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Enterprise Asset Management

How And Why Should You Track Fixed Assets?

Deducting the full cost of a machine in the first year doesn’t make sense when the machine will be used for 8 to 10 years. To address this, the accounting field introduced the concepts of fixed assets and depreciation. This approach spreads the machine’s cost over its useful life, reflecting its ongoing value and usage. […]

Deducting the full cost of a machine in the first year doesn't make sense when the machine will be used for 8 to 10 years. To address this, the accounting field introduced the concepts of fixed assets and depreciation. This approach spreads the machine's cost over its useful life, reflecting its ongoing value and usage. Introduction: The Balance Sheet And The Fixed Assets Register It seemed difficult to us to approach the concept of fixed assets without introducing you to the documents in which they appear, namely the balance sheet and the register of fixed assets. The balance sheet is a mandatory accounting document for companies, which reports their assets at a given time. It is made up of two parts, assets and liabilities, which absolutely must be balanced (the sum of each part must be equal to each other). The fixed assets register is a simplified version of the balance sheet. The Liabilities Of The Balance Sheet Liabilities are a statement of the company's financial resources. It includes internal and external resources, in other words equity and debt. It is frequently said that liabilities have a negative economic value for the company. Liabilities are made up of three sub-parts that we will present to you in their order of appearance in the balance sheet: 1. Equity They relate to the company's long-term stable resources. Three key resources make it up: share capital, reserves and net income. Share capital is the money contributed by the partners of the company when it was created. They constitute the initial contribution of the creators of the company. Company reserves are the results of previous years not distributed to the company or its creators. They constitute its treasury. The net result is the difference between the income and the expenses for the financial year. It can be positive or negative and balances the balance sheet. Concretely, it is calculated by subtracting the total of liabilities from assets. It is always entered in the liabilities of the balance sheet, being considered as a debt of the company towards its partners. 2. Provisions for risks and charges Provisions for liabilities and charges show future events such as charges in the balance sheet, which must be precisely and reliably estimable and highly probable. 3. Company debts Consisting of the company's resources, debts are distinguished between short-term debts (less than one year), medium-long-term debts (loans) and operating debts (suppliers, VAT, wages, etc.). The Assets Of The Balance Sheet Assets represent all of your company's assets. It is in a way an inventory of the goods and rights that it possesses, presented in increasing order of liquidity (ability to be transformed into money). It is located in the left column of the balance sheet and the sum of all assets must be equal to the sum of all liabilities: what the company owns must be equal to its resources (equity + debt). To be considered as such, an asset must meet four criteria according to the General Accounting Plan: An asset must be identifiable; It must have a positive economic value, i.e. provide the company with an immediate or future economic benefit; It must be controlled by the company, which assumes the risks and benefits. For example, it cannot credit the machine of a supplier, who is responsible for the risks associated with this asset; Finally, an asset must be able to be valued at its fair value and reliably. Examples of assets: goodwill, building, equipment, receivables, patents, etc. Fixed Assets Or Current Assets? The assets of a balance sheet have two distinct parts, and this is where we come back to the principle of fixed assets: there are fixed assets and current assets. Fixed assets are made up of durable goods, i.e. goods that can be reused in the medium to long term (more than one year), which the company owns and which are used in the exercise of its activity. As we will see later, a distinction is made between tangible, intangible and financial fixed assets. Examples of fixed assets: premises owned by the company, office furniture, computer, etc. On the other hand, current assets include all the other assets which do not remain permanently in the company's assets, and/or which are transformed (stocks transformed into product, receivables becoming cash upon settlement, etc.) or even the cash, intended to be reinvested in the company or to absorb hard knocks such as a breakdown of equipment. So now you have a better understanding of where an asset is and what it is used for in the balance sheet. But back to our sheep and see together what is, concretely, an immobilization. The Fixed Assets Register Easier to keep, the fixed assets register only provides information on fixed assets: durable goods owned by the company. The elements contained in the fixed assets register are: The date of acquisition of the property, The nature of the immobilization, The price, Details of the depreciation applied each year since the purchase of the property, The date of transfer if applicable, The transfer price if applicable. Definition Of A Fixed Asset The accounting fixed asset is the whole of the company's assets, and the depreciation makes it possible to deduct a portion of the initial investment each year. But concretely, what is an immobilization? Fixed assets are assets held and used by the professional in the course of his activity for more than one year. Indeed, the general chart of accounts considers them as goods or assets whose use extends beyond the current financial year. They allow the business to earn money or allow it to operate normally. There are three categories: tangible, intangible and financial assets. Fixed assets: all physical goods, which one can touch. Examples: vehicles, premises, equipment, etc. Intangible assets: the immaterial assets of the company. Very rare in private practice, they generally only concern the patients of a practice. Examples: patents, licenses, trademarks, software, goodwill, etc. Financial assets: intangible financial assets (shareholding, loan granted to other companies, etc.) Certain assets must be recorded in the company's fixed assets: goodwill, equipment specific to the professional activity (a doctor's table, a massage therapist's machine, a photographer's camera …). Other property can be used professionally and personally, such as a vehicle.  In this case, either the self-employed person brings the property into the company's professional assets and immobilizes it, or he brings it into his personal assets and therefore cannot immobilize and depreciate it. This applies to all major mixed pro/personal purchases such as computers or mobile phones. Whatever the nature of the fixed asset, it must be included in the fixed assets register or the company's balance sheet. The main advantage of fixed assets is to be able to deduct part of the purchase cost each year. What Is An Asset? Fixed assets are assets owned by a business that are used for the long term and not intended for resale. These fixed assets constitute a favorable potential economic value for the organization. Fixed assets are an integral part of an accounting practice. There are three main categories: Intangible asset: Intangible assets are non-monetary assets without physical substance, which represent a profit for the organization. This type of fixed asset includes assets such as software or patents. Tangible fixed assets: Property, plant and equipment, on the other hand, are physical assets owned by a business that can be used by the business or rented out to other organizations. This type of fixed asset includes assets such as machinery, tools, equipment or land. Financial fixed assets: Finally, financial fixed assets are durable assets also owned by a company. For example, financial loans to associates for a period of more than one year. Why Is It Essential To Manage Your Fixed Assets? For a business, it is important to track all of its assets with fixed asset management software. With this type of software, an organization can get an accurate idea of ​​its fixed asset stock and its book value. It can also manage: Census of assets and their characteristics, Visibility on the use of software & hardware to better predict investments, Depreciation management: calculation, depreciation plan, Automatic amortization schedule update, revaluation, Make the link between equipment acquisitions and the current state of the capital stock (functional, lost, broken, etc.), The end of the asset lifecycle, Determine the capital gains or losses of fixed assets to see which are the most profitable for the company. This makes it possible in particular to apply the tax regulations in force and to limit the risk of error linked to the calculations of depreciation, which are done manually. What Is Amortization? Depreciation is the distribution of the amount of a fixed asset for the total period of its use. This technique is based on the use that the company makes of an asset. The duration for which a fixed asset is operated is determined by the company so that it can provide for a depreciation schedule. Depreciation allows a company to reduce certain costs and to know exactly when an asset needs to be replaced. Accounting Depreciation Of Fixed Assets Accounting depreciation consists of deducting a portion of the purchase cost of fixed assets every year in order to amortize this cost over several years. The fixed asset is effectively intended to remain in the professional heritage for a long period. Its purchase price can therefore be divided. Please note that only tangible fixed assets can be subject to depreciation. You must also be in the actual tax regime to be able to deduct depreciation, micro regimes are excluded. Depending on the nature of the asset, we opt for more or less long amortization periods. Examples: 4 to 5 years for vehicles and other means of transport; About 10 years for furniture (desk, professional table, etc.); 8 to 20 years for specific arrangements and installations (creation of a photographic studio, a gym or rehabilitation room, etc.); 3 years for computer equipment (computer, printer, telephone, etc.); 20 to 50 years for locals; About 5 years for electrical equipment. All these goods are to be depreciated in proportion to their professional use, regardless of the purchase price. There is, however, an exception for the purchase of small equipment and office furniture not exceeding 500€, in which case you can have this expense transferred directly to professional expenses. [cta title="Improve your business and optimize it with WorkTrek!" text="Monitor your fixed assets to avoid unnecessary losses!" link="https://login.worktrek.com/Account/Register?_gl=1*fpersd*_ga*MTcwMjE1OTkzNy4xNjU0NTA3NTI2*_ga_8N6446P9LX*MTY3Mzk2ODEzNS4yNi4xLjE2NzM5Njg4MDAuNDguMC4w"] What Are The Challenges Of Good Fixed Asset Management? The challenge of managing fixed assets lies in their effects on your income statement. When your company incurs an expense, for example the purchase of cartridges for your printers, these costs are deducted from your result. They constitute expenses of the exercise. Mechanically, the result decreases by the amount of the charge. But when your business acquires property or makes an expense that will be capitalized, in accounting terms, this produces two effects. On the one hand, this investment is value-neutral to your business. This property is included in the company's assets as we have seen above. The outflow of cash is offset by the entry into the asset side of an asset of the same value. This nevertheless contributes to the constitution of the company's assets. But, in some cases, the investment may give rise to the calculation of amortization, that is to say that we will take into account its loss of value over time, either related to its age, or to its obsolescence. This amortization will therefore also have an effect on your results, but over time, over several accounting years. However, amortization can be calculated in different ways (linear or decreasing in particular), each having advantages and disadvantages that should be identified according to the situation, the company not always having the choice of the mode of amortization. Example Example of the linear depreciation of the machine tool purchased on January 1, 5000 euros: The company decides to amortize it over 5 years. It will therefore incur a depreciation charge each year. We are talking about depreciation charges. This will therefore be equal to the acquisition value divided by the duration in years of the amortization, i.e. 5000/5 or 1000 euros per year. In other words, the result of each financial year will include a depreciation charge of 1000 euros for five years. Conclusion To sum up, the accounting fixed asset is the fact of integrating goods into the professional assets of the company. Tangible assets are depreciable over several years, depending on the nature of the asset. When reselling a fixed asset, its book value must be taken into account in order to treat any capital gain or loss as revenue or expense.
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Enterprise Asset Management

The Main Role of Technology in Asset Management

For several years now, the infrastructure community has been talking about sound management of municipal infrastructures, sustainable management and more recently, asset management. ​Generally, fixed asset management is a set of practices that facilitate rigorous decision-making based on knowledge of assets: their condition, associated risks and costs in order to achieve the organization's objectives. In the case of a municipality, the organizational objectives are to provide services to citizens in a safe and sustainable manner while demonstrating responsible management of revenue from municipal taxes. The implementation of an asset management process allows elected officials to have all the elements in hand to make the best decisions and to effectively manage the assets of their municipality. The investment lifecycle may be streamlined with the help of modern technology, which also makes managing deals from start to finish simpler. Teams can cooperate, and all stakeholders can access the same data and insights from a single centralized data repository. Asset Management: How Can It Be Defined And What Are Its Principles? We can define asset management as this operation which consists of managing funds from one or more partners with the aim of making them grow as much as possible. Of course, capital gains will be realized over a long period following this operation. Thus, in order to maximize profits, one must invest not only in stocks but also mutual funds. Of course, investing in open-ended investment companies will also maximize profits. It is important to take into account certain obligations in order to be able to increase the yield. Portfolio management is based on four principles. These 4 principles of Asset Management are the main values ​​on which its practice is based in order to achieve the various objectives. These include value, leadership, alignment and collateral. The value – The role of assets is to give value to the organization that owns it. So, asset management mainly focuses on the value that the asset could bring to the said organization. Leadership – Very important to create value, the role of leadership is to set up asset management, but also to ensure its effective use in the organization itself. Alignment – The different objectives of an organization manifest themselves not only in activities and plans, but also in technical and financial decisions. The smallest decision that will be taken will count a lot to achieve the various objectives of the organization. Warranty – It is certified by the asset management that the assets will perform their function. The guarantee concerns not only the assets, but also their management and the management system. Why Do Asset Management And What Are The Asset Management Solutions? While investing their funds in productive assets, asset managers allocate capital very efficiently. Note that these funds come from  private and institutional investors. The advantages of asset management are numerous. However, to benefit from these advantages, the assets in question must be entrusted to an effective manager. The latter must be able to put in place a good inventory management strategy. Thanks to the latter, the asset manager will be able to have a look at all the assets in his possession. Businesses will be able to make the most of their resources without wasting their funds on bad investments. Also, with the main objective of  making the assets of clients prosper, some managers opt for the use of software. By opting for the use of software, they offer themselves many other possibilities such as: the ability to manage resources anywhere; keep track of all assets; forecasting risks, whether legal, operational or financial; the implementation of asset management operations more efficiently with much more effective monitoring; optimization of management time; determination of service levels; monitoring and measuring the life cycle of an asset; and the management of active portfolios. The software in question is an asset management solution through which investors can structure their assets. Two options are available to them, namely: internalize or outsource. [cta title=" Manage assets with the latest technology!" text=" Manage assets quickly and easily with WorkTrek!" link="https://login.worktrek.com/Account/Register?_gl=1*fpersd*_ga*MTcwMjE1OTkzNy4xNjU0NTA3NTI2*_ga_8N6446P9LX*MTY3Mzk2ODEzNS4yNi4xLjE2NzM5Njg4MDAuNDguMC4w"] In sourcing Buying and using software internally. The objective for the investor is to carry out, analyze and carry out an effective management of the investments. To do this, he may use computer products or software. These are easily available in the market. It is also very important that the investor regularly expands his knowledge given the continuous development of products. Outsourcing Involves the use of software made available by others. This software is offered by a service provider and makes it possible to avoid the independent exploitation of computer products. While accessing the investor's data, the service provider provides assessments, analyzes and any other necessary information to the investor while taking into account his needs. To determine that management software is effective, it must be able to focus on the condition and performance of assets. It is also considered efficient if it manages to create a rapid return on investment, improve operational efficiency, reduce costs, raise the level of compliance, reduce various administrative tasks, etc. Making Use Of Current Technology For Asset Management Asset management involves a great deal of activity, making the manual workflow tiresome and ineffective. It will undoubtedly be challenging for a firm with many assets to manage and make use of them. Fortunately, most corporate operations can now be automated in the digital age, which makes it easier for firms to remain flexible. What Technologies Are Employed in Asset Management? Analytics of Data One of the most crucial elements of asset management is data analytics. Due to its value in analyzing asset performance, which aids the company in making decisions that are well-informed. It can offer essential data that aids companies in establishing baselines and future targets in order to calculate the performance of an asset. Tags & Labels Labels and tags can be extremely important for efficient asset management. Since they constantly give real-time information and asset locations. Each asset has a label that is fastened to it, and the asset management software records the label's special identifying number. This tag automatically provides all the information associated with it once it is scanned. The tag offers precise information. There are numerous asset tracking technologies available that come in label chips, tags, etc. Artificial intelligence Particularly in the manufacturing sector, artificial intelligence is crucial for enhancing daily operations and maximizing asset performance. Numerous methods, including troubleshooting, locating, and eliminating bottleneck problems, are employed in order to do so, but artificial intelligence is primarily used. You can learn more about asset behavior using artificial intelligence, which can aid you in making wiser decisions. Additionally, by using this information, you can enhance asset performance and, in the event that unexpected failures happen regularly, you can find the source and effectively resolve the problem. Cloud technology One of his most important technologies in asset management is cloud technology. Cloud-based asset management software allows businesses to access it from anywhere in the world. Changes during operation and maintenance work are also possible. Additionally, work  orders can be created based on priority or based on requirements to maximize productivity. Apart from that, you can get a customized report according to your requirements in just a few clicks. See the real-time location of all your assets on your device. Contribution Of Technology To Asset Management The use of technology assets has improved office functions and client relationships in fund administration, as in other industries, and money managers are quick to adopt technology. Executives across all lines of business emulate some of the principles wealth managers use to manage elements of their business in terms of asset performance and use technology to measure and monitor progress. The Covid-19 pandemic has accelerated the development of all these technologies. In addition, the increased automation of various wealth manager-specific tasks such as data management, risk assessment, market research and analysis, asset trading, and customer service is a result of the use of technology in wealth management. Why Technology Matters For wealth managers to evolve and grow, they must embrace change and integrate next-generation technology stacks into their daily processes. It helps you excel: Keep regulators happy – Since the 2008 financial crisis, regulators around the world have gradually tightened their transparency and reporting requirements. Wealth managers have no choice but to comply. The European Union has done it. In September 2020, the European Securities and Markets Authority introduced new liquidity stress testing guidelines. This requires fund managers to stress test the fund's assets and liabilities to address liquidity risk. In March 2021, the Sustainable Finance Disclosure Regulation came into force. Asset managers are required to be more transparent about the sustainability of their financial instruments and to disclose how sustainability risks are integrated into the investment process. Stay competitive in a rapidly changing market – In recent years, the pressure to generate exorbitant returns has pushed wealth managers up the risk curve towards more illiquid asset classes and more complex investment strategies. The investment climate is now becoming increasingly unpredictable, with resurgent geopolitical volatility, the end of globalization legitimacy, the threat of climate-related shocks, and doubts about the strength and sustainability of the “Fed put.” Meeting Investor Service Expectations – Investor demand for transparency is also increasing. Allocators (especially institutional investors) want detailed and understandable insight into the level and sources of money her managers' performance, as well as sophisticated risk indicators on a variety of factors. Conclusion Modern technology and CMMS software streamlines the investment lifecycle, simplifies end-to-end deal management, team collaboration, and access to the same data and insights for all stakeholders and from one central data location.
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CMMS

20 Benefits Of CMMS Tools For Business

If you’re a business owner, you know that keeping your operations running smoothly is essential for success. One way to ensure the optimal performance of your facility is to utilize CMMS tools. CMMS stands for Computerized Maintenance Management Systems, offering a wealth of benefits for your business. In this blog post, you’ll discover 20 of the main advantages of using CMMS software for your business. Read on to learn more! What businesses use CMMS? CMMS, also known as facility management software, can be used in many business environments, including manufacturing plants, retail facilities, restaurants, and healthcare laboratories. These businesses use CMMS to keep track of preventive maintenance tasks, such as oil changes or filter replacements, as well as corrective maintenance activities, like replacing broken parts or performing repairs when needed.  The software also allows businesses to collect data on machine performance, so they can identify potential problems before they become serious issues. Moreover, it enables them to track stock levels so they won’t run out of vital supplies at critical times. Why do businesses use CMMS? According to a research study by Whole Building Design Guide, a CMMS allows businesses to track maintenance-related data in real time. This information helps organizations monitor the performance of their machines and equipment, predict potential issues before they arise, and schedule preventive maintenance accordingly.  By utilizing a CMMS optimization program, business owners can save money by avoiding costly downtime due to unexpected repairs or replacements. Additionally, CMMS makes it easier for teams to collaborate on projects across multiple locations or time zones. All information is stored securely in one place, so everyone has access to the same up-to-date information when needed.   20 Benefits of CMMS software for business CMMS software can provide a wide range of benefits to business owners, including: 1. Increased visibility over assets One of the major benefits of using a CMMS tool is increased visibility over assets. With an efficient system in place, it's easier to track and monitor assets, allowing businesses to stay ahead of potential problems before they become full-blown disasters.  Improved visibility also makes it easier to plan for upcoming maintenance, repairs, and replacements—helping businesses avoid costly downtime or surprises down the line. This can be especially beneficial for operations that may not have the resources or manpower to track every asset manually.  2. Enhanced operational efficiency Many CMMS examples are designed to help manage equipment maintenance activities, optimize inventory control, and improve scheduling processes. It also has features that allow users to store data on equipment performance and track labor hours for various tasks.  This information can be used by business owners to identify opportunities for improvement in operational efficiency and make the necessary adjustments accordingly. By monitoring these metrics regularly, businesses can ensure they remain efficient and cost-effective while delivering excellent customer service. 3. Easier inventory management Business owners who employ a CMMS tool will be able to automate the tracking functions related to their inventory. For example, they can use barcodes for quick scanning or make use of auto-replenishment features that notify users when certain items are low. By integrating your CMMS tool with accounting software like Sage 50 Cloud, you can also set up alerts for particular items when stock levels get too low. You can also try some Sage 50 Cloud alternatives to get greater insight into your inventory.  All this helps ensure that proper stocking levels are maintained without having to manually track every item on a spreadsheet. 4. Improved communication As per an article by IBM Corporation, CMMS tools provide a centralized point for information sharing, which allows teams to communicate more effectively. This improved communication streamlines maintenance processes and reduces issues, such as missed deadlines and miscommunication between departments.  With improved communication capabilities, CMMS tools provide an invaluable resource for businesses looking to maximize efficiency in their day-to-day operations. 5. Decreased labor costs As a result of using CMMS tools or top facility management software, business owners can save time in the administrative workload related to managing their facilities. The software helps reduce labor costs by streamlining processes, such as scheduling work orders or tracking materials inventory levels.  Additionally, with automated reminders for scheduled maintenance tasks or notifications when parts need replacing, there’s no need for an additional staff member to monitor these activities. This reduces long-term overhead costs without sacrificing quality or reliability in facility management services. 6. Addressing Maintenance Backlog While some level of maintenance backlog is inevitable, an excessive backlog can have detrimental effects on your operations. Case in point: the estimated $12 billion cost of backlogged maintenance at US national parks. While this is an extreme scenario, it underscores the critical need to maintain a manageable level of maintenance backlog. A Computerized Maintenance Management System (CMMS) plays a crucial role in striking a balance between resources and maintenance costs to prevent the backlog from spiraling out of control. The software identifies minor issues that might otherwise go unnoticed and facilitates the scheduling, assignment, and prioritization of maintenance tasks, ensuring that no jobs are overlooked or neglected. 7. Prolonging Asset Lifespan The current average age of industrial equipment in the United States has reached levels not seen since the 1940s. While age alone may not always be the primary cause of equipment failure, it frequently contributes to operational issues. Given the financial constraints that may hinder the outright replacement of older models with new ones, the emphasis on proactive maintenance becomes paramount. Preserving the optimal operational state of equipment over an extended period entails conducting maintenance before any significant breakdown occurs. Relying solely on Original Equipment Manufacturer (OEM) guidelines or guesswork proves inadequate for achieving this objective. By integrating Computerized Maintenance Management System (CMMS) software with sensors, Programmable Logic Controllers (PLCs), Supervisory Control and Data Acquisition (SCADA), and Manufacturing Execution Systems (MES), you gain the ability to monitor an asset's health in real-time. This integration facilitates the identification of potential failures before they happen, enables diagnostic evaluations of problems, and empowers you to schedule timely maintenance interventions. 8. Streamline Scheduling and Execution of Preventive Maintenance Preventive maintenance plays a crucial role in identifying defects before they escalate into major issues, ultimately minimizing the occurrence of breakdowns. Maintenance teams recognize the significance of preventive measures in curtailing downtime, but the challenge lies in efficiently scheduling and implementing them. A Computerized Maintenance Management System (CMMS) provides a comprehensive solution to this challenge through the implementation of automated work orders. Within a CMMS, preventive maintenance (PM) triggers can be established based on factors such as usage, time intervals, or specific conditions. These triggers initiate the generation of a work order, which is then systematically scheduled and assigned. The automation of this process enhances the efficiency of preventive maintenance scheduling, resulting in smoother execution and, ultimately, reducing downtime. 9. Expedite Repairs and Inspections Downtime becomes inevitable whenever an asset requires repair or inspection, and while complete avoidance may not always be possible, inefficient processes for repairs and preventive maintenance (PM) can significantly prolong downtime. The cumulative impact of these inefficiencies translates to substantial time and financial losses for your facility in terms of disrupted production. Implementing a Computerized Maintenance Management System (CMMS) streamlines the repair and inspection processes, minimizing downtime to the bare minimum. Technicians gain the flexibility to access a mobile CMMS app from any location, enabling them to review an asset's history, diagrams, spare part locations, and other pertinent details for expedited work completion. Moreover, CMMS software provides the capability to identify work orders that are taking too long, pinpoint the cause of the delay, and rectify it promptly, ensuring swifter task completion. 10. Minimize Risk in Every Job The expeditious completion of a job holds little significance if it compromises safety. Failing to integrate safety into the planning process elevates the risk of accidents. Ensuring the safety of every task introduces additional steps in the work order creation process, but the investment is worthwhile in preserving the well-being of your team. A Computerized Maintenance Management System (CMMS) simplifies the creation of work orders with a focus on the maintenance team's safety. Incorporating checklists, material safety data sheets, safety procedures, and required Personal Protective Equipment (PPE) ensures that technicians execute tasks safely, mitigating potential risks. 11. Streamline Audit Preparation Navigating audits can prove challenging without the right tools and expertise. Failing an audit entails significant complications and the potential loss of substantial financial resources. CMMS software provides a more efficient and cost-effective approach to audit preparation. It facilitates inspection rounds and enables seamless searches within the system for maintenance records related to specific assets or time periods. The documentation of compliance activities becomes more straightforward with CMMS, offering the capability to generate reports and store relevant photos. 12. Avert OSHA Violations and Penalties Safety violations not only contribute to increased accidents but also incur substantial financial penalties, potentially costing businesses millions of dollars. Such violations often result from missing information, unclear expectations, and breakdowns in communication. A CMMS emerges as a solution to these challenges. Safety procedures become more accessible and visible through checklists and asset profiles. Technicians can swiftly access these procedures on their mobile devices, ensuring they never overlook crucial safety instructions that could lead to a violation. 13. Streamline Safety Training Management Safety training is a pivotal component, shown to reduce injuries by 24% and mitigate unforeseen costs. However, challenges such as timing and the need for specialized skills can impede the implementation of well-intentioned safety plans. CMMS software acts as a facilitator in overcoming obstacles to proper safety training. It allows for the storage and tracking of health and safety information for technicians, including certifications. Furthermore, CMMS enables the extraction of safety reports, aiding in the prioritization of necessary training initiatives. 14. Uncover Patterns in Maintenance Metrics Maintenance metrics act as a numeric translation of actions, enabling the measurement of everyone and everything's performance within your operation. They serve as a bridge between cause and effect, facilitating informed decision-making and operational improvement. Effective metrics tracking demands the right combination of tools, processes, and personnel. The instrumental 'tools' in this equation are provided by CMMS software, which captures and tracks metrics over time, offering a comprehensive, long-term perspective on performance. Additionally, CMMS software streamlines metric analysis, empowering you to fine-tune strategies based on valuable data insights. 15. Streamline Reporting and Save Time Maintenance Key Performance Indicators (KPIs) play a pivotal role in identifying persistent equipment issues and benchmarking against industry standards. However, compiling KPI reports using manual methods like Excel or pen and paper can be laborious and prone to errors. CMMS software transforms this process by enabling the collection of data from various facets of your maintenance operation and synthesizing it through reporting templates. Many CMMS platforms offer automated report delivery to your inbox on a predetermined schedule. A clearer understanding of your KPIs empowers you to enhance value and mitigate risks through strategic adjustments. Swiftly analyze trends, identify recurring problems, track costs, and more with the efficiency of CMMS reporting capabilities. 16. Receive Real-Time Work Order Updates Efficient tracking of work order progress is pivotal for minimizing backlog, establishing effective schedules, planning production, and managing budgets. Lack of visibility into work orders for key personnel can result in increased downtime, elevated costs, and uninformed decision-making. CMMS serves as a safeguard against such scenarios by providing real-time work order updates, including priority status, assigned personnel, and duration of tasks. This information allows for proactive resource allocation if required. Additionally, CMMS notifies production staff when assets are back online, ensuring a prompt return to work. The system's ability to identify work orders causing delays or incurring additional costs empowers you to address and rectify underlying issues promptly. 17. Access Comprehensive Historical Information Effectively managing an asset throughout its lifecycle necessitates a thorough understanding of its history. Even with technicians possessing extensive knowledge about an asset's past, the risk of losing this information forever looms due to high turnover and retirement rates. CMMS acts as a bulwark against this knowledge loss by providing unique records for each asset, documenting all relevant details from repairs to inspections, labor hours, and more. Technicians can readily access these records for preventive maintenance or troubleshooting, ensuring that critical historical information remains accessible and valuable. 18. Streamline Work Requests Through Automation Maintenance managers often contend with work requests arriving through various outdated channels such as phone calls, sticky notes, whiteboards, or word of mouth, creating inefficiencies in the process. These antiquated methods compel maintenance teams to invest unnecessary time in creating work orders and manually inputting data. CMMS software addresses these challenges by automating the work request process. Employees can effortlessly log work requests, establish preventive maintenance (PM) triggers, or integrate with sensors to generate work orders based on real-time asset conditions. This automation eliminates the need for translating work orders, chasing down operators, or sifting through physical files, saving valuable time and streamlining the entire workflow. 19. Standardize Maintenance Processes for Efficiency Efficiency in maintenance is often achieved by employing proven tools and methods tailored to specific situations. Starting from scratch with each preventive maintenance (PM), repair, or report can result in prolonged timelines, increased downtime, and higher costs. A CMMS empowers you to standardize maintenance processes by creating checklists, workflows, reporting templates, and more. These resources are digitally accessible, ensuring that everyone has access to the same information, follows consistent best practices, and completes tasks efficiently. 20. Enhance Access to Maintenance Resources A lack of centralized knowledge often translates to the need to track down individuals, sift through physical documents, or navigate computer files to find solutions for breakdowns. These seemingly minor inefficiencies can cascade into more significant issues, including increased downtime and failed audits. CMMS serves as a solution by providing a centralized hub for maintenance resources, making information readily available to anyone at any time. Attach videos, manuals, task lists, accident reports, inventory requirements, and more to specific equipment or work orders within the CMMS. This accessibility enables technicians to complete tasks more efficiently, reducing downtime and contributing to overall operational success. Top 3 CMMS software features Do you want to make the most of your CMMS software system? With so many different features to choose from, it can be hard to know which ones will give you the highest return on investment. To help narrow down your choices, here are the top 3 CMMS software features: 1. Asset tracking This feature allows you to keep an accurate and up-to-date record of all assets in your business. With this data at hand, you can streamline operations, improve performance, reduce maintenance costs, and ensure compliance with industry standards.  2. Preventive maintenance (PM) scheduling PM scheduling enables businesses to stay ahead of potential breakdowns by pre-emptively checking equipment and replacing parts as needed before they fail. This helps reduce repair costs while improving safety conditions for workers and customers alike. 3. Powerful reporting capabilities These features should include intuitive report customization for greater accuracy and flexibility, built-in templates for quickly generating reports, interactive charts for deeper analysis, and automated email notifications so you’re always up to date with the latest information.  Leverage CMMS tools to grow your business CMMS tools have huge potential to improve the efficiency and profitability of businesses. With their ability to store data, track maintenance, schedule tasks, and forecast costs, they can save time and money and help ensure better outcomes for customers.  Business owners should take advantage of these powerful tools to bring more success and prosperity to their operations. Ultimately, investing in a reliable CMMS tool will be an investment that pays off for many years to come. 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?
Person Holding Pen and Checking Calendar on Tablet - Doing Tasks

CMMS

Essential Tasks To Track In Your CMMS

Computer Maintenance Management System (CMMS) is specialized maintenance management software that performs a series of advanced functions and essential tasks, including operations and maintenance activity tracking and other management features. The CMMS makes it easier for maintenance departments to keep a database of the equipment for which they are responsible, by planning, monitoring, and logging curative and preventive maintenance tasks. CMMS software is therefore a specialized database that allows you to streamline and track every aspect of maintenance operations within a company. As the interventions become more complex and more important, the need to resort to a centralized and efficient CMMS becomes essential. How Do CMMS Essential Tasks Work? As we have just seen, the CMMS is a complex set of tasks that requires day-to-day work and optimization. Management, CMMS, or maintenance solutions for your premises all work in almost the same way. It is true that these tools are above all created to replace complex processes or non-performing tools dating from another era! For example, CMMS managers who wish to digitize their processes most of the time start by handling tools available to everyone but unsuitable, such as office suites, or task management solutions, which are often incomplete. CMMS tools respond to all of the CMMS manager's issues. And here is the difference between these software and non-performing tools. To sum up, CMMS solutions do not only deal with one of the axes of your daily life but help to work more easily on all the issues related to CMMS. In most of these solutions, you will therefore find modules allowing you to collaborate with your service providers and your suppliers, modules allowing you to build a precise budget on your CMMS, or even modules that will help you to monitor your deadlines, for example! Benefits Of CMMS - Essential Tasks To Track The CMMS offers several advantages to companies who decide to implement this solution in their computer system in particular: Improvement of the availability rate of equipment and better analysis of its lifespan and long-term depreciation. Cost reduction. Improved stock management. Optimization of the organization of the technical service thanks to the recording of operating modes, the monitoring of interventions, and the increase in preventive actions. Inventory of equipment, incident prevention, planning, and monitoring of regulatory controls. Control of the quality of the unit's customer services and monitoring of the evolution of the breakdown rate thanks to the indicators delivered by the software. Centralization of technical, administrative, and financial documentation for equipment and traceability of history and costs related to maintenance operations carried out on each piece of equipment. Improved decision-making on the renewal of equipment, the internal and external maintenance budget to be allocated to equipment, the choice of partners (suppliers, subcontractors, and manufacturers), etc. CMMS: Who Is Affected By This Type Of Software? The CMMS concerns several sectors of essential tasks, as long as they involve maintenance of equipment, buildings, or installations. Here is a non-exhaustive list: The real estate sector uses it to centralize information related to building maintenance. The energy sector uses it in the management of network equipment. The transport sector uses CMMS to monitor its infrastructures. The public sector uses it in the management of public buildings in communities. The medical sector uses CMMS for the maintenance of equipment, essential for medical operations. The industrial sector uses it for the maintenance of automated machines. Essential Tasks To Track In Your CMMS Processing of requests for intervention and maintenance Work order management can be defined as the proper and timely processing of work orders. It may sound simple but it can actually be a complex process that would take countless hours and reams of paper if done by hand. The use of CMMS software aims to automate these processes and to profile the processes relating before, during, and after the intervention. Managing these orders starts with creating missions that need to be prioritized. To begin, it is necessary to define what a work order is: it can be defined as a maintenance service to be carried out, received either as a customer request or as a recurring planned work intended for the maintenance of the equipment, or any other resource. The notion of priority of work orders is determined by the degree of urgency of the service to be performed (emergency vs. routine repair) as well as by the condition of the equipment. The level of criticality can be established in advance for each type of repair as well as for each piece of equipment, which facilitates the task of the planner or manager when defining daily priorities. When done correctly, the most important work is carried out in priority while if a delay were to occur, it would be for non-essential work. Thus, CMMS software aims to simultaneously process the management of intervention and maintenance orders in order to break down the processes and tasks that must be carried out to execute each type of mission and then ensure that they are carried out in the same way. Most efficient and productive way possible. Preventive Maintenance Management The last desirable thing is to have to constantly follow the maintenance curve of a piece of equipment and to have to react urgently to extinguish any “starting fires” in the event of a breach. Therefore, a preventive maintenance module helps companies to stay one step ahead, allowing them to finally be responsible for the work carried out by field technicians and thus to move towards proactivity and no longer be in the reaction. Using the CMMS, it is now possible to configure your workflows to gather all the data that technicians need to work efficiently. The latter arrives on site knowing exactly what to do with which parts and have all the tools they need to carry out the intervention. Once the workflows have been configured with the right data, it is also possible to configure an automatic trigger so that the intervention is automatically generated on a specific date or from a particular data. For example, it is possible to automate the maintenance of a pump after a certain number, previously defined, of cycles, or even a treadmill to be checked once every three weeks. Personnel and Schedule Management The effectiveness of field workers and a successful tour both depend on good planning and faultless dispatch of intervention orders to the personnel responsible for carrying out the missions. This is why the artificial intelligence of CMMS software contributes greatly to the optimization of routes by considering the criteria of operational constraints or even the minimization of the distance traveled between each intervention. Dispatching and assigning an intervention order to a technician are intended to be quick and intuitive to increase the company's responsiveness to any potential emergency, guaranteeing an immediate and appropriate response. Subcontracting management requires a tailor-made interface to study the parameters specific to this part of the activity, attesting to the performance, according to different criteria, of one subcontractor compared to another, thus making it possible to compare a company's entire list of subcontractors according to their respective competitiveness. On the other hand, a CMMS solution offers a solution for real-time monitoring of activity in the field to ensure the feedback of important information such as the dematerialized piece of the signed intervention order (for example) allowing automatic triggering of actions with the customer. To this must also be added the fact that a lot of useful information can be relevant for analytical purposes to study operational performance more closely. Analysis of data and Key Performance Indicators CMMS software makes it possible to create customizable reports according to the specific needs of the market sector addressed, without the need to develop any complex function. Once the reports have been created, the information can be consulted at a glance, while the reports created remain scalable. This same exploitation of data gives the company control of the present while aiming to plan for the future. It is now possible to transform information of better quality and confidence into meaningful data, which can positively impact the operational part of the activity. Work orders Work order management is often considered the main function of a CMMS. The system allows for submitting, reviewing, filtering, assigning, recording maintenance data and feedback, and analyzing work orders. The CMMS generates work orders based on scheduled maintenance work or when it receives a repair request from authorized personnel. You can filter requests by order type, work order number, vendor, staff, or priority. You can set up custom maintenance procedures and checklists, as well as attach documentation, notes, and safety guides to standardize technicians' maintenance work. Purchases and requisitions The purchase module of the CMMS is an essential task to track. Whenever you need maintenance or repair, the purchase order creates a requisition of components. A purchase request ensures that your team has what they need to complete the task efficiently. The CMMS sends an alert when a critical element is temporarily unavailable. Unfortunately, unexpected delays are common without this control. Asset Tracking Asset Tracking is an essential task to track that involves monitoring the physical locations of multiple assets and defining different types of assets and the relationships between them. It also keeps a history of all operations, such as maintenance and repairs, to identify potential issues. [cta title="Ensure savings with professional CMMS software." text="With professional CMMS software, the invested money can pay off many times over." link="https://login.worktrek.com/Account/Register?_gl=1*fpersd*_ga*MTcwMjE1OTkzNy4xNjU0NTA3NTI2*_ga_8N6446P9LX*MTY3Mzk2ODEzNS4yNi4xLjE2NzM5Njg4MDAuNDguMC4w"] CMMS inventory Maintaining an up-to-date inventory of repair supplies keeps you informed of supply shortages. These shortages may impact daily programming. The CMMS inventory tracks the physical location of these supplies. This enables seamless transfers between different company locations and ensures that when a technician needs to perform a repair, the components are accessible. In addition, this CMMS feature helps to quickly determine availability and pricing. It can offer information about the supplier. Additionally, it can recommend substitute items when these are needed and not available. CMMS Inventory updates its totals when workers use parts and when the supply of a specific item runs out. It also notifies your purchasing department. Remote and Mobile Maintenance The Internet of Things (IoT) and cloud computing allow technicians and supervisors to monitor and capture maintenance information from a mobile device. This information is accessible from anywhere and does not require technicians and supervisors to work hand in hand, even when they are both not present at the maintenance site. How is CMMS essential for companies? CMMS and the manufacturing industry: Machine downtime is the primary concern of production line and plant managers. And too long a downtime has particularly damaging consequences for the company: unused resources, delayed manufacturing processes, and inability to deliver orders on time. CMMS software offers preventive maintenance features, but also optimized spare parts inventory levels, improved planning and scheduling, better use of resources, and the assurance of compliance with equipment regulations. CMMS and facility management: Customers are particularly concerned that the facilities they use are always available and in good working order. Currently, facility and maintenance managers cannot manually track all phone calls, and emails, on excel files. CMMS software is the ultimate solution that helps them easily deal with these issues through better management, fast response time, less downtime, longer longevity of valuable assets, better coordination within the maintenance service, and improved accountability and communication with the customer. CMMS and the hospitality industry: Customer satisfaction is the top priority at any resort. Whether it's a restaurant, casino, hotel, or holiday resort, the quality of the customer experience is the number one priority. Managers of establishments in this sector do everything possible to ensure that their equipment and facilities are running smoothly around the clock. CMMS allows the hotel and restaurant industry to manage thanks to the input and output flows, improve equipment tracking, reduce response time, and equipment downtime, and lower maintenance costs. CMMS and teaching: University campuses, colleges, high schools, and schools also use CMMS. Indeed, educational institutions must respect and comply with many regulations. The use of CMMS software facilitates their task and allows them to ensure the proper execution of their regulatory obligations. The benefits are actually many, including ensuring preventative maintenance, faster response time, better workflow management, better asset tracking and reporting, and better management and performance of maintenance teams.
Two man cleaning window on a building

Operations & Maintenance

How To Develop A Facility Maintenance Plan

Effective maintenance planning for a facility is essential to keep industrial or agricultural facilities in good condition. In particular, it makes it possible to avoid breakdowns, while minimizing downtime. The latter generally generate high additional costs due to the decrease in productivity of the installations, but also of the employees. However, while beneficial to businesses of all sizes, the facility maintenance plan can produce the opposite effect to that intended when it has not been established effectively. On the one hand, maintaining more than necessary equipment wastes time that could have been devoted to other tasks. On the other hand, not maintaining equipment sufficiently increases the risk of failure. Having a plan in place that takes into account the following factors will ensure that you find the right measure. Inventory Of All Assets At the Facility To Be Maintained To set up an optimal plan for the facility, it is first necessary to carry out an inventory of all the tools on which maintenance must be carried out in order to not omit any asset essential to the proper functioning of the production chain. Depending on the size of the industrial or agricultural company and the number of installations in its possession, the complexity of the maintenance plan can vary greatly. In the most complex cases, it is strongly recommended to segment this inventory by sector or production unit in order to be able to manage sets of acceptable complexity. Definition And Prioritization Of Facility Maintenance Tasks It is essential to define all the facility maintenance tasks to be carried out on each asset, as well as their frequency and the skills required. These will allow tasks to be assigned to technicians with the right skills. In addition, a prioritization of tasks can be useful in the most complex cases. You need to determine the tasks to be carried out and those to be postponed in the event of a lack of resources. The purpose of this prioritization is to better organize the maintenance work.  That leads to better efficiency, reduction of stress in the teams, and easier management of unforeseen events. Setting Up A Facility Maintenance Schedule In the Maintenance Plan To be effective in business and optimize your time, you have to know how to be organized. There are precise maintenance schedules provided for this purpose! Before understanding why and how to deploy this tool in your facility, let's find out what this type of planning consists of and its difference from a maintenance plan. What is a maintenance schedule? We call the maintenance schedule the document which makes it possible to organize the assignment of technicians to the maintenance tasks of the various equipment. This assignment can be done on a daily, weekly, or monthly basis depending on the equipment concerned. Some of them require daily maintenance while for others, monthly or even annual maintenance is sufficient. A maintenance schedule usually takes the form of a calendar or a table, hence its name schedule. This name is often mistakenly confused with the maintenance plan. However, these two documents do not have the same objective at all, but the maintenance schedule is part of maintenance planning – they complement each other. The maintenance plan does not have the calendar function that the schedule has. Rather, it is a program that lists resources, procedures, and recommendations for maintenance tasks. This plan will specify, for example, the equipment concerned with maintenance, at what period it will have to be maintained, the equipment required for the intervention, and the budget to be provided. In other words, the maintenance plan indicates the procedure to be followed while the schedule represents the timetable for visualizing recurring or urgent interventions. Why set up a maintenance schedule in a facility maintenance plan? Maintenance is a crucial stake in the proper functioning of the facility, its planning is a precious tool with multiple advantages. Thanks to a good maintenance schedule, the team in charge of it (or the management of service providers) can organize itself correctly, better anticipate unforeseen events, respect everyone's working time and be more reactive in the event of a technical emergency. The advantages of a rigorously established maintenance schedule in a facility maintenance plan are therefore the following: Prioritization of all maintenance activities to be able to intervene where and when necessary. The provision of room for maneuvering, additional safety for the technician, and the equipment being maintained. An extension of the life of equipment thanks to regular checks and adjustments. A better distribution of the workload of each technician. The maintenance schedule allows you to see at a glance who is assigned to each task. So you can see if there are particularly large variations in workload from one technician to another. Better management of tasks in the event of personal unforeseen events. If one of your technicians or service providers is unavailable, you can easily identify the person who can replace this person for the planned intervention(s). More advantages: Optimization of maintenance rounds, geographically. By knowing that such a technician will intervene at such a place on such a day, you group several interventions and avoid unnecessary back and forth. This optimization saves time, and energy and reduces intervention costs. Improved customer satisfaction by preventing your equipment from breaking down and therefore slowing down production or causing poor workmanship. Better working conditions for your employees thanks to controlled, functional, and secure equipment. Better working conditions also for your technicians and your subcontractors, thanks to a better organization of their schedule and a good distribution of tasks. Your maintenance staff will benefit from real-time visibility. However, communication is one of the keys to efficiency and professional well-being! How to set up a facility maintenance schedule? Providing an effective maintenance schedule requires following several major steps. First, be sure to schedule all recurring transactions, those that occur on a regular basis. To do this, provide yourself with maintenance plans indicating precisely the deadlines to be respected for each piece of equipment, choose the interventions, and identify the technician(s) to be assigned. Second, make sure you have a safety margin. This will translate concretely into available slots “just in case”. Equipment may experience a breakdown or malfunction, and being able to have a time slot for urgent intervention is therefore more than reassuring to be able to be reactive. Then plan those famous emergency interventions. To do this, you will need to clearly identify the problem to indicate its level of priority, order any spare parts, and inspect the place of the intervention to inform the technician who will proceed with it. Finally, do not forget, a posteriori, to analyze what will have been done. Performance indicators such as the expenses incurred or the downtime of the equipment concerned will allow you to have an overall follow-up and better optimize your maintenance schedule over time. This will allow you to know, for example, the actual number of hours to be expected for the repair of such or such equipment. Definition Of Facility Maintenance Procedures And Instructions To guarantee the quality and efficiency of maintenance work, it is essential that technicians carry out all the prescribed operations correctly, regardless of who is involved. The establishment of standard operating procedures (SOPs) makes it possible to achieve this objective. The way to accomplish each task and the quality criteria to be met must be explicitly defined in this document. In this way, you guarantee the proper functioning of each installation and avoid too frequent stoppages of your production tool. A Qualified Workforce And Formalized Skills The equipment of industrial or agricultural facilities, whether small or large, can be affected by mechanical, electrical, or electronic problems. In addition, some installations require skills that can only be acquired through dedicated training. It is therefore essential that the various maintenance tasks be entrusted to technicians with these specific skills. The integration into the facility maintenance plan of the skills required for each task as well as for each technician makes it possible to plan interventions appropriately and to anticipate the recruitment of future technicians or their training. Indeed, you will easily find that you need an additional mechanic if the resources are systematically lacking in the mechanical tasks. Spare Parts Management The immobilization of your production tool because of an unavailable spare part is a real risk. With this in mind, maintenance planning makes it possible to anticipate the parts to have in stock for the various maintenance interventions. The objective is to have permanent availability of worn parts and sensitive components. A well-established maintenance plan, therefore, contributes to the effective management of the stock of spare parts. Use Of Maintenance Management Software The use of computer-aided maintenance management software (CMMS), such as WorkTrek, facilitates the planning of your maintenance. They generally make it possible to manage interventions, workers, equipment, stocks, and purchases and even have indicators and statistics to optimize your management. Excel remains an adequate solution for small structures, although it is less complete and less automated than dedicated software.
Power plant

Operations & Maintenance

A Beginners Guide To Plant Operations Management

What is Plant Operations Management? Plant Operations Management involves overseeing and optimizing the daily operations of a manufacturing facility or industrial plant to ensure efficiency, productivity, and safety. It encompasses various tasks such as production planning, scheduling, resource allocation, quality control, maintenance, and workforce management. Plant operations managers are responsible for coordinating and supervising these activities to meet production targets, maintain quality standards, minimize downtime, and maximize profitability. They also play a crucial role in implementing process improvements, implementing new technologies, and ensuring compliance with regulatory requirements and safety protocols. Overall, plant operations management is essential for the smooth and cost-effective functioning of manufacturing plants and plays a vital role in achieving organizational goals. Almost all businesses have two basic ways to increase their profits. Increase their revenue by selling more products or services and reduce their operating costs. While finding ways to generate sales is often seen as the most appealing aspect of running a business. Reducing costs through the strategic management of operations can be just as important. Given that companies can lose 20-30% of their annual revenue due to organizational inefficiency, there's something to be said for running a tight ship and finding ways to save money as much as possible. It is precisely for this reason that plant operations management is essential for any business to remain profitable. What Is Operations Management? Operations management (OM) is the administration of business practices to create the highest possible level of efficiency within an organization. It is about converting materials and labor into goods and services as efficiently as possible to maximize an organization's profits. Operations management teams attempt to balance costs with revenue to achieve the highest possible net operating profit. Key points to remember: Operations management is the administration of business practices to create the highest possible level of efficiency within an organization. Operations management aims to convert materials and labor into goods and services as efficiently as possible. Business operations management professionals try to balance costs with revenue to maximize net operating income. Understanding Operations Management Operations management involves the use of personnel resources, materials, equipment, and technology. Managers acquire, develop, and deliver recommended products to customers based on customer needs and company capabilities. Operations management deals with a variety of strategic issues. Some of them are: determining the size of manufacturing plants and project management methods and implementing the structure of computer networks. Other operational issues include managing inventory levels, including work-in-progress levels and raw material acquisition, quality control, material handling, and maintenance policies. Operations management consists of studying the use of raw materials and guaranteeing a minimum of waste. Therefore, operations managers use many formulas. For example, the economic order quantity formula determines when and what size of an inventory order to fulfill and how much inventory to hold. The combination of understanding and coordinating the work of a business is essential to becoming an effective operations manager. Fundamentals of Operations Management Although there is no single accepted method of operations management, most schools of thought will agree that its definition rests on the following foundations. Planning and design A large part of operations and project management is the forecasting, planning, and design of processes based on current and future conditions. Processes Repeatable processes are at the heart of the production and manufacture of goods and services. Cost management Product development costs such as materials, labor, and equipment make up a significant portion of a company's operating expenses. The management professional must monitor these costs carefully. Efficiency At some point, every organization will suffer from bottlenecks in production and unoptimized processes. Operations managers need to address these inefficiencies and work to improve them. Quality control Ongoing quality assurance is integral to maintaining high levels of customer satisfaction. Without it, the business will lose customer demand for its products and services. Technology Research and development are at the heart of these foundations. Therefore leveraging technology allows companies to beat their competitors to the punch. Continuous improvement Organizations must constantly work to improve their processes. They need to find new and more efficient ways of doing things. It can be hiring new people, using updated technologies, creating new product lines, and phasing out poorly performing items. Profitability Bringing these foundations together leads to a strong bottom line, better cash flow, and better margins. Implementation Phases The implementation of an operations management strategy generally follows a three-step sequence which proceeds as follows: Phase 1: Planning the Operating Systems The first phase consists of planning the five aspects of the enterprise operating systems: Outputs Planning company products or services requires conducting market research to determine the market fit of products, competitors, and optimal pricing strategies. Capacity After determining what products or services to produce, operations managers need to specify how many of those outputs will be produced and how often. Facilities Next, operations managers need to plan for the facilities needed to support their production and manufacturing activities. Job descriptions and workforce Operations managers also need to determine the size of their production workforce. They also need to decide what skills to look for in employees and what their responsibilities and roles will be. Workflow The final step in planning operating systems is to create a system of tasks, processes, and a chain of accountability necessary to produce the outputs of the business. Phase 2: Production Planning The second phase focuses on planning the precise details of production, supply chain management, and quality control: Production Converting inputs (materials and labor) into outputs (products and services) requires the operations manager to determine the equipment, materials, and tasks needed to expedite production. Scheduling Scheduling is a critical activity that ensures that enterprise operating systems have the right resources, people, and facilities at all times. Supply chain and inventory management As mentioned earlier, supply chain activities are an important component of a company's operations. A related operational function is inventory management, which requires striking a balance between maintaining a sufficient number of products in stock and avoiding unnecessary costs associated with warehousing and wasted inventory. Quality control Operations managers must have a clear system for maintaining optimum levels of inputs and outputs to ensure that products and services meet high-quality standards. Phase 3: Productivity Management The final step in implementing an operations management strategy focuses on managing productivity within the organization. In the context of operations management, productivity is defined as the ratio of output volume to input volume. Simply put, productivity refers to the efficiency with which resources like capital and labor are used to produce products and services. For example, many manufacturing companies measure productivity using the output metric per hour. It looks at the number of units produced per hour. This figure is calculated by dividing the number of units produced by the total number of hours worked by employees over a certain period of time. Benefits of Implementing an Operations Management System (OMS) As it grows in size and complexity, any organization begins to become more difficult to manage. Therefore the complexity of managing an organization increases when the number of things to manage increases. For example the number of employees, departments, programs, or business processes. A company's ability to turn its assets into profits, its inventory into goods, and its supply chains into cash flow is enhanced by the use of an operations management system. Here are the advantages of implementing such a system in the organization: Removes complexity from operations Business complexity has an effect on organizational performance. With an established operations management system, organizations will be able to streamline any processes that may be causing additional costs or wasted time and labor. It minimizes wasted time and helps reduce unnecessary expenses that might arise due to the use of slow and inefficient business processes. It reduces costs and increases the profit margin A reduction in production cycle time allows more products to be produced in less time, which increases profit margins for the organization. One of the ways to effectively reduce cycle time is to embed lean production into your organization's processes and perform analysis at every step of the process, which helps reduce costs. This results in greater profitability and lower product prices, which leads to increased sales. Increase worker productivity Operations management systems ensure your production process is running efficiently and improve your existing workflow by seeing what works and what doesn't. Operational management systems help organizations effectively manage labor resources during the manufacturing and distribution process to maximize revenue. Promotes collaboration between different departments Operations management systems allow the different departments of an organization to work together to achieve business objectives and improve management systems to achieve better results. A management information system (MIS) brings together the collection of past data, processes, customer expectations, and requirements for the successful and holistic management of a business. Minimizes waste Organizations can better understand what is needed and what isn't in their business processes by implementing a system. It is also an opportunity to analyze the costs of the organization and to carry out an internal audit to identify opportunities for improvement.
Management inventory

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 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.
Working on laptop

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 implementation

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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