Proactive facility management can make you save on average 18 percent on the total maintenance costs compared to reactive facility management. Understanding how these savings are possible comes from the appreciation of the value in facility assessments and subsequent life cycle costing. Facilities managers who take time to understand this concept can position their organization to reduce facilities spending and gain better visibility into facility conditions and asset management.
What Exactly Is Life Cycle Costing?
Life cycle costing is similar to calculating total cost of ownership for a facility and its assets. However, it does not consider the energy costs to operate the facility or address occupant needs. Obviously, calculating life cycle costing does not mean facilities managers should ignore the needs of occupants; it is about the costs to purchase, maintain, and dispose of a facility or its assets, reports David Lewek of Facility Executive.
How Do Facility Assessments Enable Proactive Facility Management?
A facility condition assessment is another tool in the arsenal of fighting reactive facility management. A comprehensive facilities condition assessment audits the building, grounds, equipment, utilities, and systems used to manage a facility. Instead of focusing solely on the costs of maintenance, for instance, a comprehensive assessment provides a full view of all the issues and opportunities in a given site.
The assessment also provides a mean to evaluate the regular maintenance needs of the building and its assets, develop cost estimates for such needs, and prioritize repairs. These preliminary information are used to generate the life cycle cost of facilities assets, which enables better capital planning when preparing an annual operating or capital spending budget.
Why Is Proactive Facilities Management Preferred?
Proactive facility management has a reputation for reducing the backlog of deferred maintenance, and the information collected during a facility condition assessment can be used to generate a Facility Condition Index (FCI), that measures the value of deferred maintenance against the current replace value of the building. This information can be used to compare facilities, and it is useful for facilities managers faced with managing new construction, moving to a new location, or upgrading existing facilities to stay aligned with industry standards. Ultimately, better facility assessments enable accuracy and timeliness in life cycle costing. Furthermore, a comprehensive facility condition assessment can identify maintenance needs that may not yet have been noticed. On average, a comprehensive assessment reduces maintenance costs up to 50 percent, compared to reactive maintenance, reports Jeannea Jones via MultiBrief.
Implement a Proactive Facility Management Strategy, Complete With Life Cycle Costing and Facility Condition Assessments Now
Buildings.com explains that before facility managers can take advantage of a proactive facility management strategy, they must understand their existing business strategy and processes, including understanding the needs and wants of consumers and stakeholders, the duties of the facility manager, the existence (or lack) of energy management systems and smart technologies, the potential disruption costs of equipment failures, and threats and opportunities, reflecting the state of current equipment and the facility. Using these information, facilities managers can clearly define the needs of the facility, prioritize them, reduce the incidence of a deferred maintenance, reduce total cost of ownership, increase accuracy in life cycle costing, and more. Find out how implementing a smart building solution could help achieve this goal: visit ENTOUCH online or call 1-800-820-3511 to get started.