What is 1% Improvement Worth?


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

Overall Equipment Effectiveness (OEE)

Increased by 8%

Maintenance Cost

Reduced by 9.5%

Asset Downtime

Reduced by 14%

(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?)
Advertisements

Trackbacks/Pingbacks

  1. What is 1% Improvement Worth? « Cmms Software « cmmsadvice.com - December 3, 2013

    […] November 13, 2013 by Brad Squires 0 Comments […]

%d bloggers like this: