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The Benefits of Computerized Maintenance Management Systems
From an Insurance Perspective

A computerized maintenance management system is a software  package that allows an organization to control, optimize and verify its maintenance activities, such as repairs, routine inspections and preventive maintenance.

A CMMS can record exactly what work has and hasn’t been done. For example, it can record what safety inspections and maintenance jobs should be done, and when they actually were done. It can also help maintenance personnel schedule safety jobs in advance, so the work isn’t forgotten or overlooked. If liability questions arise, CMMS records help an organization defend itself, by showing that maintenance was performed in accordance with any applicable requirements.

According to a White Paper prepared by MainBoss Maintenance Software, a division of Thinkage, Ltd., CMMS can also help organizations use their resources more productively. Maintenance departments can substantially increase labor productivity, decrease inventory needs, and reduce equipment downtime by eliminating waste and spotting repair trends. More than anything, a CMMS is a way of keeping accurate and timely accounts of maintenance activities.

Such measurements allow effective management decisions instead of blind guesses, and provide the kind of feedback needed to continue making improvements. They also let maintenance personnel become proactive rather than reactive – getting on top of things rather than simply responding to problems as they arise.

The CMMS notes what jobs have been done, schedules what jobs need to be done in the future, and keeps track of all information relevant to maintenance work. A comprehensive CMMS can record costs of labor and materials on a per-job basis, can show what equipment is under warranty, and can tell you when to reorder spare parts.

More than anything else, a CMMS lets you measure what you’re doing. It helps you answer questions like the following:

• What was the total cost of maintenance (labor and materials) on a particular piece of equipment in the past year?

• What’s the replacement cost of that same piece of equipment (from which you can calculate downtime costs to the company)?

• What kind of problems did the equipment have? Do the repairs have an overall pattern that suggests maintenance procedures should change? Is it likely that more frequent inspections or preventive maintenance will stop trouble before it happens? Can you prove that this would be worth the cost?

From an insurance perspective, a CMMS makes sure that necessary work doesn’t slip through the cracks. If, for example, a piece of machinery requires monthly maintenance, the CMMS can schedule that maintenance ahead of time to make sure it doesn’t get missed. In liability cases, CMMS records can be used to prove that an organization has been appropriately diligent in maintenance efforts; the records can show that all required maintenance has been done in accordance with manufacturer’s specifications.

CMMS packages differ in many respects, but most provide the following features:

Work request management – Keeping track of problem reports received from sources outside the maintenance department, such as complaints from other departments in the organization.

Work order management – Keeping track of work orders prepared by maintenance personnel. This includes the creation of work orders, plus recording the results of each job after its’ finished.

The creation of work orders may include description of the job, specifying date and time it should be done, estimating length of job, assigning personnel and estimating labor costs, reserving materials expected to be needed for the work, specifying accounting charges for the job, recording useful information for workers.

When the job is finished, the CMMS can record what the job actually entailed, the start and end times for the job, labor costs and material usage, length of down-time for equipment involved, cause of the problem, and any other details that might be relevant now or in the future.

Work order management also includes automatic generation of work orders for preventive maintenance. Maintenance costs are subject to a greater degree of control than many other costs in an organization. Up to a point, you can choose how much maintenance you do, and you can tune the nature of you maintenance to get better results with less cost. To control costs, however, you need the right information. You need to know where the money really goes, and whether it’s spent effectively.

That’s where a CMMS comes in. Some of the savings include: Improved safety – Equipment gets serviced on time. Problem reports don’t get lost. Work orders can include full instructions for preventive maintenance tasks. Maintenance personnel can easily find the information they need to do their jobs, and if someone decides that a particular equipment component needs special attention during inspections, an appropriate note can be added to instructions so that the information is passed on to whoever does the job in the future.

Improved liability tracking – Complete records of all work done on facilities and equipment can be invaluable in liability proceedings. There is no missing paperwork, because everything is stored in computer files.

Increased labor productivity – Maintenance productivity in the U.S. and Canada averages about 35 percent, which means that in an 8-hour shift, a worker spends about 2.8 hours in direct hands-on work. Most organizations with a CMMS have managed to raise this to 70-80 percent. They can get more accurate information on equipment and facilities without having to search through paper files and manuals.

Work orders are more complete and accurate, making sure that the right people arrive at the right place at the right time. Other cost savings come from better inventory control and better analysis of history, which allows for better planning. Knowing what went wrong in the past can help you avoid repetitions. If a particular piece of equipment is known to have vulnerabilities, maintenance staff can proactively take steps to monitor and minimize potential problems.

Excerpted from a White Paper prepared by MainBoss Maintenance Software, a division of Thinkage, Ltd.

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