---
title: "The CMMS business case and ROI"
description: "The cost lines a CMMS business case counts, the baseline to measure before buying, the economic measures finance asks for, and what FixAhead's plans include."
---

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# The CMMS business case and ROI

The cost lines a CMMS business case counts, the baseline to measure before buying, the economic measures finance asks for, and what FixAhead's plans include.

A CMMS business case sets what the system costs over its life against the savings you can show from your own baseline. The savings depend on the baseline, so measure it first. Then count every cost line, not only the license.

## Measure the baseline before you buy

Measure downtime, uptime, and worker productivity before you buy. A [2010 FacilitiesNet article](https://www.facilitiesnet.com/maintenanceoperations/article/CMMS-Worth-the-Cost--11970) makes the point: without that data, it is hard to show how much a system could improve them.

Record them for each asset, and keep the same definitions afterward. Add PM completion, the overdue PM count, maintenance cost per asset, and any repair that waited for a part.

For the cost difference between preventive and reactive maintenance, read [Preventive vs reactive maintenance](/blog/preventive-vs-reactive-maintenance/).

## Express the case in the measures finance uses

Put the case in the measures finance uses. [US federal guidance from the Federal Energy Management Program (FEMP), section 3.5](https://www.energy.gov/sites/prod/files/2020/04/f74/omguide_complete_w-eo-disclaimer.pdf) sets out the metrics that O&M managers need to know:

- **Simple payback:** the ratio of total installed cost to first-year savings.
- **Return on investment:** the ratio of the income or savings generated to the overall investment.
- **Net present value:** the present worth of future cash flows, minus the initial cost of the project.
- **Life-cycle cost:** the present worth of all costs associated with a project.

## Count every cost line over the life of the case

Count every cost line over the life of the case, not only the license. The table gives what each line counts.

| Cost line | What to count |
| --- | --- |
| System price | The price for your user count and asset count. A [2010 FacilitiesNet article](https://www.facilitiesnet.com/maintenanceoperations/article/CMMS-Worth-the-Cost--11970) gives a rough US budget of about $15,000 for a typical facility with several user stations, including software, setup, and basic training. |
| Upgrades and annual fees | Yearly charges for maintenance and upgrades by the vendor, and what an upgrade costs. A [2010 FacilitiesNet article](https://www.facilitiesnet.com/maintenanceoperations/article/CMMS-Worth-the-Cost--11970) puts these charges at 15 to 20 percent of that budget each year. [US federal guidance (FEMP), section 4.3](https://www.energy.gov/sites/prod/files/2020/04/f74/omguide_complete_w-eo-disclaimer.pdf) asks how upgrades are made and at what cost. |
| Implementation and setup | The vendor’s implementation service, and your team’s time. [US federal guidance (FEMP), section 4.3](https://www.energy.gov/sites/prod/files/2020/04/f74/omguide_complete_w-eo-disclaimer.pdf) says most vendors provide implementation as a service, and that it is usually worth the expense. |
| Training | Training for the staff who enter and maintain the records. [US federal guidance (FEMP), section 4.3](https://www.energy.gov/sites/prod/files/2020/04/f74/omguide_complete_w-eo-disclaimer.pdf) says training typically takes place at the customer’s site after installation. |
| Data entry | Hours to load assets and their history into the system. A [2006 survey of 299 industrial maintenance professionals](https://www.reliableplant.com/Read/1627/cmms) found that more than one in four respondents said data collection took 100 to 200 hours of maintenance time, and nearly one in four said more than 500 hours. |
| Ongoing record keeping | Hours each week to enter work orders and parts. Count it from your team’s time over a month. |
| Integration | Any work to connect with accounting or energy systems. [US federal guidance (FEMP), section 4.3](https://www.energy.gov/sites/prod/files/2020/04/f74/omguide_complete_w-eo-disclaimer.pdf) asks how well the system integrates with facility, energy management, or accounting systems. |

## Check whether a spreadsheet can do the work

Ask whether your current method can do each of these, as [US federal guidance (FEMP), section 4.2](https://www.energy.gov/sites/prod/files/2020/04/f74/omguide_complete_w-eo-disclaimer.pdf) sets out:

- generate and track work orders, and verify the work was done efficiently and correctly
- reach the service history of each asset: when it was last serviced, by whom, and for what condition
- control spare parts, without excess inventory or waiting on parts to arrive
- store procedures, equipment manuals, and warranty information
- keep field staff within lock-and-tag and other safety rules
- track assets for reporting and planning

If the answers are not well defined or lacking, investigate what a well implemented CMMS may offer, as [US federal guidance (FEMP), section 4.2](https://www.energy.gov/sites/prod/files/2020/04/f74/omguide_complete_w-eo-disclaimer.pdf) suggests.

## Check each option against the functions a CMMS carries

Check each option against these functions. [US federal guidance (FEMP), section 4.3](https://www.energy.gov/sites/prod/files/2020/04/f74/omguide_complete_w-eo-disclaimer.pdf) lists typical CMMS functions:

- work orders by equipment
- a history of every work order
- scheduled and unscheduled work
- stored procedures and warranty information
- calendar- or run-time PM
- cost tracking by component
- parts control with automated reorder
- a handheld interface for field work

Questions to ask a vendor:

- What do the license, annual, and upgrade fees cost, and how are upgrades made?
- What does implementation include, and where does training take place?
- Can I import my asset list and history from a spreadsheet, and check the rows before they load?
- Can I export all my data at any time, including after I cancel?
- Does the system connect to our accounting software?
- Can work order history be imported, or only the asset list?

## Check the four common pitfalls before you sign

[US federal guidance (FEMP), section 4.3](https://www.energy.gov/sites/prod/files/2020/04/f74/omguide_complete_w-eo-disclaimer.pdf) lists four common pitfalls. Check each one before you sign:

- **Vendor selection.** The choice is site-specific. Take time to evaluate your needs and find the right match of system and service provider.
- **Training.** Administrative staff need dedicated training on input, function, and maintenance of the system. Ask where that training takes place.
- **Commitment to implement.** Put a commitment in place for start-up and implementation.
- **Commitment to keep using it.** Name a champion who keeps the system in use. Most successful installations have one.

Feature overload is a common complaint of active users, as [US federal guidance (FEMP), section 4.3](https://www.energy.gov/sites/prod/files/2020/04/f74/omguide_complete_w-eo-disclaimer.pdf) notes. Buy what you can manage. A [2006 survey of 299 industrial maintenance professionals](https://www.reliableplant.com/Read/1627/cmms) found that 94.7 percent of plant maintenance managers felt they were not using their CMMS to its maximum capability.

## Count the time to full use, not only the purchase

Count the time to full use as part of the case, not only the purchase. In the [2006 survey of 299 industrial maintenance professionals](https://www.reliableplant.com/Read/1627/cmms), nearly three in ten respondents said implementation took one to three years.

## Check whether the vendor imports work order history

Count the hours to clean and load your history on the data-entry line. Ask the vendor whether work order history can be imported, not only the asset list.

FixAhead’s asset import takes CSV and Excel files, with column mapping and a row-by-row check before anything is imported ([asset management](/features/asset-management/)).

## Check FixAhead’s plans against the system price line

Set FixAhead’s plans against the system price line. The Free plan covers two users with unlimited assets, or 50 assets with unlimited users. It needs no card and has no time limit. Pro is one monthly price for the whole team, with every feature included, billed on whichever of users or assets is cheaper. You can export your data to CSV or Excel at any time, including after you cancel ([pricing](/pricing/)). The Android app is included in every plan, and iOS is coming soon ([mobile app](/features/mobile-app/)).

## What a FixAhead work order records

Check that each work order records its parts and its status changes. Each FixAhead work order keeps its planned and used parts, with cost calculated from inventory prices, and a timeline of status changes with timestamps ([work orders](/features/work-orders/)).

![A completed work order with Download PDF and Service Report in its header, its Parts tab listing a part with its planned quantity and price, and the Comments and Timeline tabs beside it.](/_astro/fixahead-work-order-detail-completed-service-report-parts.QfPwz5M4_1yLSfz.webp) ![A completed work order with Download PDF and Service Report in its header, its Parts tab listing a part with its planned quantity and price, and the Comments and Timeline tabs beside it.](/_astro/fixahead-work-order-detail-completed-service-report-parts.QfPwz5M4_1yLSfz.webp)

Close

*A completed work order, with its part at planned quantity and price.*

## Take the figures to finance

Measure the baseline for the assets in scope, count each cost line over the life of the case, and run the figures through the [ROI calculator](/tools/roi/). Then take the questions above to each vendor.

## On this page

- [Measure the baseline before you buy](#measure-the-baseline-before-you-buy)
- [Express the case in the measures finance uses](#express-the-case-in-the-measures-finance-uses)
- [Count every cost line over the life of the case](#count-every-cost-line-over-the-life-of-the-case)
- [Check whether a spreadsheet can do the work](#check-whether-a-spreadsheet-can-do-the-work)
- [Check each option against the functions a CMMS carries](#check-each-option-against-the-functions-a-cmms-carries)
- [Check the four common pitfalls before you sign](#check-the-four-common-pitfalls-before-you-sign)
- [Count the time to full use, not only the purchase](#count-the-time-to-full-use-not-only-the-purchase)
- [Check whether the vendor imports work order history](#check-whether-the-vendor-imports-work-order-history)
- [Check FixAhead’s plans against the system price line](#check-fixaheads-plans-against-the-system-price-line)
- [What a FixAhead work order records](#what-a-fixahead-work-order-records)
- [Take the figures to finance](#take-the-figures-to-finance)

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