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Enterprise Asset Management
A Beginners Guide To Maintenance Inventory Management
A business that works perfectly is a business organized from A to Z. And optimized inventory management plays a key role in this organization. Perfectly controlled inventory management makes it possible to cope with sales peaks, especially during commercial operations. But in addition to saving you money, inventories can save you money: goodbye to goods […]
A business that works perfectly is a business organized from A to Z. And optimized inventory management plays a key role in this organization. Perfectly controlled inventory management makes it possible to cope with sales peaks, especially during commercial operations. But in addition to saving you money, inventories can save you money: goodbye to goods that end up perishing and dead stocks!
Read also 10 Easy Steps To Successful CMMS Implementation
What is Inventory Management?
Inventory management consists of keeping track of the goods stored by your company and controlling their weight, dimensions, quantities, and location. The goal of inventory management is to minimize the cost of holding merchandise by helping you know when it's time to restock products or repurchase your raw material to manufacture them.
As for inventory control, which closely resembles inventory management, it specifically refers to when you control your inventory, usually through effective management tools or methods. It's much easier to maintain control of your inventory with centralized management.
Why is inventory management important?
Effective inventory management is essential to ensure that a business has sufficient merchandise to meet customer demand. If inventory management is not properly managed, the business can either lose money on potential sales that cannot be realized or waste money by storing too much product unnecessarily.
Inventory management can serve you in several other ways:
1. Avoid waste - If you sell products that have an expiration date (like food or beauty products, for example), you will run into difficulties if you fail to sell your merchandise on time. Optimized inventory management will allow you to prevent your products from going out of date.
2. Avoid deadstock - A deadstock can no longer be sold, but for reasons other than the expiry of the products. It could be that your products are out of fashion, not suitable for the coming seasons, or simply obsolete. By effectively managing your inventory, you can avoid this problem.
3. Save storage costs - Storage costs are variable costs, which means that they evolve according to the number of products stored. If you keep too many products in stock or fail to sell certain items, your storage costs will increase…
4. Improve cash flow - Proper inventory management not only saves you money but also optimizes cash flow in a number of ways. As mentioned before, you've probably spent some money acquiring your stock, and you're going to resell it for a profit. But, until you resell it, your stock costs you more money than it earns you.
That's why it's important to consider inventory as part of your cash flow management. Inventory affects both sales enablement and expenses since you rely on it to know how much product you can sell and need to order. This therefore significantly influences the amount of available cash. In short, good inventory management allows for better cash flow management.
A good inventory management system will allow you to know exactly the quantity of products you have and, based on sales, you will be able to make projections in order to know when you will have to reorder certain items. You will avoid losing sales and you will have enough cash available to better plan your future orders.
The different types of inventory
Now that you know what inventory management is, let's review the types of inventory you'll be dealing with:
Raw materials,
Products in process,
finished products,
Maintenance, repair, and operating goods.
Raw materials - Raw materials are materials or substances used at the start of the production or manufacture of goods. We think in particular of wood, metals, plastics, or fabrics used in the creation of finished products. A business owner or manufacturer acquires these materials from one or more suppliers or producers.
Products in progress - Work-in-progress products are unfinished products that can only be sold after processing by your company.
In a balance sheet, finished goods include all production costs: labor, machinery, raw materials, and other equipment. At this stage, its value is only that of the materials, time, and labor invested.
Finished products - Finished goods inventory is the number of in-stock products available to customers. Once a work in process is processed and finished, then it becomes part of the finished goods inventory.
Finished goods are subject to a markup, which means that the price at which they are sold is higher than what the items cost you.
Maintenance, repair, and operating products - Here we refer to the materials and various equipment used in the production process, but which are not, however, part of the final product.
Read also 6 steps to implement the work order process.
Here are some examples of maintenance, repair, and operation products:
Personal protective equipment like face masks, gloves, and safety glasses,
Cleaning supplies like sanitizers, brooms, and buckets,
Office supplies like notebooks, pens, and tape
Technical equipment such as laptops, printers, scanners, etc.
Laboratory equipment for any test and any research aimed at creating products,
Repair tools.
Inventory Management Techniques
How to manage inventory varies with each business. However, all contractors should do their best to try to eliminate the risk of human error from the inventory management process. This means that it is best to use inventory management software.
Establish a minimum stock level
Simplify your inventory management process by establishing, for each of your products, a minimum stock level. In concrete terms, this consists of holding only the minimum quantity of products necessary for the proper functioning of your business, at all times. When the quantity of a product drops below the predefined quantity, the replenishment order must then be placed.
Calculate your order point
The reorder point tells you the level at which it's time to restock. Once you know your safety stock level, you can consider your supply chain lead time to determine the best time to place your order.
Perfectly manage your relationships with your suppliers
The ability to adapt quickly is essential to effective inventory management. Whether it's returning a slow-selling product to replace it with a new item, quickly recommending a high-selling product, fixing issues with the manufacture of goods, or temporarily increasing your storage; it is important to maintain a good relationship with your suppliers. Thus, they will naturally be more understanding and accommodating in the event of a problem.
Maintaining good relationships with your suppliers will provide you with other benefits, especially when negotiating minimum order quantities. Don't be afraid to negotiate lower minimum quantities so you don't have to carry too much stock.
Maintaining a good customer-supplier relationship is not only about being friendly, it is also about being professional. You need to let your suppliers know when you expect sales to increase so they can ramp up production as soon as possible. If you can't sell a product, discuss it with them; this will allow you to pause your promotions or seek an interim substitute.
Also, keep in mind that a bad supplier can very quickly create big problems in your business. If they are consistently late with their deliveries or send the wrong amount of items, it can disrupt your operations. A supplier audit is an opportunity to identify areas for improvement and determine when to stop them.
Have an emergency plan
Poor inventory management can lead to a few problems, here are the most common ones you may face:
You find yourself in a budget deficit and do not have enough budget to order a product you really need,
Your warehouse does not have the space necessary to store your goods,
A poor estimate of your inventory levels affects your sales projections,
Your supplier stops manufacturing a product without notice.
It is therefore important to be able to predict when a problem could arise. Identify risky activities and develop a contingency plan. How are you going to react? What steps are you going to take to solve the problem? How will this impact other aspects of your business? Remember that a well-maintained customer-supplier relationship can have a significant positive impact on your ability to deal effectively with the unexpected.
Do frequent inventory checks
It is essential to regularly perform reconciliation operations between your actual and theoretical inventory quantity. To do this, there are several methods:
Physical inventory - Carrying out a physical inventory means counting all your products at once. Several merchants carry out a physical inventory at the end of the year; since they prepare their accounts and the payment of income taxes at the same time. Although physical inventories are usually only done once a year, they can be laborious, especially if you find a discrepancy, as finding out the cause can be a complex task.
Spot checks - If you are used to taking a full physical inventory at the end of the year, and often have problems or have a lot of product in stock, you should start doing spot checks during the year. It would be like comparing the actual quantity of a given product to what you would normally have. You can perform these checks at any time. However, we recommend that you perform these spot checks in addition to physical inventory and not as a substitute. When doing spot checks, focus especially on products that sell out very quickly or that often cause problems.
The rotating inventory - Instead of counting all the products at the same time during a physical inventory carried out at the end of the year, the rotating inventory makes it possible to spread the reconciliation operations throughout the year. Every day, every week or every month, check a different product. There are several methods to identify the items that should be counted first, but in general, it is the high-value items that are counted most frequently.
Use ABC analysis
Some products require more attention than others. Use the essential ABC analysis to determine your priorities for managing your inventory. Separate the products that sell the most and those that sell the least. To do this, you can assign each item on your product listing to one of these three categories:
A = % of the stock that represents 80% of your income
B = % of inventory that represents 15% of your revenue
C = % of the stock that represents 5% of your revenue
As you will have understood, your stock A represents your most profitable and valuable products. Make sure you always have them on hand so you don't miss out on sales. Your C stock is your slow-moving or dead stock. This is a stock that you can offer at a reduced price as part of a promotional operation, in order to be able to offload it.
Think about a safety stock
Safety stock is like an emergency fund. It is actually a stock that you "set aside" to use in an emergency. It is more concretely a threshold from which you must reorder goods before drawing on your emergency stock reserve.
Here is an example of a safety stock formula for some industries:
Safety Stock = (Max Daily Usage x Max Lead Time) - (Average Daily Usage x Average Lead Time)
It's a good idea to incorporate safety stock into your inventory management strategy in case your supply chain is disrupted, your goods are damaged, or something else prevents you from receiving or handling goods.
Update stock cards in real time
Maintain product information for all items in your inventory. Access to regularly updated and correct data is essential to move products quickly and efficiently. Remember to record information such as barcodes, suppliers, lot numbers, and the dates of the last transactions.
Entrust inventory management to a single person
If your business continues to grow and inventory management starts to become too complex, it might make sense to assign the role of inventory manager to one person. His role will thus be to monitor all products and be in charge of managing restocking, negotiating with suppliers, and paying invoices.
Read also 10 steps for choosing the right CMMS.
Conclusion
Remember that with an effective inventory management tool, you can help reduce your costs, maintain the profitability of your business, analyze sales trends, and forecast future sales but also prepare for the unexpected.. With good inventory management, a business has a better chance of profitability and survival.
Then it's time for you to take control of your inventory management! Choose the right inventory management techniques and tools and start implementing them today.
CMMS
10 Steps To Choosing And Using The Right CMMS
Make no mistake: choosing the right CMMS (computerized maintenance management system) ought to make a big difference for your commercial enterprise, assisting you with growth transparency, automating protection operations, improving worker performance, and ultimately saving money.
However, as with every technology in recent times, you will possibly discover your self-worth in alternatives and brief on the clarity with regards to choosing the right CMMS and making the incorrect decision ought to price your business time, worker buy-in, efficiency, and revenue.
In this guide, we are able to share the whole lot that you need to recognize approximately the way to pick out the right CMMS in your enterprise, along with guidelines, insights, strategies, and little-recognized information you ought to consider while making this decision.
Step 1: Assemble Your Enterprise CMMS Team
Any software program or technology is best as proper because the team is the usage of it. If your personnel no longer have the abilities, expertise, or time to properly deploy, keep, and use your CMMS on an everyday foundation, you may not get something out of it.
What's worse, mistaken preservation or human blunders from easy errors or loss of adoption should cause incomplete records, horrific facts, and faulty insights. In other words, it may render your CMMS practically useless.
This is why it's vital, before you do something else, to reflect on the consideration of every unmarried man or woman in order to interact along with your CMMS, to collect a super crew, and to make sure that everyone on that crew has the schooling, bandwidth, and buy-in they need to be an effective contributor.
Who Should Be Involved in choosing the right CMMS Selection and Implementation Process?
Choosing the right CMMS system if you consult the right people – those who have really good insight and unique perspectives into your maintenance operations, your needs, and your current technological capabilities. To this end, key players that you should consult include:
System Administrators and Maintenance Managers
Your CMMS administrator will oversee the day-to-day maintenance and upkeep of your system (and you definitely need an administrator). It is a good idea to get this person involved early in the process so they are completely on board and trained from the start.
Operators
Your machine operators will make many of the work order requests, and they will be keenly aware of asset status and concerns – so they need to be on board as well.
Inventory Managers
Inventory management is a major pain point for many manufacturing companies and a key functionality that attracts businesses to a CMMS. Your inventory manager should definitely be consulted about what CMMS features or inventory pain points are most relevant for your business.
Technicians
Your technicians will be using your CMMS more than anyone else to complete work orders, so they have to be in the loop. They can also give you important insight into what features or usability concerns are most relevant to them.
Executives
Nothing can happen without buy-in from key decision-makers, and your C-suite will be the ones using the insights from your CMMS to make data-driven decisions about the future of your company.
IT team
A CMMS will only be effective if it integrates with your existing technologies and tools. To this end, your IT team can help with both information and implementation.
Reliability Engineers
Your reliability engineer defines, designs, develops, monitors, and refines your overarching asset maintenance plan. Their inclusion is necessary if you want to use your CMMS to its full potential and adopt an effective preventive maintenance strategy.
Health and Safety Personnel
If your industry is frequently audited, it will probably be helpful to talk to your health and safety personnel about your CMMS and figure out what kind of compliance features you need to consider.
A way to Get Your entire crew on Board
The wheels can nonetheless fall off the bus if key players are not on board and nicely using the gadget – and you can pick the incorrect device altogether if you no longer have all the applicable facts. To gain insight and maximize consumer adoption, you need to:
Answer the question, “Why do I care?” for anybody that you speak to. For CEOs, the answer will be something along the lines of, “it'll make our enterprise extra cash and boom performance.” For technicians, “it's going to make your everyday obligations easier and less frustrating to complete.” in this communique, you would possibly also gain extra perception into every individual’s pain points, along with any issues or push-returned they may experience about the CMMS.
Discern case your agency structure, tradition, and worker competencies will permit for an effective CMMS implementation – and speedy deal with any adjustments that want to be made in case you stumble upon any hiccups. Backside-up adoption is critical to powerful implementation, and it is going to be tons easier to proactively cope with any potential challenges.
Decide what sources, training, and gear are needed to make implementation and renovation less complicated and who they need to be sent to. This will have to include a broad asset management policy, education videos and modules, articles, demos, and loose trials.
Step 2: Define the Goals and KPIs Your CMMS Will Help You Reach
When choosing the right CMMS, it is critical to start with a clear understanding of what you need to recognize and what you need the device that will help you repair or obtain. That’s why it’s vital, as soon as you've got all applicable perceptions, to outline your dreams and KPIs. Mainly, you have to outline quick-term desires, long-term goals, and the KPIs or metrics that you will measure to track your progress.
Whilst setting these dreams, ask yourself questions
What are the biggest pain points right now for your maintenance team?
What big-picture goals are you hoping to accomplish for your department and company?
What specific maintenance KPIs can help you achieve those big-picture goals?
What current metrics or insights are particularly helpful to your company now? Which ones are glaringly missing?
What is the scope of your maintenance operations? How many assets do you have? Do you work across multiple sites?
What state, local, or industry regulations and safety concerns do you have to comply with?
What does your maintenance team’s current daily workload look like? Are there particular aspects of that workload that you would like to reduce or streamline?
Recommendations for Answering these Questions and organizing desires
Have those discussions with your C-suite and key choice-makers. They will have robust opinions and a unique angle on what fulfillment seems like and where your enterprise and enterprise are heading.
Be records-driven and particular. Find out exactly where in your performance is vulnerable – excessive downtime? Ongoing compliance issues? – to decide the foundation causes and come up with a plan for tracking and addressing those worries.
Get on the floor along with your renovation group for a clear understanding of your structures, methods, and any areas that need development.
Make certain which you have desires installed for the following quarter, yr, three years, and five years.
Recognize your modern-day fees and discover exactly where and how a CMMS lets you with fee savings.
Answering these questions will assist you to decide what capabilities you want in a CMMS. Maybe you already have to take care of your protection operations, maybe you observe massive technological shortcomings that a CMMS can assist with.
Step 3: Examine your CMMS options
Ok, so say you replied to the questions in step 2 and decided that a CMMS is, in reality, the first-rate option on your enterprise. Now you need to look at the specific capabilities and the info of every software program option till you discover the tool that has the proper fee, functionality, and technical integrations on your commercial enterprise.
Finding the right CMMS in your desires
Probabilities are there are a handful of answers that you are already privy to or considering as a probable computerized maintenance control device answer on your organization. Those suggestions and questions will help you make a decision:
Questions to ask yourself:
Budget: How much can you spend annually on a CMMS? Start by outlining a 1-, 3- and 5-year budget to determine what numbers are realistic for you.
Features: Can you presently degree the performance of your assets? Do your belongings have the functionality to combine with the new generation? In that case, which CMMS technologies can they combine?
IT talents: may want your IT group to install an on-premise CMMS system. If no longer, communicate to IT about cloud adoption.
Timeline: what's your organization’s timeline for the purchase, implementation, and deployment of a CMMS system? Placing deadlines and sticking to a pre-hooked-up timeline can help you enforce a system in a well-timed, effective manner.
The wider surroundings: Will the CMMS you are looking at combine with your current systems and environment? What do you want to feature to aid the adoption of the new software program? Take a look at your present guidelines, conversation channels, and gear – and update where necessary.
UX: once more, if your human beings do not like the CMMS or will not use it, implementation could be pointless. Make sure you effectively answer, “Why do I care?” and get your team on board.
Step 4: Can you scale that CMMS?
When choosing the right CMMS software, it's crucial to envision how the system will align with your maintenance operations as your organization expands. Opting for a scalable system not only saves costs but also spares you the frustration of seeking a new system due to outgrowing the current one.
Deliberating on a CMMS involves contemplating future growth, whether in terms of users or data storage. It's imperative to ensure that the chosen software exhibits flexibility to seamlessly accommodate your evolving needs. Moreover, be mindful of potential additional costs associated with extra features.
For on-premise CMMS solutions, the consideration extends to acquiring supplementary licenses and determining the allowable number of licenses. As user numbers and database size increase, there may be a necessity for additional server space to accommodate expanded file storage. Managing and maintaining on-premise CMMS software might also require extra resources.
Step 5: Is that CMMS easy to use?
When choosing the right CMMS user-friendly software lies in its ease of use, simplicity, and streamlined interface encompassing all the features and functionalities essential for your business operations. However, the perception of what qualifies as "easy" varies among individuals, shaped by their unique skill sets, knowledge levels, and experiences. Navigating the challenge of diverse skills becomes pivotal in ensuring universal usability.
To address this diversity, inquire with the software vendor about the training resources and instructional videos they provide. Recognize that not all users will engage with every feature, underscoring the importance of ensuring that power users possess the requisite knowledge and skills to effectively leverage the full spectrum of functionalities.
The optimal approach to gauging user-friendliness is to request a comprehensive demonstration from the vendor. During the CMMS demo, actively engage by asking pertinent questions to ascertain how the software aligns with the varying skill sets within your user base. This proactive exploration ensures that the software not only meets the basic criteria of user-friendliness but also caters to the nuanced needs and expertise levels of diverse users.
Step 6: Does that CMMS have mobile access?
When Choosing the right CMMS, look for a CMMS equipped with mobile access that empowers your maintenance team to seamlessly oversee their tasks from any location, substantially enhancing response times, efficiency, and overall productivity. With mobile functionality, technicians gain the flexibility to efficiently handle and fulfill work orders, checklists, and various other responsibilities directly from their mobile devices.
This mobile access extends beyond immediate task management, allowing technicians to delve into historical information or swiftly check inventory levels within the parts department—all conveniently accessible from their mobile devices. The result is a more agile and responsive maintenance team, capable of leveraging real-time information and functionality regardless of their physical location. This not only streamlines day-to-day operations but also contributes to an overall boost in the team's effectiveness and productivity.
Step 7: Is your data secure within that CMMS?
The landscape of cybersecurity has become an integral aspect of daily discourse across all industries. As ransomware threats loom over maintenance and reliability teams in various facilities, organizations must undertake a comprehensive assessment of their cyber risk levels. It is imperative to establish robust plans to safeguard the data housed within their Computerized Maintenance Management Systems (CMMS).
While vendors may assert the security of their networks, the veracity of such claims is a critical consideration. In the contemporary cybersecurity landscape, specialized firms offer services dedicated to scrutinizing vendor networks to ensure the integrity of data. These entities generate "Security Scorecards," evaluating vendors across multiple security categories. Opting for a vendor boasting a 100% rating in these assessments becomes particularly prudent in the current threat landscape.
During the vendor selection process, it is advisable to directly inquire about their cybersecurity rating and request access to their security scorecard. The significance of this step cannot be overstated, as a vendor with a subpar cybersecurity score may inadvertently expose vulnerabilities that could lead to security breaches, potentially bringing business operations to a standstill. Hence, an informed and proactive approach in assessing and prioritizing cybersecurity measures is paramount in safeguarding the integrity of organizational data.
Step 8: How much does that CMMS cost?
Not all Computerized Maintenance Management Systems (CMMS) are cut from the same cloth, and certain service providers may introduce additional fees. To ensure you receive the desired value, it's crucial to proactively pose pertinent questions when engaging with CMMS providers.
Here are some key questions to ask regarding pricing:
Are there separate charges for the initial setup of the CMMS?
Is there a fee associated with customer support?
Are updates provided free of charge?
Are there any charges related to hosting the CMMS?
Is there a fee for training sessions?
Are there any hidden or additional costs that may arise?
Web-based CMMS software often follows pricing models based on the number of users and the level of features. The most common plans include:
1. Per-User, Per-Month Subscription Plan:
- This entails monthly payments based on the number of users actively utilizing the software. Tiers with varying features are often available.
2. Per-Month Subscription Plan:
- Structured for smaller companies with basic operations and a limited user base, this plan typically includes a maximum number of users, worksites, and specific features.
3. One-Time Perpetual Licensing Fee:
- On-premise systems, installed and run on an organization's computers, necessitate a lump-sum perpetual licensing fee covering installation, upgrades, maintenance, bug fixes, licenses, and data storage.
For purportedly "free" CMMS options, it's essential to discern between providers. Some claim free status but impose charges for support, hosting, additional users, or other services. Alternatively, certain providers offer limited-functionality-free versions of their paid solutions for a restricted timeframe. If opting for a trial, clearly define the criteria for essential features. Additionally, invest time in a live demo with the vendor, involving your maintenance team to ensure that the software aligns with their operational needs and preferences. This comprehensive approach aids in making an informed decision about the most suitable CMMS solution for your organization.
Step 9: Is that vendor trustworthy?
Talk with the vendor about the cumulative years of practical CMMS experience their support team possesses. A vendor distinguished by a sales team with extensive hands-on CMMS maintenance experience is a significant advantage. Interacting with individuals who have undergone more than a week of training on CMMS is a positive signal, indicative of the vendor's genuine commitment to delivering an exceptional customer experience. The practical experience offers numerous benefits, as these individuals not only communicate in their professional language but also comprehend the intricacies of your discussions. Their ability to relate to diverse situations equips them to provide valuable recommendations and insightful advice. Considering these factors, seriously evaluate the merits of engaging with this particular vendor.
Step 10: Do they offer support?
When choosing the right CMMS, considering the longevity of your association with the software, it becomes paramount to ensure that you have access to top-tier technical support. Evaluating the knowledge base of the technical team is crucial for a seamless and reliable support experience.
Key considerations for assessing technical support include:
1. Hands-On Experience:
- Is the technical team equipped with extensive hands-on experience, instilling confidence that they can comprehensively understand and promptly respond to emergency situations?
2. Long-Term Support Costs:
- Is technical support provided free of charge for the entire duration of your engagement with the vendor?
3. Support Channels:
- How is technical support delivered? Options may include phone support, email assistance, or access through a web portal.
4. Self-Help Resources:
- Does the vendor offer additional self-help resources such as help screens or instructional videos to empower users?
It's worth noting that while some vendors may provide live chat support, certain options may come with associated charges. Additionally, some vendors may necessitate the purchase of a support plan to access any form of assistance. These considerations contribute significantly to the overall effectiveness and convenience of the technical support provided by the CMMS vendor. Carefully weighing these factors ensures that you not only have a robust CMMS system but also reliable and accessible support for the entirety of your software usage.
Final issues while choosing and using the right CMMS
Compare Your dealer
Remember the fact that an amazing CMMS dealer will need to be your accomplice, and they'll provide help with CMMS implementation, schooling, and ongoing assistance. Implementation services, in particular, are a natural part of a CMMS venture. Thorough vendors will renowned this and include those costs upfront. Additionally, they must provide training in many paperwork and no longer simply as a one-time interest. Any cautioned formal education must be outlined virtually in preliminary discussions and must define key information inclusive of the length, number of users that may be blanketed in the classes, and the materials in an effort to be supplied. Ultimately, as soon as a CMMS is in location, questions will inevitably arise as your employer works through growing pains.
Pay near attention to the capabilities
Be realistic and thorough approximately what functions you want and what capabilities you may manage to pay for. Every CMMS gives lots of capabilities and customizations, and also you need to strategically and proactively perceive those with the intention to definitely gain your business. For example, these days, greater than ever, cell and far-off competencies are vitally essential. Many corporations war with the loss of transparency, consistency, and communique across sites or among personnel and departments because their current tech isn't always cell compatible or requires a wi-fi connection. A CMMS that gives a device-agnostic cell app will let you circumvent these worries.
Recall the details of Your Implementation
Right CMMS implementation is hard: your team has to emigrate copious amounts of facts, method layout, set up configuration and fine practices, and teach others to live inside this new information atmosphere. To help this technique pass easily, think proactively and ask questions earlier than you buy like:
What do the implementation, schooling, and help appear to be for this CMMS? Does your dealer offer all the gear and assistance you'll need to hold it out effectively?
What can go wrong and how are you going to keep away from those problems? You are sure to come upon an impediment or – and knowing what you'll do after they seem to allow you to navigate them extra correctly. Right here, it can be beneficial to speak to friends in the industry to see what they handled and the way they were given ahead of any troubles they faced.
After you discover the proper solution, what are your next steps to implementing a CMMS? Decide your timeline and notify applicable employees to preserve matters on track.
What's next? Successful implementation is handiest at the beginning.
Conclusion
Choosing the right CMMS for your business can be a difficult decision. It is one that you should not take lightly. That stated, in case you do your due diligence, ask the right questions, and make the effort to set up your finances, desires, and technological wishes and competencies. And you'll discover the right CMMS for your operation – and you may not regret it.
Not sure if our CMMS services are right for you? Read our blog or take our quiz to learn more! This quiz will help you determine if our CMMS platform is a good fit for your needs and provide you with personalized advice on the next steps. It only takes a few moments to fill out, so why not find out today if our CMMS is right for you?
CMMS
10 Easy Steps To Successful CMMS Implementation
Investing in CMMS software is a long process. It's not uncommon to spend months or even years comparing vendors, pricing, features, and usability until a clear winner emerges. Once you choose the right option, it can feel like a huge weight has been lifted off your shoulders. Time to sit down and watch the results, right? Well, not exactly. The fact is that around 74% of all IT projects fail. It is not a small number! Additionally, there are many factors that can derail a successful CMMS implementation. Whether it is improper training, poor data entered into the system, misconfiguration of the system, employees not taking responsibility for the implementation process, or engineers taking responsibility for themselves. They refuse to use the new technology.
So how can you make sure you are among the 26% of organizations that successfully launch new technologies, such as a CMMS? Or better yet, how can we collectively reduce the total number of failed CMMS implementations? Well, as they say, if you don't plan, you plan to fail. It is important to know the steps involved in a CMMS implementation so that you can be sure that you plan and execute the implementation correctly.
Define your goals
Before we get into the steps that lead to success, let's take a moment to define what "success" actually means in the context of a CMMS implementation. The ultimate successful implementation is when the organization maximizes the value of the new system. What does it mean?
Well, it means a lot of things. First, it means that your CMMS is configured correctly for your specific use. It also means that PMs are capitalized when they are hired (and capitalized for the right assets), costs are added to the right assets, you have an accurate picture of your inventory levels, and everyone who should be using the CMMS is using it on a daily basis. Finally, one of the main signs that you have set up your CMMS to maximize value is when real and accurate data can be extracted from the CMMS to form KPIs and reports. These can be used to identify trends and make business decisions such as repair or replacement. Now that we know what you need to work on, let's get into planning mode.
Create the right culture
To put it bluntly, without the right workplace culture, the implementation will fail. There are a number of guiding principles you should put in place before implementation to ensure your organization can support it. Ensure work requirements documentation is enforced, perform proper root cause failure analysis, and identify and classify equipment by criticality. These tasks, performed consistently, set an accountability-driven precedent that is essential for working with a CMMS.
Once these guiding principles are established and followed, the real work can begin.
Implementation Steps
Step 1: Get management support
With any organizational change, support must come from above. Fully integrating a CMMS into your organization takes time and resources. It will be an uphill battle to keep things running smoothly if management is not committed to providing or allowing these resources.
It is important to manage expectations with management right from the start. Implementing a CMMS is not immediately a panacea. It is a tool that, with the right resources and inputs, will lead to smarter, more efficient and cost-effective maintenance. Make sure your management team is aware that it can take some time to see these returns.
Step 2: get to know your key stakeholders (and give them a voice)
It is important to remember that a CMMS is not a standalone solution. For it to work in your organization, it needs to be integrated into your existing facility workflow. For this reason, it is absolutely essential to define which teams and individuals will work or be affected by a CMMS.
Of course, everyone who creates or completes work orders regularly enters the system. But who else gets hit? It is a good idea to allow CMMS access to machine operators, inventory managers, health and safety officers, and reliability engineers. Each of these roles will be significantly impacted by the introduction of a CMMS, and each of them can use the output of a CMMS to do their jobs better. It is a great idea to set up a steering committee with a representative from each of these groups so that they can ensure that their team's needs are met during the implementation process.
Above all, it is important to designate a CMMS sample. This is someone who will work closely with your CMMS provider to create a realistic implementation plan that takes into account your organization's structure and goals. They will be the primary link between your business and the CMMS provider to ensure that key milestones are reached and that nodes are resolved as they occur.
Step 3: Develop a detailed project plan
Now that management is on board and you have identified and consulted everyone who should be involved in your implementation, it's time to create a project plan with the help of your CMMS provider. This plan should be as detailed as possible and can range from six months to a year or more.
The project plan should include key dates for achieving milestones, such as identifying customization needs, cleaning and entering data, completing user training, and conducting CMMS audits. The more detail you can get with this plan, the better. Having explicit and achievable goals to work on will reduce ambiguity and increase the accountability of everyone involved.
Step 4: Start and check-in
Once you've established a solid project plan that has controlled both your organization and your CMMS provider, it's time to get started. This includes preparing the team for change, collecting and cleaning data, properly configuring the system, training end users, and finally activating the system.
During the kick-off, it's important to have a CMMS vendor you can check in regularly with. Who can provide on-site training and technical support as you navigate a new system? Trying to do it yourself can lead to poor data entry, improper training, and processes that aren't as optimized as they could be. At the end of the implementation project plan, it is important to contact the CMMS vendor and discuss issues such as reporting, user adoption, and anything else learned during implementation.
Step 5: Expand, Expand, Expand
In today's technology landscape, nothing stays the same for long. As the possibilities expand and the tools evolve, it's important that your business evolves too. Once you've successfully set up your CMMS, you keep wondering what else you could do with it. Have you collected enough data to start optimizing your PM strategy? Are there any features you're not using that you could benefit from? Are there any integrations with other business systems that you can take advantage of?
Remember, a CMMS is a database of information about your assets. You can use this data to make better decisions at all levels of your organization and change the way you work for the better.
Step 6: Use a dedicated migration teams
The ease or difficulty of migration hinges on the upfront effort invested. Take, for instance, a facility anticipating a seamless transition without the meticulous examination and cleanup of their data, as well as efficient asset management prior to implementation; they might face unexpected challenges on the actual migration day. Having a dedicated team for asset migration is invaluable, and for those daunted by the task, specialized services exist to provide assistance.
Step 7: Schedule regular meetings
Establish a practical kickoff date and ensure that all relevant teams are informed of this timeline. Throughout the implementation phase, conduct regular meetings with key stakeholders to ensure their departments receive the necessary attention. These check-ins are essential for maintaining a constant awareness of the CMMS's status. Regular communication with the best CMMS provider is equally crucial. Your account manager can play a pivotal role in keeping you on course toward a successful implementation.
Step 8: Training
Identify the specific documentation requirements, encompassing training courses, operational manuals, and FAQs, and address these needs promptly. If the vendor offers training services, take advantage of them; otherwise, allocate employee time to engage with training materials. Additionally, consider involving technical writers to develop documentation concurrently with the implementation process, ensuring that the material remains current and relevant.
Step 9: Use the CMMS data
Strategize on leveraging the data collected through the CMMS to enhance maintenance efficiency and overall productivity throughout the facility. Utilize the data for diagnosing the operational reliability of specific assets, areas, or the facility as a whole. Transforming this data into visual maintenance reports enables a clearer understanding and facilitates informed decision-making to optimize overall performance.
Step 10: Track your budget
Employ the CMMS to pinpoint areas of budgetary inefficiencies by meticulously tracking vendor costs, parts expenses, and overtime. This statistical insight is invaluable for organizations striving to sustain peak profitability and reduce overall maintenance expenditures.
Throughout the entire CMMS implementation journey, actively engage with the CMMS vendor for support. In the pre-implementation phase, arrange product demonstrations for your entire team to ensure a good fit for everyone. During implementation, enlist their assistance for seamless data migration. In the post-implementation phase, seek their guidance on maximizing the utilization of the collected data. This collaborative approach ensures a comprehensive and successful integration of the CMMS into your organizational processes.
Common mistakes in CMMS implementation
Organizations find adopting new software easily, so they forgo the critical planning and pre-implementation strategies that make CMMS adoption a success.
There are four huge ways to mess up a CMMS implementation, and most failed projects suffer from them.
Lack of planning
Planning is an essential and often missed step in the process. A CMMS alone does not solve the maintenance problems that plague a facility. In order to properly implement a CMMS (or even choose the right software), a facility should create an action plan that includes:
What types of data they want to track
What kind of functionality they need
what budget do you have
Stakeholder approvals and buy-in
Investing immediately in a CMMS without a plan is a serious mistake that can kill a project when it arrives.
Implementation issues
The stage with the most diverse sources of error is probably the implementation stage. This involves more than installing software and starting work orders. Implementation involves many critical factors:
How is data migrated from previous systems? Is a PM plan designed and ready to be programmed?
Was the software field tested before being rolled out to the entire facility?
Does everyone communicate when things go on?
At this stage, communication, testing and planning are still extremely important parts of the CMMS implementation process.
Little or no CMMS training
When new equipment enters a facility, maintenance personnel must be trained in its use and maintenance tasks. The same goes for a CMMS, but institutions continue to monitor this step. Training shouldn't be a one-time thing either. Ongoing training is extremely important, especially when a CMMS receives updates for new features. When an organization skimps on training, maintenance personnel don't know how to use the system designed to make their jobs easier. Plus, training is proven to increase adoption — don't let implementation ruin it.
Entering poor-quality data into the CMMS
Finally, the data collection process can easily kill a CMMS - if you put garbage in, you get garbage. Maintenance teams need to understand the types of data they need to capture. Hands-on training can help – when technicians learn to populate work orders with quality, useful information, the data they receive will be actionable. Maintenance teams need to understand the types of data they need to capture. Hands-on training can help with this: show technicians how to fill work orders with useful and quality information, the data you extract will be useful. Trust the CMMS provider to help you throughout the entire CMMS implementation process. Invite them to perform product demonstrations for the entire team during pre-deployment to ensure the product is suitable for everyone. During implementation, ask for their help with data migration. And during post-distribution, ask them how to use the data you've collected. By following these steps and avoiding the most common implementation mistakes, you will be among the 30% of organizations that successfully implement an IPS.
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