Asset and Maintenance Management Project Approved – Don’t Forget to Baseline Your Metrics!

If you’ve been following along in our Blog, you’ve probably been able to pick up some good tips on how to successfully initiate a CMMS / EAM project in your organization. Let’s assume you’ve done your homework, aligned your project with company goals, established the financial value proposition, and got the go-ahead to implement TabWare Best Practices. Congratulations! Now let’s make sure we take some time to baseline the things you are going to measure, in order to show improvement. Some of the typical financial benefits that will get sponsors to endorse a CMMS / EAM project are listed below. Maybe you’ve used one or more of them, but we’ll give you some pointers on who to talk to and what to request from them.

Expected business benefits:

  • Decrease maintenance material costs
  • Minimize unplanned, maintenance-related equipment downtime
  • Increase the ‘wrench time’ (direct %) for technicians
  • Reduce maintenance cost per unit produce

By committing to these types of benefits, you’ll need to spend some time with Finance and Accounting to get some information for a proper baseline. To gather this information, start with the analysts that support your department, dig in and get copies of typical monthly cost and production reporting. Having month-by-month costs broken out by account codes, will help you make sure you are comparing the types of costs you can control, like Technician Labor, Overtime, MRO, Consumables, etc. In addition to these costs, try to get production information like ‘Units Produced’ or other sales figures. Month-by-month breakdowns will also make it much easier to compare costs after your CMMS / EAM project’s first year.

If these kinds of reports aren’t available within your department, don’t stop there. Ask your project sponsor for assistance getting in the door with corporate accounting. You’ll likely need some assistance getting time from them, amidst their busy schedule, but be tenacious! This kind of information will help you quantify the success you can see as a Maintenance Manager or Project Leader first hand.

Good Luck!

AssetPoint Author:
Andy Richter, Strategic Engagement Manager