Facilities Management Strategies: Making Your Team Successful
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1 Facilities Management Strategies: Making Your Team Successful 1
2 Agenda Introduction The Value of Key Performance Indicators (KPIs) Top 5 KPIs and how to determine yours Preventive Maintenance Tips Capital Planning Tips Resources Q&A 2
3 Introduction: SchoolDude & the Power of Data 3
4 SchoolDude Nation The world s largest educational database 6,000 education institutions 1.5 million professionals Serving 37 million students In 2015 alone 15.7 million work orders 2.8 million IT incidents 6.5 million events $1.5 billion utility expenses managed 4
5 Dude Data Matters 5
6 SchoolDude Nation Work Order Trend 6
7 The Value of Key Performance Indicators 7
8 KPIs Can Help What are my vital signs? How do they compare to others? Which ones need attention and focus? Where am I? What is possible if we improve them? 8
9 The Value of KPIs 9
10 KPI Categories for Education Operations 10
11 How to Determine your KPIs: The Top 5 11
12 5 KPIs You Should Pay Attention To 1. Hours per Employee per Week 2. Preventive Maintenance to Work Order Ratio (PM/WO) 3. Physical Plant Asset: CRV and FCI 4. Energy Intensity 5. Costs Recovered per Student per Year 12
13 1. Hours Per Employee Per Week Important concept - Hours per employee or wrench turning time How many productive hours can your team produce? 13
14 1. Hours Per Employee Per Week Hours per Employee = Wrench Turning Time 14
15 1. Hours Per Employee Per Week Facilities managers have a sense of urgency to increase productivity in response to shrinking budgets and increased demand for services Schools that implement productivity strategies increase wrench turning time 3-4 hours/week Equivalent of adding more than a month of productive time per year! EDUCATION SEGMENT WORK HOURS PER EMPLOYEE/WEEK Public K Indi/Private/Charter Higher Education Comm. College Overall Average
16 5 KPIs You Should Pay Attention To 1. Hours per Employee per Week 2. Preventive Maintenance to Work Order Ratio (PM/WO) 3. Physical Plant Asset: CRV and FCI 4. Energy Intensity 5. Costs Recovered per Student per Year 16
17 2. PM:Work Order Ratio PM: Work Order Ratio Identifies resource allocation to proactive and planned maintenance work 17
18 2. PM:Work Order Ratio Benefits of a Successful PM Plan Fewer failures: A timely PM program usually uncovers problems before they become serious enough to cause equipment failures. Breakdowns can be reduced by 50%. More Planned Work: The timeliness of PM inspections usually uncovers those major jobs that require planning. Sufficient lead time allows planning to be done. 18
19 2. PM:Work Order Ratio Benefits of a Successful PM Plan Fewer Emergencies: An effective PM program has every maintenance employee on the alert for things that cause problems. Fewer problems that would cause an emergency situation escape detection. Emergency work can be reduced by half. Reduced Overtime: one of the largest contributing factors to overtime is need to perform emergency work. Reduction in emergency work = corresponding decrease in overtime 19
20 2. PM:Work Order Ratio Benefits of a Successful PM Plan Extended Equipment Life: PM extends equipment life by as much as 20% and increases dependability. Better Use of Maintenance Personnel: Jobs done under emergency conditions is 15% more costly in labor than a similar, well-planned job. Maintenance departments with a good PM program commits more staff to planned work. Results in more effective, productive use of manpower. 20
21 2. PM:Work Order Ratio Benefits of a Successful PM Plan Improved Equipment Operations: Well-cared-for equipment runs better Less downtime: By reducing emergency work, downtime can be reduced *Complete Building Equipment Maintenance Desk Book Second Edition, Edited by Sheldon J. Fuchs, P.E. Page 19 in the chapter by Paul D. Tomlingson. 21
22 2. PM:Work Order Ratio National Study on Preventive Maintenance 6,000 educational clients live operational data analyzed Identification of PM Masters Top deciles within peer group Allocating high percentage of manpower to PM (> 30%) High completion rates (> 98%) Sustained over a significant period of time (> 3 years) 22
23 2. PM:Work Order Ratio PM Cost Impact Sustained PM allocation of 30% or more results in: 50% - 65% reduction in rate of emergency work Lower cost per work order - average cost per work order 28.6% to 39.3% less 23
24 2. PM:Work Order Ratio PM Cost Impact 24
25 2. PM:Work Order Ratio Best Practices Simplifying your entire maintenance management process allows you to: Schedule planned maintenance Control your inventory items Monitor energy consumption and conservation programs Plan for future capital needs 25
26 2. PM Work Order Ratio 4 Tips to Implement a PM Program 1. Start small Plan a progressive rollout and reasonable timeline EMERGENCY WORK = 8x more $ than PM work orders 26
27 2. PM Work Order Ratio 4 Tips to Implement a PM Program 1. Start small 2. Determine who will perform preventive maintenance Develop a structure for the distribution of work EMERGENCY WORK = 8x more $ than PM work orders 27
28 2. PM Work Order Ratio 4 Tips to Implement a PM Program 1. Start small 2. Determine who will perform preventive maintenance 3. Get buy-in Increase productivity by 27% Show how the program supports the overall mission of your institution 28
29 2. PM Work Order Ratio 4 Tips to Implement a PM Program 1. Start small 2. Determine who will perform preventive maintenance 3. Get buy-in 4. Keep it going and report on your data Report on corrective versus preventive maintenance costs Increase productivity by 27% 29
30 2. PM:Work Order Ratio Your schools facilities are one of its largest assets Regularly re-investing in your facilities with scheduled maintenance can mitigate budgetary constraints 30
31 5 KPIs You Should Pay Attention To 1. Hours per Employee per Week 2. Preventive Maintenance to Work Order Ratio (PM/WO) 3. Physical Plant Asset: CRV and FCI 4. Energy Intensity 5. Costs Recovered per Student per Year 31
32 3. Physical Plant Asset: CRV and FCI CRV (Current Replacement Value) Quick Math: What is your square footage? *Cheat sheet: 150 sq. ft./student * student enrollment What is the average cost for a new school? *Cheat sheet: $175-$200/sq. ft. CRV = Square Feet * Cost/Square Foot 32
33 3. Physical Plant Asset: CRV and FCI CRV Example 10,000 student enrollment Square Feet = 10,000 students * 150 sq. ft./student Square Feet = 1,5000,000 square feet CRV = 1,500,000 sq. ft. * $175/sq. ft. $262,500,000 33
34 3. Physical Plant Asset: CRV and FCI FCI (Facility Condition Index) % of CRV that needs to be repaired or replaced FCI = Backlog of repairs / CRV (%) FCI Example CRV = $262,500,000 Backlog = $34,125,000 FCI = $34,125,000 / $262,500,000 13% Facility Condition Index *Typical FCI in U.S. exceeds 25% (D Grade) 34
35 3. Physical Plant Asset: CRV and FCI Deferred Maintenance Backlog Invest 2% of CRV per year in repairs and replacements 2% of CRV/year ~ 30 year design life 3% of CRV/year ~ 50 year design life Some experts say 1.5-2% is enough, but this does not address backlog Example 2% of $262,500,000 = $5,250,000 $5,250,000 sinking fund per year to keep Maintenance and Energy Does not address: Deferred maintenance Adequacy or program needs 35
36 3. Physical Plant Asset: CRV and FCI Deferred Maintenance Backlog 36
37 3. Physical Plant Asset: CRV and FCI For every $1 of maintenance you defer, it costs $4 to repair later. 37
38 3. Physical Plant Asset: CRV and FCI 3 paths to a 30-year forecast 38
39 5 KPIs You Should Pay Attention To 1. Hours per Employee per Week 2. Preventive Maintenance to Work Order Ratio (PM/WO) 3. Physical Plant Asset: CRV and FCI 4. Energy Intensity 5. Costs Recovered per Student per Year 39
40 4. Energy Intensity 40
41 4. Energy Intensity 2013 calendar year National 27% decrease in energy consumption for top performers 41
42 5 KPIs You Should Pay Attention To 1. Hours per Employee per Week 2. Preventive Maintenance to Work Order Ratio (PM/WO) 3. Physical Plant Asset: CRV and FCI 4. Energy Intensity 5. Costs Recovered per Student per Year 42
43 5. Costs Recovered Per Student Per Year Costs Recovered for Community Use of Schools 43
44 5. Costs Recovered Per Student Per Year Community Use impact on the budget: What is the average time spent per event by each staff member in minutes? Task Min Description Event Administration 10 Receiving requests, answering questions, checking calendars for availability, getting approvals Event Coordination 10 Staff coordination for event support (Custodial, Energy, Grounds, Food Service, Tech, etc.) Invoicing 10 Create invoices, send invoices, track payment Energy Management 5 Do BAS overrides per event Food services, IT, other TOTAL 40 5 Check availability, quantity 40 minutes per event = 0.66 hours per event 4,000 total hours annually (events * hours) 44
45 5. Costs Recovered Per Student Per Year $70/Student / year! 45
46 5. Costs Recovered Per Student Per Year Cost Recovery Trend 46
47 SchoolDude Solutions 47
48 Final Questions 48
49 Resources 49
50 April 30th - May 3rd, 2017 Raleigh Convention Center in Raleigh, NC university.dudesolutions.com 50
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