Smith, Ricky A. (2003) - Why CMMS Implementations Fail
Smith, Ricky A. (2003) - Why CMMS Implementations Fail
I. INTRODUCTION
CMMS Software developers will install their system and train your staff to operate it efficiently.
They will also define what data is required to be entered into the various CMMS data fields;
when they've completed their installation and training, the software is still void of data. In order
to obtain effective Maintenance Management Information from CMMS software, all of your
facility's pertinent data must be accurately entered in formats understandable to both you and the
software. Realization of these three attributes of the data to be entered constitute implementation
of the CMMS Software.
What kind of information goes into the CMMS database? The following general categories of
data are the minimum basis for realizing the maintenance management benefits of your system.
Equipment Data
Maintenance Data
Inventory (Parts) Data
Scheduling Data
Work Order Data
Labor / Resource Data
Sounds simple enough. Yet surveys consistently indicate that 90 to 95 percent of facilities who
have recently installed and implemented a CMMS feel that the system has failed to meet their
expectations. They have not realized a return on investment (ROI) that they were led to believe
was possible. In other words, they are in trouble. They need to accomplish two fundamental
objectives:
This paper is intended to point you in the necessary direction and guide you through the
processes for meeting these objectives. But, you must understand that meeting them is going to
require both effort and commitment - from the top down!
Many facilities fail in their implementation because the process is only partially completed. This
usually occurs because they lack a thorough understanding of the CMMS software program
structure and the system capabilities. Many companies do not have appropriately experienced
personnel to fully implement a CMMS. Often there is so little understanding of the software
program intricacies and relational data base fundamentals that it is not even possible to define the
scope of the tasks to be performed for implementation. They fail to develop an adequate
implementation plan because the complete scope of the tasks involved is not fully understood
and breadth of labor resources needed is not made available. Without an implementation plan, or
with a plan that doesn't account for the real scope of effort, time allocated for implementation is
usually far short of actual time needed. Hand-in-hand with inadequate knowledge, labor and time
is inadequate funding for the required process of implementation. When funding runs out, there
are no options for hiring temporary support staff, extending time-lines or contracting
knowledgeable implementation specialization firms.
Too often, the impetus for implementing a CMMS originates, and is confined, within the
maintenance department. This situation creates the very likely possibility that any interest in the
project will also be limited to the maintenance department. Often, it is only the maintenance
manager himself who is behind the project. If he hasn't involved his middle managers or
supervisors in initiating CMMS, the maintenance staff as a whole will not be contributors to
success - it's the natural tendency of the human animal to resist change.
As with any process for change / improvement, particularly those involving major capital
expenditures, upper management must champion the cause and make commitment of resources
to ensure its successful implementation. When upper management relegates a CMMS project's
success to the maintenance manager and provides no visible support to the program, facility-
wide acceptance is not likely to be forthcoming.
Frequently, middle level managers and supervisors from departments that will be involved with
CMMS operation are completely left out of the process of selecting and implementing a CMMS.
Without the participation of the organization's user elements, failure is imminent from the start.
A CMMS implementation project is a long-term effort and dedicated project management time
must be put forth to provide the needed oversight, guidance and direction. Many times a junior
engineer with little or no maintenance background is assigned to this position or the project falls
on the shoulders of the maintenance manager, who not only must manage the maintenance
department but also the CMMS implementation.
Another frequent mistake is to assign someone like the maintenance department administrative
assistant to implement the program. First, this person has little or no authority. Second, leaving
the oversight for data collection and data entry to a person who is not familiar with the software
operation, who doesn't know the facility's equipment and who has very little understanding of
maintenance is the wrong approach to project management.
These situations of project management are scenarios for failure. An appropriate project leader to
implement CMMS must know the software and understand the intricacies of relational databases.
He needs to be familiar with the maintenance process and facility equipment, and he must also
have the authority and upper management backing to complete the implementation through
recognition of the need for significant labor effort and the know-how for finding the right
resources.
Another major contributor to the failure of CMMS implementation is the culture of the plant
personnel. Without modifying the work flow process, training the plant personnel on the new
process and then holding personnel accountable after they have been trained, the desired results
of the CMMS will not be delivered. The work flow process defines the day-to-day operation of
preparing for, planning/scheduling and execution the maintenance function. After years of
responding/reacting to trouble calls, failure reports and work requests originating from the
operating arm of the facility, work flow must shift to a preventive, pre-planned, maintenance
staff originated and proactive mode.
Information must be gathered and entered into CMMS, a requirement that did not previously
exist. In order to accurately track the cost of maintenance, labor time, parts usage and cost and
other expenses of maintenance must be applied to individual equipment and cost center.
Accurate costs can’t be properly determined if maintenance technicians have personal supplies of
spares in their locker or tool cart. This is a behavior shift for the maintenance technician. In
reactive maintenance environments, craftsmen frequently develop their personal set of frequently
used parts knowing the storeroom can’t deliver the parts. This allows the equipment to be
quickly repaired but results in no cost or usage information for spares being rolled up to the
equipment.
Equipment Condition
It often occurs that a facility's maintenance department has operated in the reactive mode for
such a long time that the predominant mode of maintenance is corrective. High incidences of
equipment breakdown and lengthy periods of failed equipment remaining out of commission are
indicators that, not only is the maintenance group responding more than anticipating, but the
facility equipment has not received the kind of preventive maintenance needed to keep it in good
operating condition. Trying to implement a proactive maintenance approach through CMMS will
prove very frustrating when the bulk of maintenance labor has to be directed to fixing versus
maintaining. Equipment condition must be such that preventive maintenance is a feasible
objective.
CMMS Capabilities?
Perhaps it will surprise you to learn that inadequacies of CMMS software are rarely the cause of
implementation failures. There are more than three hundred different maintenance
information/process management software packages available and new software suites are being
introduced continuously. They range in complexity from simple work order management and
tracking systems to massive enterprise systems that facilitate management of the entire
resource/maintenance/equipment/parts/purchasing functions across multiple facility sites. A
conservative estimate is that at least 95% deliver the capabilities advertised, when properly
implemented.
We've defined the most common causes of CMMS implementation failures, now you're probably
asking yourself "What is necessary to avoid these failures?" This section defines what you will
need to accomplish and section IV will provide additional details on how to best go about
successful implementation.
Understanding Implementation
Most implementations use in-house resources for the process. When totaled, the complete time
required to properly do the job equates to many man–years of effort. Most companies do not
have this capability. When companies do not have adequate resources allocated, the
implementation becomes a job to perform only when there is nothing else going on in
maintenance. We all know that there is always work to be done, especially in a reactive
maintenance environment. More often than not, the end result is that both salary and hourly
employees are asked to put in longer hours to complete the implementation. The implementation
process must be thoroughly understood.
Even before you start, you (and top management) must determine what you want a CMMS to
accomplish for you. Much thought and examination of the CMMS functionality, to ensure
compatibility with your maintenance strategy, must be expended to determine the specific
CMMS features needed. A baseline evaluation must be made to determine which areas of your
maintenance operation need improvement and then determine if a CMMS will support that
improvement. Analyze the weak points as well as the strengths. Determine where your
organization is, relative to efficiency, and use that as the measurement origination point from
which to develop a plan for improvement. Next, realistic cost estimates for the implementation
must be developed. The cost must not only cover the software, but also training, labor time for
implementation, computer hardware upgrades, labor required for data base population and, if
required, any outside resources needed. There are many consultants who can assist with this cost
estimating and implementation.
The reason the baseline starting point and cost of implementations is important is because very
few plant managers will give approval for such an undertaking without knowing how much it
will cost, how the improvement will be measured, the implementation time frame and what the
return on investment will be. Key performance indicators must be identified that will aid in
determining the return on investment. These items must be determined up front.
Preventive maintenance procedures must also be developed and entered and the equipment links
made. Without sufficient time, knowledge or authority, an implementation most often results in
CMMS being used only as a work order tracking system. If that is all a company desires, a MS
EXCEL® spreadsheet can accomplish that function.
Selection - Prior to selection, the objectives of installing and implementing a CMMS package
need to be well defined. The starting point here, as it should be, is with top management. What
are the corporate requirements for the system and what are the rules for decision making during
the selection, planning, installation and implementation process? What performance indicators
does top management want from the system? Cost reporting requirements, equipment reliability
reports, return on investment figures, definition of authorization levels in dollar terms - all of
these upper management objectives need to be defined.
Similarly, mid-level, department managers whose staff will utilize the CMMS capabilities must
further refine the upper management requirements through detailed breakdown. Definitions of
cost accumulation/allocation categories, equipment effectiveness (MTBF, MTTR, Utilization,
etc.) measures, labor use reporting breakdown, maintenance categories (preventive, corrective,
etc.), and similar facility requirements of the CMMS reporting structure will need to be
determined.
The next step in the selection process is the preparation of a requirements definition document.
The requirements definition contains all the requirements for both the functionality and computer
hardware capacity that your organization desires in a CMMS. This document will be the basis
for sending an RFP/RFQ to those CMMS vendors that may be able to deliver the system you
need. The names of CMMS vendors can be found in trade magazines, through contacts in
professional societies and on the Internet. You should specify in your requirements document
that contact with your company should only be made for clarification of the requirements and not
for sales calls.
The information that the CMMS vendors supply in response to your RFP/RFQ should be used to
develop a select (short) list of qualified vendors. Schedule and arrange for each vendor from the
select list to visit your facility to demonstrate the capabilities of their system. Representation
from all key areas of your facility/plant should attend each vendor demonstration. At a minimum,
you must have your implementation team present. Questions about the product and its capability
should be prepared before hand, and if possible, you should send these questions and concerns to
each vendor prior to his visit to allow enough lead time for the vendor representative to be able
to address all concerns. After all, the vendor is there to serve you. Be clear about what it is you
want the system to deliver. These inquiries should be in addition to the items that were specified
in your requirements document.
After the vendor demonstrations, determine which package is right for you. Again, at a
minimum, the entire implementation team should take part in this process. Some items to
consider, in addition to your requirements document, are the level and cost of technical support,
training provided and the cost of the training, software upgrades, and cost per user (multi-user
licensing fees) of the software. If you need assistance at 3:00 AM on a Saturday and call their
toll free number, will there be a person there to answer your call who can give you the
information you need? If you desire training, does the company provide it as part of the software
cost or are these additional expenses above the price of the software? When a CMMS software
upgrade is released, is it provided to you as part of a service contract, as part of the original cost
of the package or do you have to purchase the upgrade separately? There is nothing wrong with
any of these options, but they must be known up front for budget projections.
The last step prior to CMMS selection? - Present your (the implementation team's) selection,
criteria and cost information to upper management; even if you have been given the decision
making authority, it is absolutely essential to keep your management involved and in support of
both your decision and the CMMS implementation project.
Planning - After selecting the system, the real work begins. A well developed, closely followed
implementation plan will determine whether you are one of the 5% to 10% of the companies who
succeed in CMMS implementation. The previously selected implementation team will all take
part in the plan development beginning with a CMMS Kick-Off Planning Conference/Meeting.
The plan must be concise, but sufficiently detailed to address all contingencies. It must include
clearly defined, achievable goals and objectives. With few exceptions, implementations are
performed in phases because few companies have the financial resources to complete the
implementation in one fell swoop. The specific tasks should be planned in a logical sequence
with defined responsibilities, designated personnel, progress reviews, milestones and dates, and
the start and completion (full implementation) dates. The plan should include infrastructure,
labor and training requirements, implementation system installation, and database development
schedules. Inadequate or incomplete implementation plan development is one of the leading
causes for implementation failure. Many companies try to speed along the implementation by not
using a formalized plan.
Middle level managers, supervisors and craftsmen must buy into the concept and incorporate its
functionality into the work process. Without full support from all participants within the
organization, failure is inevitable. Every person involved must buy into the program of
implementing the CMMS, understand the changes it means relative to their job performance and
want to realize the benefits that CMMS implementation can provide.
The designated project manager now needs to plan for the Implementation Planning Kick-Off
Meeting. This meeting is the key to success of your CMMS implementation; the implementation
plan will be defined, developed and bought into at this meeting. The individual objectives of the
meeting and the decisions that need to be made should be outlined in an agenda. The agenda
should also indicate the proposed responsibilities for each element of the agenda/plan. It should
be provided to each member of the implementation team at least one week prior to the scheduled
date of the meeting. This is to allow for any preparations or research that must be completed
before the meeting as well as to permit feedback prior to the beginning of the meeting.
A point to keep in focus - upper management is the chairman of the implementation team; the
project manager is the facilitator. The agenda and meeting schedule must be coordinated with
management to ensure they will have a representative in attendance. The upper management
representative should be prepared to give a short keynote address to the team indicating what
management expectations are from CMMS implementation - in terms of efficiency/production,
return on investment and in higher employee morale, self pride and general character change
within all personnel at the facility. All of upper management's, whole-hearted support of the
project should be conveyed to the rest of the team.
Through internal selling of the concept of CMMS, you can eliminate many of the problems that
arise from facility/plant politics. Most plants have some internal political "walls" that inhibit
good cooperation and coordination of the overall operation of the plant. It is essential that
endorsement of top management and participation of the IT or information systems group,
purchasing, accounting and production/operations all be acquired and that they be sold on the
concept because they are also users of the system. Contrary to a commonly held belief, the
CMMS is not solely a maintenance system. All of these plant entities will be users of the system
and to ensure a successful implementation, they must be on board with the concept and be
integral team players.
Planning Meeting Elements - (note: the objectives of this meeting are substantial; therefore a
minimum of one full day should be allocated to complete the Plan Definition). The Planning
Meeting must address a number of issues, not all of which can be defined within the meeting. An
action item list of determinations and definitions still requiring development, together with their
due dates and the responsible party, should be agreed to, created and distributed prior to
concluding the meeting. The minimum elements to be addressed during the Planning Meeting
include:
Work Flow Analysis - One element of the implementation planning process that can be a major
stumbling block is analyzing existing work flow patterns and devising the necessary work flow
and organizational changes that must be made to accommodate the CMMS. This process can be
extremely traumatic for the employees involved, primarily because it's the nature of the beast to
resist change. When work flow shifts from a reactive to a proactive posture, planned and
scheduled maintenance will replace the corrective maintenance style. There has to be shift in the
mentality to allow the planning and scheduling process to work. It has been shown that when
maintenance is planned and scheduled, a twenty five-person maintenance force operating with
planning and scheduling can deliver the equivalent amount of work of a maintenance crew of
forty persons with no planning. Planning and scheduling is most effective when there is one
planner / scheduler assigned for every twenty to twenty five persons in the maintenance force.
Selling this concept before completing implementation can go a long way towards easing the
transition. The compelling aspects of the new work flow include improved employee
effectiveness, fewer "extended" work days, increased self-pride and the resulting improvement in
employee morale.
A typical work flow pattern following CMMS implementation is illustrated below. Your process
must be one that works for your organization and within the CMMS work flow model.
E VE N T
U S U A LL Y OC C U R R E N CE
PM W O PR O D U C T IO N
I N SP EC T ION W EE KL Y PM
R ES U L TS W OR K
L UB R I C A TI ON D A I LY PE R FOR M A NC E
R EQ U ES T
PR E D IC T IV E S C HE DU L E E VA L U A TI ON
M A T ER I A L S
P L AN N IN G W A R EH OU S E
T OOL S
PR OB LE M
S OL V IN G
T EA M PR OD U C T IO N
R EQ U ES T ED
W OR K OR D E R
W OR K W EE KL Y
PR OD U C T IO N C OR R E C TI V E
PE R FOR M A NC E D A I LY
C O O RD I N A T ION PR E V EN T IV E
S C HE DU L E
M E E TI N G M O D IF IC A T IO N
E M E RG EN C Y
W OR K
HI S TO RY OR D E R
R ES U L TS
1. PER FO R M A N C E T O SP EC I FI C A TI ON
2. M A I N TA I N C A PA C I T Y
3. CO N TI N U OU S IM PR OV E M E N T
T IM E
Scope of Data versus Resources - Not understanding the scope of work involved with obtaining,
formatting and entering the data necessary for successful CMMS implementation is the primary
reason for failure of in-house performed implementations. Analysis of the various CMMS
module data fields and the amount of data your facility's equipment and inventory represents
should give you an idea of the resources required to obtain and assemble/format in accordance
with the database design. As state earlier, the most common categories of CMMS data include:
• Equipment Data
• Inventory (Parts) Data
• Labor Data
• Scheduling Data
• Work Order Data
• Maintenance Documentation Data
Each of these categories can represent massive databases. For example, the equipment database
may have fifteen or more data fields for each and every piece of equipment in your facility - each
motor, each pump, each compressor, etc. The number of possible sources for obtaining the data
can be very diverse as well. Capital Inventory listings, Purchasing records, P & IDs, and physical
name plate information are just a few of these sources. Of paramount importance when obtaining
data and populating databases is the accuracy of the entered information. GIGO (Garbage In
equals Garbage Out) is a very applicable phenomena here. The most accurate method is to
physically sight and inventory facility/plant equipment, recording name plate information as well
as location, interfacing systems, modifications installed, etc. How much time and employee
resources would this represent for your facility?
Each data field must contain standardized entries - if AHU is an Air Handler, then all Air
Handlers must always be AHU. Just the development of standardized data representation can be
a significant effort. All of a sudden it begins to dawn on you that this may not be the kind or size
of effort that you can attempt to perform with in-house resources. Typical requirements for other
major database categories might consist of:
LABOR DATA SCHEDULE DATA INVENTORY DATA
Equipment Condition Evaluation - Whether or not to include a piece of equipment in the CMMS
database is generally based on evaluating the maintenance worthiness of the item. By
maintenance worthiness we mean determining if there is any effective planned, preventive
maintenance that can be performed that will increase the item's reliability or life expectancy, or if
the cost of maintenance would exceed the cost of replacement. Although these items may be
included in the repair parts inventory database, there is no good reason to include it in the
equipment database. Another consideration is equipment condition. If you have a pump that is
constantly being repaired for inadequate flow due to internal and seal leakage, preventive
maintenance will not be very effective. Such "bad actors" should be identified for rebuild,
overhaul or replacement before being entered into CMMS.
Trade-Off Evaluation - By now you should have the information you need to determine the
method of CMMS Implementation you will use. The resource requirements for implementation
should be weighed against the reduced ability to perform day-to-day activities and on the
extended total time-line for completing implementation. Other questions to answer include: is it
possible to compensate for these reduced capabilities and lengthy implementation schedule with
temporary labor? - what would be the effect on facility equipment reliability or plant production
from reduced capabilities or the addition of potentially unqualified temporary employees? - are
the effects acceptable?
If the trade-offs do not produce viable options for in-house execution, you will most likely need
to outsource the CMMS Implementation process. Again you will need to evaluate the costs of
outsourcing against the benefits to be gained from CMMS. Will there be a positive return on
investment?
Selecting a CMMS Implementation Firm - With all your analyses and evaluations completed and
the decision made to contract out for CMMS Implementation, you still have one step left in the
process. It is important to develop selection criteria for choosing an implementation contractor.
Unfortunately, relying on lowest cost may not provide you with a successful CMMS
Implementation that will provide all of the reliability and cost benefits you are expecting.
What should you consider in addition to cost? Insist on a firm experienced in performing CMMS
implementations. Obtain referrals from other plants/facilities for whom the firm has completed
implementation. Arrange to visit at least one of the referral facilities to observe a fully
implemented CMMS in operation. Ask for evidence of increased reliability and capacity and
reduced maintenance and operating costs.
V. CONCLUSION
Computerized Maintenance Management Systems are very powerful tools that allow companies
to significantly reduce their costs. These systems are an excellent vehicle to move companies
from a reactive maintenance environment to a proactive maintenance environment along with
allowing companies to accurately track the cost of their maintenance and determine their
manpower utilization. The implementation of a CMMS is not a ‘quick fix’ to correct
maintenance problems. It is a time consuming effort not to be undertaken lightly. Only a small
portion of the overall cost savings will be from a reduction in actual maintenance costs. The
CMMS will allow accurate tracking of inventory spares, reduce excess levels of inventories,
accurately track and develop realistic equipment and financial reports, allow better management
of work order backlog and allow proper planning and scheduling of maintenance and
maintenance personnel. The pay back will be that when the system is fully and successfully
implemented and the plant is operating in a proactive posture, the return on investment will be
seen through a significant rise in production capacity due to reduced equipment failures.
The means to successful implementation of your selected CMMS is a matter of being well
informed, knowledgeable, and developing a well organized plan for the accurate execution of
your facility's CMMS Implementation.