=\"noopener\">Get people on board with change using this goal-setting template<i class=\"fas fa-arrow-right\" aria-hidden=\"true\"><\/i><\/a><\/p>\n<h2>Getting started<\/h2>\n<p>No two facilities are the same, which means you must understand your company\u2019s current processes and strategies to get a grasp on the benefits of a CMMS.<\/p>\n<p>To do this, you should measure <a href=\"\/maintenance-metrics\/important-kpis-metrics\/\">key performance indicators (KPIs)<\/a> of your assets over time. This can include:<\/p>\n<ul>\n<li>Revenue and budget loss from asset downtime<\/li>\n<li>Inventory tracking and organization<\/li>\n<li>An asset\u2019s actual lifespan versus its expectancy<\/li>\n<\/ul>\n<p>Pro tip: The more data you have, the better you\u2019ll understand your benchmarks. In other words, you\u2019ll know what\u2019s normal and what improvement looks like. If the historical data isn\u2019t available, measure your KPIs for at least six months to a year to get an accurate view of your assets\u2019 performance.<\/p>\n<p>Next, answer the following four questions to get an idea of how different CMMS features can improve performance and maintenance processes:<\/p>\n<ol>\n<li>What data\/reports would make the job easier?<\/li>\n<li>What information does your supervisor consistently ask for?<\/li>\n<li>Where\u2019s most of your maintenance budget going?<\/li>\n<li>What\u2019s your desired <a href=\"\/maintenance-strategies\/planned-maintenance\/\">planned maintenance (PM)<\/a> to <a href=\"\/glossary\/corrective-maintenance\/\">corrective maintenance (CM)<\/a> ratio?<\/li>\n<\/ol>\n<p style=\"max-width: 600px; padding: 20px 0;\"><a target=\"_blank\" class=\"blog-link track\" href=\"https:\/\/resources.fiixsoftware.com\/scoring-calculator\" rel=\"noopener\">Find the perfect CMMS for your team with this CMMS feature scoring template<i class=\"fas fa-arrow-right\" aria-hidden=\"true\"><\/i><\/a><\/p>\n<h2>Calculating the ROI of CMMS software<\/h2>\n<p>One of the first things upper management will want to know is how a CMMS is going to help them and how much it\u2019s going to cost. The easiest and best way to answer these questions and convince this group of stakeholders is by speaking their language. Show them exactly how a CMMS will benefit them by calculating the return on investment. The bigger the return, the easier it will be to secure the buy-in you need. The ROI of CMMS software is dependent on your goals, and the goals of your facility.<\/p>\n<p>There are two ways to accurately calculate the ROI of a CMMS: Total cost of ownership and the value of the maintenance solution itself. Here\u2019s what you need to know about calculating the ROI of a CMMS.<\/p>\n<h3>Total cost of ownership<\/h3>\n<p>The <a href=\"\/blog\/what-is-the-total-cost-of-ownership-of-cmms-software\/\">total cost of ownership<\/a> involves adding all the initial costs of implementing the CMMS to the long-term costs of maintaining the solution. When deciding which CMMS to invest in, be sure to ask questions about the following costs:<\/p>\n<ul>\n<li><strong>Software costs:<\/strong> Cloud-based software often runs on a subscription model. These fees are often paid per user and follow a tiered structure with each tier offering different and\/or more features. When determining subscription fees, think about how many people will be using the software and what level of service you need from the vendor.<\/li>\n<li><strong>Additional hardware and software required:<\/strong> Think about how your employees are going to be accessing the software. Tablets, smartphones, and laptops are all great choices, but they come at a cost.<\/li>\n<li><strong>Solution implementation services and support:<\/strong> Implementation can include things like moving data from your current system to your new one, setting up workflows and users, and other tools that are needed to make your CMMS operational. Some companies charge extra for this, so factor these costs into your calculation.<\/li>\n<li><strong>User and administrator training and long-term support and upgrades:<\/strong> Some vendors charge for training beyond the initial implementation phase. These costs can also include adding, training, and onboarding new users or adding new features.<\/li>\n<\/ul>\n<h3>CMMS value<\/h3>\n<p>The value of a CMMS is easy to see, and implementing one can reduce production costs by <a href=\"https:\/\/resources.fiixsoftware.com\/business-impact-fiix#page=1\" target=\"_blank\" rel=\"noopener\">10% and a 10% reduction in operating expenses<\/a>. However, to get a full grasp on the value a CMMS can bring to your company, you should look at the following metrics:<\/p>\n<ul>\n<li>Asset lifespan: Estimated number of years you expect to extend an asset\u2019s life cycle<\/li>\n<li>Overtime: Average of hourly labor (including overtime) wasted<\/li>\n<li>Inventory: Average amount of time lost due to insufficient inventory<\/li>\n<li>Utilities: Amount of budget spent on utilities versus the expected costs when utilities run at peak efficiency<\/li>\n<li>Productivity: Amount of time spent on tasks like scheduling and work order management<\/li>\n<li>Document management efficiency: How long it takes to create, file, copy, search for and retrieve critical documents<\/li>\n<\/ul>\n<p>Once you have the costs and value determined, you can put the measurements into this formula: CMMS ROI = (Value \u2013 Costs) \/ Cost<\/p>\n<h2>The positive effect<\/h2>\n<p>The next time you\u2019re thinking about pitching a CMMS to your boss, remember that it\u2019s much easier to convince someone that something is a good solution when you have the numbers, data, and testimonials to back it up.<\/p>\n<div class=\"cmms-new\">\n<div class=\"cta_2 cta\" href=\"https:\/\/resources.fiixsoftware.com\/project-deck-template?utm_source=resource\" target=\"_blank\">\n<figure class=\"circle\"><img decoding=\"async\" src=\"\/wp-content\/uploads\/2019\/08\/circle-robins-egg200x200.png\" alt=\"circle\" \/><\/figure>\n<figure class=\"hex\"><img decoding=\"async\" src=\"\/wp-content\/uploads\/2021\/07\/hex-arctic-blue200x200.png\" alt=\"hexagon\" \/><\/figure>\n<div class=\"flex\">\n<div>\n<p>Ready to pitch a CMMS to your boss? Use this pitch deck template to nail it<\/p>\n<\/div>\n<div>\n<p><a style=\"color: white !important;\" href=\"https:\/\/resources.fiixsoftware.com\/project-deck-template?utm_source=resource\" target=\"_blank\" rel=\"noopener\">Check it out <i class=\"far fa-arrow-right\" aria-hidden=\"true\"><\/i><\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Guest blog by Elizabeth Mazenko from\u00a0Better Buys Elizabeth is an editor with Better Buys, a trusted source of maintenance software news and research. Follow her at @ElizMazenko for more on enterprise software and related technology research. Change isn\u2019t easy. So it makes sense that getting people on board with any sort of change comes with a unique set of challenges. This is true in any industry but can be especially true in the maintenance industry. In many cases, maintenance teams still rely on outdated forms of tracking tasks that slow them down, like paper work orders. We get it, you\u2019re already so busy, and switching your process and workflows is probably low on your list of things you want to do. Many times, maintenance managers stick with paper forms for four reasons: They don\u2019t want to train employees on new technology and processes They\u2019ve had issues working with electronic or mobile forms before They need a solution that works in the office and in the field They don\u2019t want to pay for all the features of software when the facility will only use a few of them In this article, you\u2019ll see how to calculate the cost and ROI of [&hellip;]<\/p>\n","protected":false},"author":42,"featured_media":194132,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,153],"tags":[],"coauthors":[],"class_list":["post-164320","post","type-post","status-publish","format-standard","hentry","category-blog","category-buying-software"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ 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Voss","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/fiixsoftware.com\/wp-content\/uploads\/2023\/10\/elizabeth-voss-headshot-300x300.pngeebba8e5b3048c72f071bc6e93a84a43","url":"https:\/\/fiixsoftware.com\/wp-content\/uploads\/2023\/10\/elizabeth-voss-headshot-300x300.png","contentUrl":"https:\/\/fiixsoftware.com\/wp-content\/uploads\/2023\/10\/elizabeth-voss-headshot-300x300.png","caption":"Elizabeth Voss"},"description":"LinkedIn Current title Content Marketing Manager, Brand Industry Maintenance Years of expertise 9+ Verticals\/areas of expertise \u2022 Maintenance \u2022 Pharmaceutical distribution Education \u2022 Advanced Diploma, Humber College, Public Relations Author bio Elizabeth is a creative writer and dynamic storyteller. Prior to Fiix, she spent the bulk of her career shaping and influencing decisions makers with her words in the political, and the life sciences industries. At Fiix, she focuses on delivering content that helps to foster a cohesive brand identity to customers and prospects.","sameAs":["achail"],"url":"https:\/\/fiixsoftware.com\/author\/elizabethv\/"}]}},"_links":{"self":[{"href":"https:\/\/fiixsoftware.com\/wp-json\/wp\/v2\/posts\/164320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fiixsoftware.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fiixsoftware.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fiixsoftware.com\/wp-json\/wp\/v2\/users\/42"}],"replies":[{"embeddable":true,"href":"https:\/\/fiixsoftware.com\/wp-json\/wp\/v2\/comments?post=164320"}],"version-history":[{"count":0,"href":"https:\/\/fiixsoftware.com\/wp-json\/wp\/v2\/posts\/164320\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fiixsoftware.com\/wp-json\/wp\/v2\/media\/194132"}],"wp:attachment":[{"href":"https:\/\/fiixsoftware.com\/wp-json\/wp\/v2\/media?parent=164320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fiixsoftware.com\/wp-json\/wp\/v2\/categories?post=164320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fiixsoftware.com\/wp-json\/wp\/v2\/tags?post=164320"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/fiixsoftware.com\/wp-json\/wp\/v2\/coauthors?post=164320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}