{"id":7228,"date":"2022-12-16T08:00:57","date_gmt":"2022-12-16T08:00:57","guid":{"rendered":"https:\/\/mpulsesoftware.com\/?p=7228"},"modified":"2025-07-30T06:15:35","modified_gmt":"2025-07-30T06:15:35","slug":"cmms-data-driven-decisions","status":"publish","type":"post","link":"https:\/\/mpulsesoftware.com\/blog\/cmms\/cmms-data-driven-decisions\/","title":{"rendered":"How CMMS Software Can Help You Make Data-Driven Decisions"},"content":{"rendered":"<p>CMMS data can be one of the most valuable tools in your maintenance department. Making decisions based on hard data makes maintenance more effective because it can serve as the foundation of every decision your organization makes about its assets.<\/p>\n<p>CMMS software gathers data with every completed work order or preventive maintenance task. You can glean a lot of insights into your operations from that data.<\/p>\n<p>That information really comes into play when it\u2019s time to make important decisions about the condition of your assets, like whether you should repair, replace it, or extend its lifecycle. You\u2019ll be able to purchase, operate, maintain, upgrade, or dispose of assets in the most cost-effective manner.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-flat ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/mpulsesoftware.com\/blog\/cmms\/cmms-data-driven-decisions\/#Maintenance_Software_for_Data-Driven_Decision_Making\" >Maintenance Software for Data-Driven Decision Making<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/mpulsesoftware.com\/blog\/cmms\/cmms-data-driven-decisions\/#Data-Driven_Decisions_vs_Intuition_Observation_or_Guesswork\" >Data-Driven Decisions vs. Intuition, Observation, or Guesswork<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/mpulsesoftware.com\/blog\/cmms\/cmms-data-driven-decisions\/#Downtime\" >Downtime<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/mpulsesoftware.com\/blog\/cmms\/cmms-data-driven-decisions\/#Total_Cost_of_Ownership\" >Total Cost of Ownership<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/mpulsesoftware.com\/blog\/cmms\/cmms-data-driven-decisions\/#Use_CMMS_Data_to_Determine_Whether_to_Repair_or_Replace_Assets\" >Use CMMS Data to Determine Whether to Repair or Replace Assets<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/mpulsesoftware.com\/blog\/cmms\/cmms-data-driven-decisions\/#What_does_CMMS_data_tell_me\" >What does CMMS data tell me?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/mpulsesoftware.com\/blog\/cmms\/cmms-data-driven-decisions\/#Moving_Beyond_Assumptions\" >Moving Beyond Assumptions<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Maintenance_Software_for_Data-Driven_Decision_Making\"><\/span>Maintenance Software for Data-Driven Decision Making<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Data-driven decision at its core means making informed choices based on data. CMMS software allows 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. That includes data on\u2026<\/p>\n<ul>\n<li aria-level=\"1\">Labor costs<\/li>\n<li aria-level=\"1\">Parts costs<\/li>\n<li aria-level=\"1\">Parts stocking recommendations<\/li>\n<li aria-level=\"1\">Inventory lead times<\/li>\n<li aria-level=\"1\">Energy costs<\/li>\n<li aria-level=\"1\">Purchase price and date<\/li>\n<li aria-level=\"1\">Life expectancy<\/li>\n<li aria-level=\"1\">Warranty information<\/li>\n<li aria-level=\"1\">Replacement costs<\/li>\n<li aria-level=\"1\">Other custom data<\/li>\n<\/ul>\n<p>Additionally, many contemporary CMMS solutions like MPulse allow you to connect to meters and gauges directly, eliminating the need for meter readings and manual data entry ensuring its accuracy and timely capture.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Data-Driven_Decisions_vs_Intuition_Observation_or_Guesswork\"><\/span>Data-Driven Decisions vs. Intuition, Observation, or Guesswork<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>You\u2019ve likely made decisions based on intuition, experience, or guesswork. We\u2019ve all done it. While sometimes your intuition is correct, making decisions based on data is defendable, makes it easier to show others (like your boss), and why it\u2019s the right decision.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Downtime\"><\/span>Downtime<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Let\u2019s say you have a compressor that seems to break down every 6 weeks. Your tech suggests that replacing it makes more sense than constantly repairing it.<\/p>\n<p>They might be right. But it\u2019s hard to know unless you can look at the data.<\/p>\n<p>Your CMMS software reveals that your team has fixed that compressor every 6 weeks for the past 12 months. Parts cost $500 each time, plus another hour of your tech\u2019s time that averages about $80\/hour. So the direct cost of one repair to that compressor is about $580.<\/p>\n<p>However, each time it needs to be fixed, your operations team experiences about an hour of downtime. Let\u2019s conservatively estimate that downtime costs your organization about <a href=\"https:\/\/www.precog.co\/blog\/downtime-cost-process-manufacturing\/\">$532,000<\/a> per hour.<\/p>\n<p>The cost of a new compressor is $70,000. Now, that decision is easy to make\u2014and justify\u2014because the numbers work out. While the direct repair costs aren\u2019t bad, the <a href=\"https:\/\/mpulsesoftware.com\/blog\/cmms\/how-to-calculate-downtime\/\">downtime<\/a> is significant. It\u2019s time to replace that compressor, and you have the data to back up your decision.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Total_Cost_of_Ownership\"><\/span>Total Cost of Ownership<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>CMMS data changes the way you make decisions because you have all the information at your fingertips to determine the total cost of ownership.<\/p>\n<p>In another example, you have a generator that\u2019s about 10 years old. This asset has been working hard for you, with only minimal preventive maintenance and two breakdowns during that entire time. It\u2019s still working, but it looks old and outdated.<\/p>\n<p>In this case, you\u2019ll look at the generator\u2019s initial cost, maintenance costs over 5 years, and the remaining value after 5 years of depreciation. Maintenance costs should include repairs, preventive maintenance, parts and supplies, and electricity usage.<\/p>\n<p>Initial cost + Maintenance cost \u2013 Remaining value = Total Cost Of Ownership<\/p>\n<p>You use your CMMS data to calculate the cost of ownership, it works out to less than $4,000\/year. A new generator is $50,000.<\/p>\n<p>Even though that old generator doesn\u2019t look pretty, and a new one may be more efficient, the numbers support not replacing it\u2014yet.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Use_CMMS_Data_to_Determine_Whether_to_Repair_or_Replace_Assets\"><\/span>Use CMMS Data to Determine Whether to Repair or Replace Assets<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When it\u2019s time to decide whether to <a href=\"https:\/\/mpulsesoftware.com\/blog\/maintenance-management\/repair-or-replace-it\/\">repair or replace<\/a> an asset, use CMMS data to make your decision based on hard numbers. By running a few simple reports, you know which assets cost the least amount of money to maintain and repair. Additionally, you can calculate when the increased efficiencies of newer models will pay off in the long run.<\/p>\n<p>These decisions affect more than the replacement budget. Analyzing the life cycle of assets also helps reduce downtime and prevent unexpected repairs. When you have the hard data about the age of the equipment and the miles, hours, life-to-date repair dollars, and other metrics\u2014it is easier to decide when it\u2019s time to replace an asset instead of repair it.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_does_CMMS_data_tell_me\"><\/span>What does CMMS data tell me?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Even simple data from work order records can provide powerful insights. At a glance, you\u2019ll know exactly how much money each work order type is costing your business in maintenance for a specified timeframe. You can quickly answer questions like\u2026<\/p>\n<ul>\n<li aria-level=\"1\">What type of maintenance do I spend the most on?<\/li>\n<li aria-level=\"1\">How does the cost of preventive maintenance compare to repair costs?<\/li>\n<li aria-level=\"1\">If I run this report for a different time period, like last year, are there significant changes by category?<\/li>\n<\/ul>\n<p>Beyond general questions, you can ask precise questions that\u2019ll lead to a more informed decision-making process\u2026<\/p>\n<ul>\n<li aria-level=\"1\">Why are my machining maintenance costs so high?<\/li>\n<li aria-level=\"1\">What new equipment needs to be purchased, if any?<\/li>\n<li aria-level=\"1\">How much will the new equipment cost compared to the current maintenance expense?<\/li>\n<li aria-level=\"1\">Will I save money over time by purchasing new equipment? How much?<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Moving_Beyond_Assumptions\"><\/span>Moving Beyond Assumptions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A CMMS gives you accurate, complete data, and this data can be applied directly to purchasing or other important organizational decisions.<\/p>\n<p>Don\u2019t rely on intuiting the right answers for your critical business decisions. Begin to ask yourself whether it\u2019s possible to support your decisions with numbers. Then identify opportunities where these numbers can inform your decision-making process.<\/p>\n<p>To learn more about data-driven maintenance and some of the powerful, affordable tools that make it easy, <a href=\"https:\/\/mpulsesoftware.com\/contact\/\">contact us<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CMMS data can be one of the most valuable tools in your maintenance department. Making decisions based on hard data makes maintenance more effective because it can serve as the foundation of every decision your organization makes about its assets. CMMS software gathers data with every completed work order or preventive maintenance task. You can glean a lot of insights into your operations from that data. That information really comes into play when it\u2019s time to make important decisions about the condition of your assets, like whether you should repair, replace it, or extend its lifecycle. You\u2019ll be able to purchase, operate, maintain, upgrade, or dispose of assets in the most cost-effective manner. Maintenance Software for Data-Driven Decision Making Data-driven decision at its core means making informed choices based on data. CMMS software allows 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. That includes data on\u2026 Labor costs Parts costs Parts stocking recommendations Inventory lead times Energy costs Purchase price and date Life expectancy Warranty information Replacement costs Other custom data Additionally, many contemporary CMMS solutions like MPulse allow you to connect to meters and gauges directly, eliminating the need for meter readings and manual data entry ensuring its accuracy and timely capture. Data-Driven Decisions vs. Intuition, Observation, or Guesswork You\u2019ve likely made decisions based on intuition, experience, or guesswork. We\u2019ve all done it. While sometimes your intuition is correct, making decisions based on data is defendable, makes it easier to show others (like your boss), and why it\u2019s the right decision. Downtime Let\u2019s say you have a compressor that seems to break down every 6 weeks. Your tech suggests that replacing it makes more sense than constantly repairing it. They might be right. But it\u2019s hard to know unless you can look at the data. Your CMMS software reveals that your team has fixed that compressor every 6 weeks for the past 12 months. Parts cost $500 each time, plus another hour of your tech\u2019s time that averages about $80\/hour. So the direct cost of one repair to that compressor is about $580. However, each time it needs to be fixed, your operations team experiences about an hour of downtime. Let\u2019s conservatively estimate that downtime costs your organization about $532,000 per hour. The cost of a new compressor is $70,000. Now, that decision is easy to make\u2014and justify\u2014because the numbers work out. While the direct repair costs aren\u2019t bad, the downtime is significant. It\u2019s time to replace that compressor, and you have the data to back up your decision. Total Cost of Ownership CMMS data changes the way you make decisions because you have all the information at your fingertips to determine the total cost of ownership. In another example, you have a generator that\u2019s about 10 years old. This asset has been working hard for you, with only minimal preventive maintenance and two breakdowns during that entire time. It\u2019s still working, but it looks old and outdated. In this case, you\u2019ll look at the generator\u2019s initial cost, maintenance costs over 5 years, and the remaining value after 5 years of depreciation. Maintenance costs should include repairs, preventive maintenance, parts and supplies, and electricity usage. Initial cost + Maintenance cost \u2013 Remaining value = Total Cost Of Ownership You use your CMMS data to calculate the cost of ownership, it works out to less than $4,000\/year. A new generator is $50,000. Even though that old generator doesn\u2019t look pretty, and a new one may be more efficient, the numbers support not replacing it\u2014yet. Use CMMS Data to Determine Whether to Repair or Replace Assets When it\u2019s time to decide whether to repair or replace an asset, use CMMS data to make your decision based on hard numbers. By running a few simple reports, you know which assets cost the least amount of money to maintain and repair. Additionally, you can calculate when the increased efficiencies of newer models will pay off in the long run. These decisions affect more than the replacement budget. Analyzing the life cycle of assets also helps reduce downtime and prevent unexpected repairs. When you have the hard data about the age of the equipment and the miles, hours, life-to-date repair dollars, and other metrics\u2014it is easier to decide when it\u2019s time to replace an asset instead of repair it. What does CMMS data tell me? Even simple data from work order records can provide powerful insights. At a glance, you\u2019ll know exactly how much money each work order type is costing your business in maintenance for a specified timeframe. You can quickly answer questions like\u2026 What type of maintenance do I spend the most on? How does the cost of preventive maintenance compare to repair costs? If I run this report for a different time period, like last year, are there significant changes by category? Beyond general questions, you can ask precise questions that\u2019ll lead to a more informed decision-making process\u2026 Why are my machining maintenance costs so high? What new equipment needs to be purchased, if any? How much will the new equipment cost compared to the current maintenance expense? Will I save money over time by purchasing new equipment? How much? Moving Beyond Assumptions A CMMS gives you accurate, complete data, and this data can be applied directly to purchasing or other important organizational decisions. Don\u2019t rely on intuiting the right answers for your critical business decisions. Begin to ask yourself whether it\u2019s possible to support your decisions with numbers. Then identify opportunities where these numbers can inform your decision-making process. To learn more about data-driven maintenance and some of the powerful, affordable tools that make it easy, contact us.<\/p>\n","protected":false},"author":6,"featured_media":7229,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[12],"tags":[],"class_list":["post-7228","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cmms"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.0 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How CMMS Software Can Help You Make Data-Driven Decisions<\/title>\n<meta name=\"description\" content=\"CMMS software allows you to collect and report on data across your entire asset inventory, helping you make better decisions.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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