In business as in life, using anything other than complete, accurate data to make decisions can be both dangerous and costly. For many, decision-making relies on instinct instead of data. In reality, it often means working with no data.<\/p>\n
This kind of decision-making is less than optimal. Sometimes it gets you the results you\u2019re looking for. However, without consistently good data, a business can\u2019t make consistently good decisions. And without the ability to make sound decisions, a business can\u2019t produce consistently good results.<\/p>\n
Ultimately, only data-driven decisions can drive the results necessary for your business to thrive and grow. Consider the following example.<\/p>\n
\u2026or rather, an employee, Dave, walks into the cold storage area of Sam\u2019s Saloon, and he thinks, \u201cI can save the bar some money by upgrading the old store room refrigeration condenser.\u201d<\/p>\n
Based on the energy rating of the system\u2019s compressor, it\u2019s supposed to keep the storage area cooled for about $400 per month. Dave knows the condenser is getting old, though, very likely leaking, and probably not living up to its original performance potential.<\/p>\n
How can he make the case to Sam that the bar\u2019s wasting money unnecessarily, so he can buy a new condenser? If the purchase is approved, how will he prove to Sam that the investment\u2019s paying off?<\/p>\n
Dave could take two routes to prove his point:<\/p>\n
The assumption route:<\/strong> Dave tells Sam, \u201cI can save you lots of money,\u201d but doesn\u2019t say exactly how much. The new condenser (hopefully) gets approved and purchased, and through observation, Dave proclaims, \u201cSeems better to me!\u201d<\/p>\n Might sound crazy, but this is often how maintenance decisions are made\u2014usually because people don\u2019t think they can measure results, or don\u2019t understand how.<\/p>\n The data-driven route:<\/strong> Dave installs a meter to monitor and measure energy consumption by the system. He discovers it\u2019s actually costing $600 a month\u2014$200 more than it should. He can now clearly back up his claim with numbers and get his purchase request approved.<\/p>\n With a new condenser installed and energy usage back to what it should be, Dave is generating $200 per month in savings. That\u2019ll pay for the new $1,000 condenser in five months, and add $200 to Sam\u2019s bottom line every month thereafter.<\/p>\n But the benefits don\u2019t end there. Dave can continue to monitor usage from now on. If it climbs back above $400, he can quickly fix the problem and avoid future waste.<\/p>\n Having hard numbers not only helps you run your business, it allows you to measure (and use) a whole host of key performance indicators. It provides you the ability to say, for example, \u201cWe were 12,000 kilowatthours over our mean monthly energy consumption\u201d instead of \u201cBoy, looks like we used lots of energy this month.\u201d<\/p>\n With solid metrics, you can accurately assess the cost-effectiveness of any new equipment installations or facilities improvements.<\/p>\n Sam\u2019s Saloon provides a simplified example, but the power of good data increases exponentially if you\u2019re using a CMMS.<\/p>\n A modern CMMS solution will allow you to collect and report on data across your entire asset inventory, providing numerous measures to help you make better decisions and answer business-critical questions. And many contemporary CMMS solutions allow you to connect to meters and gauges directly, eliminating the need for meter readings and manual data entry.<\/p>\n Even simple measures from work order records can provide powerful data. Consider another example. You might wonder, \u201cHow much am I spending on maintenance for each of my work order types?\u201d<\/p>\n This type of report can be easily generated from a CMMS. At a glance, you\u2019ll know exactly how much money each work order type is costing your business in maintenance for a specified timeframe (in the example provided, a year), and certain questions can be quickly answered\u2026<\/p>\n Beyond general questions, you can formulate precise questions that\u2019ll lead to a more informed decision-making process\u2026<\/p>\nEasy (and Accurate) as One, Two, Three<\/h2>\n
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