What is CMMS? Meaning, How it Works, Benefits & Limitations

CMMS means Computerized Maintenance Management System. It is a software developed to optimize the management and maintenance of physical assets within a built environment.

Initially, it catered mostly to manufacturing, petrochemical, power generation, and construction companies in the industrial sector. As buildings and stores grew in the following years, the old industrial maintenance system was updated to manage them as well.

The CMMS was initially designed to focus solely on reactive maintenance. It is a central place for maintenance teams to store data on assets, work orders, maintenance schedules, inventory, and performance metrics.

For the most part, maintenance planners, schedulers, and technicians use the CMMS software to manage maintenance operations.

Its ability to manage facility management operations—such as machinery, spare parts, and maintenance schedules—was a significant improvement over the previous pen-and-paper methods. However, it falls short of meeting the complexities of the property operations industry in the 21st century.

Related article: Why Maintenance Management Systems Aren’t Solely Used for Building Maintenance

CMMS - Origin and Evolution

• CMMS solutions or CAFM solutions trace their origin to the 1960s. Initially, they used to be a simple mainframe-based system for tracking work requests and maintenance tasks.
• Over the next few decades, they evolved into a more sophisticated form of software — primarily so because of the advent of personal computers and the internet.
• And, in the 1990s, CMMS systems became more user-friendly and accessible. Besides, it also incorporated many other key functions like asset management and preventive maintenance — tasks that were handled manually till then.
• The 2000s saw the rise of cloud based solutions. They offered real-time access and integration with other systems for tasks like enterprise asset management.
• Today, modern CMMS platforms have evolved into connected CMMS or connected CAFM software. They offer significantly enhanced capabilities than a legacy CMMS software always offered.

For instance, Facilio’s connected CMMS uses state-of-the-art technologies like IoT/AI and does things 10x more efficiently than a legacy CMMS could ever do.

It can juggle between tools to keep track of multi-vendor building systems, varied service contracts and diverse touch points with tenants.

Get in touch today and let us help you choose the best CMMS solution for your organization.

What are the key functions of CMMS?

For industries steeped in production—manufacturing, oil and gas, utilities— CMMS as a technology was a game-changer. These sectors have a large number of tangible assets with predictable maintenance cycles. They found CMMS a tool perfectly aligned with their operational needs. For them, CMMS performed many key functions include:

1. Managing physical assets: CMMS keeps detailed records of all the equipment and assets, including their history, condition, maintenance needs, their location and history.

2. Preventive maintenance scheduling: You can use CMMS to schedule regular check-ups and maintenance tasks to prevent equipment from breaking down unexpectedly. This can include routine inspections or replacing parts before they fail — effectively reducing their down time.

3. Managing work orders: It helps you create, assign, and track maintenance tasks or repairs. For example, if a machine breaks down, a work order can be generated to get it fixed.

4. Inventory management: It tracks spare parts and materials needed for maintenance and ensures that you have the right items available when needed.

5. Reporting and analytics: The CMMS software shares reports and data on maintenance activities whenever you need them. It helps you better understand the performance, save time and identify areas where things can be improved.

6. Keep maintenance costs in check: With a maintenance management system CMMS around, you can monitor and track maintenance costs. Besides, you also get detailed reports to manage budgets and identify cost-saving opportunities in your maintenance strategy.

What are the types of CMMS? (On-Premise vs. Cloud-Based CMMS)

CMMS software can be classified into two types based on where they are installed and operated.

On-Premise CMMS Software

• Software is installed on the organization's servers (of course it is on premise)
• Over here, the data is stored locally within the organization's network.
• Significant upfront investment in hardware, software, and IT personnel is needed.
• It offers a high level of control over data security and customization.
• It may be more suitable for organizations with stringent data security requirements or those who prefer complete ownership of their software.

Cloud-Based CMMS Software

• Over here, the software is hosted on a remote server and accessed through the internet.
• Data is stored in the cloud and accessible from any device with internet connectivity.
• It has lower upfront costs and reduced IT overhead.
• The vendor provides automatic updates and maintenance.
• Scalability to accommodate growing business needs.
• May have concerns about data security and reliance on internet connectivity.

Who needs a CMMS?

CMMS software offers a great deal of benefits to stakeholders across various sectors. We have listed some of the benefits of a CMMS software here.

1. Facility managers in various industries (Offices, healthcare, manufacturing, etc.): Facility managers in these industries can bring together maintenance operations, reduce equipment downtime, and optimize resource allocation. As CMMS offers real-time monitoring and analytics, it can pave the way for proactive maintenance and better enterprise asset management (EAM).

How to choose the right CMMS?

Selecting the right CMMS is crucial for optimizing facility management and can make a significant difference in your O&M team’s performance. We collaborate with several facility management companies, including Australia’s largest commercial real estate firm, Investa Property Group.

We interviewed Paul Vandervlis, Director of Facility Management at Investa, to share the best practices for evaluating CMMS software. Here’s what he shared.

5 steps to find the right CMMS software

• Check your CMMS software’s scalability: Scalability of a CMMS is so crucial for facility management businesses. The CMMS software you choose should continue to meet your needs as your business expands. It should accommodate your organization's growth. Ensure it can handle increased asset volume, user numbers, and workload.
• Ensure that your CMMS is easy to use: For a team that's not tech-savvy, it's crucial to choose a CMMS with a user-friendly interface. This will greatly improve adoption rates and minimize training time. Besides, you should also consider both the complexity of your maintenance operations and the technical skills of your team when making your CMMS choice.
• Integration with other systems and software: Look for a CMMS that seamlessly integrates with other systems like ERP, HR, and IoT devices to streamline workflows. Integrations enable real-time data sharing, reduce manual data entry, and ensure all your systems work together efficiently and in sync with each other.
• Look if your CMMS vendor gives support and training: One of the reasons why CMMS software is not used to its fullest potential is lack of training to field level workers. Strong support and training are crucial because they ensure your team can effectively use the software, troubleshoot issues quickly, and maximize the system's potential. So make sure you evaluate the vendor's support options. This should ideally include things like implementation assistance, training, and ongoing support.
• The cost of CMMS software: Consider the total cost of ownership, including licensing, implementation, training, and ongoing maintenance. It's important that you factor in these costs to ensure the solution fits within your budget while also delivering long-term value.

CMMS software evaluation checklist

We have made the following checklist to help you compare and contrast the different CMMS software. You can also download the printable version of the CMMS evaluation guide to identify and choose the best CMMS software for your needs.

See how a powerful CMMS solution works in action.

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How much does a CMMS cost?

The cost of a CMMS software is not fixed. Because, the pricing of a CMMS differs based on factors like the features, number of users, and deployment type.

But, on average, an entry level cloud-based CMMS solution can range from $30 to $150 per user per month. On the other hand, an on-premise solution might include a one-time license fee starting around $10,000, plus additional costs for implementation, training, and support.

Custom pricing may also apply for large organizations or those with specific needs.

What are the benefits of CMMS?

The conventional CMMS platform offers some benefits in managing facility operations, like:

• Efficiency: It streamlines the process of managing maintenance tasks. It helps you reduce manual paperwork and helps teams work more efficiently.
• Cost Savings: By preventing equipment failures and extending the life of assets, you can save considerable money on repairs and replacements of your physical assets.
• Better Organization: It keeps all maintenance information in one place, making it far more easier to track and manage.

For instance,

However, the benefits nearly end there. Beyond being an improvement over pen and paper, or perhaps a spreadsheet, a conventional CMMS often creates more problems than it solves. Using an outdated CMMS in the real estate industry is like repurposing a slice of bread as a coaster—it may be square and prevent water rings, but it introduces a whole new set of issues.

The limitations of legacy CMMS software

As workplaces changed, so did the needs. The rise of service-oriented industries, with their emphasis on people, processes, and intangible assets, presented a new challenge. Offices, hospitals, retail stores—these environments demanded a different approach.

It wasn't just about fixing machines; it was about creating comfortable, safe, and productive spaces.
While the CMMS could manage the HVAC system, it struggled to optimize patient flow in a hospital or enhance customer experience in a retail store.

It became clear that the rigid structure of the CMMS, designed for the tangible and predictable, was ill-equipped for the dynamic and complex nature of modern facilities. The system that once drove efficiency began to act as a constraint, hindering organizations from achieving their full potential.

To succeed, businesses needed a new approach. One that focused on results, not just repairs.

While conventional CMMS served its purpose in industrial settings, it falls short in meeting the needs of modern commercial facilities for several reasons:

• Diverse asset types: Commercial facilities have a broader range of assets, including HVAC systems, elevators, lighting, security systems, and IT infrastructure, each with unique maintenance requirements.
• Complex interactions: Assets in commercial facilities interact with each other and the environment in complex ways, making it difficult to predict failures and optimize maintenance.
• Data-driven insights: Modern facilities generate vast amounts of data, which can be leveraged to improve operations and maintenance. But traditional CMMS often lack advanced analytics capabilities.
• Sustainability: There's a growing emphasis on energy efficiency and sustainability, requiring tools to track and manage environmental performance.
• Inefficient operations: Manual processes, slow response times, and reactive maintenance.
• Increased costs: High maintenance expenses due to unplanned breakdowns and excessive inventory.
• Poor asset utilization: Suboptimal space utilization and equipment downtime.
• Compliance risks: Difficulty in meeting regulatory requirements and industry standards.
• Customer dissatisfaction: Service disruptions and facility issues impacting tenant or customer satisfaction.

The traditional CMMS gave a solid foundation for asset management. But, the evolving needs of modern commercial facilities demand a more comprehensive and flexible solution. Such a solution should go beyond maintenance and asset management to encompass facility-wide operations and performance—exactly where a connected CMMS comes into play.

Why do you need a connected CMMS?

A connected CMMS is fundamentally different from a regular, legacy CMMS software as it integrates advanced technologies like IoT, big data, and Artificial Intelligence.

Beyond its core functions of asset tracking, work order management, and inventory control, a connected CMMS offers countless benefits and has a much broader scope like:

• Comprehensive asset management: Tracking not just equipment but also spaces, facilities, and their associated information.
• Detailed work order management: Recording not just work order details but also associated costs, performance metrics, and technician information.
• Inventory control: Managing spare parts, consumables, and equipment inventory levels, optimizing stock levels, and reducing costs.
• Vendor management: Tracking vendor performance, managing contracts, and facilitating efficient procurement.
• Inspection management: Scheduling and executing inspections, generating inspection reports, and ensuring compliance.
• Space management: Optimizing space utilization, tracking occupancy, and managing facility layout.
• Service management: Coordinating service requests, assigning tasks, and tracking service delivery.

Streamline your facility management operations with Facilio connected CMMS

Facilio is a comprehensive connected CMMS software designed to manage and maintain assets, ensure sustainability, and improve the tenant experience.

Among the many CMMS solutions available in the market, Facilio's connected CMMS stands out with its holistic approach. Its IoT-led property operations platform establishes maintenance workflows, monitors energy consumption, manages vendors and payments, and triggers preventive maintenance notifications at the right time.

Facilio takes a unique approach to property operations and maintenance (O&M), unifying people, systems, and processes.

This transcends the conventional limitations that standard CMMS solutions offer. It can deliver enhanced stakeholder engagement and system efficiency—all in one unified platform.

Case study: Learn how Facilio helped the U.K. Facilities management provider improve its service quality

Facilio is leading the way in helping facilities management companies across the world to transform their operations and improve their service quality.

About Q3

Q3 is one of the largest integrated facility management providers in the United Kingdom. Their operational and leadership teams have been working within the FM industry for many years, each covering a multitude of sectors. Despite their expertise, Q3 faced several pressing challenges.

Q3’s Challenges

• Multiple work orders for planned maintenance increased complexity and disorganization in work order management.
• Communication among teams took place on various platforms, impeding efficient information sharing and collaboration.
• The lack of a centralized data consolidation process, along with diverse systems and manual efforts, led to the accumulation of dark data, making it challenging to extract critical insights.

Here's how Facilio’s connected CMMS helped Q3 to overcome these challenges.

Facilio’s Solution

• PPM Process Revolution: Facilio streamlined Q3's PPM by grouping similar assets and managing issues through deviation work orders, enhancing maintenance efficiency.
• Seamless Communication: Facilio centralized communication, replacing external tools with user-specific apps, improving real-time data access, accountability, and decision-making.
• Financial Integration: Integrating with Xero, Facilio combined financial and maintenance management. It boosted its financial efficiency and accuracy within a unified platform.
• Efficient Implementation: Facilio's phased approach started with one site, enabling standardized processes and minimizing disruptions, successfully onboarding all sites within 3-4 months.
• User Adoption: Facilio's intuitive design and ease of use led to quick adoption by Q3's teams, improving operational efficiency with minimal resistance.

Impact on Q3’s Business

1. Simplified predictive maintenance processes for scalable PPM management.

2. Unified systems streamlined operations and improved efficiency.

3. Digital onboarding minimized reliance on offline communication.

4. Enhanced visibility led to improved asset management.

5. Efficient compliance monitoring ensured adherence to regulations.

Interested in learning more about Facilio’s Connected CMMS?

Book a demo with our product expert today.

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