What is 1% Improvement Worth?

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I recently attended the National Facilities Management Technology show, and was able to visit a few of the educational seminars. There was an interesting presentation by a CMMS consultant who shared some information which I would like to share with you. A 2010 Aberdeen Group study showed that implementing a CMMS can have incredible benefits, especially when there is no formal “system” in place to help manage the maintenance processes.

Results from CMMS implementations

(2010, Aberdeen Group)

There’s no question that implementing a CMMS like Maintenance Connection can produce incredible results. In addition to these metrics, think about some of the gains that can be made in these areas:

What is 1% improvement worth?

  • Energy (what do we spend on utilities?)
  • Asset availability (are we operating 24/7?)
  • Operator/trades utilization (are we labor intensive?)
  • Asset life (are we capital intensive?)
  • Response time (how spread out are our facilities?)
  • Safety (what do we pay in works comp?)
  • Production line speed/output (can we push through more volume with better asset performance?)
  • Spare parts inventory level/turns (are we inventorying the right spares to avoid catastrophic downtime?)
  • Inventory service level (are parts there when we need them?)
  • Quality of output, i.e. rejects, rework, loss, giveaway, shrinkage, yield, and waste (what is the cost of poor quality?)