As a player in the Maintenance, Repair and Overhaul (MRO) industry, you've come to realize that ERP (Enterprise Resource Planning) is an essential component to remaining competitive. More over, continually improving return on investment (ROI) as an MRO organization is contingent upon its ability to target the most profitable projects. This capability, sometimes referred to as a maintenance tracking software module, isn't always found in an out-of-the-box ERP solution. In fact, only a few organizations realize job costing capabilities, forecasting accuracy, and the capacity to develop strategies that maximize profitability.
Using an ERP Solution to Target the Most Profitable Maintenance Projects
Whether or not you're coping with an older ERP system or juggling data between multiple systems, chances are your system is not equipped for streamlining Enterprise Asset Management (EAM). For example, Microsoft Dynamics AX Enterprise Asset Management (EAM) - Maintenance is equipped to handle the complexities of a modern MRO organization. By leveraging standard functionality of Microsoft Dynamics AX, maintenance tracking module capabilities are realized by automating core business processes and project profitability is achieved.
- Master Planning & Scheduling: Efficient maintenance tracking starts with an effective planned maintenance schedule. Solutions such as Dynamics AX have master planning capabilities that effectively cut costs by matching and aligning plant resources.
- Work Order Control: Work orders are paramount to managing maintenance related activities. Integrated work order capabilities reserve equipment parts for each project. This does two things: one, it affiliates equipment parts and costs per project, allowing management to drill down on job costs; two, by reserving the equipment parts, staff is prevented from placing work orders where there is not enough enough equipment - thereby preventing express delivery of parts and overtime costs.
- Work Execution Tracking: A large proponent of maintenance tracking is capturing labor costs. If you're able to see that Employee A spent 5 hours on a work order while Employee B spent 3 hours on the exact same work order, you are able to make cost-effective decisions on employee-task assignment. In addition, solutions such as Microsoft Dynamics AX offer the facility to specify break up for each time type (normal hours or overtime), enabling you to cut down on time and a half wages if necessary.
- Analyzing and Reporting: Advanced ERP solutions include analyzing and reporting functions with successive differences and ratios, indicating the real cost, value, and profit margins associated with specific engagements. This gives you the chance to choose the most profitable maintenance projects not only by size, but also by type. For example, Dynamics AX reporting allows views for tracking maintenance costs per equipment for various work orders (as well as labor, material cost, etc.). This type of real-time information enables you to identify and focus on the activities with higher return on investment.
Maintenance Tracking Necessities - In a Nutshell
Although most of the features explained above were specific to Microsoft Dynamics AX, two basic principles are the same across any software product: The ability to estimate costs and the ability to track profitability.
Estimating Costs: if you've decided to integrate a maintenance tracking software module into your organization, then you will be equipping your team with the ability to estimate costs of future engagements based on the costs associated with previous maintenance projects. Knowing exactly how much a particular project will cost enables you to set a price that guarantees your competitive advantage. Furthermore, a detailed analysis of costs helps you create a detailed budget and allocate financial resources.
Tracking Profitability: Ultimately, any maintenance tracking module will allow you to track project profitability over time. This is especially valid for projects extending over a long period. When setting up an integrated maintenance tracking software application to track costs, billings and revenue, don't forget to consider how much detail you actually need in order to capture profitability accurately. Opting for very detailed reports can prevent you from getting a clear image of the factors contributing to profit.
If you’ve been spending more time trying to figure out which projects are profitable instead of improving upon your organization's business strategy, then perhaps it's time to consider an integrated maintenance tracking software module such as Microsoft Dynamics AX for Maintenance, Repair & Overhaul (MRO). Thanks to this ERP solution, MRO organizations across the globe have been able to focus on building profit and growing their business.
