FACILITY MANAGEMENT. Abu Yousuf Syed Radzi Rahamaddulla Zulharisam Abd Wahid

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2 FACILITY MANAGEMENT

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4 FACILITY MANAGEMENT Abu Yousuf Syed Radzi Rahamaddulla Zulharisam Abd Wahid Publisher Universiti Malaysia Pahang Kuantan 2017

5 Copyright Universiti Malaysia Pahang, 2017 First Published, 2017 All right reserved. Apart from fair dealing for the purpose of study, research, criticism or review, as permitted under the Copyright Act, no part of this book may be reproduced, strored in a retrieval system, or transmited, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher. Enquiries to be made to the author and the publisher Penerbit Universiti Malaysia Pahang, Lebuhraya Tun Razak, Gambang, Kuantan, Pahang Darul Makmur. Negotiation is subject to royalty arrangement or honorarium. Abu Yousuf FACILITY MANAGEMENT / By Abu Yousuf, Syed Radzi Rahmaddulla, Zularisam Ab. Wahid. ISBN Facility management. 2. Plant maintenace--management. 3. Real I. Syed Radzi Rahamaddulla. II. Zularisam Ab Wahid. III. Title Published By: Publisher Universiti Malaysia Pahang Lebuhraya Tun Razak, Gambang Kuantan, Pahang Darul Makmur Tel: Fax: Printing: Percetakan Muafakat Jaya Sdn. Bhd ( M) 6, Jalan Perdagangan 16, Taman Universiti Industrial Park, 81300, Skudai Johor. Tel: Fax:

6 Contents Introduction to Facility Management (FM) Introduction to FM Importance of Facility Management Real Definition of Facility Management Bodies of Global Facility Management Institutes and their roles Pathway on FM Job Titles of FM FM of impact on sustainability... 6 The Nature of Facility Management Philosophy in FM Trend in FM Business Trends Cultural Trend Characteristic of Good Facility Managers Tips of successful Facility Manager Type of organization correlated with FM...11 Organizational Models, Staff & Contracting Organizational Model Office Manager One-location, One-site One-location, Multiple sites Public work model Multi-location / regional / divisional HQ Fully International Staffing Outsourcing and contracting Outsourcing Contracting...19 Leadership in Management Leadership Defination Leadership Philosophy Leadership skill Difference between Leader and Manager Leadership Styles Attributes and Qualities of a Good Business Leader...25 Strategic and Annual Planning Definition of Planning Common mistake in Planning Type of Planning Planning Technique Annual Work Plan Plan Format...33 Financial Management Introduction to Financial Management Scope of financial management Function of Financial Management Life-Cycle Costing Financial Forecasting...39

7 6.3 Financial Estimating Financial estimating method Present Value (PV) Future Value (FV) Average payback period (APV) Actual payback period (APP) Net present value (NPV) Internal rate of return (IRR) Benefit-cost ratio (BCR)...42 Capital Budgeting Introduction to Capital Budgeting Capital Projects Ways to Prepare Capital Budget Steps for Capital Fund Release Cost Justification...48 Energy Management Introduction to Energy Management Benefits of Energy Management Energy Procurement Aspect of Energy Procurement Energy Efficiency Assessments Energy price volatility Alternative on lowering Energy cost Intelligent energy management...54 Administering the Department Procurement Procurement Process Procurement Time Disposal Human Resource Management Outsourcing The Reasons of Outsourcing Capital and Annual Budgeting...61 Facility Operation Areas of Facility Operations Plant Operations Energy Management Hazardous Waste Management Recycling Indoor Air Quality Communications and Wire Management Alterations Management Relocation and Move Management...67 Maintenance and Repair Definition Maintenance Type The Cost of Ownership Maintenance Objectives Planning and Programming Budgeting Organizing...73

8 Staffing Directing Controlling Evaluating The Maintenance Plan...75 Communications Definitoin Five Steps of Communication Communication Skills for Facilities Managers...79

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10 PREFACE This book is intended to be guidance for students or any personnel in desire to understand the foundation of Facilities Management and to enhance their understanding on the importance of Facilities Management. This book covers the basic management concept that is adequately enough to create interest in Facilities Management Career opportunity. The first part comprises of the theoretical element of each critical management area, where as the second part is also covering some financial management part. To make more lively, on every chapter of this module, there is self-test question embedded. It was never our intention to write a textbook. This book grew out of lecture notes that we used for Facilities Management Technology course from 2014 through Over the years we were convinced by some colleagues and a persistent executive editor to take those notes and expand them. We are grateful and would like to thank Faculty of Engineering Technology and Faculty of Industrial Management of University of Malaysia Pahang for this opportunity. We would also like to thank those who have contributed to the editorial assistance in aligning the contents into a proper book. Finally, we would like to thank you, our readers, for reading this book. We really hope that this book could assist you in understanding what is Facilities Management is all about.

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