Learn More About CMMS Software
What is CMMS Software?
Computerized maintenance management systems (CMMS) help companies track and manage the fixed assets, tools, and equipment used in their day-to-day operations. CMMS software is usually delivered as a combination of modules for equipment data management, maintenance planning and scheduling, work order management, inventory control, and asset tracking. There are also many point solutions that focus exclusively on one or a few of the features mentioned above. These tools are sold as standalone products, and while they integrate with CMMS, they are not considered to be CMMS software.
While the terms CMMS and enterprise asset management (EAM) are often used interchangeably, the two types of software are quite different. As the term implies, EAM focuses on servicing large companies that have more complex maintenance needs. CMMS usually offers features that are geared toward small- and medium-sized businesses (SMBs). Some CMMS products can include more advanced features that can be used by large companies, like predictive maintenance, but the scope of EAM software is generally too complicated for SMBs.
What Does CMMS Stand For?
CMMS stands for computerized maintenance management systems, which describes the main scope of this type of software: define, manage, and monitor maintenance procedures and operations.
What Types of CMMS Software Exist?
CMMS software varies depending on the functionality it includes, as follows:
Core CMMS
Core CMMS software includes features for maintenance, asset tracking, and work order management. It is usually delivered as a single standalone package.
Advanced CMMS
Advanced CMMS delivers additional functionality such as purchasing, billing, and labor management. These features are provided as add-ons or separate modules that can be used together with the core CMMS software.
What are the Common Features of CMMS Software?
The following are some core features within CMMS software that can help users manage the lifecycle of fixed assets and equipment:
Asset tracking: Asset tracking uses technology like barcodes, RFID, or GPS to monitor the physical locations of multiple assets, which are often distributed across various physical locations. This type of functionality also helps companies define different kinds of assets and the relationships between them. Furthermore, asset tracking maintains a history of all operations, such as maintenance and repairs, to identify potential issues.
Work orders: Work order management defines what needs to be done, by whom, and how. Work orders can be created based on the type of activity (such as repairs or calibration needs), the locations of equipment, or the service level agreements specified in contracts.
Inventory: Inventory refers to both the equipment and the spare parts required for equipment maintenance. Inventory management is essential for technicians and managers to accurately define which spare parts can be used for which type of asset and to maintain an inventory level that can help maintenance teams address emergencies.
Maintenance: Maintenance features are at the core of all CMMS software products. There are two types of maintenance: preventive (or scheduled), which aims to prevent issues before they happen, and corrective, which occurs when assets malfunction and need to be repaired. Predictive maintenance is an advanced methodology that uses sensor data and information provided by complex equipment to predict potential issues without human intervention.
Warranties: Warranties help maintenance managers identify the operations required for various categories of assets, which may also vary by customer or contract. Warranty management functionality maintains the information on service contracts for fixed assets. Warranties and contracts also include service level agreements that maintenance teams need to comply with.
Other Features of CMMS Software: Approval management, Compliance auditing, Materials management, Vendor management
What are the Benefits of CMMS Software?
The main benefits of CMMS software are:
Maintenance: CMMS software helps companies streamline maintenance activities. This is particularly important for complex maintenance operations that need to be managed for multiple assets across multiple locations.
Productivity: CMMS software can increase employee productivity by planning and scheduling maintenance activities based on resource availability. Since travel is often required for field maintenance, CMMS can also help reduce the idle time spent by technicians on the road or between jobs.
Uptime: CMMS software helps improve uptime and optimize the use of fixed assets. Maintenance activities should reduce equipment downtime, which means that fixed assets can be used to their full potential. Since equipment can be expensive, optimizing its use is critical to achieving a positive return on investment.
Who Uses CMMS Software?
CMMS benefits all employees involved in any operations related to fixed assets and industrial equipment, such as:
Maintenance teams: Maintenance departments use CMMS to track fixed assets, monitor their performance, and perform maintenance operations. Maintenance managers use CMMS to plan and schedule maintenance activities, generate and assign work orders, and track the performance of their technicians.
Field technicians: Field service technicians use CMMS to plan their schedules, identify which type of maintenance is required for different types of equipment, and access technical specifications of the fixed assets they are responsible for. Mobile CMMS is particularly important for field service employees who need to be able to communicate with their managers and customers, as well as send regular updates about the status of their work.
What are the Alternatives to CMMS Software?
The following alternatives to CMMS software can replace this type of software, either partially or completely:
Enterprise asset management (EAM) software: EAM software can overlap in functionality with CMMS but can also complement it. EAM and CMMS can be used together by companies that must manage multiple locations. For example, a manufacturer may use EAM to manage the fixed assets at its manufacturing facility and CMMS to manage the equipment at its repair shops.
Aviation MRO software: Aviation maintenance, repair, and operations (MRO) software focuses exclusively on aviation maintenance. CMMS software does not provide advanced functionality to manage aircraft maintenance, which is why some vendors have developed MRO software to take advantage of such a large industry.
Facility management software: This type of software provides features to manage facilities such as warehouses, factories, or retail stores. Standard CMMS is not the right choice for facility management as it does not include functionality like space management and access control to facilities. Some CMMS vendors included these features in their offering, and their products can be used to maintain both facilities and equipment.
Calibration software: Calibration software measures values delivered by devices and compares them to standards to identify the equipment's accuracy. Since calibration is an essential part of asset maintenance, this functionality is usually included in CMMS software. There are also standalone calibration tools, which can be an excellent alternative to CMMS for SMBs that don't use complicated equipment.
Software Related to CMMS Software
Related solutions that can be used together with CMMS software include:
Predictive maintenance software: Also known as condition-based maintenance, this type of software uses artificial intelligence and machine learning to identify potential problems with assets before they occur. As opposed to preventative maintenance, which relies on regular inspections to lessen the likelihood of failure, predictive maintenance monitors equipment in real time.
Asset leasing software: Asset leasing software automates the process of finding and processing leasing options to acquire assets. This type of software can be used by asset leasing companies and by businesses who need to lease equipment.
Field service management software: Field service management software can help technicians and managers schedule and track work orders that require traveling to customers’ sites. CMMS can also provide field technicians with the technical specifications and work instructions required for different types of assets.
Services: Used asset marketplaces are used by companies who prefer to acquire equipment at lower prices. This service can also help companies sell old equipment instead of disposing of it. Disposition usually means that the value of the asset is considered a loss for the company, while selling it allows businesses to recover a part of their investment.
Fixed asset rentals are being used by companies in industries like construction and for projects that do not justify the acquisition of equipment. This service can be a good option when companies only require certain assets for a limited time.
Challenges with CMMS Software
CMMS software solutions can come with their own set of challenges.
Functionality: Functionality can become a challenge for large companies that require more advanced features than a normal CMMS can provide. While some CMMS products include functionality suitable for enterprises, EAM systems are usually a better option for complex asset management requirements. Conversely, small companies may be overwhelmed by the features offered by CMMS and the complexity of this type of software. It is therefore preferable that small companies with basic asset management needs to adopt point solutions, like asset tracking or calibration software, that are more focused in scope.
Integration: Seamless integration with third-party solutions like ERP systems and accounting software is critical when tracking the costs of fixed assets. While new technologies like the cloud make it easier for CMMS vendors to integrate with other solutions, tracking asset depreciation in multiple systems can still be a challenge because the data needs to be consolidated and deduplicated to be accurate.
Data accuracy: Effective asset data capture and management can become an issue when equipment information isn’t up to date. If maintenance professionals do not have accurate details on fixed assets, such outdated or duplicated information makes it harder for managers to track assets and their status, which can also disrupt maintenance operations.
Which Companies Should Buy CMMS Software?
All companies that use fixed assets and equipment can benefit from using CMMS software, the most important being:
Manufacturers: Manufacturers use fixed assets in production, and maintain equipment to avoid downtime, accidents, and maximize their lifespan. Since manufacturing equipment is expensive, tracking the costs of the fixed assets is also essential.
Retailers: Retail companies and distributors require several major types of equipment: facilities like warehouses and stores, and equipment used in facilities, such as forklifts and handheld devices.
Maintenance providers: This type of company provides maintenance and repair services to its customers but rarely owns fixed assets. Maintenance providers use a multitude of tools for measurements and calibration, as well as inspections and repairs.
How to Buy CMMS Software
Requirements Gathering (RFI/RFP) for CMMS Software
CMMS selection requirements should cover all asset lifecycle stages, from acquisition and installation to maintenance and obsolescence. The maintenance team is mainly responsible for creating requirements, but other departments should also be involved, such as accounting and logistics. Accountants rely on CMMS data to track asset amortization and the cost of maintenance. Procurement teams need to know what spare parts to order and when to ensure that repairs are performed on time.
CMMS requirements should take into account the present and future needs of the company. This is critical for companies planning to modernize their equipment by replacing existing fixed assets. For example, modern equipment often requires connectivity to the internet of things (IoT) or industrial internet of things (IIoT) networks, which isn't always supported by CMMS software.
Finally, technical requirements refer to the flexibility and ease of use of the software and its ability to integrate with other ERP or accounting software. The flexibility impacts software adoption which in turn increases the productivity of the maintenance team, and integration streamlines data exchange between systems which provides visibility into how fixed assets are used across the company.
Compare CMMS Software Products
Create a long list
A long list of CMMS software products should only include the options that provide the buyer's high-level functionality. For instance, a company that relies on preventive maintenance should eliminate all solutions that don't have this module. Industry-specific requirements such as facility management for retail can also be used to exclude software vendors from the selection process.
The long list should not have more than 10 products with similar modules. If there are more than 10 products that seem to be good options for the long list, buyers need to find additional criteria to differentiate between them. A few examples include the vendor's geographical presence and the integration between CMMS and other software such as ERP.
Create a short list
The RFI mentioned above is sent to the vendors from the long list who need to provide detailed information on each requirement. For each criterion, vendors should note how they deliver the features (out of the box, through integration or customization). For example, facility management can be a module of the CMMS system or a separate product provided by a vendor's partner.
Besides functional criteria, buyers should request customer references and use software review platforms to get objective feedback on the CMMS software. It is preferable to compare customer feedback with the information provided by the vendor to identify discrepancies. For instance, a vendor may claim to provide predictive maintenance out of the box, but some customers may argue that the functionality required extensive customization.
Buyers must find references and user feedback from companies similar to theirs. A large manufacturer selecting CMMS doesn't need customer references from small companies in the retail or construction industries.
Finally, the cost of the software is an essential factor to consider when creating a short list.
Conduct demos
Demos should follow a script and scenarios meant to show how the CMMS helps users manage real-life operations. Vendors should use the buyer's data and try to simulate their workflows, which are familiar to users. Furthermore, demos should show how field service technicians can use CMMS on their mobile devices, online and offline.
The selection team members need to attend all demos and rate the performance of the software. Along with the CMMS system, vendors may use add-ons or partner solutions during demos, which users also need to evaluate. When comparing the demos, buyers should differentiate between multiple ways to deliver functionality, such as spare parts inventory out of the box versus third-party add-ons.
Selection of CMMS Software
Choose a selection team
A CMMS selection team includes members of the maintenance team, executives, and managers from other departments that benefit from using this type of software, such as accounting and logistics. External consultants with experience in asset management and CMMS knowledge can provide an objective perspective.
The selection team is usually led by a project manager who oversees the entire process, and sometimes the implementation.
Negotiation
Pricing negotiations often decide the choice of software, but there are other factors that buyers need to consider when choosing a CMMS system, such as:
- Service level agreements for the software (such as uptime) and the services provided by the vendor and its partners: Buyers need legal guarantees that the software won't cause significant disruptions, which can be costly and even dangerous in industries like construction.
- The ability of the vendor to continuously deliver new features and adapt to market changes: As IoT and robotics become mainstream in industries such as manufacturing and retail, CMMS software needs to be compatible with these types of technologies.
Final decision
The final decision should be based on all the information mentioned above: requirements, demos, customer references, costs, etc. When CMMS vendors work with partners for implementation, training, and support, their performance should also be evaluated.
What Does CMMS Software Cost?
A successful CMMS implementation requires two types of costs:
- Direct costs for software licenses, services such as customization, and the employees in charge of managing the system.
- Indirect costs refer to any investments that help the buyer optimize the use of the system. A few examples are hardware and sensors to capture asset data or mobile devices used by field service technicians.
Return on Investment (ROI)
To achieve positive ROI, CMMS buyers need to realize benefits that surpass the costs mentioned above. Some of the essential benefits of CMMS software include equipment downtime reduction, increased employee productivity, and reduced maintenance costs. To compare them with costs, these benefits should be measured as a monetary value—for instance, a 10% decrease in downtime from 100 to 90 hours would represent savings of $1000 per month if the cost of equipment unavailability is $100/hour.
While some of the benefits can be realized shortly after implementation, CMMS solutions achieve ROI after six months to one year of use. This is because buyers need to make adjustments to the system to find the best configuration, and the learning curve of CMMS software can be steep.
Implementation of CMMS Software
How is CMMS Software Implemented?
CMMS can be implemented together with other software, such as ERP, or separately. When asset-intensive companies decide to upgrade their technology stack, it is preferable to replace all critical systems. Using a modern ERP and an outdated CMMS system isn't efficient since the legacy system's shortcomings will impact the other software.
Companies using multiple separate solutions for asset tracking, inspections, and maintenance, should replace them all with a single CMMS software that provides these features and more.
Who is Responsible for CMMS Software Implementation?
The maintenance department should always be in charge of implementing CMMS. Other teams such as IT should help with deployment, configuration, and integration, but maintenance professionals are ultimately responsible. This includes creating or revising business processes, managing roles and user access, and ensuring that users get the training and support they need to be productive.
What Does the Implementation Process Look Like for CMMS Software?
A typical CMMS implementation process has four phases:
Planning: The first step entails planning what should be done, when, how, and by whom. While planning is straightforward for small companies, it may get very complicated for medium and large organizations with multiple locations. This phase should include the CMMS vendor and its partners, the implementation team on the buyer side, and external contributors such as consultants and project managers.
Execution: The execution step implements the plan defined previously but often needs to adjust it based on delays or bottlenecks. This phase includes training and testing, ideally in a production environment. For best results, CMMS should be connected to fixed assets and integrated with other enterprise software during testing.
Go live: Go live means that any software used previously for maintenance is discontinued, and the new company starts using the new CMMS solution. Using multiple systems in parallel is not recommended since it may generate duplicate and inaccurate data.
Adjustments: The final step, adjustments after the go-live are unavoidable, and both the buyer and vendor need to address them promptly. Changes are more likely to occur when the system is implemented in multiple locations with different assets.
When Should You Implement CMMS Software?
There is no perfect time for a CMMS implementation, but buyers should avoid deploying it during peak season, such as winter holidays for retailers. CMMS implementations are very likely to cause business disruption, and companies should try to limit their impact on their operations. For the same reason, companies with multiple locations should gradually implement the CMMS software, starting with the main facility.
CMMS Software Trends
Cloud
While most vendors are adopting the cloud delivery model, many CMMS products are still delivered on premises. However, some vendors do offer both cloud and on-premises versions. It is expected that in the near future most CMMS products will be available as a software-as-a-service (SaaS) model.
3D printing
3D printing allows companies to print spare parts instead of buying them from suppliers. This type of technology isn’t yet mainstream across the entire maintenance industry, mostly due to the cost of 3D printers and the materials required for printing. 3D printing can help companies save money and time, which is why its adoption is expected to increase.
Internet of things (IoT)
IoT is another technology trend that is already impacting maintenance operations. As more and more devices and equipment are connected through the internet, preventive maintenance is becoming more important but also more difficult. Entire networks of connected devices can be disrupted when a component isn’t functioning properly. Also, it is difficult to identify which one of the hundreds or thousands of devices connected together should be repaired or replaced.
Automation
The increasing automation of industries like manufacturing and logistics will require companies and vendors to come up with new ways to maintain sophisticated tools like robots. Since some robots are capable of maintaining themselves, some CMMS features may become obsolete, because their asset maintenance and upkeep functionality become redundant. For instance, some robots can recharge their batteries without human intervention, which also means that software isn’t needed to monitor energy consumption. At the same time, advanced features like predictive maintenance will become more critical to address issues that robots cannot identify, such as environmental conditions.
