Differences in
small and large companies
Every company is different.
Company size is one of the characteristics
that accentuate these differences.
This feature illustrates how the choice
of a
CMMS needs to reflect those different
needs as well.
by David Berger
For many years, small businesses had difficulty in cost-justifying the
purchase of a CMMS. The rule of thumb was that maintenance shops with under
30 tradespeople would not likely have a payback on their investment. Today,
with client/server technology, standard Windows-like graphic user interfaces,
and dramatic improvements in price/performance ratio for hardware and software,
that rule of thumb has melted away. Additionally, fierce competition from
more than 200 CMMS vendors in North America alone, has created niche players
that cater to small companies across a variety of industries. Large companies
on the other hand, are buying second, third, or even fourth generation
CMMS software. Users have become more sophisticated and expectations are
higher as a result of the features and functions found in all packages.
The standard CMMS package must
be scalable to accommodate all sizes.
Understanding these and other key differences between the requirements
of small and large companies will facilitate purchasing the right CMMS.
Key differences are summarized below.
Scalability
Typically, a small plant can sustain a higher percent growth than a
large plant, although the increase in absolute dollar revenue or number
of employees is small. For $10 million business can double in size in one
year, whereas a $1 billion business is less likely to do so. However, a
mere one percent increase in the $1 billion business is equivalent to the
doubling of the $10 million business in terms of absolute dollar revenue
growth, that is, a $10 million increase.
Small companies must therefore purchase a CMMS with an eye to possible
expansion by one or more orders of magnitude over the next few years. It
is managing this level of change that is exciting but very taxing on a
small company. Proper asset care is a critical success factor for a rapidly
growing business, since the company must maximize capacity during its growth
spurts.
Large, multi-plant companies looking to standardize on a CMMS have an
interesting dilemma. Many of the plants in the conglomerate may be quite
large, but some may be very small. The standard CMMS package must be scalable
to accommodate all sizes. Some CMMS vendors offer "lite" versions that
have scaled down functionality for the smaller plants. This allows migration
to the full-function versions if the plant grows in size or needs. Furthermore,
as employees are shuffled from one plant to another, they can adapt to
the new CMMS.
Foundational features and functions
Despite popular mythology, small maintenance operations are just as
keen on purchasing high quality software as large maintenance shops. Quality
attributes such as fast response time, high reliability, ease of navigation,
and consistent screen design are just as critical for a small plant as
they are for a large one. It is the quantity and complexity of functions,
not quality, that varies across the company size spectrum.
Regardless of the size of your company, certain features and functions
are foundational, that is, they are expected no matter what the cost or
market focus of the CMMS package. Generally, as company size increases,
in certain niche markets, or in light of specific business requirements,
the demand for more advanced functionality increases. Examples are as follows:
General. Foundational functionality flexible report generator
that accesses the entire database for producing standard reports, ad hoc
queries, or user-defined repeatable reports; export capability in at least
ASCII file format; optional mouse or function key operation; password protection
for at least logon copy function; look-up tables for coded fields superimposed
on original working screen; on-line help for menu options
General. Advanced Functionality advanced boolean logic used in
defining reports; graphics generator; import and export capability in multiple
file formats; user can customize function key assignments, menus; macros
available; password protection on functions and fields; undo feature; search
features within lookup include wildcard search, speed search, soundex,
keyword search, context sensitive help; help index; extensive help search;
help print; user-customized help; wizzard help; video and sound capability
A small company typically looks for off-the-shelf
software that requires as little implementation support as possible.
Work order. Foundational functionality any two of the following hierarchy:
project, sub-project, master work order, work order, sub-work order, task,
sub-task; at least one of time-based, equipment criticality, safety, and
user-defined priority on work orders; can view the following from within
the work order screen: standard parts list, parts on hand, parts on order
Work order. Advanced functionality three or more of the work order hierarchy;
blanket work orders; more than one priority; priorities are combined and
used to determine schedule; can also view parts reserved, parts in transit,
and repair history of parts
Inventory control. Foundational functionality average costing available;
suppler history tracking include usage history, average lead time, back-orders,
late shipments; standard reports available showing equipment-where-used,
obsolete parts, ABC classification, multi-warehouse location
Inventory control. Advanced functionality standard and/or activity based
costing available as well; reorder point and lead time auto adjusts to
actuals; supplier history for contract work; contract maintenance on separate
module; electronic data interchange capability can report on service level
by part or part category; part status history, component repair history;
simulation of service level for various inventory values
Preventive maintenance. Standard functionality trigger preventative
maintence by time or usage; can schedule preventative maintence by craft,
time, or equipment; tracks the number of times a preventative maintence
job is missed
Preventive maintenance. Advanced functionality can alarm or trigger
any activity based on any auto/manual meter reading; can schedule PM by
work crew, supervisor; can schedule by the hour; adjusts schedule for seasonality
automatically; priority is increased if preventative maintence not done;
schedule adjusts if preventative maintence not done regularly.
Equipment history. Standard functionality can capture tombstone
data for equipment parts and components; can track actual versus budget
for maintenance costs; reports on problem, cause, action codes
Equipment history. Advanced functionality can capture tombstone
data for personnel; data fields are user-definable; detailed budgeting
by general ledger account code; budget integrated with work order costs;
budgeting available for project reliability-based analysis; troubleshooting
database to diagnose problems
Integration
One of the considerations of small businesses is the level of integration
of the package. Because resources are so thin, it is desirable to limit
the amount of software and hardware variation. A small manufacturer that
can find fully integrated accounting, sales, material resource planning,
and CMMS software from a single vendor will save on training and support
costs. The downside is that you may not be getting "best of breed." For
example, the accounting modules may be superb, the manufacturing modules
satisfactory, and the maintenance modules clearly a compromise.
Price
The key question for small companies has always been getting the features
and functions one needs at a reasonable price. Today, it is surprising
just how much functionality you get in a CMMS for under $1,000. Some CMMS
vendors even will sell individual modules for less.
A small company typically looks for off-the-shelf software that requires
as little implementation support as possible. Implementation support encompasses
installation, setup, data entry/conversion, training, and customization.
The CMMS vendor also wants to minimize the need for direct support since
it cannot afford to sell huge volumes of low-priced, shrink-wrapped software
and intimately support each customer. Various seized the opportunity, as
clearly many companies need implementation and support services.
8th Annual Handbook of CMMS & PdM
copyright 1996 Plant Services
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