Diamond Sponsors Platinum Sponsor Event Sponsors 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.
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Diamond Sponsors Platinum Sponsor Event Sponsors
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.
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
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]
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
Workshop Sponsor
Diamond Sponsors Platinum Sponsor Event Sponsors
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. 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.
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
Workshop Sponsor
Our Workshop Format
1. Why FM Matters: Reality & Relevance. [PAR]
2. Aligning organisational goals & objectives with FM Plans
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
Workshop Sponsor
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’!
New Zealand FM Summit 2012 Eden Park, Auckland 22 - 23 May 2012
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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.
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
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
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
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
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
Workshop Sponsor
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
Workshop Sponsor
The FM Business Plan collateral contains all the performance integrators – those documents and systems that link people & technology to
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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New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
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Alignment: [Spires’] Connect – Change – Support Model
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New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
Workshop Sponsor
Alignment
Collateral: RACI
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
Workshop Sponsor
Alignment Collateral:
PD
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
Workshop Sponsor
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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New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
Workshop Sponsor
Alignment Collateral:
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.
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
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
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
Workshop Sponsor
Alignment Collateral:
FMP Outline
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New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
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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.
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
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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New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
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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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New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
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Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
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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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New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
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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?
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
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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
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
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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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New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
Workshop Sponsor
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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New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
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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)
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
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
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
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
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
Workshop Sponsor
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.
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
Workshop Sponsor
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
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
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?
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
Workshop Sponsor
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
26 - 50% more value26 - 50% more value
51 - 75% more value51 - 75% more value
76 - 100% more value76 - 100% more value
>100% more value>100% more value
Graph 1a
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
Workshop Sponsor
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
10 - 25% more value10 - 25% more value
26 - 50% more value26 - 50% more value
51 - 75% more value51 - 75% more value
76 - 100% more value76 - 100% more value
>100% more value>100% more value
33%
3%
41%
10%
10%
4%
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
Workshop Sponsor
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
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…
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
Workshop Sponsor
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
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
Workshop Sponsor
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
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.
Diamond Sponsors Platinum Sponsor Event Sponsors
New Zealand FM Summit 2013 Eden Park, Auckland – 14 May 2013
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.