How to calculate the life cycle cost of equipment.

Gathering the information you need to decide if and when a new equipment purchase is a good decision.

It’s easy to calculate the life cycle cost of equipment; just use this simple formula from Norsok Standard

…or if you’re not mathematically inclined, you can read about an even simpler way to do it in this article.

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Background: Life Cycle Cost (LCC) Calculation

You might think that a manufacturing company was responsible for devising the concept of life cycle cost calculation. But no.

It was actually the US military who came up with the concept in the sixties to justify tender selection decisions for the Vietnam war.

LCC was so logical and accountable, it was adopted by other government departments and eventually adapted by big business.

The U.S. Department of Energy has a comprehensive life cycle cost definition. They call it:

“the sum of all direct, indirect, recurring, nonrecurring, and other related costs incurred in the planning, design, development, procurement, production, operations and maintenance, support, recapitalization, and final disposition of real property over its anticipated life span for every aspect of the program, regardless of funding source.”

Today we know life cycle cost as a highly useful analytical tool that can help you minimise waste and optimise energy efficiency… especially when incorporated into a fully customised computerised maintenance management system (CMMS).

Why you need to calculate the life cycle cost of equipment.

 

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If you only had limited plant and equipment, life cycle cost wouldn’t be quite so critical.

However, as modern businesses have so much operational plant and so many pieces of equipment, it’s imperative to manage all your assets correctly in terms of productivity and safety.

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Life cycle management is also an important part of the tendering process, as well as determining how to get the best value out of a new piece of equipment.

For example, your experience tells you that a new widget would make the factory more productive – however senior management won’t give you what you need.

You instinctively know that retaining and maintaining the old equipment is throwing good money after bad, but you need concise information – concrete facts – to present to them.

Armed with a detailed life cycle cost analysis, you would be able to show management the benefits of the upgrade.

When pitching to them, you’d be able to provide detailed pros and cons of upgrading compared with the costs of retaining, based on:

· Age

· Condition

· Frequency of breakdowns, and

· Cost of breakdowns.

This will enable them to make good decisions with confidence, with all the figures clearly visible.

Furthermore, if you are copping flak because the production line is breaking down, you’ll be able to tell the MD exactly why.

You can confidently table your recommended solutions, and present projected costs.

And, with the right information, you can show them what they REALLY need to know, which is the long term ROI — so they can see the VALUE in your recommendation

Plus, a life cycle cost analysis will help you make sound buying decisions – and avoid making the same mistakes twice.

Three Life Cycle Cost Considerations

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When calculating equipment life cycle costs, there are three areas that need to be analysed.

We’ll unpack them in detail below, but in overview, they are:

1. Past scheduled work

2. Reactive maintenance costs

3. Forward projections

Each data set gives you important insights, and takes the guesswork out of decision-making.

1. Past scheduled work.

This determines the criticality of an asset. Even if it is an inexpensive part that no one notices, if it stops everything else, it is critical.

The criticality of past scheduled work also covers:

· Cost of parts

· Labour

· Consumables, and

· Downtime

2. Reactive Maintenance Life Cycle Costs

When you react to a breakdown, in addition to the cost of lost productivity (particularly if it is a critical piece of equipment), you also have to account for hard costs of parts, labour, and consumables.

It’s important to keep an up-to-date log of work orders/ work requests because if there is no system, there is no knowledge…and knowledge, as they say, is power.

Subjectivity just isn’t good enough.

Downtime is even more important in terms of reactive maintenance; because it is unplanned, it has an even bigger impact.

Obviously you cannot project ‘Murphy’s Law’ forward, but a failure analysis – such as reporting on two similar-but-different pieces of equipment can provide invaluable insights.

For example, a manufacturer will say that a piece of equipment has a two-year MTBF (Mean Time Between Failure) rate, but what is the ACTUAL rate in your particular environment looking backwards, as a result of your specific conditions (eg dusty, hot, humid, etc)?

Knowing this can make a tremendous difference to decision making, and take out much of the guesswork

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3. Projecting Life Cycle Costs forward

It is difficult to project forward manually as it is very labour intensive – which is no doubt why so many maintenance managers keep putting it off.

A proven CMMS such as the one offered by MC Global lets you define maintenance schedules in the system and project annual maintenance years in advance.

In terms of reporting, it will give you a clear, concise summary and help you put forward a compelling business case – complete with any up-spec or superior performance figures that the proposed new equipment will bring.

For more information and advice about calculating Life Cycle Costs of equipment, please call +61 7 3303 0177 and speak to the friendly, helpful team at MC Global Solutions. Or simply click here to contact us.

Enterprise Asset Management. Are you using Best Practice?

It’s easy to fall into the habit of using your CMMS/EAM system for your ‘favourite problems’ on a day-to-day basis. But what if this powerful system can do so much more for you?

Enterprise asset management systems are a bit like our brain. We know it’s incredible. We know it can do amazing stuff. And yet we only use 10% of it.

What if you could unlock that extra 90% of your CMMS/EAM system? Imagine the difference to your workplace if you could unlock that other 90% that’s not being utilised… or perhaps not utilised very well…  and ensure that you are implementing best practice every step of the way.

No more putting out those daily fires. No more Post-It note ‘must do’s’ (when you have the time) and no more frustrated inter-department emails because something slipped through the cracks and in some cases, created (predictable in hindsight) downstream issues.

Finding new ways to use your EAM software

The challenge is, how do you find new/better ways to get more from your investment in your EAM software?

It isn’t easy. Your role as an operations manager is a complex one, and it is difficult to find the time to learn how to squeeze the most out of your computerised maintenance management system — or indeed to figure out whether you could be using it in better ways to implement best practice strategies and take more of the load off your shoulders.

See if these questions start you nodding…

  • Do you and your department get blamed for constant breakdowns?
  • Have inefficiencies started to creep in to your CMMS/EAM system?
  • Have your preventative maintenance schedules become too complex?
  • Is your asset data incomplete?
  • Are you missing opportunities because the system just isn’t coping?
  • Are there complaints, tantrums, walk outs, picket lines, news reporters, lawyers??? Ok, ok. So things haven’t become THAT drastic!

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The good news is you are not alone. It’s more common that you might think for an operations and maintenance manager at a large facility to have a powerful CMMS at their fingertips — but not have the time to make the most of its functionality.

Could it be time for a CMMS Health Check

You agree that without your CMMS/EAM system running at optimum efficiency, things start to fall apart, right? Well, it might just be time for a full review of your CMMS/EAM system.

It’s kind of like a brain scan to identify:

• What percentage you’re effectively implementing and

• What is yet to be ‘switched on’ or integrated.

Regardless of whether you are using a CMMS, or a manual system, there’s nothing like a fresh pair of expert eyes to help you see where and how you could be saving time, and getting more done… more easily.

It could be that appropriate naming protocols haven’t been used or adhered to. Or classifications are too general — or haven’t been assigned correctly. Maybe incremental errors have occurred as a result of scheduled PMs not being set correctly. Or if labour records are not being kept up to date, there might be discrepancies in staff and contractor’s licenses, qualifications and competencies.

All small things. But all with potentially serious ramifications.

The value of a Fresh Pair Of Eyes

A ‘health check’ of your system enables a CMMS/EAM consultant to take a good look into:

  • How your daily workflow operates,
  • Review your current methods and procedures, and
  • Identify opportunities for future improvements.

That fresh set of eyes can pinpoint errors, detect problems waiting to happen and help prevent a future catastrophe… or at the very least a management meltdown!

Valuable insights can be gained from an ‘outside’ professional analysing your system. They can quickly identify deficiencies, improve efficiencies, help to optimise your CMMS/ EAM and make your job a heck of a lot easier. It’s simply discovering what’s working, what’s not and what to do about it!

What should be included in a maintenance management system health check?

  • It must examine your current processes and study your present management systems within the CMMS/EAM.
  • It should be non-obtrusive. You can’t afford down-time, so consider conducting a health check in your quiet(er) period.
  • While some preliminary work can be carried out offsite, it’s best to conduct the assessment with the system administrator, supervisors and maintenance staff in attendance to ensure input is received from all involved.
  • A thorough system health check should generally take 2-3 days for medium-sized customers with CMMS/EAM systems. This can vary depending on the size and complexity of your system.
  • A comprehensive, in-depth report should be included. It would provide a full appraisal of your current situation, as well as recommendations for improvement, plus details of benefits you’ll enjoy as a result of implementation if required.
  • IMPORTANT: The health check should be conducted by consultant from a technical background… not a salesperson!

And then what?

So the report is back from the ‘doctor’ on the health of your CMMS/EAS. Fingers crossed it’s nothing terminal. It might require a little minor surgery, a nip and tuck, or it may just be given the all-clear. If there are a large number of potential safety and efficiency gains identified, it could be time to look at the business case for an upgrade to a more capable system.

Whatever the outcome, at least you will know where the opportunities are, and what you can do to capitalise on them.

We’d love to help you make the most of your EAM/CMMS

Like you, we care about managing preventive maintenance. Let us come and run a full System Health Check on your CMMS/EAM system.

With report in hand, you can implement any or all recommendations yourself, or engage MC Global to do it all for you if you prefer.

Your health check will totally streamline your system and make it more efficient than ever. You’ll have peace of mind, and you’ll know that you are making the most of your investment in your EAM/CMMS.

Just click on the link to make an enquiry or call and have a chat to find out more on +61 7 3303 0177

How Maintenance Managers can get the KPIs they really need.

There are two problems maintenance managers can face.

The first of these is not enough information to keep the business powering along at optimum performance.

Without adequate reporting, you are basically flying blind.

That is stressful enough, but the second issue also has its own set of dilemmas – too much information.

There is an almost infinite number of maintenance reports you could get, however unless the KPIs are relevant and meaningful, all they will do is bog you down, send you off on tangents and make your job even harder – and your working week longer – than it already is.

The question is: How do you find out which KPI’s you REALLY need to streamline your operation?

We’re glad you asked…

First things first, the importance of KPI’s in Maintenance Management.

Key Performance Indicators (KPI’s) are used to measure the effectiveness of the maintenance management solution that directly impacts asset/equipment performance and total maintenance costs.

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Monitoring KPI’s and setting KPI targets:

  • increases asset life
  • improves labour productivity
  • reduces costly downtime
  • minimises inventory investments, and
  • lowers the total cost of maintenance.

 

As you can see from this screenshot depicting a KPI dashboard, a simple green, yellow and red system lets you see at a glance which areas are critical and need your urgent attention, and which are currently under control.

It’s important to know this.

For example, some Service Level Agreements (SLAs) can incur penalties, so you need a clear picture of what’s going on.

With the right KPIs at your disposal, you’ll be able to see through the haze – and the maze – and make confident decisions, rather than educated guesses.

What the Maintenance Management KPIs might entail.

As you would expect, the KPIs you need could be totally different to those required by a maintenance manager or facilities manager in another industry.

They could span across such aspects as:

  • Number of critical outstanding jobs
  • Number of scheduled jobs overdue
  • Labour utilisation and availability
  • Costs Vs budget
  • Response times,
  • And more.

It’s simply a matter of working out what you and your team need.

For example, your storeman may need KPI’s about stock and lead times, while you as a

manager would no doubt need to concentrate on more broad ‘big picture’ KPI’s.

Setting KPI Alerts.

The first thing to do is to work out what your alert levels actually are.

Some issues may be critical, while others may simply be something you have to keep your

eye on for now.

Once you decide what will trigger an alert, such as if a target is not being met, it’s a matter of

working out what actions need to happen when an alert triggers.

These actions may take the form of Notifications or Job Escalations and from them,

automatically-generated reports can be sent to specific people.

If you have a powerful CMMS, you can access all relevant data fast and have everything you

need at your fingertips, including:

  • summary data
  • charts and graphs
  • high configurability,
  • and much more.

KPI dashboards ensure that real-time information is instantly available, so you can make the data you are collecting work for you.

With quick access to key metrics, you’ll have all the data you need to make correct decisions at your fingertips.

Trend KPI’s to Reduce Reactive Maintenance.

 

To avoid tasks unexpectedly becoming critical, MC Global recommends trending KPI’s.

By trending KPI’s, you’ll know if your maintenance projects are improving or diverging from your target metric.

One of our clients found this process particularly useful. They set up a trend to monitor the number of preventive maintenance jobs per month.

Not wanting to swamp their team at the start, our client gradually started enabling them – and made an interesting discovery.

As the preventative maintenance went up, the reactive maintenance went down. Not only that, but our client also achieved:

  • quantifiable cost savings
  • improved output, and
  • higher safety standards.

By utilising KPI trending, you may even see the point of diminishing returns, where stepping up preventative maintenance no longer has such a big impact on reactive maintenance.

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Enterprise Asset Management Reporting

A cutting edge EAM program gives you the tools to automatically generate reports, customised lists and schedules through predefined parameters.

It will also display a list of report groups with their corresponding reports.

Without switching applications, you can access, copy, setup and view all reports.

MC Global’s powerful, fully-integrated CMMS does all that and more. It also includes features designed to give you an added level of depth to their analytics, such as:

  • pre-populated standard reports, sorted in folders by category
  • a simple report setup tool that makes creating new reports or modifying existing ones fast and painless
  • automated scheduling of reports and KPIs that can be emailed regularly to others (either from your address book, or from the Labour, Requester or Contact modules)
  • SMART reports that allow data to be modified and viewed from within the report itself, making batch edits or quick status updates a breeze.

Our Top 8 Maintenance Management KPI Reports

FYI, following is a list of the most run – and recently run – reports…

  1. Risk Work Orders – Overdue
  2. Delayed Work Orders
  3. Audit Reports
  4. Work Order Assignments by Labour
  5. Work Orders Issued but not Completed
  6. Asset List by Location
  7. Asset List by Classification
  8. Labour Cost Report

For more information and advice about how to get the KPI’s you really need – or to arrange a Free live demonstration of our asset management software based on your specific issues – please call 617- 3303 0177. Or simply, click here to contact us.

Take the Chaos out of Maintenance Work Requests

One of the best and worst things about being a Maintenance Manager is being so ‘popular’. Everyone wants a piece of you and, as you know, everything is urgent…at least to their way of thinking. (When was the last time someone called you and said: “No hurry on that job… take as long as you like.”)

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Of course, what might seem ‘red hot urgent’ to the person with the problem getting all agitated on the phone, may not be quite as urgent in the scheme of things as they might think.

Everyone has their own agenda and being the person in charge of maintenance issues, you are the meat in the sandwich.

There are three pain points associated with this.

  • A loss of time searching for unrelated information, and sifting through mountains of paperwork
  • A loss of momentum as one job comes straight over the top of another, and
  • A feeling of being totally overwhelmed.

With this in mind, MC Global Solutions would like to suggest proven ways to take the chaos out of maintenance work requests.

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Managing maintenance work requests step 1: Determine priorities.

Of the 200 or so work requests that could be on your radar, not all of them will be critical.

In fact, only those items requiring Statutory Compliance and/or impacting on health and safety – such as checking for Legionella in a commercial HVAC system – are truly Code Red critical.

If it impacts on a client experience, for example a tap dripping at night in a hotel guest’s room or air conditioning not working in a shopping centre, its criticality is slightly further down the list.

So, the first thing to do is conduct a Criticality Assessment of the asset, prioritising all work requests.

The main advantage of a criticality assessment is that it uses an:

  • Established filter with
  • Predetermined criteria.

It puts paid to you having to agonise over what level a task falls under – and go through the same process a few weeks later with a similar project.

If it ticks the box as critical, then it automatically gets priority.

This will reduce the daily influx of work orders that must be dealt with IMMEDIATELY down to a more manageable figure.

 

Managing maintenance work requests step 2: Determine available resources

Work orders

 

Once you have ascertained the criticality of work orders in descending order from “must do” to “wish list”, it is then a case of working out if you have the right resources on hand – human and otherwise – to confidently and competently do the work.

As you’d know, these resources are often inter-dependent.

For example…

Do you have the labour to complete the task, in terms of supervisory staff and trades?

If the workforce is available, do you have the parts to do the work and if they are not on hand, what’s the timing for supply so this can be re-scheduled?

And what about tools and equipment? You might have access to labour and parts but if your team is on a mining site, a piece of equipment might well be 100k away… and you may not know that until everything else has been organised.

 

Managing maintenance work requests step 3: Consider physical access.

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This is where you need to look at the big picture, such as:

  • Is it safe?
  • Is it in use?
  • Is there other work going on that would prevent getting access? (Eg you need to paint, but earthworks are making the site too dusty)
  • Do other jobs require those resources?
  • Can we schedule around regular maintenance?

This process is fraught with stress…UNLESS you have the right Maintenance Management System in place, one that will consider each and every facet of the job and give you a red or green light.

Our tailored CMMS will make short work of your work orders.

MC Global Solutions can custom-design computerised maintenance management systems (CMMS) guaranteed to meet ALL of your specific industry challenges.

They will effectively track, analyse and manage every component of your maintenance management operation, every step of the way.

Amongst other things, they can:

  • Give you an instant update of your real-time inventory
  • Increase efficiencies across the entire asset lifecycle
  • Assist with better work scheduling
  • Improve the safety and reliability of your assets,
  • And much more.

For more expert information and professional advice about how to streamline work requests and make your job much easier, call +617 3303 0177 and speak to our friendly helpful team members, or simply click here to contact us.

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Facility Managers — 3 Step Guide to Maintenance Scheduling

How Enterprise Asset Management streamlines workflows and keeps facility managers in complete control.

Small companies find it relatively easy to stay in control of workflows and keep on top of things. Believe it or not, some even schedule jobs using hand-written messages on sticky notes stuck on a locker.

As the business grows however, the scheduled maintenance process becomes more complex, and it is exponentially harder to:

  1. Achieve maximum productivity whilst
  2. Containing operational and maintenance costs and
  3. Having clear, concise reporting of maintenance activities.

With an ever-growing list of scheduled maintenance tasks to perform, and more and more reactive maintenance jobs coming in, it can become increasingly difficult to keep all the balls in the air, and plates confidently spinning.

Even experienced facility managers sometimes struggle to prioritise problems that invariably arise, such as maintenance schedules, labour resources and use of equipment.

  • Have I got the inventory to complete the job?
  • Will issues have a flow-on effect through the organisation?
  • Does this satisfy statutory compliance?

As long as you have the answers to these, and other accumulative questions that can arise at any given moment, you’ll be OK.

If not, then your job will be even harder than it already is.

With this in mind, here are the 3 basic steps to scheduling a job that will make your working life so much easier AND help you get the best ROI from your assets.

Maintenance Scheduling Step One: Step back and look at the Big Picture.

Before you schedule a maintenance job, enterprise asset management best practice strongly recommends you conduct a thorough Criticality Assessment.

If you do not perform a criticality assessment to identify your most critical assets, you will base your decisions on perception rather than risk.

This may result in wasted time and money.  In some cases, lots of wasted time and BIG money.

For example, if a production line stops, due to something relatively small that could have been avoided, then the downstream impacts of production, deadlines and deliverables can become significant.

The key is to look further than the actual equipment itself, and ask yourself: What is depending on that equipment?

Getting your priorities right.

All businesses have their own terminology/criteria to rank priorities; some use a colour system, such as Red, Amber and Green, others a numerical system in which a ranking of “10” is deemed to be Highly Critical.

Basically, it comes down to this:

  • Is it critical?
  • Urgent?
  • Normal?
  • Low?

In a perfect world, everything would be low-to-normal…but unless you’re super-efficient (or very lucky) that is rarely the case.

Once you have conducted your criticality assessment, and determined priorities, it is then a matter of working out how to track all of these issues so you can handle work requests with confidence.

Rather than struggle with spreadsheets (or sticky notes!) you need a proven asset management system to keep you up to speed with every stage of every job.

As MC Global’s CEO, Steve Martin says:

“If this type of activity isn’t systemised, then the risk to the business is very high. Information in people’s heads can so easily be lost.”

The other consideration when setting priorities, is to make sure that non-urgent, yet time sensitive maintenance work is not pushed to the back.

For example, if the air conditioning is due to be serviced within a fixed period, failure to do so will infringe Code compliance. This will therefore need to be slotted into your priorities list in a timely manner.

On that subject, this is where having automatic alerts in your asset management system can take a load of your mind. It means that these important, time-sensitive maintenance tasks won’t be overlooked.

Maintenance Scheduling Step Two: Assign your Procedures

After looking at the maintenance work that needs to be done and determining its criticality, your next step is to assign your procedures list.

In this step, you assign who does what – with unambiguous information about how it needs to proceed, when it needs to be done and who to pass the ball to once each process is carried out.

It is here that you can attach documents such as:

  • Standing Operating Procedures (SOP)
  • Safety instructions
  • Photos (if necessary/available)
  • and anything else that may relate to the job.

This documentation is particularly important because it ensures that everyone is on the same page and that ALL procedures are covered off.

For example, are there safety factors to consider such as if and when the power needs to be turned off during a maintenance job. And turned back on again.

Your procedures list will also provide you with valuable intel, such as:

  • If the correct parts are being ordered,
  • Are there any site induction requirements,
  • Do risk assessments need to be undertaken,
  • And so forth.

Ideally, to avoid double handling, this would all be carried out on a ‘click and done’ basis, with EAM software that seamlessly integrates with your operations.

With the right enterprise asset management system in place, you’ll know instantly when things should happen.

The bottom line is that, while lists are fine, to avoid potential problems:

  • you and other stakeholders must be totally clear on “what’s next”
  • the right people must have access to information as they need it, and
  • approvals/checkpoints must take place before the next step is taken.

Maintenance Scheduling Step Three: Implementation

Provided you’ve followed the first two steps involved in scheduling a maintenance job, this final step should be a simple to implement…especially if you have a EAM system to co-ordinate everything.

It involves checking job calendars to see what other work is happening concurrently; depending on the workload, this may dictate the date of assignment and/or the labour chosen to complete the task.

If you DO have an enterprise asset management system in place, it will immediately show you which people with the right skills are available.

Furthermore, it will then automatically send out notifications to:

  • The people doing the job
  • The Requester
  • And other stakeholders

In summary…

No matter what sector you’re involved in, from healthcare to hospitality and from manufacturing to retail, following these three steps will be a giant step towards improving your operating efficiencies.

Armed with a proven enterprise asset management system – such as the bespoke EAM systems offered by MC Global – you’ll see at a glance who is doing what work now AND what is scheduled in the upcoming months.

You’ll have a total asset register, a failsafe inventory system, access to accurate recordings, and enjoy measurable results from a EAM software system with utmost functionality.

For more information about enterprise asset management systems – or advice on specific problems and challenges you are facing – please feel free to call MC Global on (07) 3303 0177

Or simply click here to contact us.

Maintenance Connection Q&A: Using the ‘Where’ clause

Our question this week comes from Bruce in Adelaide who is using Maintenance Connection as his CMMS to manage his Manufacturing & Plant Maintenance.

The Question

Using the Maintenance Connection CMMS, we need to find the work order history for 2 particular models of Fuel Pump:

1. Model A

2. Model T185PG.

How do we get a report to capture all the work orders including both the ones for Model A and the Model T185PG work orders?

The Default MC Report filters allow for a check of the Model field contents but has a couple of limitations:

1. Each additional criteria we add limits the result set. We want to expand the result set.

2. We want to check multiple conditions against the Model field.

The Solution

Use the “WHERE” clause in the “ADVANCED tab” of the report

[WHERE]

( Asset.Model = ‘A’  OR   Asset.Model =  ‘T185PG’ )

Report_Setup

Report Output Showing the Work Orders for both models:

YourCompanyOrganisation

Thanks for the question Bruce and we hope this will help you more efficiently navigate your Work Orders!

If you’re interested in sending in a question or problem you might have, don’t hesitate to shoot us any mail to marketing@mcaus.com.au

We’re also excited to announce the launch of the new V7 Maintenance Connection CMMS which we’re currently giving you 30 Free Days to trialStarting at $110/month you can find out more here:

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What’s a Geographic Information System (GIS)?

In honour of international GIS Day, we’re talking GIS, it’s origin, how its evolved and most importantly how it integrates with asset management software.

A geographic information system or geographical information system (GIS) is a system designed to capture, store, manipulate, analyze, manage, and present all types of spatial or geographical data.

In a general sense, the term describes any information system that integrates, stores, edits, analyzes, shares, and displays geographic information. GIS applications are tools that allow users to create interactive queries (user-created searches), analyze spatial information, edit data in maps, and present the results of all these operations. Geographic information science is the science underlying geographic concepts, applications, and systems

GIS is a broad term that can refer to a number of different technologies, processes, and methods. It is attached to many operations and has many applications related to engineering, planning, management, transport/logistics, insurance, telecommunications, and business. For that reason, GIS and location intelligence applications can be the foundation for many location-enabled services that rely on analysis and visualization.

GIS as relates to asset management software allows you to identify, locate, prioristise and manage your assets:

  1. Make better, faster planning decisions with full spatial context in the asset management workflow.
  2. Visually identify the location of various assets requiring maintenance.
  3. Easily convey the information, its priority and location in order to make informed decisions for resourse scheduling and efficient service.

Example below:

GISlarge1

 

Click here to find out more about MC Global’s GIS solutions and integrations for asset management software.

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3 Key Steps to Managing Parts and Inventory Across Multiple Locations

Managing parts and equipment in one location is a hard enough task. Managing parts and equipment in multiple locations is infinitely more difficult.

If you’re like most companies, it’s a great feeling adding new locations; it’s a sure sign of successful growth.

However, with that exuberant feeling also comes the down side – the growing pains associated with setting up new facilities complete with larger amounts of inventory management.

To ensure your company’s successful growth, MC Global outline three key steps to take to make sure all your locations – particularly the new ones – are efficiently managing their parts and equipment operations and will continue to do so for many years to come.

 

 

Step 1: Location and Layout of Warehouse and Inventory

As in real estate, it’s all about location.

Many businesses spend vast amounts of money to make sure the location of their storefronts are in highly visible areas to attract customers, but neglect to think about where their warehouses are located.

Warehouses should be situated in highly accessible locations near main thoroughfares and major highways.

This connectivity not only reduces travel time and fuel, but it also saves on delivery charges made to and from warehouses.

Eg, opting for a location that is already on a main shipping route is a clever move because it will reduce cost and time in package delivery to your customers or affiliated companies.

As well as making sure your warehouse is located in the best possible location, the layout of inventory parts within your stockroom is of paramount importance when planning.

Think about the location, overall design and general theme of where parts are situated within your stockroom.

It pays to be consistent.

Even if your company houses stockrooms in multiple locations, if possible and practical, parts and components should have basically the same layout and be in the same location as your other stockrooms.

This will streamline part locating and make it easier for new employees being trained.

For example, if Stockroom A at the Toowoomba warehouse looks exactly the same as Stockroom B at the Rocklea location, then training new staff or sending existing employees to other stockrooms will make things easier for them; they’ll be totally familiar with the layout and operations.  To find out more about how to standardize warehouse operations call MC Global on                    + 617 3303 0177.

 

Step 2: Streamline Multiple Inventory Locations

One of the best things you can do when expanding to multiple locations is to set processes in place for inventory activity.

The first guideline you should establish is how to replenish inventory.

When a particular item becomes low in stock, your first plan of attack may NOT be to rush out and purchase new items, but instead to look within your maintenance software to check whether your other stockrooms in close proximity have an overstock of this item.

If they do, it makes sense to pull inventory from this stockroom first before purchasing new parts.

This not only saves on purchase costs and shipping but also allows for a Last in First Out replenishment of parts.

Having parts sitting on shelves which may be two, there or even five years old could be counter-productive according to inventory best practice.

Establishing minimum, maximum and re-order points on inventory is another great way to managing multiple locations.

To avoid manually keeping an eye on these levels, it’s a good idea to establish parameters and notifications within the CMMS software letting you know when parts run low, especially critical parts.

Your managers can I.D. parts that technicians use on a frequent basis, plus parts they never use, so they can match parts with the equipment on which they are used.

With practice, they can establish maximum and minimum stock levels, reorder points and criticality.

Another important key to streamlining your inventory is to make full use of mobile scanners and barcode parts.

Real-time usage of parts & inventory can save your business a lot of time and money.  It keeps the company informed about lost inventory and notifies you about shortages on frequently used inventory.

Barcoding and scanning also helps to track parts and ensures correct part ID usage for billing.

Finally, having a great Return Material Authorization (RMA) process in place will enable your organization to manage and track returns efficiently.

You’ll also save money on items not used.

 

Step 3. Streamline Your Operations & Inventory with Maintenance Connection CMMS Integration

MC Global believe that automation is crucial for any company that wants to streamline operations and inventory at multiple locations.

This automation is a given when integrating an enterprise maintenance management software into a company’s processes.

Organizations are using CMMS more and more on a daily basis to manage maintenance needs and to streamline their facilities and inventory needs.

Furthermore, they are turning to CMMS to help them function like well-oiled machines, with many locations running together and communicating superbly.

A CMMS can even be integrated with other internal systems to fully integrate them all.

In short, the benefits that stem from using a CMMS software are limitless.

To learn more about the benefits of inventory and equipment management and Maintenance Connection CMMS integration, call MC Global on +61 7 3303 0177and speak to a friendly ever-helpful team member, or simply contact us.

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How to achieve successful CMMS Implementation.

Want to hear a frightening statistic? According to a USA report, approximately 80 to 90% of all computerized maintenance management system (CMMS) implementations fail.

 

What are the reasons for this shocking CMMS failure?

Well we believe it can be attributed to 4 main aspects:

  • poorly defined goals
  • lack of leadership buy-in,
  • deficient training, and
  • a non-intuitive user experience.

For more than 13 years, MC Global have worked hand-in-hand with a host of customers on successful CMMS implementations, based around the world class Maintenance Connection product.

We’ve tackled those four above-mentioned challenges, updated our product/user feedback, and focused our resources on customer success.

As a result, we’ve orchestrated hundreds of successful implementations—from large enterprises to smaller shops—and achieved a remarkably high overall customer satisfaction and project success rating.

Which begs the question: what does a successful CMMS implementation actually look like? And precisely how can your organization ensure that all the foundations are in place to achieve success?

Based on our experience, MC Global hereby present…

 3 ways to improve your team’s CMMS onboarding and implementation.

 

  1. Partner with experienced, strategic maintenance consultants.

It’s claimed that an astounding 4 out of every 5 project management executives don’t know how their projects align with their company’s business strategy.

A non-existent plan and timeline is destined for implementation failure.

Therefore, you should partner with a CMMS provider like MC Global who will:

  • work with your management team to evaluate current business processes
  • suggest improvements if necessary
  • predict the impact of CMMS, and finally
  • determine how the software best fits into the mix.

As part of our implementation, we will work with business leaders to align your CMMS goals and advantages with existing operations. That will ensure the CMMS invariably leads to improvements in efficiency, productivity and performance.

2. Commit to comprehensive and continual training.

There is nothing like upfront training and ongoing guidance to ensure your team becomes au fait with the full functionality of CMMS software.

It also paves the way for better user adoption.

Firstly, you should ensure that your CMMS’s upfront training is designed to educate employees on the benefits and uses of a CMMS; this should be across all departments.

Secondly, make sure you offer your core maintenance team – along with key techs and vendors – the opportunity to get involved in comprehensive training resources.

Thirdly, offer opportunities for continued learning beyond the initial CMMS implementation.

This is imperative as:

  • new employees join your company
  • system updates roll out, and
  • your company grows.

 

  1. Choose a dedicated success team.

Don’t just think about the software.

CMMS technology has the ability to track and improve maintenance performance, however it isn’t always easy to implement.

Investing in a CMMS is a company-wide initiative that takes a lot of commitment—including a team dedicated to its successful execution and adoption.

That’s why you must go beyond software capabilities when evaluating CMMS options.

Choose a partner dedicated to your business and you will enjoy the following benefits:

  •  Successful onboarding. Using data migration, we will help coordinate a smooth database transformation to ensure all assets and preventive maintenance systems (PMs) are configured and accurate. This can save your team the stress and confusion of importing pertinent data.
  • Excellent lines of communication. Between implementation and adoption, communication is critical. A common error in CMMS implementation is lack of support between the maintenance team and vendor.
  • Greater business impact. If planned, developed and managed correctly, a CMMS will bring about greater efficiencies in organizational operations. MC Global helps users define project goals, roles and milestones to make better decisions about maintenance operations. 

Why MC Global Customers Win with Successful CMMS Implementations

We are in the business of helping our customers solve real business problems, and ultimately, we work to make your day-to-day life better.

We’re committed to building software that solves common business challenges, and we work hand-in-hand with you to make it happen.

Our experienced maintenance consultants work with you right from the start to provide on-site training and ensure successful implementation.

We also:

  • involve IT from day one
  • make sure all assets, PMs and inventories are successfully loaded, configured and accurate, and
  • focus on customer-attuned feature development.

For more information and advice about Maintenance Connection CMMS implementation – and how to make it a success from Day 1 – call +61 7 3303 0177 and speak to a friendly ever-helpful MC Global team member, or simply contact us.

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Using your CMMS to Go Greener in the Utilities Industry

For most companies, a strong business case exists for decreasing waste, cutting energy and water consumption, minimising transportation costs, curtailing emissions, and/or undertaking other environmentally beneficial initiatives.

Before your company spends a lot of money on certification programs, public relations campaigns, or consultant reports, consider how you can use systems like your CMMS for creating key performance indicators (KPIs) relevant to your business, setting reasonable targets, and executing an action plan for achieving them. Let’s look at some specific ways in which your CMMS might help you manage energy costs and meet environmental goals.

Fact-Packed Free eBook - Everything you need to know about asset management systems

Utilities management

The greatest cost of an asset stems from the “operate and maintain” stage of its lifecycle. On average, this accounts for roughly 80% of the total cost of ownership. During this stage of the asset lifecycle, one of the largest cost categories is the energy consumed by the asset.

Your CMMS will let users set improvement targets and track their progress. Some more-modern CMMS packages can track energy consumption – not unlike the metering of any asset for condition-based maintenance. This may require the addition of metering capability for individual assets, as many companies rely on utility companies to meter only site-level energy consumption.

Once individual assets are metered for energy consumption, data can be analyzed on a detailed basis. This allows for the following:

  • Use of condition-based monitoring, such as detecting equipment downtime, power surges, brownouts, and other important triggers
  • Correlation of other factors, such as aging and wear factors and prediction failure or other significant events
  • Analysis of peak, average, and total consumption
  • Translation of consumption volumes into dollar values
  • Use of lifecycle analysis to compare total cost of ownership for older equipment with costs for newer, more energy-efficient equipment
  • Validation and better understanding of utility bills.

Full article can be seen here by David Berger at PlantServices.com