Investments in Federal Facilities Asset Management Strategies for the 21st Century (2004) / Chapter Skim
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2 Facilities Asset Management
2 Facilities Asset Management
Pages 30-43
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From page 30... ...
. Tasks and Processes and Resource Functions Competencies Management Property Information Property/Estate Management Property Portfolio Repairs and Maintenance Management Asset Management Site Selection, Acquisition Strategic Facilities Planning Facilities Management Guidelines Construction and Handover Corporate Real Estate Workplace Strategies Inventory Control and Management Purchasing Long-term Asset Management Lease Management and Disposal Support Services Management Refurbishment and Refit Optimizing Utilization of Business Resources Tactical Concerns Strategic Concerns FIGURE 2.1 The evolving focus of facilities asset management.
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From page 31... ...
. As noted by corporate real estate expert Martha O'Mara, the organizational emphasis of corporate real estate is shifting from a functional project management approach based on how buildings are delivered to one which aligns with the structure of the company and the way work is conducted.
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This is a significant shift from past practice, whereby facilities-related decisions were often made after the organization's strategic direction had been set. Using a facilities asset management approach allows organizations to forge a direct link between organizational goals, facilities investment decisions, and day-to-day operations (Figure 2.4)
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From page 33... ...
Agency Policies · Alternative strategies and life-cycle analyses · Priorities, programs, schedules PROJECT/SECTION LEVEL Standards and · Data (materials, properties, demand, DATA unit costs, etc.) Specifications BASE · Detailed design Budget Limit · Construction Environmental · Maintenance Constraints ONGOING, IN-SERVICE MONITORING AND EVALUATION FIGURE 2.3 Components of a facilities asset management system.
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From page 34... ...
The literature on facilities asset management identifies several components needed to ensure that investment decisions are aligned with the mission and goals of an organization: · Accurate data for the entire facilities portfolio, not just individual buildings, to enable life-cycle decision making. · Models for predicting the future condition and performance obtainable from these facilities as a portfolio.
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Engineering and Economic Decision Support Tools Engineering-economic ranking and optimization methods can help decision makers to evaluate trade-offs among different investment approaches. Ranking 1The BUILDER system developed by the Construction Engineering Research Laboratories of the U.S.
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From page 36... ...
Continuous Feedback One of the objectives of implementing a facilities asset management approach is to ensure the alignment of an organization's portfolio of facilities with its mission and operating objectives. Continuous feedback is required to monitor the operating condition of facilities that directly support and impact organizational mission; to identify facilities that are no longer needed due to changing requirements; and to identify facilities that are obsolete technologically or otherwise.
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FACILITIES ASSET MANAGERS The usefulness of a facilities asset management system is closely tied to the extent to which an asset management culture has permeated the organization, the quality of data on the asset portfolio, the linkage between the asset management goals and organizational mission, and the skill level of the people involved in the management system. Implementing a facilities asset management approach also requires that facilities staff at headquarters and in the field have the appropriate background and training to provide strategic information and to make recommendations to senior managers.
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For these reasons, most organizations adopting a facilities asset management approach must have staff who are able to use new methods of analysis, who understand financial concepts and management, and who can communicate ef TABLE 2.1 Skills Required by Facilities Asset Managers Category Skill Business Writing and managing contracts Negotiation Managing budgets and schedules Communication Coordination/liaison Conflict management Cultivate broad network of relationships Influence Mentoring Motivating Change management Managerial Team building Delegating Politically aware/see big picture Problem solving Continually analyze options/innovation Planning Consider all sides of issues, risk management Technical Understand entire construction process Multidisciplined (knowledge of several areas of engineering) Information technology skills SOURCE: CCIS, 1999.
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From page 39... ...
needs into FM requirements For major decisions, use life-cycle costing and to show how FM achievements fit business needs Implement a regular program to communicate these metrics and your success to management Make your annual budget your principal facility and to your customers management information tool Understand depreciation and its effects on your Sign favorable leases and get control of your budgets leases Expect to invest in business technologies In your practice and in your communications, stress the importance and benefits of good Understand the importance of being able to facility management project and work to a budget and a schedule Be able to use capital budget evaluation tools Understand ratio analysis Actively manage your real estate portfolio Be able to administer chargebacks and allocations Be capable of making lease-versus-buy decisions Reduce churn SOURCE: D Cotts and E.P.
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EXAMPLES OF FACILITIES ASSET MANAGEMENT SYSTEMS Included below are two examples of facilities asset management systems in use. The study committee did not evaluate their effectiveness, and their inclusion should not be viewed as an endorsement.
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If requirements exceed the annual fund limit, then those funds come out of the bank. A second example of a facilities asset management system is being implemented at the University of North Carolina (UNC)
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From page 42... ...
and also goes beyond it. The FCSP identifies only the work required to bring a facility back to its original condition, as well as to correct life safety code deficiencies, while the recently developed Facility Condition and Quality Index (FCQI)
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From page 43... ...
and the timing of investments on the overall goals for facility provision; and short- and longterm feedback procedures. Implementation of a facilities asset management approach requires facilities and infrastructure managers with the technical expertise found in traditional facilities management organizations (e.g., engineering, architecture, mechanical, electrical, contracting)
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