For too long, maintenance management was seen as a necessary evil, due to the prevalent mindset that every dollar spent on repairs is just a waste.
Sophisticated maintenance management systems and new approaches to preventing machine downtime are helping spread the good word about the true value of a strong proactive, predictive maintenance (PdM) strategy.
Still, teams struggle to demonstrate the return on investment (ROI) of PdM software, which can cut emergency breakdowns by 75 percent.
If you gather some important information about your operations, our Predictive Maintenance ROI Calculator will help you estimate your savings with and without PdM, and make the case the long-term value of software.
Factors for Calculating Predictive Maintenance ROI
Read our accompanying article to learn three important factors to use when calculating ROI, including:
- Inventory management expenses, such as costs related to storing, managing and reordering spare parts and materials, can make up a significant portion of your total maintenance costs. Knowing this cost makes the value of PdM more compelling.
- Asset downtime costs are often the primary metric to reduce with PdM. Determine the degree to which breakdowns impact employees and revenue to use the calculator.
- Upfront software costs are likely, so if you have vendors you want to evaluate, consult with them or read real reviews to find out what you should expect.
Calculate the ROI of a Predictive Maintenance Strategy
Simply enter the numbers for your asset downtime and uptime, as well as estimates for software costs, to get an ROI figure you can take to your managers to demonstrate the value and cost saving benefits.
The calculator is created using figures from the U.S. Department of Energy Operations and Maintenance (O&M) Best Practices Guide, which includes average return on investment for various maintenance strategies, as well as formulas from our Machine Downtime Calculator.