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28/10/2011 22:01
hen considering the purchase of enterprise level physical asset and maintenance management software the driving factor should be determining what type of return you will receive for your investment (ROI).This article will briefly discuss the more important ROI elements as well as how to use a ROI calculator to estimate the cash flow impact of a CMMS system.
Maintenance
Maintenance is one of the core functions of every asset intensive industry ranging from amusement parks to wastewater utilities but also includes assets managed by Federal, State and Local governments. CMMS systems are an important tool for changing reactive maintenance programs into efficient proactive work management operations. As a general rule, for every dollar spent on preventive maintenance, you will save at least five dollars in subsequent expenses. Source: Kansas State University Good work management practices include the planning and scheduling of preventive maintenance, inspections, repairs and the flexibility to handle unscheduled maintenance as it arises. These maintenance practices can bring in between 12 and 18% in cost reductions for organizations relying on reactive maintenance.
The ROI math is (Annual maintenance costs) x (% savings)= Maintenance savings Further expense reductions using a CMMS system can be realized by increasing the mobility of maintenance staff. Increasing mobility is employing the use of mobile handheld devices that reduce the amount of time filling out paperwork for work management tasks. Hospitality IT decision makers have made it clear that mobility is no longer an option but a necessity to survive in an increasingly competitive market Motorolas hospitality
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28/10/2011 22:01
barometer indicates that the mobilization of key applications enables organizations to save or recover a daily average of 44 minutes per employee Source: Frank Riso, Motorola The ROI math is (# employees) x (hourly rate) x (# of workdays per year) x (minutes saved/60)= Time saved by mobile software.
Energy
Energy use in commercial buildings often accounts for more than 25% of operating costs. In some industries, such as Hotels, it is not uncommon for a moderate size hotel to spend $1 million annually on utilities (gas, water and electric). On average, Americas 47,000 hotels spend $2,196 per available room each year on energy. This represents about 6 percent of all operating costs. Through a strategic approach to energy efficiency, a 10 percent reduction in energy consumption would have the same financial effect as increasing the average daily room rate (ADR) by $0.62 in limited-service hotels and by $1.35 in full-service hotels. Source: EnergyStar Although each type of facility varies, HVAC is clearly one of the major opportunities where substantial energy savings can be found. Regularly scheduled cleaning or changing of filters, corrosion inspections and other preventive maintenance techniques allow HVAC equipment to operate at maximum efficiency using between 15-20% less energy. The ROI math for a hotel is (# of rooms x energy cost per room) x (the amount of energy reduction) = HVAC energy savings
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28/10/2011 22:01
The ROI math for document storage and handling is (cost of lost documents + the costs of misfiled documents)
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