Computer Maintenance Management System

Work Orders
Preventive Maintenance
Inventory-Asset Management

ROI

Facilities/Buildings and Grounds – CAFM/CMMS ROI

One of a Business or Organization’s most expensive cost is it’s building and assets.

Look around any business or organization and notice each department uses software programs created for their industry to help them do their job as efficient and effectively as possible.  The Accounting and Payroll Department is using Accounting software.  Human Resource Department is using HR Software that may also be tied in with the Payroll/Accounting software.

Why are Facilities/Buildings and Grounds personnel subjected  to doing more with less?  Expected to maintain the paper and pencils method or for the more advanced, using Excel™ and Word™ to manage and operate the most valuable assets you own.  Or in worse case scenarios thinking that all Facilities/Buildings and Grounds needs is their tool belts and mowers.

Let’s put this into perspective.  Accounting & Payroll Department manages tens to hundreds or even thousands of entries a day and payroll for 50, 100, 500, 1000’s of employees?  Ask anyone in Accounting & Payroll Department if they would ever go back to the calculator, ledger and pencil method?  This is obviously a ridiculous thing to even think.

Do you know that your Facility Manager, Buildings and Grounds, Maintenance personnel, etc. maintain and manage thousands to hundreds of thousands even millions of items/assets constantly, in addition to employees, complaints, requests, nature, etc.?  Think about the number of outlets, lights, ceiling tiles, drains, valves, water filters, air filters, windows, doors, door knobs, locks, door closures, sprinklers, fire extinguishers, keys, mats, floors, rooms, sinks, toilets, urinals, dispensers, pumps, breakers, wires, vehicles, water heaters, reheat coils, VAV boxes, unit ventilators, exhaust vents, air handling units, belts, bearings, AED’s, controls, sensors, switches and on and on there is in one building.  Then multiply that on the number of buildings they manage.

The most common and outdated way to manage this is to see and/or hear that something is wrong and then respond to it.  Some of these items can cause a trickle effect that disrupts other departments or operations or even close a building down, costing even more money and time to the business or organization.

Facilities/Buildings and Grounds has always been a reaction industry, when it breaks, fix it.  But with technology they can now be proactive and prevent breakdowns before they happen and make the equipment last longer, run more efficiently and reduce utility and maintenance costs.  But they need the tools/program that was designed to do all of this.  The right tool for the job!

NetRequest/NetTask were designed from the ground up to be an all inclusive, easy to use, facility management software.  We did not take multiple programs and try to make them all work together to manage facilities, i.e. CAD, spreadsheets, maintenance software, web publishing software, electronic document storage programs, etc.  Let alone trying to learn and become efficient  with each of the programs to achieve one’s goal.  NetRequest/NetTask was designed to have secretaries, administrators, emergency and of course Facilities/Building and Grounds personnel to operate the NetRequest/NetTask system without having to be an expert in multiple software programs.

Does all of this save money and cost justify a facility management system?

Four Reasons To Beware The Fixed Asset Spreadsheet”

Have you ever asked yourself: Why should I pay for asset tracking software when we can use an application like Excel or Google Drive? If you answered yes, you’re not alone. Many businesses use Excel and Google Drive to track assets.  Is this a good solution, or are fixed asset spreadsheets just a cheap fix?

You’re likely aware that Excel is bad for inventory tracking, but it can also cause major problems when managing fixed assets. In fact, in a recent post, Jackie Luo, CEO of E-ISG Asset Intelligence, stated Excel sheets as an example of bad asset management technology. As Luo points out, “Everyone knows Excel sheets are not designed to track the constantly updated information of asset location, conditions and chain of custody… however, companies still use it.” ¹

Thinking Like a CFO: Prevention Pays, Analysis Shows”

Justifying investments in physical assets is often a difficult challenge for facility executives. That’s especially true when the decision involves keeping existing systems in good working order by investing in preventive maintenance. But a detailed analysis conducted at one large company — based on an assessment of the value of preventive maintenance in terms of key financial ratios — shows that an investment in prevention can have a tremendous payoff.

Over the years, preventive maintenance has been more popular in principle than in practice. One scarcely can argue with the idea of keeping equipment well maintained to extend its expected life and avoid future repair costs. But the economic value of that strategy is difficult to determine.

For example, repair and maintenance account for about 15 percent of total expenses, according to the Building Owners and Managers Association (BOMA) Experience Exchange Report for the year 2000. Although the report does not distinguish between repairs and preventive maintenance, estimates suggest that the latter may account for between 30 percent and 50 percent of repair and maintenance costs, or from 4.5 percent to 7.5 percent of annual operating costs. ”  ²

Determining the Economic Value of Preventive Maintenance”

Preventive maintenance has been more popular in principle than in practice over the years. One scarcely can argue with the idea of keeping equipment well maintained to extend its expected life and avoid future repair costs. Less clear is an understanding of the actual relationship between the cost of preventive maintenance and the returns such activities can be expected to deliver. This article describes a process of assessing the value of preventive maintenance programs and activities by analyzing them in terms of key financial ratios.

Engineers and building operators trying to persuade property owners and managers to invest in preventive maintenance (PM) for their portfolios offer a range of solid arguments:

“The equipment will perform better.”

“Equipment life will be extended.”

“Repair costs will fall.”

“Downtime will be reduced.”

“Tenant satisfaction will increase.”

“The manufacturer says we need to do it.”

Although most owners acknowledge these issues, they may be more concerned with saving money and obtaining optimum value from their investments. Given that perspective, a more convincing argument for preventive maintenance would demonstrate that PM generates a solid rate of return in terms of risk mitigation and asset protection. Anecdotal evidence does suggest that preventive maintenance is valuable. Until now, however, no one has placed a firm value on the relationship between costs and returns. For one thing, the economic value of preventive maintenance is difficult to determine. No specific statistical methods exist. No empirical studies have been performed. How does one quantify the extended life of a chiller? How can one know how much longer a compressor will last if it receives proper preventive maintenance than it would if no PM took place? ” ³

Preventative Maintenance on Fixed Assets: A great Return on Investment”

In most industries, operational effectiveness depends on a major investment in fixed assets such as vehicles, specialty tools and machinery, custom equipment, and other mechanical devices. Shown on the balance sheets as fixed assets, these items can represent a large portion of a company’s value.

However, even if those assets are fully depreciated from an accounting perspective, they are often essential to maintaining efficient operations. Productivity is a function of how efficiently a company maintains its operations flowing smoothly and at the lowest cost.

The concept of preventative maintenance is a well-known and accepted aspect of keeping equipment in the best possible working order. Unfortunately, many companies fail to adopt effective preventative maintenance policies and programs and incur needless expenses, work delays, and safety issues.

  • Pay Now or Pay Later ” ⁴

(1)  http://www.waspbarcode.com/buzz/asset-tracking-excel/

(2)  http://www.facilitiesnet.com/maintenanceoperations/article/Thinking-Like-a-CFO-Prevention-Pays-Analysis-Shows–1505#

(3)  http://pmmi.files.cms-plus.com/MS/certified/newsletters/PreventiveMaintenance.pdf

(4)  http://www.waspbarcode.com/buzz/preventative-maintenance-fixed-assets/