Condition-Based Maintenance (CBM) in ERP
8 October, 2025
Written by Vitalii Yeliashevskyi
Shifting from preventive maintenance to condition-based maintenance (CBM) offers many benefits for organizations, such as improved reliability, higher availability, and reduced costs. However, organizations planning to implement CBM often ask: “How should we now plan our warehouse?”
With preventive maintenance, the planning of spare parts is straightforward – you can prepare parts in advance, manage safety stock, and place timely orders. In contrast, condition-based maintenance introduces uncertainty.
This often raises a critical question: “How do we address situations when CBM dictates a maintenance action, but the required materials are either out of stock or expired?“
If not properly managed, such situations can stress the maintenance department significantly and lead to unnecessary financial losses, eventually becoming a nightmare for the organization.
To avoid this, it is essential to complement CBM with additional measures. Specific triggers must be implemented in the CMMS (Computerized Maintenance Management System) to ensure all follow-up actions are completed correctly. In parallel, safety stock must be established based on demand calculations that consider equipment criticality, the number of maintained assets, required spare parts, maintenance schedules, probability of failure, and the availability of both primary and alternative vendors.
Key Activities for CBM Implementation

The implementation of a CBM program consists of two major, interconnected activities:
1) Engineering
- Data extraction if a full Bill of Materials is not yet in the CMMS
- Extraction of maintenance procedures
- Analysis of potential failures, required tasks, and spare parts
- Definition of strategies for material stock calculations
- Definition of strategies for MRP (Material Requirements Planning)
- Identification and engagement of additional vendors
2) ERP
- Setup of failure indicators
- Amendment of CBM activities to include failure indicators
- Creation of maintenance tasks, materials, and maintenance plans
- Set up/amendment of required spare parts data
- Set up/amendment of MRP
- Registration of additional suppliers
- Creation of interchangeable material records
Example: Lube Oil Condition Monitoring Program
Let’s take the implementation of a lube oil (LO) condition monitoring program as an example of best-in-class CBM.
The initial step is to create strategic documentation that covers:
- Strategy for safety stock, minimum/maximum levels, and MRP setup
- Strategy for oil consumption measurement
- Strategy for defining analysis intervals
- Strategy for deviation control and handling
- Strategy for program integration into the CMMS
- Strategy for personnel training
For the LO program, the Six Sigma DMAIC approach is followed, broken down into the following phases:
1. Define
The purpose of this phase is to identify the required resources and actions to implement the LO CBM program.
Expected outputs of the Define phase, in addition to strategic documents, include:
- List of oil types and quantities
- List of required and additional spare parts for each equipment during oil change
- List of additional maintenance tasks for each equipment
- Standardized oil types per equipment
- Defined lead and alternative suppliers
A crucial step in this phase is integrating the results into the CMMS. Without this, the strategy would remain only theoretical.
2. Measure
Measure actual oil consumption during maintenance activities.
3. Analyze
Perform periodic analysis of oil consumption data.
4. Improve
Reflect the results of the analysis phase in the CMMS.
5. Control
Provide training and ensure proper control of personnel responsible for oil handling and maintenance activities.
Successful CBM implementation requires more than just condition monitoring—it depends on well-integrated engineering practices, ERP configurations, and warehouse strategies. By combining these elements, organizations can transform CBM into a robust program that drives efficiency, reduces costs, and strengthens asset reliability.
At KEEL Solution, we help organizations implement best-in-class CBM programs in ERP. Contact us to discuss how we can support your journey toward smarter, more reliable maintenance.
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