Managing Performance In FM
- 1. Managing Performance in FM The Three Pillars of FM What Every Facilities Management Professional Should Know
- 2. The Three Pillars of FM You will only be able to successfully measure and promote the performance of Facilities Management if you have accurate and real-time data on the following three areas: Facilities Management Cost Quality Safety You need to know what affects these areas and how this will benefit your business
- 3. Know your Stakeholders Getting the right level of detail to the right stakeholders at the right time is crucial when promoting the effectiveness and efficiency of the FM function It is vital that you know who your stakeholders are and what is important to them To be useful this information must be dynamic, detailed and available at the point of decision-making
- 4. Stakeholders PERCEPTION OF FM & BUSINESS INTELLIGENCE Senior End Client / Service Executives Procurement Customer Delivery Team (Customer or Team (Internal (Internal and FM Service and External) External) Company) COST, QUALITY and SAFETY DATA and Communication from Facilities Management/Properties/Estates Teams
- 5. Components & Impacts Cost 1. Collate and analyse activities & associated costs 2. Examine any variations 3. Extract unusual / exceptional costs 4. Identify causal factors 5. Identify and demonstrate steps taken Increase in effectiveness and efficiency
- 6. Call Centre (Helpdesk) Number and management of Work Orders (Jobs/Tasks) Cost – The quantity of work orders created impacts the costs associated with the Call Centre – every call ‘in’ will equate to at least one callout to allocate and assign the job – the higher the number of work orders the more resource will be required
- 7. Call Centre (Helpdesk) Take Action Cost – Reduce Call Centre resource required by implementing a system that empowers end users to log their own jobs and automates the allocation of these to the approved contractor – Implement a system that facilitates less assumptions and therefore errors being made plus intuitively guides the operator to select the right location or allows the asset number to be logged Save up to 6% on reactive maintenance spend
- 8. Seasonal Trends Cost The chart shows how call volumes change month on month. By combining this data with information on number and type of work orders created you will see a clear picture of seasonal trends
- 9. Seasonal Trends Take Action Cost Use this Business Intelligence to allow : •resource planning (increase or decrease the numbers in your Call Centre) •effective purchasing (e.g. of grit in winter months) plus •an ability to leverage the supply chain to meet changes in demand Increase Customer Satisfaction and purchasing power
- 10. Visibility: Buildings, Assets & Specific Activities Knowing where and how costs occur enables you to: Cost •take steps to address employer/contractor behaviours •support business cases for capital replacement; justify budgets •make more informed decisions for planned preventative maintenance Below is an example of spend broken down by work order type on a month by month basis
- 11. Committed Spend & Financial Management Cost 1. Accrue for reactive work carried out using Average Order Value (AoV) and/or actual calculated costs from recorded time on site and rates 2. Present an accurate view of committed spend rather than having to wait for invoices By monitoring what the spend should be when Invoices are received you will be better able to spot errors Proven savings between 5% and 6% can be made simply by invoice validation…
- 12. Actual Spend vs Budget Cost Make the comparison of actual vs budget spend in real-time even more powerful: •Analyse the split between capital and revenue •Analyse the split between reactive, planned and / or quoted work
- 13. Actual Spend vs Budget Take Action Cost Use powerful data to: •link the cause of the cost e.g. – employee damage – customer damage – wear and tear – end of life equipment •explain the steps taken to address these factors such as: – employee training – protection/location of equipment – recommendation of replacement This demonstrates the contribution FM immediately makes to the bottom line and sustainable cost savings
- 14. Contractors & Contracts Take Action Cost Remember at times the lowest rate can turn out to be a higher cost due to the performance of a contractor This is vital information for your procurement team when they are deciding on which contractors to use and negotiating contracts – this also impacts on quality and safety as referred to later in this presentation
- 15. Attendance Logging Many of the variables we have discussed depend on knowing when and for how long a job was attended Cost • There are multiple routes for attendance logging: – Call Centre – COSTLY – impacts resource required plus prevents customers being helped as efficiently as could be. X% of jobs are needlessly chased if this is the preferred method – One or a combination of the following will lead to more accurate and cost efficient attendance logging and management: • use of a portal website at the client site in real-time • use of a handheld/mobile device to start/pause/stop jobs plus add valuable information on fix type and any further action required • use of an Automated Time and Attendance System (ATAS) – telephone based automated means to start/pause/stop jobs
- 16. Components & Impacts Quality 1. Quality is much more than the standard of work carried out on site 2. To truly provide a quality service you need to be able to demonstrate that there are tried tested and reviewed processes in place from the first call through to the feedback on, and payment of, the work carried out 3. If one element of the process is not working you will not be able to deliver a quality service
- 17. Average Speed of Answer (ASA) The time it takes to answer the telephone and deal with the request Quality plus the accuracy with which you create a work order is a matter for quality and of how the end client perceives maintenance
- 18. Average Speed of Answer (ASA) Take Action Quality • Monitor the ASA and the average call time to ensure correct resource levels throughout a specified time period and take account of any spikes in demand • An intuitive system will speed up and improve the accuracy of this process Decide if outsourcing or in-sourcing a helpdesk is more cost and service efficient
- 19. Customer Satisfaction The two key ways to gauge your client satisfaction are: Quality – Carry out simple or more complex customer satisfaction surveys – Assess the confidence in maintenance by the urgency with which the client logs their jobs. If all are urgent or a trend is spotted where more urgent jobs start to be logged it would indicate a lack or loss in confidence in the service provided
- 20. Customer Satisfaction Take Action Quality • Use the survey functionality, which should be integrated within the system, for immediate and accurate feedback – this can be a simple yes/no answer or a more detailed questionnaire – we refer to this as a RFI – request for information that can be triggered within the system at a time predetermined by the client • Use this information to drive best practice not only in quality of work carried out but also in the attitude of contractors and operatives Set targets for improvement and use the results to motivate the FM team
- 21. Contractor Performance There are three key factors that will affect quality besides the accuracy of the Quality work carried out: – RESPONSE - did the contractor meet the SLA (Service Level Agreement) basically did they arrive when they said they would! – FIRST FIX – was the fault fixed first time – SYSTEM USE – was the system used to log on and off the job plus any next steps communicated
- 22. Contractor Performance Take Action Quality • Use Incentives to drive best practice in your supply chain. At the same time as driving up the quality you can drive out costs • Use a system that captures accurate time on site, work carried out (reactive or planned maintenance completed), by whom and next steps if a first fix wasn’t achieved • Clarify how well they performed according to the urgency of the job The resulting valuable data will enable impartial and detailed management of your contractors
- 23. Financial Management Quality Quality will always have to be balanced against cost. A valuable CAFM (Computer-Aided Facilities Management) system is as much about financial as operational control of maintenance You need to be able to ensure you only pay for what you get plus rapidly identify and address problem areas: •Contractors •Buildings •Employees
- 24. Financial Management Take Action Quality • Monitor how many invoices are unapproved and the reasons behind this by contractor, work order (job) and site • Detail the reasons why invoices are not approved e.g. incorrect time on site; lack of proof (timesheets/risk assessment) or incomplete invoices, can be communicated and addressed with those responsible • Examine how many are “not approved” first time as this will significantly impact the resources required in your finance department This is not a task you want to carry out via a spread sheet!
- 25. Links with Safety Quality Quality, Safety and Costs are all interrelated but never more high profile • Permit to Work (PTW)/Risk Assessments than in the area of knowing and being able to prove that you have the safest • contractors, carrying out work according Legislative Requirements to the law and with the safety in mind of all concerned • Certification • Pre Qualification Questionnaires This impacts not only the quality of work but the image and reputation of your business • Preventative Planned Maintenance (PPM)
- 26. Components and Impacts The key to safe and effective Safety Pre Qualification Questionnaire maintenance is: (PQQ) 1.vetting and appointing the right Accident Certification contractors Reporting & Compliance 2.knowing what legislation must be complied to Safety 3.carrying out appropriate and timely planned preventative Asbestos Risk maintenance Management Assessment and PTW 4.being able to prove that you have Planned taken all these steps and are Preventative Maintenance compliant (PPM) This can all be driven and managed through a CAFM system and must be a key consideration when deciding how to manage your maintenance operations
- 27. Pre-Qualification Questionnaire It is essential to check that your Safety selected contractors not only have all the appropriate training, equipment and resources but also insurances and processes in place before you even start to consider rates! • There are companies and software packages that can carry out the pre qualification of contractors but having this functionality built in to your CAFM system… – keeps control firmly in your hands – is by far the most cost effective way to stay on top of the law and changes within contractors’ businesses – allows you to continually meet your changing requirements You do not want to have to rely on a third party where data could be lost or inconsistent as your business develops
- 28. Permit to Work (PTW) and Risk Assessments (RAs) Safety PTWs and RAs are a standard part of any contractors’ day to day responsibilities ensuring that PTW and RA are adhered to is a different set of challenges all together Manage the PTW/RA within the system by asking a suite of questions prior to any work being carried out will: •ensure that safety and the contractors’ responsibilities are front of mind before they start working •Be far more efficient and guaranteed than relying on solely paper copies that could be filed away or easily lost
- 29. Planned Preventative Maintenance (PPM) • Planned Preventative Maintenance is an essential part of running any maintenance activity Safety • As you will be aware, it is difficult to get this right and you could be putting your business at risk not to mention wasting time and money if you are not on top of this task. • These charts show outstanding and completed PPMs plus a breakdown of outstanding PPMs by contractor No. of PPMs Breakdown of outstanding PPMs by contractor
- 30. Planned Preventative Maintenance Take Action Safety • Use a system that has all the legislative requirements detailed so you can enter assets and buildings to automatically create a PPM schedule • Monitor what PPMs are required and by when. This requirements list can then be managed and used to generate the next set of PPMs ensuring that you are only paying for what you get • Combine with certification management to be able to prove activity carried out for audits in case of accidents and internal briefings Drastically reduces resources required as well as increasing accuracy and safety
- 31. Certification & Compliance Safety • The management of certificates is vital in order to prove your compliance levels and to be able to present the appropriate information for: – when audits take place – in the unfortunate situation of a serious incident occurring. • The safety, quality and cost implications of this are complex and can be very resource and time consuming
- 32. Certification & Compliance Take Action Safety • It is imperative to use a system that simplifies this process by: – empowering the contractor to carry out the work and upload the appropriate certificate; – for this to be visible for all stakeholders e.g. for a building or store manager when an audit is taking place on their site and for a compliance level per building or across the whole estate to be available in real-time by running a integrated report • Save money - a beneficial side affect as contractors will only be paid when the appropriate certificate is uploaded and the need for cumbersome filing systems will be eliminated Be able to prove your compliance level in real-time from anywhere in the world
- 33. Accident Reporting Safety • Maintenance will be under the spot light as soon as an accident occurs • It is critical that you have processes in place – to prevent accidents – to be able to report on and implement lessons learned
- 34. Accident Reporting Take Action Safety • Associate the work order related to the accident with a questionnaire / accident survey and supply this to the Health and Safety Executive or use for RIDDOR (Reporting of Injuries, Diseases & Dangerous Occurrences Regulations) • Address the established causes and ascertain whether these relate to employee or contractor behaviour or equipment • Use this information to save your business money in legal and insurance disputes and in most importantly in the future to save lives
- 35. Asbestos Management Take action Safety It is difficult to find an estate/property portfolio that does not contain some asbestos. The management of asbestos is an enormous responsibility and it is imperative that an up to date register is maintained and available for all internally and externally. Do not expose yourself or your business by attempting to keep paper and decentralised information on asbestos throughout your company. A centralised and up to date register can be managed through a system that is accessible 24/7/365 irrespective of where you are in the world
- 36. • CAFM (Computer Aided Facilities Management) and Integrated Workplace Management Solutions are designed to help you manage maintenance effectively and efficiently • The Ostara Solution can support all aspects detailed in this presentation and provide many more benefits • To see how you can benefit call +44 (0)844 880 2582; email info@ostarasystems.com or take a look at www.ostarasystems.com Facilities Management Cost Quality Safety