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World Class Asset Mgt. Program for today’s Facility Manager
Hosted at: Ecole Hoteliere Lavasa, India
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..
How We Can Help
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Online Educational Resources
fmcc.ifma.org
Today’s PresentationModerator: Airene Wong, AGM IFMA
Presentation Title: World Class Asset Mgt. Program for today’s Facility Manager
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!
Learning Objectives1. Gain practical tips for implementing sustainable
metrics into your daily FM operations.2. Learn how to utilize O&M data to develop
baseline measures and create decision tools such as dashboards.
3. Learn how to integrate sustainable measures into communications and documentation for your service providers and partners.
4. Learn how to turn your data into actionable knowledge.
Intro to FM • John
Facility Management - Definition
People
Property
Process
Technology FM
Facility management is a profession that encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place, process and technology.
Source: IFMA
Presenter Bio• Mr. Shamsher Sindu, MCR, CRE• Executive Vice President - Infrastructure
and Projects, Kotak Mahindra Bank • VP IFMA Mumbai Chapter• VP Corenet India• Indian Institute of Management, Ahmedabad• Executive Management-General
Management• Previously with Indian Army, DLF,
Convergys India, and the Country Head-Global Facilities Management CapgeminiFS.
Facility Management
People
Property
Process
Technology FM
Budget ProcessBudgets (budgets vs. actuals monitoring)- Operating Budgets How do you develop a budget
– Basis Historical data – mix of last one year vs last quarter– Thumb rule– Assumptions
How do you monitor the performance of your budgets– Monthly review– Are we executing / using what we budgeted for, on a timely basis– Knowing how well we are utilizing it – budgeted vs non budgeted expenses– What did we miss out to budget– Any issues with the assumption– Any other factor which got missed out and is hitting now
What is an appropriate monitoring cycle, daily, weekly, monthly, quarterly? – Monthly basis helps take immediate action, as required– Quarterly / Half yearly provides broader view on trends – would help in changing gears or apply brakes, as required
Capital Budgets
How should an FM manager build a capital budget?
– This can be of two types• New Projects• Addition to existing / running facility
– Historical basis– With like to like project nature / scope– Estimation from Architects / consultants– Inputs from PMC based on their
experience– Thumb rule– Assumptions
Payment ProcessIt is necessary to make payments on time which helps in
• Building trust with the vendor / partner• Maintain interest of the vendor• Pushing vendor to deliver / improve performance• Build good will for the company
Escalation matrix – perhaps a authority to spend based on the level of the person in the organization.
– The same can be done through a centralized Budget Controller and is ideal– Above helps in having a holistic view
Software used to monitor operating expenses. – Oracle
– Excel
Benchmarking Internal Benchmarking
• Within Facilities• Across Zones / Region• Offices vs Branches
External Benchmarking• With Competitors in the
industry• Across industryAbove two benchmarking types can be done specific to items or on a broader level
Participant Poll
Do you receive financial statementseach month?
Yes or No
Presenter Bio• Mr. David Amalraj• 26 years Facility Management experience • Head of Enterprise Utilities and Public
Works, Lavasa City Management Services• Master’s degree both in International
Business Administration and in Power Electronics & Industrial Drives
• Electrical Engineering from Maharaja Sayajirao University, Baroda.
• Previously with Indian Air Force & Deemed Universities.
Facility Management
People
Property
Process
Technology FM
Asset Management Program(AMP)
Property• Asset Inventory –
– Square Feet – i.e. square feet, what type of square feet – Asset Inventory
What is a Asset?• Something you own that has value• There can be assets that gain value over time…. Or lose
value over time
Asset Facts• All assets are not created
equal
• All assets eventually fail
• Failures directly affect system performance; failures constrained by cost
• Investment should be guided by the likelihood and consequence of failure
What is Asset Management• Maintaining a desired level of service (what you want
your assets to provide) at the lowest life cycle cost (best appropriate cost - not no cost)
Five Core ComponentsCurrent State of the Assets
Required Level of Service
Critical AssetsMinimum life cycle cost
Long term funding strategy
Current State
What do I own?
Where is it?
What condition is it
in?What is its
value?
What is the useful life?
Best Practices Asset inventory
System maps
Condition assessment
and rating system
Useful life assessment
Asset values
determination
Service Level
Pressure
Water Quality
Repairs
Flushing
Best practices Analyze customer
demand and satisfaction Understand regulatory
requirements Communicate to the
public a level of service “agreement”
Make your service objectives meaningful to the customers
Use level of service standards
Critical assets
What is the cost of the repair?
What is the likelihood of failure?How do my assets fail?
Consequences of failure?
Best practices List assets based on
criticality
Conduct a failure
analysis
Determine probability of
failure
Analyze failure risk and
consequences
Balancing O&M with Capital
Minimum Life Cycle Cost
Other $$: Legal, environmental,
social, impact on other operations
Operation
Maintenance
Repair
Rehabilitation
Disposal
Capital Replacement
Initial
Best practices Move from reactive to
proactive maintenance Know the costs and
benefits of rehabilitation vs. replacement
Look at lifecycle costs for critical assets
Deploy resources based on asset conditions
Develop and validate CIP
Process• Asset Management Program (Corrective Maintenance,
Preventative Maintenance, Predictive maintenance, and Condition Based Maintenance)
Maintenance• It covers all activities undertaken to keep equipment's in a particular
condition or return it to such condition.
• If Maintenance is not carried out, it will cost even more than money
• It consists of 4 main parts: – Corrective Maintenance– Preventive Maintenance– Predictive Maintenance– Condition Based Maintenance
CORRECTIVE MAINTENANCE
Covers all reactive and unplanned maintenance which occurs when the machinery fails often resulting in very inefficient business processes. Corrective
Maintenance
Breakdown
Emergency
PREVENTIVE MAINTENANCE
Covers all programmed maintenance which is carried out in order to prevent the occurrence of failures before they develop into a breakdown or interruption in production Preventive
Maintenance
Fixed time maintenance i.e.
Monthly, Quarterly, etc.
Run Time i.e. number of hours
Seasonal ex. Spring, Winter
PREDICTIVE MAINTENANCE
Covers all types of proactive maintenance (static) which is carried out in order to prevent the occurrence of failures before they develop into a breakdown or interruption in production.
Predictive Maintenance
Infrared Thermography
Viscosity Testing
Vibration Analysis
CONDITION BASED MAINTENANCE
CBM is real time performance monitoring (dynamic) of physical assets, the data could be fed through meters and/or sensors. Usually connected to the internet for cloud access. Condition Based
Maintenance (CBM)
Remote Monitoring
Sensors
Meters
Video
Algorithms
Participant Poll
Does your company utilize a Predictive Maintenance Program?
Yes No answer
Where will the funding come from?
Special Funds
Grants
Customer Rates
Impact Fees
Funding Strategy
What funding do we need to
properly operate the
Utility?
O&M
Personnel
IT
Equipment
CIP
Fleet
Best practices Routinely review and
revise the rate structure
Fund a dedicated
reserve from current
revenues
Finance asset renewal
and replacement
through borrowing
If it hasn’t come to you yet, it will!
Presenter Bio• Mr. Rajesh Debroy• 17 years FM Experience• Most recently the Sr. Manager Facility &
Administration (Site Admin Head) for Vodafone Shared Services India
• Educated in MBA HR with certification in Six Sigma Green Belt, PMP from IIM Kozhikode, SCM Logistic management from IIT Delhi, IOSH from UK, and NEBOSH IGC 3
• Previously worked with Uninor , Tata Indicom,Airtel,Reliance communication as Head Administration & FM, Coca Cola, Indian Acrylics
India National Skill Development Corporation (NSDC) By 2022
India will need around 76.5 million strong workforce in it's booming building, construction and real estate sector.
The Dawn of the Great Workplace Era
Challenge“Our employees are our most valuable resourceand therefore, the managementof people makes a significantdifference to companyperformance.”
“Prove it,or else stop
talking about it!”
The Mega-Study
Overall Business Impact
People Factors• Core drivers• High-impact practices• Specific actions• Constructive culture
Economic Factors• Relative market share• Company size• Industry profitability
67%
33%
Correlational Studies
Determine “what”organizations
should do
Real World Applications
Describe “what” world-class
companies do and “how” they do it
Business Case Was Built in Two Ways
Rank Company name Country IndustryNumber of Employees
Number of companies listed in national lists
1 Google India, Japan Information Technology N/A 2
2 Marriot Australia, India, UAE Hospitality / Hotel /
Resort 7.393 3 3
3 Ericsson Saudi Arabia, UAE
Manufacturing & Production /
Electronics 462 2
4American Express India, Japan
Financial Services & Insurance / Banking /
Credit Services 8.96 2
5 NetAppAustralia, Greater
China, India, Japan
Information Technology / Storage / Data
Management 2.486 4
6 HyattGreater China, India,
UAEHospitality / Hotel /
Resort 83.512 3
7 Microsoft India, Japan, UAEInformation Technology 9.395 3
8 AbbvieAustralia, Korea, Saudi
Arabia Biotechnology & Pharmaceuticals 406 3
9 Estée Lauder Australia, UAE Retail / Specialty 993 2 2
10 Adobe Australia, IndiaInformation
Technology / Software 2.577 2
Fast Facts about the Great Workplaces to work in Asia
30 Years Average Age of Organizations 12% Average Growth in Employees 25% Women in executive management positions 11% % Increase in revenues compared to last year 48% % of companies that support employees with classes
not related to work 91% of employees who answered positively to the overall
statement “Taking everything into account, I would say this is a great place to work.”
95 hours average training per employee 3% Absenteeism
Participant Poll
Do your company offer Facility Management Training each year?
Yes or No
Key Drivers of work place greatness In Asia
Asia Top 60 Compared to Other Regions
People Management Model
Why Should I Really Care About This People Stuff?High Levels of Employee Satisfaction & Retention
Are Associated with Greater Customer Satisfaction & Retention...
…which create a powerful way to move the needle
•
•
• • • • •
•• •• •
••
•••••
1Extremely
Dissatisfied
2SomewhatDissatisfied
3Slightly
Dissatisfied
4Satisfied
5Very
Satisfied
Customer Satisfaction Measure
100%
80%
60%
40%
20%
Cust
omer
Ret
entio
n
Source: Harvard Business School; Heskett, et. al.
•• •
••
•••••
••
•
• 48% defected!
• Satisfied ≠ Loyal
Cust
omer
Sa
tisfa
ctio
n &
Ret
entio
n
High
Low
Low HighEmployee Satisfaction & Retention
3.0 4.0
“The Zone of Affection”“The Royalty of Loyalty”
Latitude36.6%
Authority 19.2%
14.6%
14.0%
13.6%
0
10
20
30
40
50
60
70
80
90
100%
Expl
anat
ory P
ower
*
Leadershipand Culture
Capability and Development
Recognition, Rewards and Focus on
Customer Satisfaction*Represents the proportion of the total R2 explained by each determinant.
55.8%
70.4%
84.4%
98.0%
36.6%
Four Key Factors of Employee Retention
Recruitment Process
Let us now practice all that you have learned Be a lifelong learner. Success is determined
in what you do daily. Thanks .
Presenter Bio• Mr. John Ringness, SFP, MRICS• 30+ years Facility Management experience • President & CEO, Next FMS• President, IFMA FM Consultants Council• Founding President, IFMA Mumbai Chapter• IFMA Global Liaison (India) - Global
Sustainability Action Group, FM Consultants • Facility Management Certificate Program
University of Toronto• Previously with Marriott Corp. (Canada),
Sodexo (Canada), Aramark (Canada) Lavasa (India), Kohinoor Group (India), Partners in Health (Haiti/USA)
Facility Management
People
Property
Process
Technology FM
Property• Asset Tagging
RELATIONAL THINKINGFM
Asset TaggingAHU 01 07 1.
2.
3.4.
Asset Tagging (label) Systems
Alpha Numeric Tag Bar Code Tag RFID Tag QR Code Tag
Static – 1 way Static – 1 way Dynamic – 2 way Dynamic- 2 way
Asset type ex. AHU Asset type Asset type Asset type
Location ex. 1st floor Location Location Location
Asset number i.e. unique to that asset
Asset number Asset number Asset number
Manually entered Automated Automated Automated
Special ReadingDevice
Smart Phone
Customer Access
Why tag an asset?• Big Data – Machine to
Machine • Cost Performance
Association• Labor Improvements • Supplies allocation• Older tagging systems
static data • Newer systems are more
dynamic systems
3%
Asset Tagging Process• Identify business protocols• Select Tagging System QR labels, etc.• Inventory assets• Select asset name (ex. ASTM Uniformat 11
E1557)• Assign each asset with a unique string (ex.
Business Unit, Country, City, Building Number, Floor, Room, ASTM code, asset number)
Asset Tag Integration
Asset Tag
Maintenance
Financials
Improves Business
Processes
Customer Engagement
Reduces Labor Costs
Reduce Inventory
Costs
Best PracticesPost Asset Inventory
Predetermine what data
you require
Define Data Structure
Think ahead – challenge
business assumptions
2-way exchange of data
Participant Poll
Are your facilities assets (Air Handling units, Chillers, etc.) tagged?
Yes or No
Facility Management
People
Property
Process
Technology FM
Software Platform
App
Cloud
Server
Desktop
Why Technology
Integration
Customer Satisfaction
Asset Management• 25% lower
maintenance costs
Space Planning
ProjectsHaystack
Financials
Documentation• 75% time saved
http://www.iwmsnews.com
TECHNOLOGY
Covers all programmed maintenance which is carried out in order to prevent the occurrence of failures before they develop into a breakdown or interruption in production Technology
Remote Monitoring
IWMS
BIM
BAS
Devices/ Drones
IWMS Elements
IWMS
Projects
Space Planning
MaintenanceCorporate Real Estate
Sustainability
http://www.iwmsnews.comhttps://www.gartner.com/doc/2781117/magic-quadrant-integrated-workplace-management
Best Practices - Technology Clearly understand current reality (legacy) Clearly define implementation process and who is
doing what and by when Understand core business functions i.e. are you a
software development company or a developer Integrated Solution vs. Point Solution Celebrating and communicating wins along the way
Best practices - Technology Purchase todays software for tomorrow NOT today’s requirements
Don’t assume business process will or should remain the same
post software implementation
Watch out for contract extras – “we can do that”
During selection process, document time and cost to do certain
tasks – compare to “new”
Business case comparative should include ALL costs i.e. direct
and indirect ex. Cost to maintain and replace server maintain vs.
cloud based system
Participant Poll
Is your facility using Facility Management software to improve FM services and
operate more efficiently?Yes or No?
Q&A
Shamsher Sindhu [email protected] Amalraj [email protected] Debroy [email protected] Ringness [email protected]
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