LEAN METHODOLOGY
LEAN methodology was first introduced by Henry Ford, later expanded by Toyota, and subsequently adopted my many manufacturing and service sectors. An understanding of LEAN fundamentals and their application to O&M and overall Facilities Management will benefit Planning. Briefly, the LEAN methodology involves the consistent application of business processes and workflows in support of the following:
- Early and ongoing collaboration among all participants and stakeholders
- Focus upon client requirements and best value outcomes
- Clearly defined and documented roles, responsibilities, workflows
- Shared, performance-based risk/reward
- Decision support based upon current and actionable information
- Common terms, definitions, & data formats — Common data environment (CDE)
- Mutual trust and respect among participants
- Continuous improvement the O&M Plan and associated processes
Specific to O&M, LEAN practices help provide a framework to integrate and maximize the capabilities of available people, processes, information, and technology to address ongoing facilities requirements, as Figures 3 through 5 illustrate. Promoting awareness and education of LEAN O&M best management practices leads to improved outcomes.
Figure 3. LEAN Practices for Optimized Facilities O&M Overview
Figure 4. LEAN Practices Asset Competency Model
Figure 5. LEAN Considerations
MULTIPLE COMPETENCIES, BUSINESS PROCESSES, AND ACTIVITIES
Facilities O&M management spans multiple competencies (core skills), business processes (asset management practices/industries), and activities, such as the following (also, see Figure 6).
Competencies/Activities
- Strategic planning
- Cost estimating
- Procurement/bidding
- Construction
- Space planning
- Operations
- Maintenance
- Programming
Business Processes
- Capital planning and management
- Construction project delivery methodology
- Space management
- Operations & Maintenance
- Inventory and maintenance disposition management
Figure 6. Life-cycle Management
NOTE: The term “Big Data” has recently become popular to describe the multiple sources, formats, and uses of data that can be leveraged to monitor and improve organizational performance. The Construction Operations Building information exchange (COBie) has become one of the most widely known data formats. COBie is an information exchange specification for the life-cycle capture and delivery of information needed by facility managers. It can be viewed in design, construction, and maintenance software as well as in simple spreadsheets. Other data formats include MasterFormat, Uniformat, and Omniclass.
SUPPORTING TECHNOLOGY AND TOOLS
Technology and tools used to lower the cost of implementing and managing LEAN O&M best management practices (BPMs) include the following:
Technologies
- Application Software
- Building Automation Systems (BAS)
- Building Information Modeling (BIM) (Model & Management Systems)
- Capital Planning and Management Systems (CPMS)
- Computer-aided Facilities Management Systems (CAFM)
- Computerized Maintenance Management Systems (CMMS)
- Cost Estimating, Procurement, & Construction Project Delivery and Management Systems
- Geographical Information Systems (GIS)
- Integrated Workplace Management Systems (IWMS)
Tools
- Construction code databases
- Construction cost databases
- Industry specific glossaries
- Industry Standards (ISO, NIST)
- O&M Plan
- O&M Manuals
- Standardized data architectures (Cobie, Masterformat, Uniformat, Omniclass)
- Technical construction specifications
EDUCATION, TRAINING, AND SUPPORT SERVICES
Building the capabilities of internal and external O&M teams involves an ongoing commitment to education and training. From an educational standpoint, both traditional educational institutions and ongoing professional education are increasing their focus upon life-cycle management and the role of O&M.
The need for and level of training requirements, including training aids and O&M manuals, should be specified in the Plan. The type of training (introductory, advanced, certification), format (online/virtual, classroom, self-taught), and frequency is dependent upon each organization’s requirements, types of systems and equipment, and amount of work performed by in-house staff versus that to be outsourced. Support services may include outsourcing certain O&M requirements, independent and/or peer-based audits of O&M practices, and various consulting services.
METRICS/KEY PERFORMANCE INDICATORS (KPIS)
Ongoing performance measurement supports informed, information-based, decision making and helps to maximize the use of available resources.
From a generic perspective, an effective measurement system includes the following:
- Clearly defined, actionable, and measurable goals
- Key performance indicators that monitor the overall administration of O&M program, as well as individual projects / task orders, and all associated workflows, deliverables, and outcomes
- Established baselines enabling measurement of historical and current progress
- A basis of timely, accurate, repeatable, and verifiable information based upon standardized terms, definitions, and data architectures
- Applicable reporting and feedback systems to support continuous improvement of processes, practices, and outcomes
- Leading Indicators (forecast future trends inside and outside the organization) as well as lagging indicators
- Objective and unbiased information (not subject to manipulation) that is normalized (can be benchmarked against other organizations, departments, locations)
- Statistically reliable
- Unobtrusive (not disruptive of work or trust)
- Appropriate (measures the right things)
- Quantifiable
- Verifiable/auditable
The importance of performance measurement cannot be understated. It is a fundamental element of any successful O&M program.
O&M performance indicators include the following:
- Annualized Total Cost of Ownership (TCO) per building per gross area = Rate per square foot
- Annualized TCO per building/Current replacement value = Percent of Current Replacement Value (CRV)
- Annualized TCO per building/Net assignable square feet = Cost rate per net assignable square feet per building
- Annualized TCO per building/Non-assignable square feet = Cost rate per non-assignable square feet per building
- Annualized TCO per building/Building Interior square feet = Cost rate per interior square foot per building
- Churn Rate
- Utilization Rate
- AI (Adaptation Index) or PI (Programmatic Index) = PR (Program Requirements)/CRV (Current Replacement Value)
- Uptime or Downtime = Defined in percent, as amount of time asset is suitable for the program(s) served
- Facility Operating Gross Square Foot (GSF) Index (SAM Performance Indicator: APPA 2003)
- Custodial Costs per square foot
- Grounds Keeping Costs per square foot
- Energy Usage is expressed as a ratio of British Thermal Units (BTUs) for each Gross Square Foot (GSF) of facility, group of facilities, site or portfolio = BTUs / Gross Area GSF
- Utility Costs per square foot
- Waste Removal Costs per square foot
- Facility Operating Current Replacement Value (CRV) Index = Facility Operating CRV Index = Annual Facility Maintenance Operating Expenditures ($)/Current Replacement Value ($) (SAM Performance Indicator: APPA 2003)
- Facility Operating GSF Index = Annual Facility Maintenance Operating Expenditures ($)/Gross Area (GSF)
- Planned/Preventive Maintenance Costs per square foot
- Emergency Maintenance Costs as a percentage of Annual Operations Expenditures
- Unscheduled/Unplanned Maintenance Costs as a percentage of Annual Operations Expenditures
- Repair costs (man hours and materials) as a percentage of Annual Operations Expenditures
- FCI (Facility Condition Index) = DM (Deferred Maintenance) + CR (Capital Renewal)/CRV (Current Replacement Value)
- Recapitalization Rate, Reinvestment Rate
- Deferred Maintenance Backlog
- Facilities Deterioration Rate
- AI (Adaptive Index) or PI (Programmatic Index) = PR (Program Requirements)/CRV (Current Replacement Value)
- FQI (Facility Quality Index) or Quality Index or Index = FCI (Facility Condition Index)+ AI (Adaptive Index)
- Capital Renewal Index = Annual Capital Renewal and Renovation/Modernization Expenditure ($)/Current Replacement Value ($)EMERGING ISSUES
CHALLENGES AND OBSTACLES
While obtaining adequate O&M funding remains an elusive goal for many, the most significant challenge is change management. Facilities span the careers of individuals, and O&M management transcends generations. As a result, known future impacts may be postponed until “someone else’s watch.” Further, the impact of new strategies and processes can take years to show measurable improvements. Within a society that seeks instant gratification and financial payback periods sometimes measure in months versus years, the need for leadership and commitment of property owner management is paramount.
Additionally, the importance of facilities in the minds of senior management may not be fully appreciated, thus creating the need to better inform them of associated risks and benefits of various O&M strategies. Here, a somewhat pervasive focus upon first-costs versus life-cycle costs must be addressed and altered. Communicating the fact that an emergency repair will have ten times (10x) the cost of an appropriate maintenance operation, is an ongoing need, as well as providing cost multi-year cost impacts of alternative O&M strategies.
Historically, sharing information has been somewhat problematic for a variety of reasons, especially in areas involving costs and or techniques. This obstacle can result in higher costs and marginalized capabilities if not fully addressed. The level of collaboration and transparency required is a change in the way many organizations operate on a day to day business.