Benchmarking: It's Much More Than Just a Bunch of N …fmcc-workplace.com/httpdocs/Slides/20150528_FMCC-TeenaShouse... · Benchmarking: It's Much More Than Just a ... •Over 27 years

Benchmarking: It's Much More Than Just a Bunch of Numbers!Teena Shouse, CFM, IFMA Fellow, VP, Facility Engineering Associates

Vision StatementThe FMCC is the resource and voice for Facility Management Consultants worldwide to leverage

our collective expertise to benefit IFMA members, and the Facility Management profession.

Mission StatementTo serve as a global Facility Management

consultants' resource and representative for Knowledge Sharing, Networking and Business

Opportunities in support of our impact upon the built environment and value to their clients..

Today’s PresentationModerator: Josh Amos, IFMA Components Liaison

Presentation Title: Benchmarking: It's Much More Than Just a Bunch of Numbers!

Presenter: Teena Shouse, CFM, IFMA Fellow, VP, Facility Engineering Associates

Presentation Logistics• Polls will be used throughout the webinar

• Q&A at the end of the presentation

• Quick survey at the conclusion of the Webinar

• PowerPoint & Recorded Webinar will be available online via FMCC’s Website (fmcc.ifma.org)

• Your Participation is Greatly Appreciated!

How We Can Help

Ask the Expert

Find a Consultant by Location & Expertise

Locate a Speaker

Online Educational Resources

fmcc.ifma.org

Gold Sponsors

Silver SponsorsInterested in Sponsoring

FMCC? Contact [email protected]

mailto:[email protected]

http://www.feapc.com/


http://www.nextfms.com/

http://www.nextfms.com/

http://www.kaneconsulting.net/

http://www.kaneconsulting.net/

http://www.issworld.com/

http://www.issworld.com/

http://exceldryer.com/

http://exceldryer.com/

http://www.isar1.de/

http://www.isar1.de/

Presentation Logistics• Q&A at the end of the presentation

• Quick survey at the conclusion of the Webinar

• PowerPoint & Recorded Webinar will be available online via FMCC’s Website (fmcc.ifma.org)

• Your Participation is Greatly Appreciated!

Meet Our Presenter:

Teena Shouse, CFM, IFMA FellowVice President

Facility Engineering Associates

• Past Chairman of IFMA and Global FM• Over 27 years of FM experience• Author, Instructor and Speaker• Diversified experience

• Organizational re-design to achieve Operational Excellence

• Sustainability• Outsource contract creation/governance• Project Management

Review Session Learning Objectives

• Better understand how to use data in decision making

• What questions to ask to choose services/products• How to better communicate accomplishments and

future opportunities using benchmark data• Select the right KPIs which make sense for your

organization

How to tell your story

1. Gather Data2. Interpret Data3. Utilize Data

Vorführender

Präsentationsnotizen

Image Source: http://www.greenbookblog.org/2012/03/21/big-data-opportunity-or-threat-for-market-research/ How do we interpret all of these numbers into logical and useful information that will increase performance? We have to dig through all of the data, decide what’s important, and practically apply that data to our businesses.

Definitions

• Big Data– Extensive amounts of complex data about your organization pulled

from many sources• Key Performance Indicators

– Critical metrics that can be measured against to determine success of core processes in an organization

• Balanced Score Card– Aligns and monitors performance in comparison to core business

values• Benchmarking

– Comparison of metrics against “targets”

Gathering Data

• Surveys• Sensors• Orders• Alarms• Databases• Software• Customer expectations

BIG DATA

Vorführender


Your organization likely gathers data from countless resources. This results in massive amounts of data to be stored in databases. This is the like the alphabet with endless combinations of words that can seem useless.

Information sources FM Information System

Staff

Internal Surveys

Utility Companies

Service Companies

Vendors

Building Automation System

Energy Management System

Other Internal Systems

Vorführender


* Increasing information streams, increasing complexity of data and technology

FM Software: An Alphabet Soup

CMMS

CAFM

BAS

BIM

IWMS

ERPGIS

DMS

CPS Geographical information system

Capital planning system

Enterprise resource planning

Integrated work management system

Document management system

Computerized maintenance management system

Building automation system

Computer aided facility management

Building information modeling

Vorführender


*

• COBie: Construction operations building information exchange – Standard method to exchange information between

systems to drive down cost

CMMS Opportunity: COBie

Design and Construction

Data

Facility Management

COBie

http://thelinkbetween.wordpress.com/2011/02/16/bridge-building/

Vorführender


*

http://thelinkbetween.files.wordpress.com/2011/02/rainbowbridge.jpg

http://thelinkbetween.files.wordpress.com/2011/02/rainbowbridge.jpg

What is Included in COBie

Closeout submittals, O&M manuals, product data

Asset data

Preventive maintenance procedures

Spare part information

Number and names of floors

Room numbers and names

Occupancy classification

Contact information

Vorführender


*

BIM: An Abundance of DataResponsibilities of the FM team:• Define what data you need and why• Determine process changes to realize

benefits of increased data availability

Tip : Answer these questions: 1) What data to you need? 2) Why?

Tip : Integration can be expensive, start by defining processes.

CMMS

ERP

Database

BIMGIS

BAS

Spatial Database

Vorführender


* Integration: Some products are starting to integrate products within the same software offering, such as Eagle CMMS and Johnson Controls Panoptix ® www.prweb.com/printer/11156206.htm “Eagle Technology Asset Management Application Added to Johnson Controls Panoptix Applications Library”

How

Starting from the Inside Out

Why

What

1. Why is data needed?

2. How will the data be used?

3. What data is available?

Vorführender


* Notes from: www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action.html Simon Sinek: How Great Leaders Inspire Action Apple is more innovative than other computer companies, but they have all the same “resources” – what makes them different? What allowed the Wright Brothers to achieve powered man flight? Pattern: Great, inspiring leaders think, act and communicate the opposite way of others “Golden circle:” Why – How –What Everyone knows what they do, some know how they do it; few people know why they do (making profit is not the answer; what is the purpose; why get out of bed in the morning) Inspired leaders and organizations all think from the inside out Everyone else: We make great computers, they are simple and user friendly We believe in challenging the status quo… the way we do this is _____ People buy why you do it, not what you do Find people with similar values The brain is broken into three parts: 1) Rational and analytical thought 2) Limbic thoughts (Ex: trust and loyalty) 3) ? Behavior is driven by rational and analytical thought – facts are not the sole decision maker Wright Brothers: Believed they could change the world; not just become rich and famous Those that don’t believe in the cause often will quit

• Analytics: Discovering and communicating meaningful data

• Select KPIs• Follow your

Strategic Plan

Interpreting Data

Vorführender


What do we do with all of this data after it’s been gathered? What’s important to my organization? Recognizing Trends Interpreting data takes all those words from the data you gathered and combines them into meaningful sentences. Watch for “repeated words” or trends that arise to narrow your focus.

1. Determine how money/resources are spent (financial)

2. Demonstrate alignment/meeting strategic goals (organizational)

3. Improve the operation of buildings or organization (operational)

Say “yes” to data gathering if it will help…Summary

Vorführender


*

BAS: Measurement vs. Metric

Measurement: Value read from a sensor or meter

Examples: Watts, CFM, GPM

Metric: Unit of measure that can be used to assess performance Examples: W/SF, kWh/SF

Measurements

Metrics

Vorführender


*

Opportunity: The Value of Data • Support quick, compelling decisions• Communicate value to a broad audience

• Past accomplishments: Organizational impact, such as demonstrating success

• Future opportunity: Potential opportunity to make an impact

Tip: Nearly any metric can be equated to dollars…. Although soft costs can be hard to quantify

Tip: Collecting the right data can be expensive. To optimize your investment, understand why specific data is being collected. Ask: How will the data be used?

Vorführender


*

Two Questions:1. How does your organization

make decisions?

2. How do you measure success?

Vorführender


*

“The problem is that most companies collect and report a vast amount of everything that is easy to measure and as a consequence their managers end up drowning in data while thirsting for insights…In order to identify the right KPIs for any business it is important to be clear about the objectives and strategic directions” (Bernard Marr, The 75 KPIs Every Manager Needs To Know)

Vorführender


Source: http://www.linkedin.com/today/post/article/20130905053105-64875646-the-75-kpis-every-manager-needs-to-know

Selecting Meaningful KPIs

• Mission• Vision• Values

Vorführender


Who does it matter to? Executive support; aligns with the organization. Strategic plan “Clients and Board level management expect it and feel comforted by it: they need to see relative performance measures that demonstrate value for money and quality of service” (BIFM, Benchmarking: Effective performance management for FM).

MISSION“To provide the facilities and operational support required to fulfill the mission, vision and values of M. D. Anderson Cancer Center.”

CORE VALUES

Customer Perspective

Process Perspective

Learning and Growth Perspective

Financial Perspective

Deliver products that our customers need and value.Our customers recognize us as their provider of choice.

Caring Integrity Discovery

Products that are produced and delivered by continually enhanced processes, efficiently, and seamlessly.

A Facilities Management organization whose people possess the latest skills and knowledge, and are recognized for

their contributions to the institution.

Optimally used resources that provide the best value when compared to other providers and which are utilized in total

alignment with the strategic goals & mission of the institution.

Figure 2

Vorführender


*

MISSION“To provide the facilities and operational support required to fulfill the mission, vision and values of M. D. Anderson Cancer Center.”

CORE VALUES


Process Perspective

Learning and Growth Perspective


1. Establish a proactive customer service program2. Develop partnerships with customers for mutual success3. Implement effective customer service feedback and measurement system

4. Simplify and streamline processes5. Improve the delivery of service6. Integrate technology to improve services7. Adopt best practices to improve services

8. Provide appropriate training for our employees9. Formalize a program for career development10. Prepare and encourage employees to implement new techniques

Caring Integrity Discovery

11. Establish a high level of accountability12. Align department priorities with institutional requirements13. Benchmark performance14. Maximize asset utilization

Figure 3

Vorführender


*

Objectives Measurements Targets

Establish a proactive customer service program

a. Custodial QA Inspection Hits b. Emergency Response Times c. Percent of Rework (call backs)

a. < 5 per Inspection b. < 15 min. for Priority 1 c. < 3 %

Develop partnerships with customers for mutual success

a. On-Site Supervisor Time b. Annual Customer Expectations c. Manager Contacts w/ Customers

a. > 65 % b. APPA Level 1 or 2 Scores c. > 1 per quarter

Implement effective customer service feedback and measurement system

a. Customer Satisfaction b. Percent WO w/ Customer Feedback c. Top Ten WO Trouble Codes

a. > 95 % b. > 15 % c. # & type

Cus

tom

er P

ersp

ectiv

e

M. D. Anderson Facilities Division Balanced Scorecard


Figure 4

Vorführender


*


Simplify and streamline processes

a. Workforce Productivity b. WOs Initiated by Staff vs. Customer c. Hours Spent on Unscheduled WOs d. Materials On-Time Delivery

a. > 60 % b. Trend c. < 10 % d. > 97 %

Improve the delivery of service

a. PM Schedule Completion Rate b. Unscheduled Downtime c. Temperature/Relative Humidity d. Elevator Traps per Bldg per Month e. WO Completion Targets

a. > 95 % b. < 2 % c. Time in Specified Range d. < 1 per month e. Meets standard times by priority

Integrate technology to improve servicesa. PT&I Completion Rates to Schedule b. Labor Costs Charged to Work Orders c. Material Costs Charged to WOs

a. PT&I completion rate > 90% b. > 95 % c. > 95 %

Adopt best practices to improve servicesa. PM to CM Ratio b. Materials/Stockroom Turns per Year c. PM Compliance for Critical Systems

a. 80 % (PM) to 20 % (CM) b. 2 to 3 Turns per Year c. 100 %

Proc

ess

Per

spec

tive

M. D. Anderson Facilities Division Balanced ScorecardInternal Process Perspective

Figure 5

Vorführender


*


Provide appropriate training for our employees

a. Increased employee satisfaction b. Annual staff training hours c. Facility Center training compliance

a. Employee satisfaction > 95% b. > 40 hours anually c. >95%

Formalize a program for career development

a. Decreased staff turnover b. Staffing needs and gap analysis c. Number of CFM or EFP certifications d. Number of trades credentialing

a. < 10% b. < 10% c. > 5 per year d. > 10 per year

Prepare and encourage employees to implement new techniques

a. Root Cause Analyses b. Number of preventable breakdowns c. Staff innovations

a. > 75% b. < 2% c. TBD

Lear

ning

& G

row

th P

ersp

ectiv

e


Learning & Development Perspective

Figure 6

Vorführender


*



Establish a high level of accountability

a. Reduced lost time accidents b. Reduced overtime usage c. Actual O&M expenses to budget d. % Planned WOs covered by estimate

a. < 50 per year b. < 10% c. + or - 4% d. > 90%

Align department priorities with institutional requirements

a. Priority project completion rate b. Increased Energy Savings c. Sustainable FM score

a. TBD b. TBD c. Sustainability Radar Chart

Benchmark performance

a. Facility Condition Index (FCI) b. Facility Operating Index (FOI) c. Minimize TCO d. Capital reserve funding e. Change in GSF maintained

a. < 0.05 b. < $7.55 per s.f. c. < $18.50 per sf d. > 2% of CRV e. < 2% increase

Maximize asset utilization

a. Cost of breakdown repairs b. Mhrs spent on emergency repairs c. Space Utilization Index (SUI) d. System lifecycle performance

a. < 2 % b. < 3 % c. > 92 % d. > 10% EUL (design life)

Fina

ncia

l Pe

rspe

ctiv

e


Figure 7

Vorführender


*

Selecting Meaningful KPIs

• Focus• Validity• Connectivity• Integration

Vorführender


Image Source: http://www.linkedin.com/today/post/article/20130905053105-64875646-the-75-kpis-every-manager-needs-to-know Focus – Many facilities identify too many metrics. Focus on what is essential for success, not what is easy to measure. Validity – Evaluate and measure specifics, not intangibles like values, teamwork, partnerships, etc. and focuses on validating outcomes not inputs. Connectivity – Use measures that connect managers/leaders to their scorecard in ways that they can understand and influence. Integration – The balanced scorecard must be integrated, not only into their FM technology, but into the organization’s performance management practices, or they will not change employee behavior.

Selecting Meaningful KPI

Vorführender


Top 10 KPI, varies by organization

1. PM-PdM/CM ratio2. PM-PdM compliance3. PM-PdM effectiveness4. Uptime, also called reliability5. Rework6. Work order type distribution7. Work order aging8. Overall equipment efficiency (OEE)9. Overall craft effectiveness (OCE)10.Top 10 problem codes

CMMS: Top 10 Supporting Metrics

Tip: Multiple metrics are important

Story: PM compliance is not enough

Vorführender


* CMMS metrics story: Airport: PM compliance rate – one metric does not tell the full story

CAFM: Supporting Metrics

• Total cost of ownership• Space utilization rate• Cost per assignable square foot• Cost per non-assignable square foot

Vorführender


* Space utilization rate: Percent of space currently being used Churn rate: Percentage of occupants moved within a 12 month period Assignable SF: Space occupied for the core purpose of the facility, such work space within offices Non-assignable SF: Space not directly used by occupants for the core purpose of the facility, such as corridors, stairs, mechanical rooms and restrooms

BAS: Supporting Metrics • Building or campus level

– Energy: kWh/SF/year– Energy: % energy consumption by fuel type – Labs: CFM/SF

• System level – Energy: % energy consumption per system type – Equipment operation: Hours of operation– Air handler energy consumption:

Air handler power consumption (kW) vs. OAT

Vorführender


*

KPIs/Benchmarks/TechnologySummary

1. Start w/ the End in Mind

2. Limit Data and Focus Measurements

3. Technology is a Tool

Vorführender


* This technology optimization approach can lead to improved utilization of your FM technology and continued success of your FM organization. It is dramatically more cost effective than replacing under-achieving technologies at a cost of $500,000 to over a million dollars. Includes cost of software, implementation, data entry and migration, and outside vendors. To achieve optimal results you need to keep the following factors continually in mind: Lead with your best (Champion) Document processes to minimize loss of institutional knowledge Plan long term and implement one step at a time (marathon not a sprint) Leverage support with an effective communication program with core team, stakeholders and users Focus on desired outcomes Seek opportunities for integration of applications without customizing software. Can use existing in-house technology to enhance new systems or integrate them. For instance lock and key application was best. Lotus notes for customer satisfaction used as a suite of products to achieve desired outcome. Remember – CMMS/CAFMs and other FM technologies are information management and communication tools that require long-term care and feeding of quality data. Vendors can help to some extent; they know their systems, but nobody knows your business processes and needs like you. Do it right…start with your technology optimization plan today!

Utilizing Data

Vorführender


When you utilize all the data you have gathered and sorted through, you are using those sentences to create your story.

Utilization Tools

• Balanced Score Card– Clearly links KPIs to Strategic Plan

• Benchmarking– Compares KPIs to standards and other

organizations

Vorführender


The balanced scorecard is an approach that integrates financial and non-financial performance measures to show a clear linkage between the institution’s goals and strategies. Successful institutions have shown that the best way is to implement an effective balanced scorecard is through a systematic approach starting with the end in mind.

Measurement – Balanced Scorecard

Employee Perspective

Can our employees continue to improve and create value?



Process Perspective

How do our customers see us?

How do we look to our financial stakeholders?

What must we excel at?

Strategy

Vorführender


* Customer Metrics - Customer Satisfaction Surveys, WO Response Time, Percent Return Work, Cleanliness / Aesthetics, Comfort & Safety (e.g., Hot-Cold Calls), Communication. – Employee Metrics - Employee Assessment Surveys, Employee Turnover Rate, Productivity (Wrench-turning Time), Annual Training Hours, WO’s Generated by Inspections, On-Site Supervisor Time. – Process Metrics - PM vs. CM Ratio, PM Completion Rates, WO Turn-Around Time (Aging), Unscheduled Downtime/RCA, Mean Time Between Failure (MTBF), Maintenance OT Percentage . – Financial Metrics - Capital Renewal as % of CRV, Operating Costs as % of CRV, FCI (DM / CRV), Maintenance Cost vs. Replacement Cost, Site Utility Index, Facility Maintenance Costs per S.F.

Benchmarking“It could be seen as a set of numbers, but the real value of benchmarking comes from how this information is used. It has the most impact when it is used to question concerns, or demonstrate the value that good facilities management delivers to the organization” (BIFM, Benchmarking: Effective performance management for FM).

Benchmarking• Internal vs. External

– Measure against yourself– Measure against other organizations

• “Targets”– Best Practices– Industry Standards– Top Organizations

Vorführender


“Benchmarking is a way of understanding your business, whether that is the efficiency or the utilization of space, or how many buildings you have on leasehold compared to freehold: it can be used in many different ways” (BIFM, Benchmarking: Effective performance management for FM).

Internal Benchmarking

• First step in benchmarking• Takes years to get valid results• Continuous and on-going process• Most organizations already do this in some

way

Vorführender


Continuous process: You should always be comparing new data with the old data. Search for trends to help determine if your selected KPI align with your strategic plan. “If it is properly designed, you can get the data you want from existing process and technology systems. It’s not a new or a separate function, it shouldn’t be; we need to make sure the operational FM systems are designed intelligently so they can deliver the required benchmarking data as part of normal operations” (BIFM, Benchmarking: Effective performance management for FM).

External Benchmarking“In many ways, FMs at ground level are using benchmarking without appreciating that it is ‘benchmarking’, because measuring performance, setting targets and standards, and making continuous improvements is already an intrinsic part of their job. What they are not doing, however, is comparing this data with other organizations, and that is the next required level to deliver the best benefit” (BIFM, Benchmarking: Effective performance management for FM).

External Benchmarking

• Look to industry leaders• Many benchmarking sources are available• Circle back to selecting KPIs• Not just about costs

Vorführender


Each organization will have their own specific KPI, but using industry standards and Best Practices can help guide you in your KPI selection. External benchmarking should not be strictly about comparing costs; it is more important to look at productivity. “Ultimately, benchmarking provides management information, an indicator and view of how an estate or building is operating at a specific moment in time. This performance information should not only show how the building is working, but how the FM function contributes to the productivity of the business…Thanks to recent austerity measures, the focus of benchmarking has been very much on comparing costs with costs, when in reality the real gains are around productivity and effectiveness ratios” (BIFM, Benchmarking: Effective performance management for FM).

Benchmarking Sources

Vorführender


Determining Best Practices Pictures are hyperlinked to websites.

http://www.appa.org/

http://www.appa.org/

http://www.ifma.org/know-base/research-benchmarks-surveys/facility-management-benchmarking

http://www.ifma.org/know-base/research-benchmarks-surveys/facility-management-benchmarking

http://www.smrp.org/i4a/pages/index.cfm?pageid=1

http://www.smrp.org/i4a/pages/index.cfm?pageid=1

https://eer.boma.org/Boma/

https://eer.boma.org/Boma/

http://www.eia.gov/consumption/commercial/

http://www.eia.gov/consumption/commercial/

https://www.fmbenchmarking.com/


http://www.ifma.org/publications/books-reports

http://www.ifma.org/publications/books-reports

http://www.sightlines.com/

http://www.sightlines.com/

http://www.energystar.gov/buildings/facility-owners-and-managers/existing-buildings/use-portfolio-manager/get-started-benchmarking

http://www.energystar.gov/buildings/facility-owners-and-managers/existing-buildings/use-portfolio-manager/get-started-benchmarking

http://www.feapc.com/services/fm-diagnostics/

http://www.feapc.com/services/fm-diagnostics/

Benefits of Benchmarking

• Reduce costs• Help earn a “green” designation

– LEED-EBOM– ENERGY STAR

• Identify best practices• Add values to your facilities

Vorführender


Source: https://www.fmbenchmarking.com/benefits.html

Benefits of Benchmarking

• Support business case for change• Identify strengths and weaknesses• Justify costs and practices• Justify energy efficiency improvements• Conduct trend analysis

Vorführender


Source: https://www.fmbenchmarking.com/benefits.html



Case Study: Facility Maintenance Program

• Multi-year plan for correction of existing deficiencies

• Identify capital projects and deficiencies

• Prioritize projects

• CMMS upload able data

Bottom line: How much money is needed to maintain facilities?

Vorführender


* Other things they wanted: a searchable data base, 20 year study period, larger systems building systems, spreadsheet format, need to be able to upload data into their CMMS

Nearly 2,000 lines of data…

Vorführender


*

Annual FundingNeeds FCI

Site 1 $9.0M 0.14

Building Group 1 $5.4M 0.14

Building Group 2 $3.1M 0.14

Site $0.5M -

Site 2 $2.3M 0.42

Site 3 $0.3M 0.45

Site 4 $0.9M 0.27

To understand this:

Vorführender


* Numbers have been changed

And this:

Vorführender


*

Summary

Vorführender


Image Sources: http://www.publicceo.com/2014/05/guiding-strong-open-data-policies/ http://www.downloadclipart.net/browse/20938/open-book-clipart Benchmarking takes all the numbers collected from big data and creates a comprehensible, unique story for your organization.

Q&A

Teena Shouse, CFM, IFMA Fellow VP Facility Engineering Associates [email protected]

https://www.linkedin.com/pub/teena-shouse-cfm-ifma-fellow/8/bb3/55a


mailto:[email protected]





IFMA Councils• Academic Facilities Council• Airport Facilities Council• Banking Institutions & Credit Unions

Council• City & Country Clubs Council• Corporate Facilities Council• Corporate Real Estate Council /

W.E.• Environmental Health & Safety

Council• FM Consultants Council• Food Service & Restaurant Council

• Information Technology: Council• Legal Industry Council• Manufacturing, Industrial & Logistics

Council• Museums/Cultural Institutions

Council• Public Sector Facilities Council• Religious Facilities Council• Research & Development Facilities

Council• Utilities Council

To learn more visit http://ifma.org/community/industry-councils

http://ifma.org/community/industry-councils

Thank you for joining us!

Please take a moment to answer our brief survey at the conclusion of the webinar.

Follow Us At:fmcc.ifma.org

http://www.linkedin.com/groups?home=&gid=2110603&trk=groups_item_detail-h-logo

http://www.linkedin.com/groups?home=&gid=2110603&trk=groups_item_detail-h-logo

Documents

Benchmarking: It's Much More Than Just a Bunch of N …fmcc-workplace.com/httpdocs/Slides/20150528_FMCC-TeenaShouse... · Benchmarking: It's Much More Than Just a ... •Over 27 years