performance management for facilities managers: … sponsors platinum sponsor event sponsors new...

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New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013

Workshop Sponsor

Performance Management for Facilities Managers:

Creating Line of Sight & Managing by Fact

Paul A. Rogers + Matt Freeman

Spire Consulting Ltd. New Zealand.



Workshop Sponsor Paul A. Rogers

Is the founder and Managing Partner of Spire Consulting, a New Zealand based management consultancy firm. Paul specialises in strategic asset and facilities management, organisational performance improvement and supply chain optimisation. Based in Christchurch, New Zealand, Paul consults to a wide variety of clients from Qatar to Queenstown in the health, infrastructure, utilities, manufacturing and commercial property environments. Paul graduated with a Masters Degree of Building Science from Victoria University, Wellington, New Zealand and has more than 30 years experience in various asset and strategic management roles, having worked for J.P. Morgan, Lloyds of London, Colliers International, Telecom NZ and AMP Investments. Paul, a past Chair of the FMANZ has published, presented and lectured on FM topics in Australasia, Asia, Middle East and Europe. Paul A. Rogers. Mob. +64 27 00 867. E: [email protected]

Matt Freeman Is a partner and senior consultant with Spire Consulting, based in Auckland. Matt specialises in contract, project and supply chain optimisation for facilities and asset owners, across New Zealand. Matt graduated with Master Degrees in Physics and Construction Project Management and has presented and lectured on FM and Contract & Project Management in the UK, US and New Zealand Matt Freeman. Mob. +64 21 190 1000 . E: [email protected]

mailto:[email protected]
















Workshop Sponsor



Workshop Sponsor Performance Management for Facilities Managers:

Creating Line of Sight & Managing by Fact. ABSTRACT: Successful Facilities Managers are able to translate business needs into facilities processes and demonstrate performance and contribution to the organization’s success. Creating line of sight between business needs and the facilities performance is essential to shift you from the boiler room towards the board room.

More than ever, Facilities Managers must create enduring, simple to use and effective performance management frameworks to guide and calibrate their resource efforts.

This workshop takes you through a number of useful business performance templates that can be readily adapted for your own use allowing you to demonstrate your FM success in better enabling your organization.



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Our Workshop Format

1. Why FM Matters: Reality & Relevance. [PAR]

2. Aligning organisational goals & objectives with FM Plans

3. Calibration Tools: BSC / PoaP / Benchmarking / KRA – KPI, BPI

4. Leveraging Suppliers for best Performance

Questions Welcomed at Any Time – This is an Interactive Session

Why FM

Matters

New Zealand FM Summit 2012 Eden Park, Auckland 22 - 23 May 2012

Diamond Sponsor Platinum Sponsor Diamond Sponsor

Workshop Sponsor

http://www.cowleyaquaheat.co.nz/

C:/Users/paulr/Documents/Pauls General Files/NZFM/2013 FMANZ Conf/PAR MF PPt/Juggler 1.mp4



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Line of Sight Misalignment Manifestation: - Getting Coordination! • No tangible, measurable levels of FM service codified with explicit performance parameters,

often leading to an inability to manage by fact, FM performance; • FM plan’s not calibrated or aligned with what the business needs and wants from its FM

function; • FM seen only as a cost centre (to be minimised) and not a value or resource generator to

optimised; • Traditional, unresponsive FM service delivery structures; • Expectation that the Facilities Manager is “provider of all things” to all people, faster for

less!; • Seen as un-commercial and often unable to communicate in any meaningful enterprise

business discussion; and worst of all… • “Better off in the boiler room, out of sight – out of mind’!



Workshop Sponsor

BUT FM Matters. Facilities’ Matter.

Buildings as investment assets and as a business resource Buildings as part of an investment portfolio from

which a financial return is required. Buildings as a resource in the production of a

product or delivery of a service. Understanding components of facilities occupancy

costs and their drivers. Managing facilities occupancy costs.




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Understanding Property & Occupancy Costs Context of Asset Value & Revenue Costs

Revenue Costs

Source: B. Varcoe, Procord Ltd. Asset Value

35%

19%

17%

13%

9%4%

3%

Property

Cash

Inventories

Receivables

Investments

Other

Expenses

15%

55%

10%

8% 7%5%

Premises

Staff

Other

Depreciation

IT

Marketing

Buildings often representing between 30% and 40% of an organization's financial

assets, and facilities usually accounting for between 10% and 20% of total costs,


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Total Facility Cost of

Ownership


Workshop Sponsor

Source: Whitestone Research

FM Primary Domain

[66% of TCO]





Workshop Sponsor

RECAP – FM Criticality: 1. Organisations have massive investment in property, building's & facilities. 70% of the TCO!

2. Those intrusted to operate & maintain the facilities MUST demonstrate value and worth in both

the FM role AND their criticality as a business resource and business enabler;

3. Be distinct – or extinct! [You and the profession]

HOW? By being relevant By always demonstrating value By always creating line of sight & calibrating between the organisational objectives & plans and

your FM performance And always managing by fact



Workshop Sponsor

Think & Discuss this scenario within your groups. Imagine your Manager, your Managers, Manager and the General Manager HR are sitting in an office, back at HQ. 1. What are they saying about you and your contribution to your Organisation? 2. What are they saying about your FM team? 3. How much do they know about your contribution and successes to the organisation? 4. How have/do you communicate and demonstrate what it is FM does -and how well it does.

Alignment

between the

Business and FM



Workshop Sponsor



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The FM Business Plan collateral contains all the performance integrators – those documents and systems that link people & technology to

enable and deliver FM services

To achieve alignment

requires process and clarity of

purpose.

http://www.google.co.nz/url?sa=i&source=images&cd=&docid=olj53mo58pjCJM&tbnid=nn4jrfkYkRPU2M:&ved=0CAgQjRwwAA&url=http://www.123rf.com/photo_12285734_a-graphic-of-a-male-head-silhouette-with-gears-problem-solving-process-isolated-on-a-solid-white-bac.html&ei=JPxxUZ6rNojuiAe0jYGABA&psig=AFQjCNGtER3fvRgY81YMpqfcEiRVCZYbyw&ust=1366511013008417



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Alignment Collateral [8 Must Haves] Organisation's Strategic Plan [Sets direction and informs capacity & capability]

1. FM Organisational Structure [places the right capacity & capability in the right places to enable the business]

2. RACI Chart [articulates Roles & Responsibilities]

3. PD [Informs each team member of what is required, necessary capabilities and what success looks like]

4. FM Business Plan [Creates clarity of FM purpose for staff and customers. Includes performance measures]

5. Workflow [Process Maps] [Creates line of sight for all core end to end FM processes and how ICT enables & links]

6. Operating Procedures [Creates clarity of purpose of how & when we deliver services and to what service level

7. FM Performance Report [Tells us how well we have achieved our outcomes. Calibration of success.

8. FM/AM Plan [Informs our renewal + replacement + maintenance approach to all our services]



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Alignment: [Spires’] Connect – Change – Support Model



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Alignment

Collateral: RACI



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Alignment Collateral:

PD



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ITB, DTB

Airfield, Grounds

& ServicesAIAL Business

Aero / Retail

FM Property Services

Manager

FM Infrastructure

Contractor

Call Centre

Commercial Building

Tenant

AIAL Commercial Property

ManagersNegotiate Lease

Initial Inspection

Problem Notification

Advise of Bldg Problem

Operate Lease

Problem Notification

Work / Job Instructions

Regular

Scheduled Inspections

Execute Work

Audit of Work

Operational Reviews

Operating Maintenance

Agreement Proposal

Monthly Contract /

Variation InvoicesOperational Reviews

Update Job Status

Budget Proposals / Renewals

Budget Progress Monitoring

Accounts Payable

Invoice Approval

Invoice Payment

Engineering Information

Control

Remedial Job

Compliance

Status Update

AIAL

FM Operational Improvement Project

Property Services Manager20/09/2007

20/09/2007

Payroll /

AP

Financial Reporting

Asset Planning

Perform

ance Management

(Contra

ct or S

taff)

Call Centre – Responsive Activity

JobId, Description, Urgency, Delivery

Promise, Status

Estimation of resources

Actual Resources

Comments

Staff /

ContractorId, Unit

Asset Item

Facilities

Management

FM Service

Requirement

Logs Job, Inquires on Job

Job Status

Asset Planning

Reports on Activity

Allocated Job

Asset Performance

Workload, Productivity by Unit, indivuual

Raises Job

Accumulates Activity, Cost

Reports on Condition

Job Performance

Job Invoice /

Timesheet

Approved Payments

Alignment Collateral: FM Workflow



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Op Procedures

Y

N

Y

N

Y

N

Receive

Contractor Job

Sheets

Review Job

Sheet

Inspect Job

Result

Review

ok?

Inspection

ok?

Highlight Issue

for Resolution

Update Progress

against the latest

Plan

Inspection

Req'd?

Description:

Review the work claimed during the period for adherence to the agreed program, to reconcile the audited jobs for completeness and standard of work and for the volume.

Roles:

Role assignments determine access to this Stage.

o Contract Manager

Tasks:

o Receive Contractor Job Sheets (Worksheet Based Task)

Description:

Once the job has been carried out, or a progress report is required, receive the job summary sheets from the contractor.

o Inspect Job Result (Worksheet Based Task)

Description:

Inspect the job or job progress so far to ensure compliance with tender specifications and drawings.

o Review Job Sheet (Worksheet Based Task)

Description:

Review the job (progress) report sheet with respect to the original quote and plan / schedule made for the job. Reconcile these to the Job program previously agreed.

o Highlight Issue for Resolution (Worksheet Based Task)

Description:

If the Job recording or Inspection results give cause for concern, and that concern cannot be resolved immediately, highlight the problem for Issue resolution.

o Update Progress against the latest Plan (Worksheet Based Task)

Description:

Once all the reviews / inspections done and reported, update the project plan with the latest progress. Publish the updated plan.



Workshop Sponsor

Alignment Collateral: Perf. Reporting

4.00

4.50

4.00

4.00

4.50

4.50

3.50

3.50

4.00

4.00

4.00

5.00

0

1

2

3

4

5Accessibility

Accountability

Communication

Understanding

Responsiveness

Health andSafety

Innovation

Alignment

Quality

Functionality

MaintenanceCare

Overall

Ave…

Performance

Scoring Key:

5: Very Good

4: Good

3 : Neutral

2 : Poor

1 : Very Poor

SERVICES- QUARTER 4 - 2009/10 (January until March )

Business Objectives

Clear vision on how assets enable customer services

Objectives, strategies and policies defined

Holistic FM is an essential business process

Implement a proven FM framework

Ensure risks are effectively managed – owned/leased

Change to proactive FM rather than reactive

Facilities Information

Collate and utilise existing data sources

Adopt common data heirachy

Facilities Information Strategy

Knowing facilities condition and performance

Maintenance of facilities data

Levels of Service

Define and adopt service level statements

Operational, tactical and strategic linkages

Implement measures and targets

Compliance legislation and standards

Identification of service delivery shortfalls

Supplier Management

Lifecycle Planning

Future Demand

Market service and population forecasting

Lifecycle Plan

Document lifecycle policies and strategies

Renewals analysis

Development, production, inventory control

Operations, repairs, maintenance

Expenditure Summary

Initial raw output o expenditure analysis

Run models to test ‘what if’ scenarios

Implement Capex projects

Financial Analysis

Valuation of current and future facilities base

Depreciations forecasts

Cost of producing and installing new assets

Compare options through NPV analysis

What is the profitability of these services

What funds are needed?

Data and FMP

Maintenance

Maintain data

Review and audit

New processes

Annual FMP

Investment scenarios

Consider effects

of: -

Service levels on $’s

Different base lives

Alternative strategies

Improvement Plan

Business PlanIs this affordable?

Iterate

Reconsider business

objectives

Reconsider service statements

Can further funding be found?

Yes No

Understand key outcomes

Organisation Commitment

Gain immediate benefit

Best Industry practice

Seen as innovators

Know the facility base

Ownership options

Having reliable, accurate,

and complete data.

Statistical analysis of data,

i.e. strata and zones

Know current service

Document future services

Understand the gap

Bridge the gap

Know the demand for facilities

Proactively manage both

leased and owned facilities

Effect of technology changes

Know whole of life costs

Project and report expenditure

requirements by category.

Ensuring the risks are

managed proactively

Is there sufficient resources

to deliver holistic FM?

Prioritising projects based on

costs, benefits, profitability

and risks.

Infor

matio

n Man

agem

ent

Integ

ration

of ex

isting

syste

ms an

d intr

oduc

tion o

f new



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FMP Outline



Workshop Sponsor

RECAP – FM Alignment: 1. Great FMers’ can; Translate Organisational Requirements into

Facilities Processes, and Demonstrate the performance and

effectiveness of their efforts [to better enable the organisation].

2. For you to be an effective Translator – Processer – Demonstrator

requires 8 key pieces of collateral + Customer Centricity.



Workshop Sponsor

+The Magic Integrator - FM Customer Centric Approach Delivery Competency. Your agility & ability to respond to BAU and Planning.

Encompasses your scope and complexity of service delivery.

Clarity of Purpose. Created through alignment and a deep understanding of customer tied back to a clear line of sight of their business needs. Partnering & Alliancing

Efficacy. Ability to leverage productivity. AKA Operational Effectiveness. Ability to do more for less through tuning and optimising people / processes and technology.

Relationship Competency. Ability and desire to seek a win-win relationship to

create co-dependency between parties.

Creating & Driving

FM Performance -

Calibration Tools



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1. Flow of People – recruitment, promotions, transfers, outplacement, and training and development

2. Flow of Performance Management – measurement, rewards and follow-up

3. Flow of Information – keeping the organisation in touch with key external realities, managing internal communications, and designing information technology infrastructure

4. Flow of Work – organisation structure, work process design, and physical arrangements.

FM Performance: FM Flow’s



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4 Core Performance

Resource Areas.

KPI #

KRA

Risk

Management

Aligning Performance. Linking the FM key Result Areas to Measures

Motivated Team

Members

Efficient Internal

Processes

Adaptable

Processes

Best

Value

Financial

Credibilit

y

Achievement

of Strategic

Outcomes

Clarity of

Purpose with a

Consistent

Focus

High

Quality

Advice

Service

Ethic

Business

Process

Learning

and

Innovation

Financial Customer

Participation in

Training and

Development

Employ and

retain quality

staff

Effective staff

communication

structure

Effective Corporate

Administration

interface

Participation in

Improvement

Activity

High Market

Awareness

Effective Internal

Communications

Competitive

Orientation

Clarity in

Organisational

Structure

Ability to

Respond in

Emergencies

Compliance

with Statutory

Obligations

Internal Checks

to Minimise

Risk

Accurate and

Effective

Budgeting

Timely and

Meaningful Reporting

to Stakeholders Clear and

Concise

Reporting

Promotion of Customer

Involvement in Decision

Making Process

Clear

Ownership of

Issues

‘Right First

Time’

Ongoing measurement

and monitoring of

progress against vision

Recognition of

Stakeholders

and their needs

Exemplary Cust.

Service

Behaviour

Starting Point

Aligning performance. Using the Balanced Scorecard to Evaluate FM Key Result Area Performance

• % of total reports accepted by

FM Management team

• Conformance with statutory

obligations for timing of reports

• Improvement ideas identified

and tagged for action

Business Process Innovation and

Learning

Financial Customer Focus

Financial Credibility

Best Value

Strategic Outcomes

Clarity of purpose

with a consistent focus

Management of

Risks

Skilled and Motivated

Employees

• % FM business units satisfied with the overall standard of HPBU services

• % FM business units satisfied with the manner of HPBU decision making

• % FM business units satisfied with the effectiveness of HPBU consultation

methods

• Achievement of Annual

Plan Strategic Targets

relating to strategic KRAs

• OSH - % staff having incidents

• Legal costs as % of OPEX

•% Legal rulings in favour of PC

• Value of insurance claims

• Number of debtors over 60 days in

arrears s

• $ spent per FTE employee on T & D

• % of employees who believe that HPBU

is committed to supporting learning and

development

• % of employees who believe that

everyone in the HPBU has an equal

opportunity to learn and develop

• Staff retention

•% of employees who believe those around

them are competent in what they do

•% of employees who are informed by the

organisation about what they do

• OPEX on-budget (+/- 5%)

•CAPEX on-budget (+/- 5%)

• Delivery of Financials - Timing

Six Key Result Areas • Financial credibility

• Clarity of purpose with a

consistent focus

• Strategic outcomes

• Best Value

• Management of risks

• Skilled and motivated team

A High Performance

FM Business Unit

Source of measures

• FM Business unit Satisfaction

Survey

• FM Employees Survey

• Individual Business Units

• External Agencies



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KEY PERFORMANCE INDICATORS

Customer View

•SLA Conformance and / or Equipment Availability •Customer Survey Ratings -

Customer Satisfaction Index (CSI) •Compliments & Complaints

Financial Results

•OPEX •CAPEX •Earnings •Savings

Internal Business Rating

•Operational Efficiency for FM sections – Planned Vs Actual effort •Annual Operating Cost per Business

Units •Response Time / Work Backlog •Planned Maintenance – Scheduled

Vs Achieved adherence •Planned to Responsive Mtc ratio.

Safety Performance

•Total Work Injuries •Lost Time Work Injuries •Near Misses •Contractor’s Safety performance •H & S and OSH – meetings &

trainings.

Future & Improvement Trends

•Value Engineering / Innovation – new & better ways of doing things •Planning / Forecasting •Reporting •Staff Training –

1.Annual training days

per FM team member. 2.Annual training cost

per FM team member.

“How do our customers see us?”

“How do we plan & manage our budget & earnings”

“How do well do we operate?” “How safely we do our job?” Can we continue to improve and create value?



Workshop Sponsor

Overa

ll meas

ure of

perfo

rman

ce

Maint

enan

ce co

stMa

inten

ance

effect

ivene

ssMa

inten

ance

admi

nistra

tion

Depa

rtmen

t ope

ration

Servi

ce ass

essme

nt

Manpower

Work Order

Service

Operation

Maintenance

Intensity

Plant

Condition

Plant

Performance

Economy

Service Cost

Manpower Efficiency

Overtime

Utilisation

Predictive and PM

Maintenance coverage

Overdue tasks

Work orders, Planned

and scheduled

Work orders turnover

Degree of scheduling

Breakdown repair hours

Maintenance hours

applied

Breakdown frequency

Equipment downtime

caused by breakdown

Evaluation of PM and

Predictive M'tance

Equipment availability

Length of running

Emergency man-hours

Emergency and other

unscheduled tasks

Cost of M'tance hours

PM costs as percent of

Breakdown cost

Inventory turnover rate

Breakdown severity

Scheduled service cost

Maintenance costs per

unit of production

=

=

=

=

=

=

=

=

=

=

=

=

=

=

=

=

=

=

=

=

=

=

=

Hours worked as scheduled

Total hours scheduled

Total overtime worked

Total hours worked

Standard hours

Total clock time

Total man-hours of Predictive and PM

Total man-hours worked

No. of jobs overdue by one week

No. of jobs completed in same week

Work orders, planned and scheduled

Work orders executed

No. of jobs completed in period

No. of jobs in-hand at present

Hours scheduled

Total hours worked

No. Hours spent on breakdowns

Total direct Maintenance hours

Total direct Maintenance hours applied

Total production hours same period

No. Maintenance breakdowns

Total no. breakdowns

Downtime caused by breakdowns

Total downtime

Predictive and PM inspections completed

Predictive and PM inspections scheduled

Equipment runtime

Equipment runtime + breakdown time

Total production output in units or hours

No repairs during same period

Man-hours spent on emergency jobs

Total direct Maintenance hours worked

Man-hours emergency,unscheduled jobs

Total direct Maintenance hours worked

Total cost of maintenance

Total man-hours worked

Total PM costs (incl production losses)

Total breakdown costs

Inventory consumption cost for period

Average cost of inventory

Total cost of breakdown repairs

Total number of breakdowns

Total cost of scheduled service

Total production cost for same period

Total Maintenance costs

Total units produced



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Retrieve past

customer Survey

ResultsCustomer Survey

Trend Results

Conduct new

Customer Survey

Devise Customer

Survey

Receive Job &

Estimate(Responsive)

Run Job / Activity

AnalysisReceive Job

(Planned Maintenance,

Inspection,

Consequential, Project)

Estimate Job

Requirements

Schedule Job

Record Job

Details

Perform Variance

Analysis“Client”(Job initiator)

“Complete Job”(Trades/Technican)

Form Schedule;

(Weekly)

% available man-hrs avail

Load factor used

List of jobs forming schedule

Add time scheduled to Job

Job details req’d to be added

to Job info are;

Date / Time Completed

Man-hrs booked actual

Man-hrs delays & reason code

Work done description

Condition Assessment

Publish ResultsReceive Actual(From Payroll, time and

rate, from Purchasing

amounts and rate)

Set up Budget(Detail basis; amounts

and rates and how)

Job details req’d are;

Type of job

Asset involved

Date / Time rec’d

Date / time promised

Man hrs estimated

Agree SLA / LoS Record

Performances &

Incident / Events

Run SLA Analysis

04/02/2008 Auckland Airport

FM Development Project

KPI ArchitectureSpire Consulting Ltd



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Cleaning Quality* Score BSC Financial* Score BSC

Mthly QA Reports 6

Accuracy & Clarify

5

Interviews 4

Service Credits & Errors

4

Site Inspections 6

Timeliness 6

TOTAL 16/18 TOTAL 15/18

Operations Score BSC Communications Score BSC

Timeliness & Task Frequency

4

Comms Book 3

Environmental 3

Genesis Energy Site Meetings

3

Security 4

Three Monthly Meetings

4

HSE Reporting 4

TOTAL 14/16 TOTAL 10/12

April – May – June 2010

TOTAL SCORE:

55/60



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0

50

100

150

200

250

300

350

0.000

0.010

0.020

0.030

0.040

0.050

0.060

2003 2004 2005 2006 2007 2008

Ass

et V

alue

, und

er c

are

(M$)

Inde

x

Year

CIAL FS Dept

Maintenance Index(Indexed basis)

Mtc Ratio (Indexed basis)

US Federal Bldg Mtc Recomm

NZ / Aust Hospitals / Univ act.ave.

Assets Under Care (indexed $M)



Workshop Sponsor Maintenance Innocence to Excellent Matrix

Leadership & Capability Processes

Maintenance

Management

V & Strategy

Performance

Measures

Organisation

Structure Human

Resources

Knowledge

Base

Maintenance

Tactics

Materials

Management

Planning &

Scheduling

Contractor

Management

Reliability

Engineering

Personal action

plans and

appraisals are

clearly tied to the

Maint Mgmt

Strategy.

On-going

benchmarking of

metrics and

processes Full

cost database

Maint structure

supports

training of

operators in

equip

functions,

minor

servicing, and

root cause

failure analysis.

Empowered,

flexible, world

class workers.

Self-managed

team focus.

Expert systems

used. Fully

Integrated Into

CMMS; common

database.

The Prev / Pred

Maint Plan Is

continuously

being optimised

The "right" tactic

is applied based

on analysis.

Stores system

integrated to CMMS

and accounting

system. Bar- Coding

of all stores items.

+90% all maint

jobs planned and

scheduled at least

the week before.

Linked short,

medium, and long

term planning.

Small number of

Contractors used

on long term risk

sharing

partnership

agreements with

high

innovativeness.

Risk and

unplanned

failure reduced

to best in

industry.

Maint

improvement

action plans are

linked to the

Maint Mgmt

Strategy.

Statistical

Process Control

applied to Maint

Process

Measures. Equip

specific maint

costs available

Established

teams for key

objectives in the

Maint Mgmt

Strategy.

Multi-skilled

trades with

process capability

analysis and basic

operating skills

Easy access to

Knowledge Base

available to all

employees at all

times.

Prev / Pred Maint

Plan exists for all

maintainable

items. Emphasis

on Predictive

maint. All tactics

understood.

Single source

supplier partnerships

established and

effective. Area

stores with

visual controls.

Long term asset

planning

established.

Critical path

analysis used for

all rebuilds,

shutdowns.

Contracts are

established

based on the

principle of

"risk sharing"

Effective Root

Cause Analysis successfully applied to extend equipment life

A clear Maint

Mgmt Vision &

Strategy is

documented and

communicated to all employees

Input, Process,

Output

measures

reviewed and

displayed.

Downtime by

cause.

Segregated

maint costs

reviewed.

Decentralised

with central

support. Clearly

written

mandates/ roles

for each maint

function and

group.

Trades have

problem

identification &

solving, team

dynamics and

training skills

Document control system established. CIMS installed and used to manage Knowledge Base

Prev / Pred Maint

Plan exists for key

equipment.

Compliance is

more than 95% as

scheduled.

Spares classified with separate strategies. Spares linked to BOMs/Equipment Drgs. Standardisation policies exist

All but unexpected failures planned. All planned jobs specify safety, labour, materials, tools, technical data

All contractors

repairing rotables

are capable of

Original Equip

Manufacturer's

testing

Basic Equip

Conditions

established.

Good failure

database. All

major failures

investigated;

PMs modified.

No clearly

documented

Role of

Maintenance or Maint Mgmt Vision & Stratew exists

Some downtime

records. Maint

costs regularly

available but

not segregated

into area/ line.

Centralised

maint with

alignment to

production.

Team approach

to technical

problem solving.

Trades have

OH&S and maint

support

(inspection,

reporting) skills

Plant register

established and

used for data

collection. All drawings and equipment

information

Identified

System exists to

Identify all

maintainable

items. Emphasis

on time-based

inspections and

overhauls.

Stores catalogue

established.

Inventory accuracy

+95%. AN spares

identified and

protected

Work Request/

Work Order

system

established. Major

rebuilds,

shutdowns fully

planned and

programmed.

Contractors used

for peak loads

and non- core

maint work

Collect the data.

Equipment

histories

occasionally

reviewed for

failure analysis.

Our main role Is to fix it when it breaks / fails

Inaccurate or

no maint

downtime

records. Maint

costs not readily

available.

Centralised

maint with no

alignment to

production.

"Command and

Control"

approach.

Trades have their basic trades skills, however little or no technical or support training given

Ad-hoc records. No plant register or control of drawings.

If it ain't broke,

don't fix It."

Annual shutdown

and inspections

only.

Ad-hoc stores. No

costing or control of

spares.

No planning. Little

scheduling. Short

term focus.

All maint

work carried

out by in-

house

resources

No failure

records.

Excel lenc

e

Competenc

e Understandin

g Awarenes

s Innocenc

e

2013

Collaboration Tools – Dashboards for contract communication, document sharing and reporting

Contract Performance - Actions



Workshop Sponsor

Performance Calibration Tools 1. Develop tools that measure performance and allow you and your

teams to manage by fact.

2. Must be scalable, flexible, easy to use – for everyone.

3. Keep current, and relevant. Must have impact.

4. Make it policy that these tools are used and performance results are visible.

5. FM Performance approach allows us to measure – adapt – improve – demonstrate - repeat.

Supplier

Performance

Management Tools



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Key Performance Indicators (KPIs) 1. Lots of literature about these.

2. My view:

• They must matter to the client.

• They must be measurable.

• Describe the information being collected.

• Identifies who collects the information.

• Data is easy to collect – should not be a significant administrative burden.



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Number of legislative, health and safety,

and environmental breaches (not accidents)

Report by Contractor - self audit or

evidance provided by Client

No breaches - 100% of points available

1 breach - 200% of points deducted

>1 breaches - 500% of points deducted

Right first time: call back to all tasks by

Contractor not completed correctly first

time, including works and services.

Contractor self audit and report, Client

measures through job management systerm

and inspections.

100% right first time - 150% of points

available

99% right first time - 100% of points

available

97% right first time - nil points

<95% right first time - minus 50%

Payment claim made within time scales in

accordance with contract.

Date received on Contract Management

Tool, measured by Client.

On time - 100% of points available

Late with 10 day warning - 50% of

points

Late with no warning - minus 50% of

points available



Workshop Sponsor

KPIs as a Performance Tool 1. KPIs are often viewed by those being measured as a tool to penalise and that they can

only “achieve” or “fail”. 2. My view:

• Stimulate proactive behaviour. • Stimulate good management practices. • Reward for “better than minimum” performance. • Penalise for “below minimum” performance. • The over-achievement or under-achievement of a KPI matters to the client – make

sure the contractor understands this. • Review the KPIs periodically – ask if they are still relevant, is data available to

measure them, is the weighting/scoring mechanism balanced?



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0

1,000

2,000

3,000

4,000

5,000

6,000

Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13

Po

ints

Cumulative Target

Cumulative Actual

Managing &

Leveraging Suppliers:

Relationships



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Customers report realising

an average of 40% more

value from their most

collaborative

relationships with key

suppliers compared to

their least collaborative

relationships.

35%

14%

26%

14%

7%

4%

35%

14%

26%

14%

7%

4%Less than 10% more valueLess than 10% more value

10 - 25% more value10 - 25% more value




>100% more value>100% more value

Graph 1a



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Suppliers report

delivering an average of

49% more value to their

most collaborative key

customers compared to

their least collaborative

key customers

Less than 10% more valueLess than 10% more value





>100% more value>100% more value

33%

3%

41%

10%

10%

4%



Workshop Sponsor



Workshop Sponsor

Think & Discuss the Supplier Maturity Model within your groups. 1. Describe where your FM business unit sits in

this Continuum with your suppliers. Which suppliers do you collaborate with more than others – why?

2. Describe and list the value gained from your collaborative approach…



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Trust: Mapping causes and effects

More opportunities to create

value are identified

Espoused and

demonstrated

commitment to

fairness

Consistency of

behaviour

Espoused and

demonstrated

commitment to partner

success

Trust

Increased sharing

of information

Increased

investment

Working together is more productive

and efficient

Reduced time and effort spent on non-

value-adding compliance monitoring and

risk mitigation

More opportunities to create

value are pursued

Mutual understanding (of

goals, strategies, policies,

etc.)

Individual skills Corporate policies Business

processes

Management

systems (e.g.,

incentives)

Ele

me

nts

of T

rust

Enable

rs

of T

rust

Results o

f T

rust

More net value is realized

56

A FRAMEWORK OF LEVERS: TO CREATE VALUE

Joint business planning meetings

Quarterly business review

meetings

Strategic Opportunity Review

Process

Evaluate opportunities and decide which ones are worth pursuing;

ensure adequate resources

Identify opportunities to

create value

Execute on opportunities; ensure

effective inter-company project management

Measure and report on performance and value

delivered

Supplier challenge events

Relationship Managers

Joint Scorecard

SRM Dashboard

Find Decide Do Measure & Reward

Supplier Recognition

Program

Relationship Managers

Joint “ideation" sessions

“Top-to-top” executive meetings

Executive Sponsors



Workshop Sponsor



Workshop Sponsor

Our FM Guiding Performance Principles MUST: 1. Create a line of sight between the business strategy’s, goals and needs;

2. Codify into a simple ‘Plan on a Page’ (or similar) basic corporate performance framework even your FM team can understand;

3. Builds in agility, responsiveness and nimble deployment AND planning practices within the FM organisation; and

4. Ensures clarity of purpose for everyone [including your suppliers] and allows you, your staff and management to manage by fact.



Workshop Sponsor

Summary Articulating the FM value proposition, then delivering that value through a simple, robust

framework of FM performance collateral is essential to FM success.

Addressing the FM confusion and complexity through clear line of sight, guiding principles, enabling models and a relentless customer focus will bring you and your FM team much closer to an alignment between business needs and FM service delivery.

• Enduring principles and models also address the challenge of being simultaneously excellent doers and smart FM thinkers.

• By creating a model, based on guiding principles that marries a flexible structure to a cooperative, performance driven and customer centric culture, FM teams create and demonstrate relevance & value within their organisations and communities.