Guidance for Mobile Asset Management (MAM) in the Facilities Management Sector

Transcription

1 Guidance for Mobile Asset Management () in the Facilities Management Sector Project code: RBM

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3 Contents 1.0 Introduction Background How to use this guidance Establishing a Mobile Asset Management Policy Introduction Developing corporate policy Establishing a Mobile Asset Management Framework Introduction Summary of steps involved in the process Developing Mobile Asset Plans Introduction Toolkits Further information

4 1.0 Introduction 1.1 Background Mobile assets as the name implies are items that are not fixed within buildings but form part of delivering the operational requirement. Mobile Asset Management () is a key area for preventing waste and reducing costs through more effective purchasing and deployment decisions. It focuses attention on actions to conserve the value of assets owned by the FM Service Provider. It can also be offered to clients as a value-added service for managing client-owned assets. 1.2 How to use this guidance This guidance is divided into three sections as shown in Figure 1.1. Figure 1.1 Summary of sections within this guidance Policy Framework Modelling The sections cover the following information: Policy: When and how to set requirements for addressing within policy documents. Framework: How to develop and set up processes for undertaking within organisations. Modelling: How to use WRAP s toolkits to model requirements and impacts to understand and capture the benefits available. 4

5 2.0 Establishing a Mobile Asset Management Policy 2.1 Introduction Policy Framework Modelling An effective Policy will enable: corporate scrutiny of the asset value expensed on contracts; provide evidence of management capabilities to clients; and, demonstrate corporate responsibility. 2.2 Developing corporate policy The following text provides FM Service Providers with a template for defining their corporate Policy on Mobile Asset Management. In our planning, delivery and demobilisation of FM services to our clients, we will actively manage and increase the efficiency of deployment of mobile assets within the scope of our commission, including: at contract mobilisation purchase decisions on product lifetimes, lease or buy, ability to re-use or repair, and volume of spares held in stock; and at the end of contract period decisions on asset redeployment, refurbishment, re-sale and disposal. For this purpose, on all contracts over the value of 1M, we will implement a Mobile Asset Management Plan to provide a framework for planning asset decisions, monitoring asset use, targeting specific savings, and regularly reporting on outcomes. The initial Mobile Asset Management Plan will be in place before services commence on site, and performance indicators will be reported [quarterly/annually] to the [Contract Director], including the following ratios: purchase cost of mobile assets / contract value; current (or end of contract) value of mobile assets / purchase cost of mobile assets; total cost of ownership of mobile assets, including initial cost, servicing and repair costs, and income/costs of disposals, and; age of assets vs. expected lifetime vs. warranty period vs. depreciation. 5

6 3.0 Establishing a Mobile Asset Management Framework 3.1 Introduction Policy Framework Modelling Most large Facility Management service contracts require service providers to provide the mobile assets required for the supply of those FM services. The number and diversity of this group of mobile assets can be extremely large and complex. In order to construct a structured schedule of mobile assets within a contract, a consistent approach should be adopted to the classification of those assets, as well as grading of condition and residual value. 3.2 Summary of steps involved in the process WRAP have worked with an industry Strategy Group, representing a number of the major Facility Management service providers in the UK, to develop and pilot mobile asset management under operational conditions. These pilot projects have focussed on different aspects of the development and implementation of a mobile asset management framework within the organisations. Having designed and adopted a mobile asset management policy for the organisation, the next steps involve developing and implementing a mobile asset management framework: Step 1: Define and Implement a Mobile Asset Classification Standard; Step 2: Define and Implement a Mobile Asset Condition Grading Standard; Step 3: Develop Contract or Corporate Mobile Asset Lists; Step 4: Identify the Contract or Corporate Mobile Asset Pool. Step 1: Mobile Asset Classification Standard Below are some examples of high-level asset classifications, which might be used to develop a corporate asset classification system. A single high-level descriptor of the asset could be used, for smaller contracts, where the total number of assets to be classified is limited, such as those set out in Figure 3.1 below: Figure 3.1: Example asset categories Hard FM Services Access Equipment Hand Tools Sundry Equipment Cleaning and Laundry Equipment Lifting Equipment Testing Equipment Fire Fighting Equipment Office Equipment Waste Disposal Equipment First Aid Equipment Security Equipment Vehicles On larger contracts, with more complex and diverse sets of assets being deployed, a deeper, structured classification system might be more appropriate. Consistency of this classification system across the organisation will assist in quickly identifying assets on hand, and developing mobile asset procurement, deployment and decommissioning plans. 6

7 A more detailed classification system (using Horticulture as an example) might include the following: Figure 3.2: Detailed classification system Horticultural Equipment Tractor Cylinder Two-Wheeled Diesel < 5HP Mounted Mowers Tractors Flail 10-20HP Rotary 5-10HP Screw Petrol < 5HP 10-20HP Tractors Large 20HP+ <100HP Medium 5-10HP Small Utility Vehicles and Trucks Vans Trailers Non Road going Flatbed Trucks General purpose Cars Tipper Road going Box van Sweepers and Trailed Brush Collectors Flatbed Trailed Brush/vac General purpose Trailed Vacuum High lift Tipper Step 2: Mobile Asset Condition Grading Standard Tracking of mobile assets for the purpose of redeployment into future contracts, or services, requires an assessment of the functional ability of the asset to perform within the new context. Core to this assessment is the current condition of the asset. This condition assessment also provides an indication of immediate or short term spend required to bring the asset into fully-functional condition, as well as providing an indication of likely longevity of the asset, or residual service life. An example of an equipment condition grading scale is shown below in Figure 3.3: Figure 3.3: Condition grading scale for mobile assets Rating Summary 5 Near-New condition 4 Fully operational better than average condition Unit is in overall excellent condition (near new) and fully detailed. The unit, in its entirety, is mechanically sound and all components and accessories are in full operational order. Unit is in overall better than average condition and fully detailed. The unit, in its entirety, is mechanically sound and all components and accessories are in full operational order. All aspects are operational, however may require service and may have some superficial wear and tear. 3 Mechanically sound requires servicing 2 1 Excessive wear and tear some mechanical defects Missing parts. Signs of abuse Unit shows signs of normal wear and tear for age and hours and has been recently cleaned. The unit, in its entirety, is mechanically sound however the components and accessories may require maintenance and/or minor repairs. Unit shows signs of excessive wear and tear and has not been cleaned or detailed. The unit may have mechanical defects that prohibit it from operating properly. Repairs can be made, but fundamental components may be in poor condition. Operability of components and accessories is questionable. Cosmetically, the unit may have heavy wear; medium to large dents, scratches and/or tears. Parts maybe broken and/or missing. Unit shows signs of severe wear / neglect. It may be cost prohibitive to properly recondition this unit to its original published specifications. Previous mechanical, 7

8 Rating Summary and poor maintenance 0 Inoperative. Scrap cosmetic, and/or structural repairs have not been performed by properly trained technicians and will not meet unit s originally published specifications. The unit may have missing or disconnected fundamental parts / components. Although operable, the unit is near the end of its useful life. Operability of accessories is doubtful. Unit is inoperative. Mechanical and body parts may be disconnected, damaged or missing. The unit s condition renders it suitable for dismantling or scrap. Step 3: Mobile Asset List The newly developed mobile asset management framework should be trialled within the context of a manageable size of asset pool. A good starting point would be a smaller service contract, where mobile assets on hand are scheduled, according to corporate classification and condition grading systems, and including, as a minimum, the following information: Mobile Asset Reference (Asset / Stock number) Classification Purchase date Purchase cost Current Condition Servicing frequency and cost Life expectancy (from new) Shipping weight Unique reference to enable the asset to be identified in the field. Classification within the corporate structure. Date purchased. Cost at date of purchase. Condition, based on corporate grading system. Frequency of major and minor servicing, as well as legislative / regulatory inspections and certification required, plus costs. Expected service life, in years, under normal operating conditions, within the context of the asset s current deployment. Shipping weight provides an indication of the mass of materials embodied within the asset, for calculation of waste arising during modelling, but also an indication of cost of shipping during redeployment to a new contract / service. Step 4: Mobile Asset Pool Having identified a complete list of mobile assets, those assets which may provide further useful service, if redeployed at end of current contract period, may be extracted. This schedule of assets for redeployment should be regularly updated and made available to corporate / contract procurement teams for reference whilst planning for service deployments into future new or extended service contracts. 8

9 Impact of Failure 4.0 Developing Mobile Asset Plans 4.1 Introduction Policy Framework Modelling WRAP have developed a number of prototype modelling tools, aimed at providing FM Service Providers with a platform on which to construct their in-house mobile asset management planning capabilities. These tools currently provide high-level, indicative modelling of Mobile Assets at a strategic level, and more detailed modelling of certain FM Services. The tools are intended to provide illustrative guidance on the cost and benefit of mobile asset procurement options available to the service provider at the contract planning stage. The value of these tools may be enhanced by the service providers by modifying the list of assets held within the tools, fine tuning service life expectancies and servicing frequencies and costs, to accord with their own operational requirements and methods. The development and maintenance of corporate or regional pools of mobile assets would further enhance the procurement teams ability to identify suitable redeployment opportunities saving both cost and waste arising, through re-use of resources on hand. 4.2 Toolkits WRAP has developed a range of toolkits to analyse the benefits of effective mobile asset management. These are set out below: Mobile Asset Management Strategy toolkit Mobile Asset Management Strategy Contract Details Assets Required Risk of Failure Explore Options Select Asset Group: <All> Capital costs Servicing and Repair Costs Residual at end of contract Discounted Whole Life Cost All New 530, , , ,300 Baseline 490,750 66, , ,500 Projected 391,375 61, , , , , , , , , ,000 - Cost Performance of Selected Assets Baseline: Expenditure Modified: Cashflow All New: Cashflow Contract Year RESOURCE EFFICIENCY IN FACILITIES MANAGEMENT Assessing the impact of adopting good practice resource management in the FM sector Baseline: Residual Value Modified: Residual value All New: Residual Value Contract Start Contract End Mobile Asset Management Strategy Tool Version 2.0 ( ) Value of Mobile Assets Grade 0 Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Risk of Asset Failure Likelihood of Failure High level modelling of total cost to contract of selected asset groups. The tool allows the user to consider the impacts on cost of the procurement of new or reconditioned assets, redeploy used assets, or utilise assets from the client s asset pool. Risk and impact of failure of assets are illustrated to allow the user to consider which assets are suitable for redeployment or reconditioned equipment. The tool also allows modelling of the impact on cost of improved quality of purchase and servicing. 9

10 Baseline Target Baseline Target Baseline Target Kilograms Kilograms Kilograms 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - Version 5.1 ( ) 1,600 1,400 1,200 1, Baseline - Target Version 2.0 ( ) Version 2.0 ( ) Horticulture Mobile Assets Baseline Target Baseline Target CONTRACT DETAILS Financial Value Weight (kg) Impact of Service Failure Aspect of Service Area of Service (m 2 ) Contract Summary Capital cost 244, ,505 53,413 36,351 SOFT LANDSCAPING 137,500 Servicing Cost 273, ,995 Lawned areas 125,000 Moderate Residual Value - 34, ,100 6,603 29,543 Decorative planting 7,500 Low Cost to Contract 483, ,400 46,810 6,808 Wooded areas 5,000 Moderate Per hectare 33,258 29,512 3, Disposal Routes 378,500 46,800 SURFACE TREATMENT 8,000 Total 244,700 6,800 Roads and parking 5,000 High Per hectare 16,818 26,014 3, Pedestrian footpaths 1,000 Moderate Scrap 244,700-46,800 - Other hardstand 2,000 Low Part-Exchange Supplier Take-back NATURE OF SITE Moderately Congested Third Sector Redeploy - 378,500-6,800 CONTRACT PERIOD 10 Years Carbon avoided 7.77 tco 2-e per hectare EQUIPMENT REQUIREMENTS RESOURCE EFFICIENCY IN FACILITIES MANAGEMENT Assessing the impact of adopting good practice resource management in the FM sector Horticultural Maintenance: Mobile Assets over the Contract Lifecycle Cost Analysis Disposal Routes Scrap Part-Exchange Supplier Take-back Capital cost Servicing Cost Third Sector Residual Value Redeploy This tool estimates the mobile asset requirements for a horticulture maintenance service, based on the areas of landscaping and hard surfaces, nature of the site and contract period. The tool is intended to allow users to compare the impacts of equipment quality, servicing quality and end-of-contract treatment of equipment on cost and waste arising. Comparisons are carried out against a baseline case. Outputs include financial performance; mass of materials used and disposed of, waste disposal routes and carbon impacts. Cleaning Mobile Assets RESOURCE EFFICIENCY IN FACILITIES MANAGEMENT Assessing the impact of adopting good practice resource management in the FM sector Cleaning: Mobile Assets over the Contract Lifecycle CONTRACT DETAILS Financial Value Weight (kg) Cost Analysis Baseline Target Baseline Target Facility Information Contract Summary Baseline Target Facility Type Office Capital cost 30,685 29,636 1, Gross Internal Area 12,000 m Servicing Cost 13,638 3,669 Internal Density Moderately Congested Residual Value - 5,807-2, Cleaning Cycle Period 4 hours Cost to Contract 38,517 30,887 1, Per Workstation Population 1,200 Workstations Disposal Routes Total 30,685 10,539 1, Contract Period 10 years Per Workstation Scrap 30,685-1,392 - User Defined Impact of Service Aspect of Service Area of Service (m 2 ) Area (m 2 ) Failure Part-Exchange - 7, Functional Areas 12,000 0 Supplier Take-back Office 10,440 Moderate Third Sector - 2, Washroom 840 High Redeploy Circulation 600 Moderate Vending, catering 120 High Carbon avoided Capital cost Production 0 Moderate Servicing Cost External Areas 500 Low 3.99 kgco2-e / Workstation Residual Value Fate of Materials Baseline Target Scrap Part-Exchange Supplier Take-back Third Sector Redeploy This tool estimates the mobile asset requirements for a cleaning service, based on the facility type and extent of various functional areas, population, cleaning cycle time and contract period. The tool is intended to allow users to compare the impacts of equipment quality, servicing quality and end-of-contract treatment of equipment on cost and waste arising. Comparisons are carried out against a baseline case. Outputs include financial performance; mass of materials used and disposed of, waste disposal routes, % utilisation of equipment and carbon impacts. Catering Mobile Assets Contract Details Facilty Type Office Financial Value Contract Summary Net Internal Area (m 2 ) 10,000 2 m Capital cost 71,814 73,124 2,946 5,893 Population Density Average Servicing Cost 25,949 25,949 Population (Workstations) 1000 Residual Value - 6,569-42,476 1,142 2,946 User defined population Cost to Contract 91,194 56,597 1,804 2,946 Meal uptake (% of population) 80% Disposal Routes Period of analysis 10 years Total 71,814 73,124 2,946 5,893 Scrap 71,814-2,946 - Catering Requirements Part-Exchange - 73,124-5,893 Estimated User-Defined Supplier Take-back Meals served 22,500 Third Sector Redeploy Carbon avoided 5.96 tco 2-e Weight (kg) RESOURCE EFFICIENCY IN FACILITIES MANAGEMENT Assessing the impact of adopting good practice resource management in the FM sector Catering: Mobile Assets over the Contract Lifecycle Cost Analysis Baseline Residual Value Expended Capital Value Servicing Cost Target Fate of Materials Baseline Scrap Part-Exchange Supplier Take-back Third Sector Redeploy Target This tool estimates the mobile asset requirements for a catering service, based on the facility type and extent, population density, meal uptake and contract period. The tool is intended to allow users to compare the impacts of equipment quality, servicing quality and end-of-contract treatment of equipment on cost and waste arising. Comparisons are carried out against a baseline case. Outputs include financial performance; mass of materials used and disposed of, waste disposal routes and carbon impacts. 5.0 Further information For further information and to access the above toolkits view the following link: 10

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