The cost of one hour of downtime
Production knows it, and so does finance. It’s the number that turns any maintenance discussion into a business one.
Guide
Almost every industrial maintenance manager already knows they need a system. What trips them up is the next conversation, when they have to explain to the committee why it’s worth it.
Because the benefit of a CMMS is diffuse at first and very concrete later, and investment committees work the other way around. A new machine produces more from day one; a maintenance management system doesn’t produce anything on its own: it means less work gets lost, downtime gets scheduled better, and a year from now decisions get made with data instead of intuition. That return exists, but it doesn’t fit into a line on an investment spreadsheet, which is why it’s better to build the case with your own numbers instead of the percentages in any vendor brochure.
Your own estimate, explained, works better than a manufacturer’s percentage.
Production knows it, and so does finance. It’s the number that turns any maintenance discussion into a business one.
How many times the same thing has failed. Even pulled by hand from work orders, it’s the most compelling evidence you can bring.
Usually half of MTTR, and almost nobody measures it. It’s the part that shrinks fastest and with the least effort.
What percentage of what was planned actually got executed. If nobody knows, you already have your first argument.
Travel, waiting, looking for information. At large plants, it’s a figure that surprises people.
There’s a risk that’s one step from materializing at many plants and doesn’t show up on any dashboard: that critical knowledge lives in two or three people with twenty years on the job. When those people leave — and they do, because generational turnover in industrial maintenance has been a real problem for years — what’s lost isn’t labor, which can be hired: it’s knowing why that pump fails every summer. Presenting a CMMS as the system that captures that knowledge outside people’s heads tends to convince a committee faster than any savings estimate, because it’s a risk everyone recognizes.
Three things, and it’s worth not promising them because they don’t hold up and they burn credibility for the next investment. Don’t promise a percentage reduction in breakdowns: that depends on the plan, not the software. Don’t promise reliable indicators in the first quarter: they need months of correct logging behind them. And don’t promise the system rolls itself out: the factor that most determines the outcome is the team’s time, especially the time of whoever knows the equipment, and that has to be set aside in the plan from the start. An honest investment case that holds up is worth more than an optimistic one that disappoints.
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Whoever has to sign off usually raises the same three things. The first is that we already tried this and it didn’t work, and it’s the most serious one: it’s almost always true, and the previous project almost always died from excessive scope, not from the tool. Acknowledging it and proposing a deliberately small start disarms the objection better than arguing it. The second is that the team won’t use it, which also tends to be true if the tool adds work for the technician instead of removing it; the answer is to show what a technician stops doing, not what they start doing. And the third is that we already have an ERP, which confuses two different things: the ERP knows what a part cost, not how many times that machine has failed or when its next inspection is due. None of the three is won with general arguments about digitalization.
The most effective way to justify the investment isn’t a presentation: it’s a scoped pilot with your own data. You pick one line or a set of fifteen or twenty critical pieces of equipment, run their maintenance through the system for three or four months, and compare it against what was known before. The trick is the result is almost never what was expected. What usually shows up isn’t a spectacular saving but something more convincing: that there were twice as many interventions as anyone realized, that three pieces of equipment accounted for half the downtime, or that a preventive task carried out religiously hadn’t prevented a single failure in two years. That kind of concrete finding carries more weight with a committee than any improvement percentage from a brochure, not least because nobody can argue with it.
The one that almost always gets forgotten: your own team’s hours. Building the critical equipment inventory, defining the plans and supporting the first months of use takes time from people who already have work to do, and it’s where projects that only budgeted for the software get stuck. Stating it up front adds credibility to the case instead of taking it away, because it’s exactly what anyone who’s lived through a previous rollout will ask.
Then the problem is almost never the product, and it’s worth finding out what happened before switching tools. The usual reasons repeat: it was set up with a scope impossible to maintain, technicians were asked to enter data without getting anything back for it, or it was left with nobody to sustain it once whoever set it up left. None of the three gets fixed by buying another one.
It depends so much on the case that any general percentage is marketing. What you can build is your own estimate from three figures you already have: the cost of one hour of downtime, repeat breakdowns from the last year, and the downtime spent waiting for parts.
Within weeks, work stops getting lost. Within months, questions get answered without reconstructing anything. And reliability indicators need at least one full breakdown cycle per piece of equipment to say anything meaningful.
At many plants, the risk that critical knowledge lives in two or three people. It’s a risk everyone recognizes and that no dashboard reflects.
The team’s time, especially that of whoever knows the equipment. It’s the factor that most determines the outcome and the one most often left out of the plan.
Bring your breakdowns from the last year and the cost of your downtime hour, and we’ll come out with an estimate you can defend.
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