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The Top Ten Reasons to Deploy a CMMS

A white paper by Edward Garibian, eRPortal Software Group
The Top Ten Reasons to Deploy a
CMMS




             How a Computerized Maintenance Management System
             Ensures Regulatory Compliance, Extends Asset Life, and
             Increases Efficiency
             In today’s business climate, those responsible for directing industrial plant or physical
             infrastructure-intense operations are constantly pulled by drivers – often, incongruent
             drivers that constantly demand attention. A short list of these would include: lowering
             costs, maintaining workplace harmony, maintaining regulatory compliance, and of course,
             maximizing efficiency. This affects management in any marketplace, including industrial
             and manufacturing, utilities and municipalities, and higher education and healthcare. Plant
             managers, engineering directors, and public works chiefs are all witnessing a radical shift in
             optimizing operations and productivity, as well as managing enterprise assets.

             The expanding alphabet soup of regulations and regulatory agencies requires companies to
             have complete visibility into their processes. Meanwhile, plants need to run smoothly and
             efficiently, and in tough economic times, directors are pressured to extend the life of company
             assets. Adding to the complexity is an aging Baby Boomer workforce retiring – and taking their
             knowledge of machinery and operations with them to the golf course.

             Many manufacturing companies, utilities, and universities are turning to Computerized
             Maintenance Management Systems (CMMS) to address these challenges. These solutions
             help directors extend the life of existing corporate assets, increase workforce productivity, and
             comply with myriad regulations by leveraging proactive alerts and integrating into existing
             computer systems. Now staff can focus on maintaining the plant, rather than scrambling every
             time something goes wrong.




  2
The Top Ten Reasons to Deploy
a CMMS




            Trends in CMMS
            Running a manufacturing operation, utility, or higher educational facility is becoming more
            complicated than ever. The increasing number of regulations, an aging workforce, and stagnant
            or decreasing budgets are requiring directors to reexamine how they manage maintenance
            issues.

            Regulations add additional complexities to maintenance and asset management processes.
            The U.S. Environmental Protection Agency (EPA) regulates pollution control and hazardous
            substances, while the Occupational Safety and Health Administration (OSHA) keeps an eye
            on workplace safety and proper procedures for machine and equipment maintenance. For
            universities, the Department of Homeland Security (DHS) watches over who can handle certain
            chemicals and assets. In the public sector, GASB 34 mandates the proper reporting of the
            maintenance, purchase, and whereabouts of assets.

            Meanwhile, every day, 10,000 Baby Boomers reach the age of 65.1 That means a large chunk of
            the labor force is leaving – and taking their specialized maintenance knowledge with them.

            Finally, the recent economic downturn has forced companies to focus harder on extending the
            life of assets. Whether the asset is an aging pump or a vehicle, it’s a given that capital budgets
            (and any requests) will be scrutinized and so all existing asset investments must be preserved.

            To be successful, Asset Management executives and managers need to comply with
            regulations, capture and retain worker knowledge, and extend the life of assets.

            Top Ten Reasons to Deploy a CMMS
            Designed to address these challenges, directors are turning to computerized maintenance
            management systems that allow them to track maintenance activity, have full visibility into
            equipment condition, generate comprehensive reports, and schedule routine maintenance
            seamlessly.

            Robust Reporting Capabilities
            Any time an organization has an asset, they need to report on costs, maintenance, and other
            issues. The finance department needs to know what the organization’s asset status is so that
            they can budget appropriately. Other executives may need broader reports. Even compliance
            reporting can be used for other departments. For example, if the organization has never had
            a toxic chemical spill, being able to report that – and use that for marketing purposes – is a
            benefit for the entire organization.

            With the right CMMS, you can easily summarize costs, reporting, and the financial impact of
            every asset. You can also have full visibility into how the assets are managed and maintained,
  3         allowing you and your company to allocate resources to assets that need more attention.


            1	        Snyder, Michael. “16 Statistics About The Coming Retirement Crisis That Will Drop Your Jaw.”
            Business Insider, January 5, 2012. http://www.businessinsider.com/facts-about-retirement-crisis-2010-
            12?op=1#ixzz210aDVzN4
The Top Ten Reasons to Deploy
a CMMS




            Regulatory Compliance
            CMMS allows you to track everything from the environmental impact of an asset to its storage
            and maintenance. Depending on the industry, regulations could require that you document
            the proper procedures for workplace safety or the proper personnel handling hazardous
            substances. The public sector also needs to track capital spend on investments, as well as
            maintenance and storage.

            The right CMMS allows you full visibility into organizational assets so that you can comply with
            regulations. It also supports all pertinent regulations to allow for comprehensive asset tracking
            and monitoring. Organizations should also look for an alert system to apprize them of possible
            compliance pitfalls.

            Accurate Asset Inventory
            GASB 34 regulations require public sector organizations to report on assets owned, where the
            asset is stored, the condition of the asset, and asset maintenance. With the wide dispersal of
            assets, particularly within municipalities, knowing the location of every fire hydrant and traffic
            light can be challenging. A good CMMS system can provide you every detail about the asset’s
            status and location. This is especially true of those that are GPS and GeoData-aware and can
            interoperate with the municipality’s existing GIS platform.

            Even the private sector can benefit from knowing an asset’s status and location to help with
            budgeting, forecasting, and making the business case for increased asset investment. With an
            accurate asset inventory, companies can know what is needed and what is superfluous, saving
            money on duplicative solutions.

            Reduced Downtime
            Reporting capabilities give way to reduced downtime. No organization wants to deal with work
            stoppages, which cost untold amounts of money in lost product and productivity. By having
            that visibility into the equipment’s condition, you can plan maintenance before a stoppage
            occurs.

            The right CMMS provides alerts pushed directly to your email or desktop. It can monitor the
            exact condition of the machine, such as the temperature or pressure levels. For example, if a
            pump is vibrating too fast, a condition based maintenance (CbM)-enabled CMMS can alert you
            to send out a maintenance professional. The CMMS can also monitor how long the machine
            has been running continuously. If the pump needs maintenance after 1,000 hours of run-
            time, the CMMS can also notify you. Look for a solution that can be configured to recognize
            problems and out-of-spect conditions and trigger automatic and appropriate responses.


  4
The Top Ten Reasons to Deploy
a CMMS




            Extended Asset Life
            Maintenance is key to extending asset life. Unfortunately, without full visibility into the asset,
            you can’t proactively maintain the asset, leading to breakdowns and earlier replacements. A
            CMMS with comprehensive PM scheduling and alert capabilities can help extend the life of
            any asset through proactive maintenance. When it’s time for a part to be replaced, the system
            notifies you, and you can assign a maintenance professional to do the job. Or, the system may
            alert the maintenance professional directly.

            In addition, systems with intelligent reporting and analysis functionality will be able to
            articulate frequencies and incident trends on assets and components over time. Again,
            proactive maintenance action can be taken, extending asset life and utilization levels.

            This results in a better return on investment. Companies that spend $50,000 on a motor
            or pump can get longer life out of that equipment when accurate and knowledge based
            maintenance or condition history is visible and easy to act upon.

            Captured and Transferred Knowledge
            With the coming wave of retirement, a CMMS can capture what work has been performed on
            an asset – and how that work was performed. The right CMMS can provide a record, so if an
            asset has needed 20 repairs in the past three years, you know it and can make hard decisions
            on keeping or scrapping the asset. On the flip side, it can also capture steps taken to fix that
            asset. This not only provides a reference point for future employees but also helps existing
            employees collaborate and share information, thereby advancing the organization’s overall
            knowledge level.

            Asset Capital and Expense Forecasting
            Organizations need to take care of their equipment and have intelligence regarding the cost
            of maintenance. They also need to be able to report those costs. For example, knowing how
            much it cost per year to repair one pump can help you decide whether to continue maintaining
            that asset or replace it.

            To get accurate asset capital and expense forecasting, organizations need a CMMS that can not
            only report on existing expenditures but also calculate projections. That way, you can predict
            how much it will cost to replace the fleet every three years, not just in terms of the purchase
            price but also maintenance. The right CMMS gives visibility into these expenditures to hone in
            on problem equipment and plan for the future.




  5
The Top Ten Reasons to Deploy
a CMMS




            Increased Maintenance Workforce Efficiency
            When you send out maintenance professionals, you want to know the job will be completed
            efficiently. That means sending the right person for the job and making sure that the
            professional has the right parts and equipment. You also want to know that the professional
            will be able to complete the job without interruptions, which requires the asset to be available
            for maintenance at the specified time.

            In that case, a CMMS should do three things to increase maintenance workforce efficiency.
            First, the CMMS needs to track the professional’s specialties so that the person with the
            most knowledge about pumps isn’t sent to fix a press. Secondly, the CMMS should track the
            parts needed for the job so that the maintenance professional can bring the right tools and
            equipment for the job, cutting back on time spent traveling or waiting. Finally, the CMMS
            should integrate with other systems so you can schedule maintenance and alert affected
            departments, enabling the departments to work around the planned maintenance. This allows
            the maintenance professional to start on the job right away, rather than waiting for the other
            department to finish their work.

            Improved Productivity Across the Organization
            The maintenance professionals aren’t the only ones impacted when an asset needs work.
            The department using the asset also is impacted. Using a CMMS can improve productivity
            across the organization in two ways. First, it helps maintenance personnel identify equipment
            that needs repairs, allowing them to be proactive in preventing stoppages. Secondly, it
            also provides scheduling such that the department affected will know when preventative
            maintenance is being performed and can work around it.

            A good CMMS will integrate into existing systems so that when the operations department
            pulls up their schedule, they’ll see impending maintenance activity on assets affecting them
            and are able to plan their workday accordingly, therefore minimizing operations downtime and
            maximizing product throughput.

            Parts and Materials Management
            Keeping the plant running smoothly is more than just managing the workforce. It requires
            managing parts and materials and making sure that the organization has the right parts for
            the right job. Some entities may choose to stock spare parts; others may source them. Both
            situations require visibility into the parts and materials inventory, and in the case of sourcing, a
            clear understanding of the vendor’s service level agreement (SLA).

            The right CMMS not only keeps track of parts and materials but also helps manage SLAs. It
            takes the place of paper-based systems that earmark which parts come from which vendor
            and what the turnaround time is and puts it all into one place. It simplifies ordering parts, and
  6
            the system provides clear visibility into parts and materials management, regardless of the
            stocking model.
The Top Ten Reasons to Deploy
a CMMS




            Conclusion
            With these ten benefits, you can easily make the case for a CMMS software solution that
            is right for the organization. When you’re examining different vendors, make sure that the
            vendor you choose can provide the functionality needed to reap all the benefits that CMMS
            software provides. Look for robust reporting, comprehensive asset tracking, and smooth
            integration with other systems. Use the benefits as a checklist when comparing vendors, which
            will help you choose the CMMS software that provides the greatest ROI.

            The eRPortal Software Advantage
            Designed to provide all ten benefits outlined here, eRPortal Software Group’s CMMS software
            manages assets throughout their entire lifecycle. From the initial investment to final disposal
            and every stage in between, eRPortal streamlines procurement management, inventory
            control, materials issues, instrument tracking, outbound logistics, and reporting and analysis.

            eRPortal software is built for flexibility, interoperability, and ease of use. This means it can tie
            smoothly into existing systems and applications, including financial, accounting, operations,
            GIS, HR, and HMI. It can be deployed either on premise or in a cloud-based Software as
            a Service (SaaS) model, allowing you to choose the best fit for your organization. Rapid
            deployment means the software is up and running in as little time as possible.

            To learn more about how eRPortal Software Group can help you reap the full benefits of
            CMMS software, please call us at (866) 326-2757 or visit us at:

            Website: www.erportalsoftware.com
            Resources: http://www.erportalsoftware.com/products/resources.asp




  7

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The Top Ten Reasons to Deploy a CMMS

  • 1. The Top Ten Reasons to Deploy a CMMS A white paper by Edward Garibian, eRPortal Software Group
  • 2. The Top Ten Reasons to Deploy a CMMS How a Computerized Maintenance Management System Ensures Regulatory Compliance, Extends Asset Life, and Increases Efficiency In today’s business climate, those responsible for directing industrial plant or physical infrastructure-intense operations are constantly pulled by drivers – often, incongruent drivers that constantly demand attention. A short list of these would include: lowering costs, maintaining workplace harmony, maintaining regulatory compliance, and of course, maximizing efficiency. This affects management in any marketplace, including industrial and manufacturing, utilities and municipalities, and higher education and healthcare. Plant managers, engineering directors, and public works chiefs are all witnessing a radical shift in optimizing operations and productivity, as well as managing enterprise assets. The expanding alphabet soup of regulations and regulatory agencies requires companies to have complete visibility into their processes. Meanwhile, plants need to run smoothly and efficiently, and in tough economic times, directors are pressured to extend the life of company assets. Adding to the complexity is an aging Baby Boomer workforce retiring – and taking their knowledge of machinery and operations with them to the golf course. Many manufacturing companies, utilities, and universities are turning to Computerized Maintenance Management Systems (CMMS) to address these challenges. These solutions help directors extend the life of existing corporate assets, increase workforce productivity, and comply with myriad regulations by leveraging proactive alerts and integrating into existing computer systems. Now staff can focus on maintaining the plant, rather than scrambling every time something goes wrong. 2
  • 3. The Top Ten Reasons to Deploy a CMMS Trends in CMMS Running a manufacturing operation, utility, or higher educational facility is becoming more complicated than ever. The increasing number of regulations, an aging workforce, and stagnant or decreasing budgets are requiring directors to reexamine how they manage maintenance issues. Regulations add additional complexities to maintenance and asset management processes. The U.S. Environmental Protection Agency (EPA) regulates pollution control and hazardous substances, while the Occupational Safety and Health Administration (OSHA) keeps an eye on workplace safety and proper procedures for machine and equipment maintenance. For universities, the Department of Homeland Security (DHS) watches over who can handle certain chemicals and assets. In the public sector, GASB 34 mandates the proper reporting of the maintenance, purchase, and whereabouts of assets. Meanwhile, every day, 10,000 Baby Boomers reach the age of 65.1 That means a large chunk of the labor force is leaving – and taking their specialized maintenance knowledge with them. Finally, the recent economic downturn has forced companies to focus harder on extending the life of assets. Whether the asset is an aging pump or a vehicle, it’s a given that capital budgets (and any requests) will be scrutinized and so all existing asset investments must be preserved. To be successful, Asset Management executives and managers need to comply with regulations, capture and retain worker knowledge, and extend the life of assets. Top Ten Reasons to Deploy a CMMS Designed to address these challenges, directors are turning to computerized maintenance management systems that allow them to track maintenance activity, have full visibility into equipment condition, generate comprehensive reports, and schedule routine maintenance seamlessly. Robust Reporting Capabilities Any time an organization has an asset, they need to report on costs, maintenance, and other issues. The finance department needs to know what the organization’s asset status is so that they can budget appropriately. Other executives may need broader reports. Even compliance reporting can be used for other departments. For example, if the organization has never had a toxic chemical spill, being able to report that – and use that for marketing purposes – is a benefit for the entire organization. With the right CMMS, you can easily summarize costs, reporting, and the financial impact of every asset. You can also have full visibility into how the assets are managed and maintained, 3 allowing you and your company to allocate resources to assets that need more attention. 1 Snyder, Michael. “16 Statistics About The Coming Retirement Crisis That Will Drop Your Jaw.” Business Insider, January 5, 2012. http://www.businessinsider.com/facts-about-retirement-crisis-2010- 12?op=1#ixzz210aDVzN4
  • 4. The Top Ten Reasons to Deploy a CMMS Regulatory Compliance CMMS allows you to track everything from the environmental impact of an asset to its storage and maintenance. Depending on the industry, regulations could require that you document the proper procedures for workplace safety or the proper personnel handling hazardous substances. The public sector also needs to track capital spend on investments, as well as maintenance and storage. The right CMMS allows you full visibility into organizational assets so that you can comply with regulations. It also supports all pertinent regulations to allow for comprehensive asset tracking and monitoring. Organizations should also look for an alert system to apprize them of possible compliance pitfalls. Accurate Asset Inventory GASB 34 regulations require public sector organizations to report on assets owned, where the asset is stored, the condition of the asset, and asset maintenance. With the wide dispersal of assets, particularly within municipalities, knowing the location of every fire hydrant and traffic light can be challenging. A good CMMS system can provide you every detail about the asset’s status and location. This is especially true of those that are GPS and GeoData-aware and can interoperate with the municipality’s existing GIS platform. Even the private sector can benefit from knowing an asset’s status and location to help with budgeting, forecasting, and making the business case for increased asset investment. With an accurate asset inventory, companies can know what is needed and what is superfluous, saving money on duplicative solutions. Reduced Downtime Reporting capabilities give way to reduced downtime. No organization wants to deal with work stoppages, which cost untold amounts of money in lost product and productivity. By having that visibility into the equipment’s condition, you can plan maintenance before a stoppage occurs. The right CMMS provides alerts pushed directly to your email or desktop. It can monitor the exact condition of the machine, such as the temperature or pressure levels. For example, if a pump is vibrating too fast, a condition based maintenance (CbM)-enabled CMMS can alert you to send out a maintenance professional. The CMMS can also monitor how long the machine has been running continuously. If the pump needs maintenance after 1,000 hours of run- time, the CMMS can also notify you. Look for a solution that can be configured to recognize problems and out-of-spect conditions and trigger automatic and appropriate responses. 4
  • 5. The Top Ten Reasons to Deploy a CMMS Extended Asset Life Maintenance is key to extending asset life. Unfortunately, without full visibility into the asset, you can’t proactively maintain the asset, leading to breakdowns and earlier replacements. A CMMS with comprehensive PM scheduling and alert capabilities can help extend the life of any asset through proactive maintenance. When it’s time for a part to be replaced, the system notifies you, and you can assign a maintenance professional to do the job. Or, the system may alert the maintenance professional directly. In addition, systems with intelligent reporting and analysis functionality will be able to articulate frequencies and incident trends on assets and components over time. Again, proactive maintenance action can be taken, extending asset life and utilization levels. This results in a better return on investment. Companies that spend $50,000 on a motor or pump can get longer life out of that equipment when accurate and knowledge based maintenance or condition history is visible and easy to act upon. Captured and Transferred Knowledge With the coming wave of retirement, a CMMS can capture what work has been performed on an asset – and how that work was performed. The right CMMS can provide a record, so if an asset has needed 20 repairs in the past three years, you know it and can make hard decisions on keeping or scrapping the asset. On the flip side, it can also capture steps taken to fix that asset. This not only provides a reference point for future employees but also helps existing employees collaborate and share information, thereby advancing the organization’s overall knowledge level. Asset Capital and Expense Forecasting Organizations need to take care of their equipment and have intelligence regarding the cost of maintenance. They also need to be able to report those costs. For example, knowing how much it cost per year to repair one pump can help you decide whether to continue maintaining that asset or replace it. To get accurate asset capital and expense forecasting, organizations need a CMMS that can not only report on existing expenditures but also calculate projections. That way, you can predict how much it will cost to replace the fleet every three years, not just in terms of the purchase price but also maintenance. The right CMMS gives visibility into these expenditures to hone in on problem equipment and plan for the future. 5
  • 6. The Top Ten Reasons to Deploy a CMMS Increased Maintenance Workforce Efficiency When you send out maintenance professionals, you want to know the job will be completed efficiently. That means sending the right person for the job and making sure that the professional has the right parts and equipment. You also want to know that the professional will be able to complete the job without interruptions, which requires the asset to be available for maintenance at the specified time. In that case, a CMMS should do three things to increase maintenance workforce efficiency. First, the CMMS needs to track the professional’s specialties so that the person with the most knowledge about pumps isn’t sent to fix a press. Secondly, the CMMS should track the parts needed for the job so that the maintenance professional can bring the right tools and equipment for the job, cutting back on time spent traveling or waiting. Finally, the CMMS should integrate with other systems so you can schedule maintenance and alert affected departments, enabling the departments to work around the planned maintenance. This allows the maintenance professional to start on the job right away, rather than waiting for the other department to finish their work. Improved Productivity Across the Organization The maintenance professionals aren’t the only ones impacted when an asset needs work. The department using the asset also is impacted. Using a CMMS can improve productivity across the organization in two ways. First, it helps maintenance personnel identify equipment that needs repairs, allowing them to be proactive in preventing stoppages. Secondly, it also provides scheduling such that the department affected will know when preventative maintenance is being performed and can work around it. A good CMMS will integrate into existing systems so that when the operations department pulls up their schedule, they’ll see impending maintenance activity on assets affecting them and are able to plan their workday accordingly, therefore minimizing operations downtime and maximizing product throughput. Parts and Materials Management Keeping the plant running smoothly is more than just managing the workforce. It requires managing parts and materials and making sure that the organization has the right parts for the right job. Some entities may choose to stock spare parts; others may source them. Both situations require visibility into the parts and materials inventory, and in the case of sourcing, a clear understanding of the vendor’s service level agreement (SLA). The right CMMS not only keeps track of parts and materials but also helps manage SLAs. It takes the place of paper-based systems that earmark which parts come from which vendor and what the turnaround time is and puts it all into one place. It simplifies ordering parts, and 6 the system provides clear visibility into parts and materials management, regardless of the stocking model.
  • 7. The Top Ten Reasons to Deploy a CMMS Conclusion With these ten benefits, you can easily make the case for a CMMS software solution that is right for the organization. When you’re examining different vendors, make sure that the vendor you choose can provide the functionality needed to reap all the benefits that CMMS software provides. Look for robust reporting, comprehensive asset tracking, and smooth integration with other systems. Use the benefits as a checklist when comparing vendors, which will help you choose the CMMS software that provides the greatest ROI. The eRPortal Software Advantage Designed to provide all ten benefits outlined here, eRPortal Software Group’s CMMS software manages assets throughout their entire lifecycle. From the initial investment to final disposal and every stage in between, eRPortal streamlines procurement management, inventory control, materials issues, instrument tracking, outbound logistics, and reporting and analysis. eRPortal software is built for flexibility, interoperability, and ease of use. This means it can tie smoothly into existing systems and applications, including financial, accounting, operations, GIS, HR, and HMI. It can be deployed either on premise or in a cloud-based Software as a Service (SaaS) model, allowing you to choose the best fit for your organization. Rapid deployment means the software is up and running in as little time as possible. To learn more about how eRPortal Software Group can help you reap the full benefits of CMMS software, please call us at (866) 326-2757 or visit us at: Website: www.erportalsoftware.com Resources: http://www.erportalsoftware.com/products/resources.asp 7