FM Measuring or Measuring FM ?

1. FM MeasuringorMeasuring FM ? Dr. Doug Aldrich CFM, IFMA Fellow

2. Today’s Discussion • “Measure for Measurer” • Numbers and Words • Stakeholders • Examples • “Packaging” • Closing and Q&A

3. Introduction • FM Measuring • Department • Peers • Measuring FM • Customers or Users • Leadership

4. Two Sets of Books Set #1 – Within FM • Efficiency of operations • FM measures and judges results • I care…..but they probably don’t • Steward Set #2 - Outside FM • Effectiveness of services • Stakeholders measure and judge ___?____ • They care…..so I must too • Stock broker

5. Dr. Doug’s Dilemmas • Precise numbers with effort or simple speedy approximations? • Year-to-year numbers or historical trends? • Quick response or “I’ll get back to you”? • Cheerful supply of data or concerns about what they’re going to do with it? • Careful forecasts or ballpark ranges?

6. Benefits of FM Measurements • You know how well you are serving your customers; there are few surprises. • You will continually improve your service output for cost, timing, and quality. • You will be the most competitive supplier of products and services to your users. • You will demonstrate your value to the organization, both short and long-term.

7. Numbers and Words - 1 • Accuracy – 104 • Precision - $10,436 • Significant Figures • $55M and 3.4M gsf • $16.18 / gsf

8. Numbers and Words - 2 • Units • 186,282 and 1.803 x 10^12 • 183 and 11,300 • Averages • Suspicious • Statistics

9. Numbers and Words - 3 • Occupancy ceiling: 90% of capacity • R&D budgets: 85% people and 15% FM • O&M budgets: 1/3 energy-related • Construction costs: 1/3 HVAC • Lab water: 1% of sanitary volume • Lab buildings: 55 +/- 5% efficient • Capital replacement: 2% of investment • Lab space: 2X office space costs • O&M lifetime costs: 6-12 X construction

10. Numbers and Words - 4 • Data + Context = Information • Information + Seasoning = Knowledge • Knowledge + Reflection = Wisdom*

11. 1. FM Department • O&M Expenses • Analysis and forecasting • Historical and SPC comparisons • Service Metrics • “Contract” performance • Functionality and re-works • Preventive maintenance • Personnel Measures • Performance evaluations and training • Job turnover and open positions

12. FM Space Charge-Backs • Annual Exercise • 5 HC, 700 offices and support = $50K • Office usage known ($2,320 / HC) • Support usage estimated (X $ / HC) • Estimated charge-backs arguments ! • FM Recommendation • Total O&M / total space ($13.33 / gsf) • Total space / headcount (215 gsf / HC) • Multiply them ($2,865 / HC) • 60 minute exercise

13. 2. FM Peers • Best Practices---qualitative • Benchmarking---quantitative • Denominator • Area • Easy • Numerator • Costs • Difficult

14. Numerator – Variable Expenses • Maintenance and Repairs • Improvements and Changes • Supplies • Custodial • Roads and Grounds • Telecommunications • Energy* and Water • Waste disposal • Recycling

15. Numerator – Other Expenses • Semi-Fixed • FM SW&B • FM budget support • Site Staff • Fixed • Depreciation • Insurance • Rentals • Taxes • Allocations

16. 3. FM Customers • Why do things take so long? • Are the costs fair? • What’s the status of my work request? • Why do I have to pay for “X”? • Will you be there in emergencies? • Why do I have to talk to so many people? • Can you let me know when you’re done? • Can’t you do it right the first time?

17. FM Measurement Process Input (requests & changes) Output (services) Work Processes Feedback (measures: cost, time and value)

18. Service Level Agreements User Groups Office Labs PilotSupp Deliver Maint. a b c d Design e f f e Control Custod g h i h Moves j k k j Influence Ground l m n l

19. FM Responses to Customers • Time • Responsiveness to requests • Scheduled versus actual service dates • Work status of services • Costs • Estimated versus actual costs • Competitive user charges • Value • Customer satisfaction • No re-work or surprise changes • Avoided big breakdowns

20. Maintenance Process Metrics - 1 • Repair request received • Work order dispatched • Worker • Obtains tools and parts • Goes to job site • Finds user (maybe) • Completes job • Worker closes work order • User is surveyed

21. Maintenance Process - 2 • Repair request received • Work order dispatched • Worker makes “house call” • User and worker “contract” • Worker • Inputs cost and schedule • Obtains tools and parts • Goes to job site • Completes job • User inspects and approves • Worker closes work order • User is surveyed

22. Maintenance SLA’s - 1 • House Calls • Emergency - <1 hour • Routine, “simple” – <8 hours • Routine, “complex” – <16 hours • Temperatures (labs) • Call in - <1 hour correction • Contact - <2 hours follow-up

23. Maintenance SLA’s - 2 • “Contract” • Time - +/- 1 day “simple” - +/- 2 days “complex” • Costs - +/- 10% labor and parts • Quality - <2 % re-works • User “bargain” • Available by appointment • Inspect and sign-off day of repair • Return survey card in 24 hours

24. Customer “Bulletin Boards” • Facility Information • Announcements • Maintenance metrics • Energy conservation • Safety Alerts • Safe work permits • Building problems • Contacts • Phone numbers and e-mails • Local and representatives

25. 4. FM Leadership • Are the facilities being taken care of? • Are our buildings ready for future demands? • Capacity • Capability • Are both done for appropriate costs? • How are we doing with facility projects?

26. FM Responses to Leaders • Facility Care • Conditions database • Preventive maintenance • Budget awareness and burden • Future Demands • Strategic planning process • Supply-demand analysis • 5 and 10-year investment plans

27. Project Feasibility: Costs - 1 • Sizing the Building • 310 HC = 240 lab + 70 admin • 240 x 375 gsf • 310 x 185 gsf • Gross = 147K gsf (90K + 57K) • Estimating its Costs • 90K x $240 / gsf = $22M • 57K x 120 = 7M • Quality factor ~ 12% • Lab complexity ~ 6% • Total = $34M ($231 / gsf)

28. Project Feasibility: Costs - 2 • Other Project Costs • A/E fees and other consultants • Internal project people and support • Permits, cost of money, etc • Submit to feasibility plan $40M ($271 / gsf) • Escalated similar 1990 project ($281 / gsf) • Ballparking O&M Expenses** • 90K x $19 / gsf = $1.7M per year • 57K x $13 = 0.7M • Burden addition ~ $2.5M ($17 / gsf) • Submit to 5-year expense plan

29. Project Feasibility: Timing • Comparisons • Publications • Corporate experience • Similar buildings • Company culture • Schedule (months) • Concepts 3 - 5 • Design / engineering 6 - 8 • Construction 27 - 33 • Move-in 1 – 2** • RANGE 37 - 48 • Optimization 12

30. “Packaging” - Understanding • Flexibility versus Adaptability • Balancing Acts • One-Stop Shopping • Cost versus Value • Baton Hand-Off • Competitive Pricing • Time Value of Time • Ballpark Estimates (+/-)

31. “Packaging” - Analogies • Home • Automobile • Airplane • Journey • Sports • Hobbies • Pets • Vegetables • School

32. “Hard Drives Out Soft” • Numbers drive out notions. • Measurements top guesswork. • Knowing trumps hoping.

33. Closing • What ? It’s the measurement and the understanding. • So What ? They make the difference in your FM world. • Now What ? Use your two sets of books wisely.