We re Happy with Our CMMS. Should We Be?

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1 We re Happy with Our CMMS. Should We Be? Upcoming Webinars Sept 2013: Multiple FM Software Applications: Is Consolidation or Integration the Answer? Oct 2013: Dec 2013: Jan 2014: Maintenance Outsourcing: How Your FM Software Can Relieve the Pressure Selecting and Implementing FM Software the Right Way Work Order Fibrillation: Controlling the Pulse of Your Maintenance Organization Presenter: Jamshed Rivetna Principal, Ensoft Consulting, Inc. Dial-in: (213) Access Code: Send questions via chat window anytime. We ll answer questions at the end.

2 Ensoft Consulting is a consulting firm specialized in FM operations and software. Our projects generally fall into two categories: Facilities Management Consulting CMMS and IWMS Implementation

3 We work with and implement many of the leading systems. maximo We know this industry!

4 Agenda What s Happening in the Industry? Where Could You be with CMMS? Sample CMMS usage How Do You Get There?

5 CMMS --- Computerized Maintenance Management Software Work request tracking Asset/Equipment records Preventive maintenance scheduling Spare parts inventory management Maintenance labor management

6 For most organizations, CMMS is used for: Running day-to-day operations Work orders Completing service requests and routine maintenance Performing some level of preventive maintenance Supporting purchasing, accounting, administration, etc

7 Most organizations: Maintenance is being completed Customers are satisfied Facilities are in good condition Directors and managers are happy with their CMMS. Not Working Satisfaction Scale Working Great It gets the job done. We re happy with it.

8 But, Should They Be Happy with Their CMMS? Is it really performing the way they need it to? Is it giving them equipment maintenance cost data? Is it giving them data for hiring decisions? Is it enabling their preventive maintenance program? Is it allowing 2-way communication with their customers? Is it helping them justify their budget requests? Is it providing data for their decision-making?

9 CMMS is: Most organizations are fixated on this one. 1. a tool for streamlining processes 2. a database for management decision-making and reporting Equipment/asset information Space information Historical work order information Resource utilization (labor, inventory, etc ) The more progressive organizations are focused here They re using their CMMS for more than a work order processing tool.

10 They are using their CMMS to help them progress towards proactive asset management. Fire Fighting Management Continuum True Asset Mgmt Good service levels Good equipment and facilities conditions Good service levels Good equipment and facilities conditions Better control Know what s going on AT A LOWER COST

11 For most organizations, CMMS is used for: Running day-to-day operations Work orders Completing service requests and routine maintenance Performing some level of preventive maintenance Supporting purchasing, accounting, administration, etc More progressive organizations are using CMMS for: Improving asset performance Evaluating assets and their maintenance histories Extending useful life of assets Tracking equipment warranties Reducing operating costs Improving processes and workforce effectiveness Minimizing non-value adding expenses (inventory, overtime, replacements, etc.) Optimizing contractor and vendor costs

12 Most facilities managers are happy with their CMMS, even though they aren t doing much with it: Limited preventive maintenance scheduling Difficult/limited reporting capabilities Few asset/equipment items in database Few PM schedules for individual assets No asset-specific work order histories or costs No fact-based capital replacement data Ineffective work order processes Limited technician interaction with CMMS Limited management reporting from CMMS

13 What s causing the industry-wide underutilization of CMMS software? Fast-track implementation Limited management incentives to pursue improvements Data-centric implementation approach Aging software with limited capabilities Software-focused user training Limited knowledge of available CMMS features and capabilities

14 CMMS Usage Work order entry and closeout Some preventive maintenance schedules CMMS used by work control Mobile devices Full asset list PM schedules on all assets 2-way communication with requesters Capture of actual labor hours Technicians using CMMS for work orders Fully automated work order process Work scheduling Standardized PM procedures Capture of actual spare parts Spvsrs/Mgrs using CMMS Operations and maintenance analysis Advanced features Meter-based PM beginner CMMS Usage Progression advanced Reporting Monthly performance reports by building (no assets) Reports have low credibility/accuracy Reporting used by Director-level Monthly performance reports by asset/trade Ad hoc queries and reports Reports are credible enough for trending Reporting used by Mgrs/Spvsrs Monthly performance reports Event-driven operating reports Reports are trusted Reporting used by all levels

15 Agenda What s Happening in the Industry? Where Could You be with CMMS? Sample CMMS usage How Do You Get There?

16 Capture and report replacement cost and expected replacement date for equipment items. Equipment Equipment Replacement Budget Report Purchase Date Inactive Planned Replacement Replacement Cost ($) Pump Motor #2 Jun-98 N Air Handler 2-1 Aug-98 Y Air Handler 1-2 Jun-98 N Air Handler 5-4 Jun-98 N Air Handler 6-2 Jun-98 N Air Handler 1-1 Jun-98 Y Air Handler 1-3 Dec-00 N Air Handler 1-4 Jun-98 N Air Handler 2-2 Jun-98 N Air Handler 2-3 Jun-98 N Air Handler 2-4 Jun-98 N Chilled Water Pump #2 Jun-98 N Pump Motor #1 Feb-03 Y Air Compressor 1 Jan-03 N Air Handler 5-1 Jun-98 N Air Handler 5-2 Jun-98 N Air Handler 5-3 Jul-00 N More than a onetime condition assessment Institute processes to keep this data current.

17 Monitoring and managing equipment warranties. Expiring Warranties (Next 3 Months) Equipment Warranty Expiration Date Vendor Manufacturer Pump Motor #2 9/28/13 Grainger Emerson Air Handler /13/13 LB Systems Trane Air Handler /13/13 LB Systems Trane Air Handler /13/13 LB Systems Trane Pump Motor #1 11/20/13 Grainger Emerson Purchase extended warranties. Get needed repairs completed before warranty expiration.

18 Forecast PM labor hour requirements for future periods. PM Forecast Report PM Due Date Equipment PM Description Estimated Hours Week of 12/2/09 12/1/2009 Air Handler 1-1 AHU Day PM 1 12/1/2009 Air Handler 1-2 AHU Day PM 1 12/4/2009 Air Handler 1-3 AHU Day PM 1 12/4/2009 Air Handler 1-4 AHU Day PM 1 12/4/2009 Air Handler 2-1 AHU Day PM 1 57 Week of 12/9/09 12/11/2009 Air Handler 2-1 AHU Day PM 1 12/11/2009 Air Handler 2-1 AHU Day PM 1 12/15/2009 Air Handler 2-1 AHU Day PM 1 12/15/2009 Chiller 1 CHILLER Day PM Inspection 8 12/15/2009 Chilled Water Pump #2 CHWP 1 30 Day PM Week of 12/16/09 12/16/2009 Pump Motor #1 MOT 1 30 Day PM 1 12/16/2009 Elevator A Elevator A 365 Day Inspection 8 12/16/2009 Air Compressor 1 AC 1 90 Day PM 4 12/16/2009 Air Handler 5-1 AHU Day PM 2 12/17/2009 Air Handler 5-2 AHU Day PM 2 12/17/2009 Air Handler 5-3 AHU Day PM 2 12/17/2009 Air Handler 5-4 AHU Day PM 2 12/17/2009 Air Handler 6-1 AHU Day PM 2 200

19 View, prioritize, and manage PM work orders when due. Preventive Maintenance Due Week of 10/8 Due Date EQ Item PM Activity Priority Standard Hours 10/9 Pump Motor #1 MOT 1 30 Day PM /9 Elevator A Elevator A 365 Day Inspection /9 Air Compressor 1 AC 1 90 Day PM /11 Air Handler 5-1 AHU Day PM /11 Air Handler 5-2 AHU Day PM /11 Air Handler 5-3 AHU Day PM /11 Air Handler 5-4 AHU Day PM /13 Chiller 1 Chiller 1 90 Day Inspection Assigned To

20 Evaluate labor utilization by Trade. Trade Hours Applied to Work Orders # of Technicians Hours Onsite for Work Utilization Electric % Plumbing ,288 58% HVAC ,472 68% Carpentry % Grounds % Roads % TOTAL 3, ,336 62% The goal is not 100% utilization. The goal is around 60-70%.

21 Sidebar On Labor Effectiveness Improved effectiveness will likely result in additional available technician labor hours. These new-found labor hours are typically filled by giving technicians additional work orders to complete. To progress towards proactiveness, we need to use these additional labor hours for higher level activities: Preventive maintenance and inspections Training and education Equipment monitoring and maintenance analysis Improvement projects Involves changes in philosophy

22 Evaluate and manage employee work activities. Project Work Service Requests Preventiv e Maint Admin & Records Total Hours Tech Tech Tech Tech X Total Hours Month of August ,136

23 Evaluate labor capacity by Trade. Work Order Type Actual Hours Used # of Technicians Theoretical Trade Hours Available Capacity Excess (Shortfall) Electric Plumbing , HVAC 1, ,472 (226) Carpentry (244) Grounds (272) Roads TOTAL 4, , Redistribute capacity by cross-training for low skilled tasks. Define hiring skillset needs based on actual needs, not simply to fill a vacated position. Overtime

24 Plan labor (or vendor) requirements. Create work orders for all PM tasks that should be done. For PM work orders you cannot complete, change status to DEFERRED. Create reports to identify hiring or outsourcing needs. PM Hours Completed 2012 PM Tasks Deferred PM Hours Deferred 1 st Quarter nd Quarter rd Quarter th Quarter TOTAL

25 Evaluate monthly service request log. Work Order Building 310, Month of January Date Requested Room # Request Category Technician /3/ COLD CALL A JOHNSON /3/07 RR SINK LEAK D SMITH /5/ FURNITURE G MERK /5/ LIGHT OUT L HINKLE /5/ COLD CALL A JOHNSON /9/ DOOR BROKEN G MERK /14/ COLD CALL A JOHNSON /14/ LIGHT OUT L HINKLE /20/ COLD CALL A JOHNSON Identify repeating problems before they escalate.

26 Evaluate work order backlog. Work Order Open Work Orders Over 5 days Old Date Requested Days Open Request Technician /31/ Cold call A JOHNSON /30/ Roof leaking D SMITH /31/09 39 Build shelves G MERK /31/09 39 Outlet out L HINKLE /15/09 24 Plumbing leak A JOHNSON /1/09 10 Door broken G MERK /2/09 9 Fan broken A JOHNSON /5/09 6 Light out L HINKLE /6/09 5 Move furniture A JOHNSON Keep work orders from slipping through the cracks.

27 Review and manage inventory purchases. Quantity Used Item X: Usage History Cut costs by stocking what you need, when you need it Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec This type of usage information will come from CMMS.

28 All the sample reports shown here are possible with the following data Standard hours for maintenance tasks (PM and on-demand) Work order classifications Actual labor hours and parts used on work orders Equipment purchase dates and costs Equipment and work order priorities This is very common data Most CMMS systems have the capacity to capture this data. What s missing is a plan for using it on a daily basis.

29 Agenda What s Happening in the Industry? Where Could You be with CMMS? Sample CMMS usage How Do You Get There?

30 Progress towards asset management is less dependent on software and more dependent on how the software is implemented and used. The initial software implementation sets the stage for how the software will be used spend the time to do it right!

31 Common Fast-Track Implementation We re Happy with Our CMMS. Should We Be? Just complete the data spreadsheets and send them to the vendor Vendor electronically loads your data Receive a fully populated database and you re ready to go Sound familiar? This implementation approach will produce mediocre results, at best.

32 Organizations pursuing asset management improvements will take a comprehensive approach to their CMMS projects. Process review Requirements definition Report definition System setup Training and rollout Asset Data Gathering (may continue after initial go-live) Data gathering is just one of many steps involved with a proper CMMS implementation.

33 Another key component of the progression towards asset management is alignment of the CMMS with your department objectives and strategies..

34 Example Objectives Statement: Large Public University Overall Objectives: Employee satisfaction Customer satisfaction Department Objectives Non-PM Work: Reduce our backlog of work orders Reduce the # of customer maintenance requests received (CRMs) Increase # of corrective work orders Preventive Maintenance Work: On-time completion against decided due date Project Work: On-time start against agreed start date On-time completion against agreed due date

35 Example Objectives Statement: University Medical Center Department Objectives 1. MORE RESPONSIVE Monitoring work order response times and on-time completion 2. MORE PROACTIVE Doing more Preventive Maintenance, Building Inspections, and Corrective work 3. MORE PRODUCTIVE Improving work management and data capture on work orders (labor, parts and vendor costs, dates, comments)

36 Once the objectives are defined, select KPI s (Key Performance Indicators) to monitor them. We re Happy with Our CMMS. Should We Be? More Responsive Managers ( MC Repair Centers) Number and % of SR work orders over 10 days old Average age of open SR routine work orders RESPONSIBLE POSITION Foreman/Supervisor (MC Shops) % of SR work order completed by Target Date SR work order average time to Respond SR work order average time to Complete SUPPORTED OBJECTIVE More Proactive More Productive Number and % of SR work orders completed (monthly) Number and % of actual hours logged on PM, INS, CM work orders Average age of open CM work orders Number of incomplete CM work orders Total number of labor hours logged on work orders per week % of PM and INS work orders completed by Target Date # of corrective work orders generated Number of service request work orders completed Average # of hours entered on work orders per day by worker

37 Alignment is the process of making sure the CMMS is configured to enable the desired KPI reporting Define needed values for various CMMS data: Work types Priorities Work order statuses and status dates Technician hours Shop assignments Equipment criticalities Etc Alignment happens during the requirements definition step of implementation.

38 Thank You for Attending! Contact Us at: (800)

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