The Role of CMMS

A guide for the selection and implementation of computerized

maintenance management system and enterprise asset management
software

Prepared by:

Mike Crain
Industrial Solutions Group Inc
The Role of CMMS

Computerized Maintenance Management Systems (CMMS) have evolved over the last three decades
from elementary asset tracking and preventive maintenance functionality, to enterprise maintenance
information systems. There are hundreds of vendors providing solutions on a variety of platforms. These
“best of breed” systems provide users comprehensive functionality to facilitate the flow of maintenance
information and the ability to check the health of the maintenance organization at a glance.

As the maintenance, repair and operations (MRO) software market continues to expand vendors have
developed solutions that focus on specific segments of asset and work management. Systems described
as enterprise asset management (EAM), asset life cycle management, asset performance management,
asset or enterprise reliability management and condition monitoring are all focused on achieving the
same goal; increasing equipment availability and performance, increasing product quality and reducing
maintenance expense. When a CMMS is implemented to facilitate established process and standards
those goals can be realized.

Does your organization need a CMMS?

The vendor hype surrounding business software is only rivaled by the number of unsuccessful
implementations, maintenance management software is no exception. If you are considering taking on a
maintenance management implementation, first identify the goals and vision of the maintenance
department.

If you just want a list of assets and parts for accounting, CMMS is overkill. On the other hand, if your goal
is to reduce unproductive time spent going through filing cabinets trying to answer questions like:
• When was the last time we worked on this asset? And what was the problem?
• Where did we buy this part last time? Who has their phone number?
• Is there a substitute part in the storeroom? Where is it?
• Is this equipment under warranty? Have we performed the required warranty maintenance task?
• How much have all the repairs on this asset cost? Should we replace it?
• When was the last time a part was used? Is it obsolete?
• What did we spend on preventive maintenance last year? Reactive?

If those questions sound familiar you probably could benefit from a CMMS.

Process First
Far too often organizations will purchase CMMS or EAM software with the expectation that their
maintenance business will instantly operate more efficiently. As with everything else in life, CMMS can
only provide to you what you put into it. By defining and documenting existing process, requirements and
establishing a method for measuring performance your team will define the role of the CMMS and what
functionality is required to fulfill the maintenance vision.

Your maintenance department has several basic processes, from purchasing inventory for a planned
maintenance activity to an emergency breakdown work request. Establish a team that represents all
facets of the maintenance organization (planning, storeroom, purchasing, engineering, etc). Diagram
existing processes and determine possible bottle necks that can be eliminated and parts of the process
that can be automated.

Example maintenance processes include:

• Reactive or corrective work (with and without materials)
• Planned maintenance (with and without materials)
• Preventive maintenance (with and without materials)
• Engineering / maintenance projects
• MRO parts reorder
• MRO parts cycle count
• MRO parts receiving

It is a good idea to establish a continuous process improvement team to evaluate and add maintenance
processes on a fixed basis, such as quarterly.
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The Role of CMMS

Measuring the Process

To evaluate the success of maintenance processes and your implementation as a whole, key
performance indicator’s (KPI’s) need to be defined. The KPI’s will allow your team to identify and further
optimize the business processes, determine training requirements and quantify the return on investment.

Common measurements include:

• Planned vs. reactive maintenance (cost and hours)
• Percent preventive of planned (cost and hours)
• Percent project of planned (cost and hours)
• Percent predictive of planned (cost and hours)
• Backlog (cost and hours)
• Inventory turns
• Maintenance cost as a percentage of equipment replacement cost
• Cost by equipment class
• Schedule compliance
• Percent equipment availability
• Loss opportunity due to equipment failure
• Loss opportunity due to equipment preventive maintenance

Requirements Definition
Once the primary processes and measurements are defined the actual information requirements need to
be determined. Identify what data is required, and what is “nice to have”. Evaluate how labor is scheduled
and cost is tracked. Determine the types of work orders and how they will be prioritized. Determine what
types of analysis will be performed, and what supporting data is required. Develop standard nomenclature
for items such as locations, assets, bins and parts. Identify what entities you are going to track, and what
information needs to be tracked for each.

Evaluate the information requirements for other systems. Will an interface be required to accounting, HR,
timekeeping, purchasing or project management software? Will other specialty systems need to be
integrated such as control and condition monitoring software? Identify requirements from your IT
department regarding preferred operating system and database platforms. Does IT want a web or client
server deployment? All these requirements should be documented as a formal functional requirements
document.

Take this opportunity to review your organization chart. Are positions defined in the work process filled?
Possibly a full time maintenance planner needs to be added or additional storeroom personnel. Are job
descriptions modified to incorporate process requirements? Who will be responsible for supporting users
from the maintenance group and from IT?

Common Components of a CMMS

Once your requirements have been defined, a checklist can be compiled to rate the functionality of
systems you are evaluating. Most CMMS applications are comprised of baseline modules that support
basic maintenance functions of asset management, work management, preventive maintenance and
materials management. Some applications have “add-on” modules available for additional cost that
address specialty requirements such as fleet, mobile work order, barcode, and work request.

The following lists common modules and specific fields and functionality found in most CMMS
applications.

Labor
• The ability to keep a listing of employees • The ability to assign an employee to a
and certifications specific crew and / or shift
• The ability to assign an employee to a • The ability to assign standard and overtime
specific craft rates to an employee

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The Role of CMMS

Asset
• Nameplate data (manufacturer, model, • Cost codes
serial) • Asset cost
• Asset criticality • Warranty information
• Material list • Meters (used to trigger PM’s)
• Location or position • Safety procedures
• Hierarchy for rolling up cost from the asset • The ability to attach documents or images
to area and facility that can be printed with the work order
• Asset assemblies • User defined fields
• Configurable equipment class and / or type

Work Management
• Work order number • The ability to plan crafts, shifts and
• Work order description employees on work orders
• Work order priority • The ability to record the assets downtime
• Configurable work order type (PM, • Record planned vs. actual labor, materials
corrective, safety, etc) and cost
• Problem, component, cause and remedy • Support child work orders or projects
codes • Safety procedures
• The ability to reserve materials planned on • The ability to attach documents or images
work orders that can be printed with the work order
• Materials recorded against work orders are • User defined fields
added to the asset material list

Task or Procedures
• Create predefined procedures that can be
associated to a PM or work order that
include:
o Checklist of tasked to be performed
o Estimated hours
o Resource assignments
o Parts list
o Safety procedures

Preventive Maintenance
• The ability to associate multiple assets to • Sequence PM work orders (ie. monthly,
one PM record quarterly, annually)
• The ability to trigger PM’s based on time or • Seasonal or blackout dates
usage based events • Batch generate PM work orders
• The ability to trigger PM’s on fixed or
completion based intervals

Materials Management
• Multiple store rooms • The ability to set min and max reorder
• Bin locations points
• Discretely track parts by a unique item • The ability to see parts stored in multiple
number storerooms
• Support multiple manufactures and • Supports cycle counting
manufacturer part numbers associated to • Supports work order issues / returns
one inventory item number • Supports storeroom transfers
• Primary vendor and associated vendor • Supports non-stock items issued to a work
contact information orders
• Inventory class and commodity codes • Supports repairable spares
• The ability to post inventory cost to work
orders using “average” or “last price”

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The Role of CMMS

Purchasing
• Purchase requisition generated • Ability to track purchase order items on
automatically when parts are issued based order, received or on back order
on min max levels • Approval hierarchy
• Consolidation of line items from multiple
request into one PO

Plug-ins or Add-ons
• Interfaces to widely used enterprise • PDA clients (Pocket PC or Palm OS)
resource planning (ERP) software • Bar-coding
• Interfaces to plant automation systems • Work request and dispatch
• Interfaces with customer relationship • Integration with CAD programs
management and customer information • Integration to GIS
systems • Project management systems
• Ad-hoc reporting • e-Procurement
• Fleet

Implementation
Once the requirements have been established and a system selected, the implementation process
begins. Unfortunately it is not as easy as flicking a switch and saying you’re done. To get the CMMS to
provide useful information it must be configured, key data collected and entered, and employees must be
motivated to use the system.

Use the same team that identified business processes and requirements for your system to spearhead
the initial configuration. The best first step is to have your core implementation team participate in an
extensive overview of the selected application. This can be done by the vendor or a consultant familiar
with the selected CMMS. During the overview validate that the system meets your requirements. You
should also identify all the components of the system that are required to achieve your planned level of
functionality (i.e. labor, value list, cost/GL codes, assets, bins, inventory, etc).

As the data collection efforts begin start “selling” the system to end users. Engage them in the process of
collecting and owning the information that will be entered into the system. Take advantage of assemblies,
like safety or tailgate meetings, to provide updates on the progress of the implementation. Express how
the system will benefit the maintenance users, management and the company as a whole. Request that
the senior management team address the employees about the significance of the system and the
importance of their contributions. Promote question and answer sessions, possibly even short product
demonstrations. Emphasize that the goal of the system is not to monitor employees, but to move the
organization from a reactive mode to proactive mode.

Consulting Services
There are a great number of vendors and consultants that provide maintenance management system
implementation support. Some focus more on the business side of the system while others are systems
integrators with more of an information technology focus. When considering whether or not your
organization should secure the services of a consultant pose these questions:

1. Can your staff remove themselves enough from the existing way of business to evaluate ways to
make the old processes more efficient?
2. Do you have someone on your maintenance staff with enterprise software implementation
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experience? If not, does the project schedule allow for the learning curve?
3. Does your maintenance and IT staff have the time to add this project to their existing workload?

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If you don’t have anyone on staff with prior CMMS implementation experience, plan on allowing for 3-6 months of additional time for your
project so that resource to get up to speed on the application and the requirements for getting the system up and running. A team member with a
lot of experience using a CMMS is your second best choice, and should be able to reduce the ramp up time by a month or two. Select someone to
lead your project that is motivated, works well with others and won’t get discouraged when the road gets a little bumpy.

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The Role of CMMS

If your answer was no to any of the above, or if you plan on your system being fully functional in under 6-
12 months, you should consider securing a consultant. As well as contributing years of lessons learned to
the implementation team, a seasoned consultant will help you develop a project plan, and guide your
team through the implementation process.

If a turnkey type implementation is desired, it is critical that your team evaluates and approves key
deliverables such as, business processes, nomenclature, customizations, data and the final system
configuration. Regardless of the consultants role, during testing, training and go live your resources
should be visibly leading the effort.

System Configuration
The bulk of the work that goes into a CMMS implementation is the collection of data, data migration,
system configuration and testing. It is essential that the data entered in the system follows consistent
naming standards. The identification numbers should be recognizable. If you’re implementing a new
naming convention, label assets in the field and provide hierarchy or plot plan diagrams next to
maintenance workstations. The data should be as complete and accurate as possible. Incorrect or
inconsistent data is the quickest road to frustration for your maintenance users.

The system should be configured to provide the most intuitive user interface available. Work request and
work order entry screens should take advantage of as many “value lists” as possible. Use default values if
supported by the system. If the CMMS supports hiding unused fields, take advantage of that feature as
well. To ease future upgrades keep customizations to the application and custom database triggers to a
minimum. When customizations can’t be avoided, make sure that they are well documented.

The system should be well tested prior to training. Develop test scripts that model your work process and
recruit computer savvy end-users to participate in testing. They will also be able perform data quality spot
checks. Do not start training until you’re confident the system will perform “as advertised”.

Training
Training is where the rubber meets the road. Your end users are getting their first hands on experience
with the system and are developing first impressions. Don’t use “canned” data for training. The training
environment should mirror the production database. The format of training should be role and process
based. A work requestor is going to be overly confused if you train them on all the functionalities of a work
order instead of the one screen and few fields required when creating a work request.

Make sure that one or two implementation team members are available to help users that fall behind
during training. Follow-up with those users during “go-live” and provide auxiliary training. Provide a “play”
environment where users can exercise and reinforce what they learned in training without corrupting
production data.

“Go Live”
Schedule “go live” when you will have plenty of support for the users and lower than average work order
volume. Have a back-up plan for managing the flow of information in case the system goes down
unexpectedly. If users have to fall back to the paper system for a few hours, have them create work
orders in the CMMS at the end of their shift. Have quick reference or “how to” sheets available as well as
diagrams that will help them enter the proper values into the system.

At the end of every day review what went right and where changes are required. Update and re-post the
work processes the following day. Track and prioritize configuration issues and system “bugs”. Provide a
daily update to your vendor or consultant. Reviewing the work orders daily is an excellent way of seeing
how successfully each maintenance user is interacting with the system, or who needs extra help.

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The Role of CMMS

Post Implementation
Following “go live” and prior to the transition from the project team to normal operation, review all the
defined requirements and whether they have been fulfilled. Insure that the mechanisms to facilitate and
measure business processes are in place. If a vendor or consultant was utilized make sure all their
deliverables have been completed.

Develop a support and issues escalation path. Have users go to their supervisor or resident “power user”
with issues. If the issue can’t be resolved, escalate it to a site or company administrator. The company
administrator should be the sole point of contact between your organization and the vendor. The
administrator should be responsible for logging and tracking all open issues and enhancement request.

Closing
Today’s businesses operate on the premise of doing more with less. The only way to balance the scale is
through better work processes, skilled employees and enabling technology. CMMS is one tool that can
genuinely enable your organization to meet their goals. Like any other tool, it won’t do anything for you if it
sits on the shelf, and if you’re not prepared to use it as intended, it can do more harm than good.

Those organizations that successfully implement CMMS and supporting processes have claimed 10-30%
reduction in maintenance related expenditures. When lost opportunity due to equipment failures and the
potential liability of safety related failures are factored in, it is plain to see the value behind even a large
scale effort.

If your organization is not ready to jump in with both feet, consider a phased implementation. Focus on
building the foundation through work process and data collection. Begin using the system for reactive
maintenance work orders then bring on additional functionality such as task, PM’s, inventory, purchasing
and integration to other business systems.

About the Author:

Mike Crain is a Principal Consultant with the Industrial Solutions Group

Inc. Mr. Crain has over ten years experience implementing
maintenance and reliability management solutions for utility,
petrochemical, manufacturing and municipal clients.

For more information contact:

Industrial Solutions Group

PMB 279, 4450 California Ave
Bakersfield, CA 93309

(800) 320-2341 ext 703

(661) 396-9299 Fax

[email protected]