With the industrial sector going through an extended period of volatility in 2020, the main focus moving forward is implementing intelligent and sustainable business practices. It is vital as many businesses are trying to recoup any losses incurred and grow after a period of stagnation. With this in mind, we can understand why a positive return on investment is vital as it provides insight into the investment made.
What is a positive return on investment, why is it important?
ROI is a performance indicator that assesses the efficiency and success of an investment. This philosophy applies to industrial manufacturers who conduct exhaustive research when purchasing their assets and need to be sure that they made the correct investment. For industrial manufacturers, this can be in the form of reliable and efficient machinery.
Industrial corporations attempt to increase their ROI to ensure they are getting the most value out of their investment. Doing this in a sector known for being asset-intensive can be a costly endeavor to undertake. However, this does not need to be the case.
Where does a CMMS system fit in? CMMS is a computerized maintenance management system. These systems are developed to maintain an asset for businesses through functions that make the maintenance process much more efficient.
Through a CMMS system, an asset can be carefully cared for to provide business owners with a positive return on the initial investment.
How do CMMS systems work?
CMMS systems provide a cloud-based platform to communicate work orders, assign resources, store data and develop reports around maintenance activities.
The following are some of the other benefits CMMS provides that result in a positive ROI.
Increased equipment reliability leading to a longer asset lifespan
Industrial factories work at an increasingly fast pace to meet production deadlines. Therefore the possibility of an equipment breakdown is likely. These are known as unforeseen breakdowns that result in reactive maintenance. Reactive maintenance is a costly exercise and detrimental to the lifespan of industrial equipment. CMMS systems address both of these problems.
Previously once equipment broke down, a work order was assigned, usually through email. These generally led to a scramble to procure the right parts and work on the machinery. While simultaneously trying to reduce the amount of downtime that will inevitably be adding up.
CMMS systems can schedule regular maintenance checks on industrial equipment, ensuring that they are operating optimally and reliably when needed and eliminating the possibility of an unforeseen breakdown.
The database provided on a CMMS system also collects valuable information such as the maintenance history, vendor warranties, and required parts allowing employers to be sure that their equipment is repaired correctly.
Preventative maintenance is a vital point in ensuring a positive yield from industrial equipment.
Preventative maintenance coupled with the accurate recording of the equipment information means that corporations can ensure a higher return on investment due to the asset reliability over long periods.
Reduced downtime leading to increased results
The impact downtime can have on an industrial business cannot be understated. The industrial sector is demanding, and downtimes can harm the output and delay a business schedule. Downtime can be avoided, as CMMS systems can develop a preventative maintenance plan allowing the business to be confident that their industrial equipment is running at peak condition.
Another issue that can lead to downtime is poor maintenance scheduling. Scheduling is a problem faced particularly by factories where equipment operates synergistically. Conducting maintenance on specific machines can lead to others not being operable. CMMS systems correct this problem by scheduling maintenance at the most convenient time with help from past reports.
Reduced downtime means that machines are working when they are expected to. This directly provides insight into the returns they provide to the company.
Efficient labor practices
To gain a high return from industrial equipment increased resources should be invested. From an industrial context, this is usually in the form of employee training.
No matter how large an industrial facilities footprint is, employers need access to a database for various tasks. With a CMMS system, this is possible with employees accessing the cloud-based platform of their cellphone.
Employees can now review equipment training manuals and review checklists ensuring that they are operating the equipment correctly rather than damaging the equipment, which harms the ROI.
If a specialized industrial machine breaks down, employers can assign specific employees with a work order to attend to the machinery.
While these look like minor changes employees can adopt, the impact on the ROI can be extremely positive.
Efficient inventory management
Much like efficient handling of labor-management, efficient inventory management will be another cost-saving benefit that gains from a CMMS system.
Industrial machinery is highly specialized and frequently requires unique spare parts that may be difficult to obtain.
With a CMMS system, information stores immediately. This convenient function allows employers to access information such as stock levels. Which can result in a reduction of unnecessary purchases. Investing more money than needed on an asset increases the original investment and should not be done unnecessarily.
CMMS systems can be leveraged in different areas to ensure efficient practices. Between the ability to collate accurate information for reporting and assign resources via the platform, industrial businesses can ensure that they assign the accurate amount of resources to their machinery, being less wasteful and saving costs in the process.
CMMS systems provide so many features that have a positive effect on the ROI. From reducing downtime to carefully maintaining the asset to increase its lifespan, these systems are very beneficial for industrial equipment.
These factors all lead to equipment that is well maintained, and as a result, can be used reliably for many years, ensuring that businesses will see a positive upward trend in their ROI.