CMMS: Realizing the Value

by John Rimer — A computerized maintenance management system (CMMS) can be a very valuable operations and business tool for facility managers. However, many, if not most, facility programs and their respective organizations are not realizing this value due to failed implementations, under-utilization or no CMMS installed at all. The intent of this article is to address common reasons for failed or struggling CMMS implementations, the value such a system can provide and recommendations for implementing or improving this robust facility management tool.

Common reasons for failed systems

Empirically, there are many reasons for failed implementations or under-utilized CMMS installations. While this list could be extensive, the following are some of the most widely observed in the facility industry.

Wrong system for the job

An all-too-common occurrence is the use of the IT department’s work ticket system to manage facility-related work orders. While this allows the facility department to receive and process service requests, it does not typically maintain asset history, nor does it precipitate the collection of other crucial data needed to efficiently and effectively manage the department. Facility departments should seek to justify the purchase of a system that is catered to their business.

Budget to install, but not to implement

While successful implementations can take months, many users measure in years — not due to the complexity or size of the installation; rather the extended periods are caused by the lack of resources. Thus, facility managers and their staff are left to input data, set up schedules, etc. in their limited spare time. This renders the CMMS useless and prevents it from returning value to the organization. The key to avoiding this pitfall is to adequately plan and budget for the internal and/or third-party personnel needed to meet the desired and agreed-upon timeline. The sooner the system is up and running, the sooner its value can be realized.

Insufficient planning and stakeholder buy in

Another significant inhibitor to success is when a CMMS is purchased and installed without the appropriate due diligence up front clearly defining system requirements or soliciting stakeholder input. Thus, the facility department is saddled with a system that does not adequately meet its needs or those of its customers. Additionally, stakeholders and users may be resistant to using the system because they do not see the value. Such a situation can avoided through thorough analysis and stakeholder involvement.

Change paralysis

A less common but noteworthy problem is that of extensive investment in a home-grown system or highly customized off -the-shelf product. Such situations can make revisions and upgrades very costly and undesirable; thus creating an environment of change paralysis. However, given the growing client demands and pressures on the facility industry to do more with less, it is necessary for facility managers to escape this paralysis and make the needed changes, leveraging the advances in technology and processes to realize the efficiencies possible with such improvements. Organizations should compare the costs and capabilities of their existing system to those available in the marketplace and make an unbiased decision on which product warrants their continued investment.

Lack of knowledge and experience

Lastly, lack of knowledge is the most common reason for failed or underutilized CMMS installations. Most users have not been exposed to nor understand the value a CMMS can bring to their organization or how best to leverage its various capabilities to the betterment of the department. The solution to such shortcomings is to engage and learn from other facility professionals that have a robust CMMS and facility management program (such as through IFMA and your local chapter) or solicit the input of those who have experience in this arena, such as CMMS providers and consultants.

The value of a CMMS

Facility managers are responsible for what is typically the second-largest asset and expense for most organizations — the buildings. Additionally, they have a direct impact on the productivity of the number one asset — its people. Yet, many facility managers operate without being properly equipped. One of the most, if not the most, important tool for a facility management program is a CMMS.

Nervous system of a facility organization

The CMMS is the nervous system for a facility organization. It acts as the repository for building and equipment information and history, it assists in the management of a facility program and it is invaluable in assembling performance and budget data. Without a CMMS, most facility teams tend to be reactionary, which is very costly and unpredictable. A CMMS can equip the facility management team with the necessary data to drive value added business decisions that resonate with the C-suite and communicate value to department managers.

Key functions of a CMMS

The following are some of the key functions for which a CMMS can be utilized to better the facility management program. While this list is not exhaustive, it comprises at least the primary capabilities to look for in a CMMS.

  • Maintain asset equipment information and history (including manuals, drawings, reports, etc.)
  • Exhibit system hierarchy, location and relationships
  • Store and manage maintenance standards, practices and procedures
  • Schedule work orders and staff
  • Submit and track service requests (for occupant/client use)
  • Prioritize and dispatch work orders to staff and contractors
  • Manage work orders through completion
  • Document important work order information (labor, material, failure codes and notes)
  • Provide closure to service requesters (automatically via email)
  • Solicit customer feedback (through automated surveys)
  • Schedule facility condition assessments
  • Capital renewal planning and budgeting
  • Key performance indicator (KPI) reporting, trends and analysis (including configurable dashboards)
  • Extensive and flexible reporting
Tool for driving strategic business decisions

While many of the key CMMS functions involve daily operations, the data collected will be utilized by facility managers at a more strategic level to discern program and team performance and to identify opportunities for improvement.

With scheduled maintenance in place and a solid history of equipment performance and failure costs, an accurate operations budget can be more readily generated from the CMMS. Using a zero-based budgeting approach, leveraging data gathered from the CMMS, facility managers can be better prepared to discuss and negotiate service level expectations and resource requirements. Additionally, a capital budget and respective three-, five- and 10-year plan can be extracted from the CMMS, allowing the FM team to put forward clear business justification for capital improvements and replacements.

Lastly, the tracking and reporting of facility program performance data can be and should be shared with management and stakeholders. The data can be used as part of the facility manager’s marketing plan, promoting the value of the facility department to the entire organization.

Successfully implementing or improving a CMMS

In order to realize the aforementioned benefits and avoid the pitfalls, one must be very strategic and methodical in the selection and use of a CMMS. This requires diligence to satisfactorily define stakeholder needs and system requirements. The following high-level steps can be taken to ensure successful implementation and use of a CMMS.

Identify stakeholders

A CMMS will impact a variety of stakeholders; thus, it is necessary to identify the affected users and recipients of the system and its data to ensure a comprehensive needs analysis is developed. Stakeholders may include accounts payable, finance, middle and upper management, compliance and quality control, warehouse and inventory, contractors and service providers, building occupants, production personnel, clients and visitors and, of course, facility staff.

The extent of input solicited from stakeholders and the weight it holds in the decision-making process is dependent upon their interaction with the system and their need for data from it. This is an important political task for the facility manager, as these stakeholders could be important allies or obstacles in gaining funding approval and successful implementation. How well the facility manager handles this step will be crucial to the overall success.

Define processes

As the saying goes, “a good CMMS cannot fix bad processes;” thus a critical evaluation of current facility related processes should be conducted with stakeholders. Improving existing processes and defining new ones are important factors in developing system requirements and selection criteria.

Develop system requirements

Interviews should be held with identified stakeholders to discern their respective requirements and relative importance of such to their department, team, etc. Some examples may include:

  • Accounts payable — Process of facility-related invoices and associate purchase orders and invoices with work orders and equipment, departments, etc.
  • Finance department — Desired financial reports, including format and frequency
  • Human resources — Time reporting and vacation/sick leave management
  • Quality control and compliance — Work order approval routing
  • Warehouse and inventory — Order and manage parts and inventory; charge materials to equipment, departments, etc.
  • Building occupants — Service request submission and status, customer surveys, facility department communications and important initiatives
  • Scheduler — Review and triage service requests and work orders; prioritize, dispatch and close work orders; manage, coordinate and communicate service and maintenance; communicate with facility staff, contractors and service providers
  • Facility engineers — Assigned work orders, backlog, equipment history and information, work order completion and data requirements, interface with inventory, purchasing, etc.
  • Contractors/service providers — Assigned work orders, complete work orders, provide required data and documentation
  • Facility management — Desired KPIs and dashboards; budgeting reports and analysis tools

Create assessment matrix

Once system requirements have been identified, incorporate them into an assessment matrix. In the matrix, each requirement is listed separately with a weight factor assigned; typically the sum of the weighted factors equals 100 percent. Then a grading or evaluation scale must developed, such as 0 does not meet requirements, 1 could meet requirements with customization, 2 nearly meets requirements, 3 meets requirements and 4 exceeds requirements. It is assumed that cost will be a factor in the decision process; however, it should not be the key deciding factor, as what may be saved in the initial price could be starkly overshadowed by the efficiencies gained with more expensive systems. An organization may want to consider initially removing the cost component from the selection criteria; then reveal the prices for top contenders once the requirement evaluation is complete.

Identify and evaluate qualifying vendors

Use system requirements to identify and qualify potential CMMS products. Once qualifying products are identified and further information gathered, an initial evaluation can be performed to further narrow the list. Stakeholders or stakeholder representatives should be invited to participate in the evaluation process. Highest scoring candidates should be requested to demonstrate how their system meets the organizations requirements and processes. The CMMS should be scrutinized to determine if customizations are necessary to satisfy the needs, as customizations can significantly increase the cost of the system over its lifetime. Stakeholders should participate in this final review process and selection of the CMMS.

Plan for successful implementation

Develop a budget that includes the cost to purchase and set up the product, train staff and operate the system. Make sure to account for recurring costs, including software maintenance agreements and licensing fees. Additionally, the facility departments operations budget should include the staff necessary to administer and maintain the CMMS in accordance with the prescribed processes, such as a scheduler, dispatcher and someone to input and update equipment information and maintenance schedules.

Lastly, put together an implementation schedule that is realistic and manageable given the approved budget. The schedule should be communicated and agreed to by management and stakeholders. In establishing the schedule, be careful to consider which modules and data should be implemented first and their dependencies. Then celebrate the accomplishment of milestones and communicate their value to the entire organization.

A CMMS can and should be a valuable tool to the facility department and the overall organization. However, without the appropriate due diligence up front and the needed ongoing support, a great CMMS software can quickly become a despised thorn in the side. Thus, be wise in the selection, involve stakeholders and solicit help and insight from experienced consultants and fellow facility professionals.

John Rimer is a Certified Facility Manager. and IFMA qualified instructor. He is founder and president of Facility University (facilityuniversity.com) and president of FM360 Consulting (fm360consulting.com).

He is director and past president of the Northern Rockies Chapter of IFMA and marketing committee chair for IFMA’s Facility Management Consultants Council (FMCC).

Rimer has worked in the facility management profession since 1997 in a variety of capacities and a wide breadth of industries. His primary focus has been on assessing, developing and improving facility management programs, including the implementation and optimization of CMMS.

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