Better Risk Management Strategies, Procurement Diversity and Decreased Maintenance Key to Driving TCO Down.
A range of factors affects total cost of ownership in facilities management. Routine maintenance, unforeseen weather events, mediocre performance measurement and decreased visibility into facility assets increase total cost ownership, but Facility Managers can control total cost of ownership by taking a few considerations when making decisions.
Build Total Cost of Ownership Into All Facilities Management Decisions
Reducing total cost ownership frees capital for use in maintenance, engineering and continuous improvement, including both continuous improvements of assets and team member productivity.
Establish a Team Approach to Facilities Management
As explained by Bruce Wesner of FacilitiesNet, collaboration is essential to reducing total cost of ownership, saying, “together everyone achieves more.” Cross-functional metrics also ensure team members understand facilities management goals and maintain a higher level of accountability.
Remember Energy Costs in Reviewing Total Cost of Ownership
Energy management makes up part of the conversation in managing total cost of ownership as well, and many retailers continued to forgo energy management in favor of cost-based maintenance and facility management programs. In fact, according to Kevin Langwell via Building Design and Construction Network, most companies spent up to 400-percent more money on energy use than facility assets. With the rise of software-as-a-service (SaaS) and managed service models to energy monitoring, enterprisewide deployment of an energy management system (EMS) is easier and more cost-effective than ever before. This allows companies to gain greater control over energy use, maintenance spend and total cost of ownership.
Consider Local Factors Affecting Asset Performance
Local factors, like dust particles in the air or humid environments, may affect the performance of facility assets. Areas subject to these conditions may need to perform maintenance more often than prescribed by manufacturers, and as a result, total cost of ownership increases. Also, humidity encourages the growth of mold and mildew in facilities, which require remediation to protect building occupants.
Eliminate Deferred Maintenance
Eliminating the deferred maintenance backlog is another key way to reduce total cost of ownership in facilities management. Deferred maintenance has been associated with skyrocketing costs, equal to the squared cost of the original repair.
For example, a $20 repair becomes $400 repair cost if left unaddressed.
Understand the Key Considerations to Manage Total Cost of Ownership in Your Facilities Management Department
Knowing more about the top factors and considerations affecting total cost ownership in facilities management will help your team identify risks and opportunities for improvement. Make your organization stand out by taking these considerations when making facilities management decisions. Also, partner with an experienced leader in reducing total cost of ownership in facilities management, ENTOUCH. Visit ENTOUCH online, or give us a call at 1 (800) 820-3511.