Computer-Managed Maintenance Systems, Second Edition: A Step-by-Step Guide to Effective Management of Maintenance, Labor, and Inventory

186 Pages·2001·7.53 MB·English

Computer-Managed Maintenance Systems:
A Step-by-Step Guide to Effective Management of Maintenance, Labor,
and Inventory
by William W. Cato, R. Keith Mobley

• ISBN: 0750674733
• Pub. Date: December 2001
• Publisher: Elsevier Science & Technology Books
Preface
Effective resource management and reliable equipment are essen-
tial for optimum plant performance. Both depend upon accurate,
timely management of massive amounts of data and on the effective
use of maintenance resources. Computer-managed maintenance sys-
tems (CMMS), also called computerized maintenance management
systems or computerized asset management systems (CAMS), are
designed to fulfill these needs. These systems can provide a
cost-effective means of managing the massive amounts of data that
are generated by maintenance, inventory control, and purchasing. In
addition, these systems can provide the means to manage effectively
both the human and capital resources in your plant or facility.
For those planning to implement a CMMS in the future, this book
will provide a comprehensive, step-by-step guide that will help you
to: (1) develop functional specifications that match your needs; (2)
select the fight system and vendor; (3) develop a project plan that
will minimize risks and ensure cost-effective, timely implementation;
(4) create a justification, package that will gain management support;
(5) develop employee involvement and training programs that will
ensure effective use of the system; and (6) develop a long-term plan
that will promote continuation of the system.
Unfortunately, too many attempted CMMS implementations fail
to achieve their full potential or are abandoned after a few years. If
you have attempted to implement a CMMS and failed, or if your sys-
tem failed to deliver the expected benefits, this book is a must. It will
provide all the information you need to salvage your CMMS pro-
gram so that it can achieve its full potential and will show you how
to identify the problems that limit success and how to resolve them.
This book is designed to address the information needs of all levels
of plant management. For senior plant or corporate managers, it will
provide a clear, factual understanding of CMMS that can be used to
minimize financial risks and maximize the benefits that this type of
system can provide. For maintenance and inventory control man-
agers and their staffs, the book provides all the information they
need to implement a successful, effective system. Topics include:
DETERMINING THE NEED FOR A CMMS
How do you know if you need a CMMS? What questions need to
be answered before you make the decision? This section will give
insight into making this determination. A CMMS may not be for
everyone.
SELLING THE PROGRAM
This section prepares you for one of the most difficult of all tasks
in the purchase of a CMMS~selling the program to management,
peers, and the hourly workforce. Selling is a daily activity for all of
us, whether we realize it or not. The better we are at selling, the
more successful we will be in all our endeavors. Learn the tricks of
the trade used by sales professionals.
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DEFINITION OF A CMMS
This overview defines functions of a CMMS and discusses who
uses the CMMS and how they use it. It also discusses the benefits
that can be derived from a fully implemented program. Finally, it
describes the fundamental requirements of a total system that will
produce maximum return on investment, sa well sa the most com-
mon reasons a CMMS program fails and ways to avoid these pitfalls.
CMMS JUSTIFICATION
A step-by-step approach si presented for developing a justification
package for a CMMS. This approach includes development of several
key documents, including the functional specification necessary for
vendor selection and the cost-benefit analysis that can be critical for
gaining management approval for procurement and implementation
of a CMMS.
CMMS VENDOR SELECTION
There are several hundred active CMMS vendors worldwide. Their
offerings range from very simple work order generation systems to
very complex, fully integrated enterprise systems. The total price for
these systems can range from less than $1,000 to more than $1 mil-
lion for installation at a single site. In this section, you will receive
detailed instructions that will help you select the right system and
vendor to meet your specific needs and objectives.
PROJECT IMPLEMENTATION
Developing a comprehensive project implementation plan and fol-
lowing the plan are the two key factors in guaranteeing successful
implementation of a CMMS and providing the infrastructure that
will permit long-term continuance of the system. The implementa-
Xll
tion plan begins with development of the software, hardware, and
installation requirements. It also covers user training, database devel-
opment, and system start-up. The entire implementation plan should
be developed, reviewed, and approved before a system is selected. As
with most plans of this magnitude, revisions will be required as the
project progresses, but you should not begin the project without first
having developed a complete implementation plan.
INTEGRATING OR INTERFACING A CMMS WITH OTHER
SYSTEMS
Often it is necessary to connect your CMMS with other systems,
which may be either developed in-house or purchased from a third
party. The two options for creating this connection are integrating
and interfacing systems. We will discuss the circumstances under
which each of the two actions is appropriate.
CMMS AND CLIENT SERVER
For the past few years, client server technology has become an
important component of many types of computer systems, including
maintenance systems. This section helps define client server and
related features and their role in a CMMS.
WHY A CMMS FALLS
There are many reasons why a CMMS may fail to meet the expec-
tations of the user. But very seldom is the CMMS itself, rather than
human error, the culprit. Perhaps there was very little preparation
and research done before selecting a CMMS, or limited involvement
by management and the work force in the selection process; the sys-
tem may have been simply installed rather than fully implemented;
training may have been minimal; or incorrect or insufficient data may
have been entered. Any one of these mistakes can result in a less than
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successful experience and a great deal of frustration on the part of
those who are expected to use the system.
HOW TO ASSURE SUCCESS
After the CMMS is purchased, implemented, and operational, how
can you assure that it will be successful and that the return on invest-
ment will justify the expenditures? This section will discuss how
organizations other than maintenance can affect the final outcome of
the CMMS implementation and their role in assuring success. It will
also discuss the obstacles facing both small and large plants as they
seek to gain maximum benefit from the CMMS.
XIV
Table of Contents

Preface
Ch. 1 Determining the Need and Selling the Program 1
Ch. 2 Definition of a CMMS 13
Ch. 3 CMMS Justification 56
Ch. 4 CMMS Vendor Selection 81
Ch. 5 Project Implementation 94
Ch. 6 Integrating a CMMS with Other Systems 111
Ch. 7 CMMS and Client Server 119
Ch. 8 Why a CMMS Fails 125
Ch. 9 How to Assure Success 133
Ch. 10 The Application Service Provider: Internet Based Solution 141
App. A Comparison of CMMS Systems 149
App. B Typical CMMS Data Fields 160
App. C Sample CMMS Vender Evaluation Form 163
App. D Benchmark Criteria for World-Class Organizations 167
App. E Work Measurement: Key Performance Indicators 170
Index 177
Chapter 1
Determining the
Need and Selling
the Program
DETERMINING THE NEED
THE NEW VIEW OF MAINTENANCE PRODUCTIVITY
In today's environment, maintenance costs are rising faster than
production costs. Some surveys have shown that, at many plants,
typical management goals for maintenance~such as 95% or better
equipment availability and reliability, 99% product quality, reduced
maintenance overtime hours, reduced contract labor hours, and
improved record keeping on repairs~are not being met. Mainte-
nance has tended to be viewed as a "black hole" where too much
money goes with little measurable return. But as most companies
find themselves looking for ways to reduce cost and increase produc-
tivity, management is beginning to realize that maintenance offers
real opportunities in both areas.
Computer-Managed ecnanetniaM smetsyS
2
Maintenance can account for as much as 60% of controllable plant
operating costs. Because maintenance costs can be not only con-
trolled, but often substantially reduced, efficient management of
maintenance can influence the bottom line much more than is usual-
ly realized. All cost savings in maintenance are, in actuality, cost
avoidance. For example, if the profit margin in a manufacturing plant
is 33%, it would require $3.00 in increased sales to equal a $1.00
savings in maintenance costs. Normally, it is much easier to reduce
maintenance costs than to increase sales.
Controlling the maintenance activities in any facility requires an
effective organization. Also required is an accurate, comprehensive,
easily accessible database of relevant information. Some maintenance
organizations still manage their operations with a manual system or
with no system at all. In all but the smallest of maintenance operations,
manual systems break down under the burden of the vast amount of
information generated and required by maintenance. For this reason,
the computer is now being recognized as a powerful tool for mainte-
nance. Only a computer has the ability to store, retrieve, calculate,
organize, and present vast amounts of data efficiently and accurately.
It is highly unlikely that any organization with at least ten mainte-
nance craft personnel or an annual maintenance budget of $500,000
or more will not benefit from a computer-managed maintenance sys-
tem, or CMMS. Smaller organizations can benefit as well if they can
justify the implementation cost. A CMMS can be purchased for as
little as a thousand dollars or as much as several hundred thousand.
But the purchase price is only a portion of the total implementation
cost. Other costs include hardware, networking, training, data collec-
tion, data entry, and procedure development. Many of these costs,
such as data collection and data entry, may be internal labor costs
and can be very high. All costs must be considered in justifying the
purchase. Chapter 3, "CMMS Justification," provides an in-depth
look at how to justify the implementation of a CMMS.
DETERMINING THE NEED FOR A CMMS
There are many factors to consider in determining whether a
CMMS can benefit your operation. The most important factors
Determining the Need and Selling the Program 3
relate to reduced cost, but you also need to consider such results as
better organizational methods, reduced paperwork, and improved
communications. From a cost standpoint, if planned maintenance
work is less than 90% of the total maintenance work load, if craft
productivity is less than 80% of capacity, or if craft overtime is more
than 10%, a CMMS can help you. If your finished product quality si
consistently less than 95% or your equipment availability si less than
95%, a CMMS can help you. If your maintenance inventory cost,
including holding cost, is more than 30% of your annual mainte-
nance budget, a CMMS can help you. If all of the above conditions
apply to your operation, a CMMS can probably work miracles for
you. This assumes that you implement the CMMS that is best suited
to your needs, that you implement it fully and properly, and that you
use it to its fullest extent. In Chapter 2, "Definition of a CMMS,"
we will discuss how a CMMS can help you improve these measures
of efficiency. For now, the point si that if you are not achieving the
benchmark criteria shown in Appendix D, you will very definitely
reap the rewards of a CMMS.
HOW A CMMS MEETS THE NEED
First and foremost, it will help you to better manage maintenance
by organizing and tracking the myriad of data required to run main-
tenance operations effectively. Examples of such data are work sched-
ules and backlogs; preventive maintenance plans and schedules; labor
use; and maintenance cost distribution. A CMMS will also track
materials used, including quantities and cost. It can control your
inventories and maintain optimum, cost-effective levels of parts. It
can also provide historical, current, and future information in both
summary and detailed format.
Most maintenance professionals who have used a good mainte-
nance software system agree that it produces tangible results in four
key areas: (1) increased labor productivity; (2) better inventory con-
trol; (3) improved availability of equipment; and (4) improved prod-
uct quality. Additional benefits may be increased equipment/asset
life, reduced energy costs, improved environmental controls, and