TRENT GLOBAL COLLEGE OF TECHNOLOGY & MANAGEMENT Advanced Diploma in Facilities Management

1. TRENT GLOBAL COLLEGE OF TECHNOLOGY & MANAGEMENT Advanced Diploma in Facilities Management Asset Maintenance Management Lecturer: Daniel Wong, Mba, M.Sc, BBus

2. Learning Objectives • To prepare strategic planned maintenance program • To prepare an asset register • To set up strategic maintenance monitoring and control system • Producing the Strategic Planned Maintenance • Program • No standard layouts for planned maintenance program • No standard approach to prepare them • No standard format of assembling the basic data • Only some key stages to prepare

3. 7 Stages Involved in Assembling the Planned Maintenance Program • Preparation of an Asset Register • Inspection of Data • Preparation of Program of Priorities • Preparation of Plan for Long-term Maintenance • Preparation of Budget for Long-term Maintenance • Preparation of Plan for Building up reserves (sinking fund) • Preparation of Budget Plan

4. 7 stages involved in Assembling the Planned • Maintenance Program • Preparation of an Asset Register • Study the existing asset base thoroughly • Record all asset properly, including its unique • identity and all details • Typical info includes • Make, model and supplier • Age • Cost • Location within building

5. 7 stages involved in Assembling the Planned Maintenance Program • Inspection of Data • This stage involves carrying out systematic inspection of all • available data relating to the condition of the stock. • It sets the basis for the Planned Maintenance Program • and Priorities System • Preparation of Program of Priorities • Many ways to assess priority • Approach 1 – Consider all items where actual condition does not • meet the expected condition. • Approach 2 – List down all items where condition is expected to • deteriorate below expected levels within a given • time frame. • Approach 3 – Based on company’s tactics and strategic policy

6. 7 stages involved in Assembling the Planned Maintenance Program • Preparation of Program of Priorities • Typical Prioritization Criteria • Degree of exposure • Age of stock • Existing material • Importance of maintaining element • Health and safety • Risk of further damage and true cost of no maintaining • Cost • Speed of preparation of documents / document on shelf • Aesthetics (façade cleaning / repainting) • Difficulty involved in delaying

7. 7 stages involved in Assembling the Planned Maintenance Program • Preparation of Program of Priorities • Typical Priority Rating System

8. 7 stages involved in Assembling the Planned Maintenance • Program • Preparation of Plan for Long-term Maintenance • The plan is a projection. A record of expectation of • future maintenance requirements • Hence, for any Long-term Maintenance, needs periodic • adaptation and modification. • The plan will include all items listed in the asset register • Typical horizon for maintenance consideration will be • 10 years

9. 7 stages involved in Assembling the Planned Maintenance • Program • 5. Preparation of Budget for the Long-term Maintenance • The Planned Maintenance Program is just a statement • of work required in technical terms. • The next stage will include cost info into the equation • With every new entry into the program, the plan has to be • modified to include the new estimated cost • This new entry cost will give an indication of the likely • expenditure per year over the next 10 years

10. 7 stages involved in Assembling the Planned Maintenance Program • 6. Preparation of Plan for Building Up Reserves • Planned Maintenance Program must allow for unforeseen events • It must allow budgets for Cycle Maintenance and Responsive Mtce • This reserve must be built up over the years and throughout the • course of the Planned Maintenance Program • Preparation of Budget Plan • The Budget Plan can show the spending on each project & year • Can use specialist project management software or simple • spreadsheet program to perform this part of the function

11. Strategic maintenance project monitoring and control • 1. Establishment of a Monitoring & Control System • Maintenance Plan must be designed with efficient monitoring and controlling system to be effective • A monitoring and control system must be established with every new project • System may defer between projects • 8 Stages - Establishing any Monitoring and Control System • Statement of goals and objectives • Project structure and work descriptions • Networking • Scheduling • Estimating, costing and budgeting • Performance monitoring and evaluation • Performance reporting • Management decision-making Concern only with monitoring and control

12. Strategic maintenance project monitoring and control(cont’d) • 1. Statement of Goals and Objectives • The Objectives must be clearly defined before proceed to plan anything • The Time limit (in term contractual date for completion) must also be clearly stated. • The Cost limit must be stated. This can be in terms of overall limit with element or segment limits, depending on the structure of the Cost Plan • The Quality limit must also be clearly stated, usually in form of specification • 2. Project Structure and Work Descriptions • The organizational structure is set up after the project is analyzed. • The work is then broken down into components and analyzed systematically • This is the work breakdown structure (WBS) process WBS breaks down the work content into identifiable units or packages These units or packages can then be assigned to individuals within the organization to complete it.

13. Strategic maintenance project monitoring and control(cont’d) • 3. Networking • This is a process of defining the logical sequence between operations, and working out start and finish times of each logic • Example of approach will be CPM and PERT 4. Scheduling This is a process of assigning start and finish dates to activities, and working out overall times for the work packages and contract / project completion dates Schedule is produced in this stage 5. Estimating, Costing and Budgeting Estimate is produced from the schedule Estimate is further broken down into Cost Plan Cost Plan will sets budget for each individual sections or package of it The Budget for each package represents the planned cost involved in achieving a particular package objective

14. 6. Performance Monitoring and Evaluation <Unit 4> • A process of establishing some form of standard or scalar quality • Then measure actual or observed performance Vs standard • This is to produce a measure of how well the project is performing • Can be done in many ways, in terms of time, cost and quality • 7. Performance Reporting • Performance of the contract, in term of time, cost and quality is communicated in form of >> Performance Report • Show Projected Vs Actual performance, and analyze the variance • A form of feedback

15. 8. Management Decision Making Decision can be made, according to Performance Report, • to improve the project performance or • to make adjustment to time, cost or quality that differs from the program In maintenance term, this is known as Maintenance and Repairs System (MARS) Performance Monitoring and evaluation is done through Variance Analysis This isolate time and cost variance, as whole or for individual sub-elements of the overall project Important >> Monitoring and controlling must be done at several different levels within the Maintenance Management System

16. Strategic maintenance project monitoring and control(cont’d) • 2. Time Planning (Scheduling) • Scheduling will be done once the basic sequence of the works has been agreed upon • Scheduling >> a process of calculating individual activity times in order to allow an estimate for the completion date to be calculated • Maintenance Schedule >> • a complete network analysis or program for the project • show the start and finish times for each activity • can also calculate the start and finish times for groups of activities, sections of the project and for the project as a whole

17. Strategic maintenance project monitoring and control(cont’d) • Possible use of a Schedule • Forecasting resources requirements • Providing basis for bids for resources • Providing dates for placing advance orders / deliveries • Allowing sub-contractor planning • Generating progress targets • Providing progress monitoring • Providing data for resource levelling • Provide data on risk / consequences of delay • Allowing risk control • Generation of “What if” scenarios • Identification of errors or impossibilities • Identification of missing information

18. The level of detail is important in planning and control of any maintenance project Essential to calculate the activity window for each sub-contractor before the commencement of the maintenance contract Such details usually will be written into the sub-contracts before the main contract is even awarded (for NSC) Any activity with no spare or float in their activity windows are critical (Critical Path). Any delay in these activities will delay the following activities, and some combinations of delays could delay the overall completion of project. • What does Scheduling involve ? • Assign durations to each activity • Identify the start and finish window for each activity • Identify those activities with no window (Critical Path) • Re-plan as necessary • Rationalize resources • Form draft maintenance schedule • Form formal maintenance schedule

19. Strategic maintenance project monitoring and control(cont’d) • There are 2 primary alternatives of assigning activity durations: - • 1. Critical Path Method (CPM) and • 2. Program Evaluation and Review Technique (PERT) • Both methods uses similar approach, but calculations used and applications is quite different. Applications

20. Question • How do you balance between stakeholders interests and maintenance control?

21. Strategic maintenance project monitoring and control(cont’d) • Importance of Re-planning • Re-planning is a normal feature as most initial maintenance schedule is often used as draft for discussion and subject to refinement • The draft maintenance schedule may or may not be approved when submitted to client • Reason of not approving draft maintenance schedule : - • Project too long and need to cut down on duration of works or • Project too heavily resourced and need to cut down in cost • Re-planning is required due to other form of changes: - • Client requirements changes • Changes due to planning regulation changes • Variation orders etc

22. Strategic Maintenance Project Monitoring and Control Program Evaluation and Review Technique (PERT) Adopts the probabilistic approach, which is important in maintenance mgt Useful in terms of evaluating the probability of failure. It will anticipant the failure dates of the components. This will allows better planning for maintenance project Event oriented, works on calculating the probability of events being completed within a give time

23. Maintenance Project Network Analysis

24. Maintenance Project Planning Resources and Cost

25. Maintenance Project Planning Steps in Time Management Process • Definition of activities; • Sequencing of activities; • Estimating duration of activities; • Schedule development; • Monitor and control of schedule;

26. Maintenance Project Planning WBS - Work Breakdown Structure: • WBS is primary tool for activity definition; • it breaks project into manageable lots based on goals & objectives; • has been termed as “Decomposition”; • involves subdivision of elements into smaller more manageable lots for better control;

27. Maintenance Project Planning SAMPLE WBS 1.00 Start 1.01 Contract Award 2.00 Siteworks 2.01 Site Preparation 2.02 Excavate Footings 3.00 Purchasing 3.01 Order Bricks 3.02 Order Concrete 4.00 Construction 4.01 Pour footings 4.02 Concrete curing 4.03 Erect walls 4.04 Hang Gate 5.00 Close Out 5.01 Practical Completion