To convince his managers to support these projects, Tom needs to show them how they can save more money than they cost. He needs to prove the ROI of these investments.
ROI is a simple mathematical equation:
ROI = (gain from investment – cost of investment) / cost of investment
So, how does Tom do that? He can use his MPulse CMMS data to calculate how these proposed projects will positively impact his company’s balance sheet.
To get you started, Phil Beelendorf shares his ideas on calculating ROI in “How Effective is Your Maintenance Strategy” from Plant Services. The first step is a shift in your approach. “Teach yourself to always think like an accountant instead of a maintenance professional,” he writes.
There’s more to this story, however. Tom’s real goal is autonomy—the ability to make decisions that he thinks will improve how his maintenance team—and his company—performs. I’ll share more of Tom’s story in another post. In the meantime, share your thoughts on proving maintenance ROI or ask questions in the comments section.