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This presentation takes a look at how maintenance, energy and document handling cost are impacted by an EAM CMMS solution.

Published in: Technology, Career
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  1. 1. Let’s do the Math: the ROI of EAM & CMMS<br />
  2. 2. Maintenance vs. Repair<br />
  3. 3. Source: US Department of Energy<br />By simply expending the necessary resources to conduct maintenance activities intended by the equipment designer, equipment life is extended and its reliability is increased. <br />
  4. 4. Source: US Department of Energy<br />In addition to an increase in reliability, dollars are saved over that of a program just using reactive maintenance. Studies indicate that this savings can amount to as much as 12% to 18%.<br />
  5. 5. Source: Kansas State University<br />As a general rule, for every dollar spent on preventive maintenance, you will save at least five dollars in subsequent expenses.<br />
  6. 6. Source: James Piper, P.E.<br />Facilities in which proper HVAC maintenance is completed will use at least 15 to 20 percent less energy than those where systems are allowed to deteriorate.<br />
  7. 7. Extended Lifecycle<br />
  8. 8. Source: UTS Carrier Business Unit Manager<br />On average, if maintenance is kept up every six months on both indoor and outdoor [air conditioning] units it will easily give more than 50% energy efficiency savings…<br />
  9. 9. Source: UTS Carrier Business Unit Manager<br />Without maintenance the performance of the equipment goes down but it uses the same power, so it may give 60T [of cooling] but consumes the same energy as 100T, so the client is losing money, if properly maintained, this would not happen<br />
  10. 10. Entering data<br />
  11. 11. Source: Ohio University <br />Studies indicate that a well-trained data entry operator will usually make a data entry error once every 300 keystrokes<br />
  12. 12. Source: Copyright 1997-2008 Panko<br />A good general figure for mechanical error rates appears to be about 0.5%.<br />
  13. 13. Mobility saves time<br />
  14. 14. Source: Frank Riso, Motorola<br />Hospitality IT decision makers have made it clear that mobility is no longer an option but a necessity to survive in an increasingly competitive market.<br />
  15. 15. Source: Frank Riso, Motorola<br />Motorola’s hospitality barometer indicates that the mobilization of key applications enables organizations to save or recover a daily average of 44 minutes per employee.<br />
  16. 16. Source:<br />In fact, if each employee using a two-way radio saves just five minutes per hour each workday, it’s estimated that annual savings for a company with staff of 10 people making average of $12 an hour can hit $21,000 – $42,000 with a staff making an average $18 per person.<br />
  17. 17. Average Time to Find a Document<br />
  18. 18. Source: Edge Systems LLC Whitepaper<br />IDC has estimated that the typical enterprise with 1,000 knowledge workers wastes $2.5 million to $3.5 million per year searching for nonexistent information, failing to find existing information, or recreating information that can't be found.<br />
  19. 19. Source: Edge Systems LLC Whitepaper<br />BAE Systems conducted a study that discovered that 80% of employees waste an average of half an hour per day retrieving information, while 60% are spending an hour or more duplicating the work of others.<br />
  20. 20. Source: Coopers & Lybrand<br />90% of corporate memory exists on paper.<br />
  21. 21. Source: Coopers & Lybrand<br />Of all the pages that get handled each day in the average office, 90% are merely shuffled.<br />
  22. 22. Source: Coopers & Lybrand<br />The average document gets copied 19 times. <br />
  23. 23. Source: Coopers & Lybrand<br />Companies spend $20 in labor to file a document, $120 in labor to find a misfiled document, and $220 in labor to reproduce a lost document.<br />
  24. 24. Source: Coopers & Lybrand<br />7.5% of all documents get lost, 3% of the remainder get misfiled. <br />
  25. 25. Source: Coopers & Lybrand<br />Professionals spend 5-15% of their time reading information, but up to 50% looking for it. <br />
  26. 26. Source: Coopers & Lybrand<br />There are over 4 trillion paper documents in the U.S. alone - growing at a rate of 22% per year.<br />
  27. 27. Source: AIIM, Forrester, Star Sec., US Dept Labor<br />A typical employee spends 30% - 40% of his time looking for information locked in e-mail, documents, shared hard disks and filing cabinets. <br />
  28. 28. Source: AIIM, Forrester, Star Sec., US Dept Labor<br />The average document is copied 9 to 11 times<br />
  29. 29. Source: AIIM, Forrester, Star Sec., US Dept Labor<br />Filing costs average $20 per document.<br />
  30. 30. Source: AIIM, Forrester, Star Sec., US Dept Labor<br />When an employee leaves a company 70% of his knowledge walks out the door with him.<br />
  31. 31. Source: AIIM, Forrester, Star Sec., US Dept Labor<br />We are approaching 4 trillion documents being stored by businesses and government agencies.<br />
  32. 32. Source: AIIM, Forrester, Star Sec., US Dept Labor<br />Each four-drawer file cabinet holds an average of 10,000 to 12,000 documents, takes up to 9 square feet of floor space, and costs $1,500 per year. <br />
  33. 33. Source: AIIM, Forrester, Star Sec., US Dept Labor<br />Every 12 filing cabinets require an additional employee to maintain.<br />
  34. 34. Source: AIIM, Forrester, Star Sec., US Dept Labor<br />18 minutes is the average search time for a document.<br />
  35. 35. Source: AIIM, Forrester, Star Sec., US Dept Labor<br />Each misfiled document costs $125. <br />
  36. 36. Source: AIIM, Forrester, Star Sec., US Dept Labor<br />Each lost document costs $350 to $700. <br />
  37. 37. Source: AIIM, Forrester, Star Sec., US Dept Labor<br />More than 70% of today's businesses would fail within 3 weeks if they suffered a catastrophic loss of paper-based records due to fire or flood. <br />
  38. 38. Source: AIIM, Forrester, Star Sec., US Dept Labor<br />Paper in the average business grows by 22% a year, meaning your paper will double in 3.3 years.<br />
  39. 39. Source: AIIM, Forrester, Star Sec., US Dept Labor<br />67% of data loss is directly related to user blunders, making them 30 times more menacing than viruses and the leading cause of data loss. <br />
  40. 40. Source: AIIM, Forrester, Star Sec., US Dept Labor<br />At any given time, between 3 and 5 percent of an organization’s files are lost or misplaced. <br />
  41. 41. Source: AIIM, Forrester, Star Sec., US Dept Labor<br />U.S. managers spend an average of 4 weeks a year searching for or waiting on misfiled, mislabelled, untracked, or ‘lost’ papers. <br />
  42. 42. Source: AIIM, Forrester, Star Sec., US Dept Labor<br />Large organizations lose a document every 12 seconds.<br />
  43. 43. How much Time DO Companies spend training<br />
  44. 44. Source: ELDC<br />In the US, training has averaged between 2 and 2.5% of payroll for most of this decade, with leading companies spending as much as 3%.<br />
  45. 45. Source: 2008 Corporate Learning Factbook<br />The average spending per learner of $1,202 is roughly equivalent to last year. Spending varies significantly from industry to industry; the highest spending industry is finance & insurance ($1,061 per learner) and the lowest is retail ($594 per learner).<br />
  46. 46. Knowledge loss & knowledge transfer<br />
  47. 47. Source: Vermont Dept. of Human Resources<br />It is important to capture existing knowledge in order to create smooth transitions and not impede organizational work and processes.... advances in information technology have created new means of knowledge transfer.<br />
  48. 48. Source: Levine & Gilbert, CA at Berkely<br />Knowledge transfer is only valuable when it is integrated into a set of policies for knowledge generation and capture.<br />
  49. 49. Energy costs<br />
  50. 50. Source: EnergyStar<br />On average, America’s 47,000 hotels spend $2,196 per available room each year on energy. This represents about 6 percent of all operating costs.<br />
  51. 51. Source: EnergyStar<br />A 10 percent reduction in energy consumption would have the same financial effect as increasing the average daily room rate (ADR) by $0.62 in limited-service hotels and by $1.35 in full-service hotels.<br />
  52. 52. Source:<br />Studies have shown that commissioning can save a typical 100,000-ft2 hotel 10 to 15 percent of its energy costs, or roughly $20,000 per year.<br />
  53. 53. Source: EPA<br />Buildings in the United States are responsible for 39 percent of US energy consumption in 2005 of that total commercial buildings accounted for 46.3 percent.<br />
  54. 54. Source: EPA<br />Building occupants use 13 percent of the total water consumed in the United States per day. Of that total, 25.6 percent is used by commercial building occupants.<br />
  55. 55. Source: Cadet:Maxi Brochure<br />Energy consumption of HVAC systems in tourism accommodation accounts for about 50%, but including systems for domestic hot water it accounts about 62% of total energy consumption.<br />
  56. 56. Source: The Aberdeen Group<br />With nearly 13%of the average enterprise's spend dedicated to its real estate and facilities costs, the location and business support of locations has a significant impact on financial performance.<br />
  57. 57. CMMS ROI Calculator <br />