Tracking the right enterprise facilities management KPIs is essential to understanding asset performance from a people and building perspective. Moreover, tracking the right KPIs goes a long way in identifying trends and deriving more value from facilities. As further explained by McKinsey & Company, “When facing ongoing pressure to reduce operating costs, companies tend to look for savings without giving much thought to the long-term repercussions. This dynamic makes facilities management a particularly ripe target. During challenging economic times, companies trim facilities management budgets; once the outlook rebounds, spending levels often remain low. This pattern can lead to deteriorating conditions of buildings and equipment, potentially costing more in the long run.”
To achieve those goals, facilities managers need to start tracking these top KPIs.
Work Order Closure Rate
Tracking the percentage of the number of open versus closed work orders provides an insight into enterprise facilities management. The ideal goal is a 100% closure rate. However, budget constraints and limited resources may result in extenuating circumstances that lead to a less-than-ideal work order closure rate.
The next most important enterprise facilities management KPI to track is the average downtime across all assets. This KPI is calculated by taking the total downtime for a given asset and dividing it by the total run time for that asset. The key to making this metric viable lies in setting a duration for which the downtime is averaged.
For example, the downtime average across a week, month, and year will vary. Regardless, the downtime average should be kept as close to zero as possible.
The productivity percentage is another KPI that involves both people and systems. It is a measure of the reward or benefit derived from performing a certain maintenance need versus its total costs.
For example, a 100% productivity for labor productivity on replacing an HVAC unit coil would indicate that the repair was completed in less time than expected and within a single visit. Obviously, calculating this enterprise facilities management KPI means knowing the standard completion times for certain maintenance activities.
Percent of Reactive Maintenance to Total Maintenance
Measuring the volume of reactive maintenance to the total maintenance helps to generate an understanding of the overall condition of facility assets. Facility managers can calculate the percentage by taking the total costs of reactive maintenance and dividing them by the total maintenance costs. The result is multiplied by 100 to attain a percentage that indicates how much maintenance is going into preventive maintenance versus reactive maintenance.
Backlog Work Order Total
Tracking enterprise facilities management KPIs also includes a running total of the number of work orders that are on the existing backlog. These are often items that have been regaled to deferred maintenance or are otherwise scheduled for completion at a future date.
Facilities managers should further track budget adherence. This metric is relatively simple and involves the total facilities spend for a given duration divided by the total budget for that reporting period. While a 100% budget adherence KPI sounds great, it is important to remember that attaining 100% means using the full volume of resources for that reporting period. Therefore, it is best to keep this metric lower wherever possible.
Reactive Response Time
The reactive response time is a measure of the amount of time that passes between identifying a maintenance need and the beginning stages of addressing it. Depending on preference, facility managers have a few ways to track response time. It all depends on what defines the response itself.
For example, reactive response time may simply refer to the amount of time that passes between submitting a work order and the moment when a field service vendor schedules a repair. Alternatively, this metric can be further defined as the time to resolution between the initial identification of a problem and its completion. In that case, it becomes another KPI known as time to resolution. However, the differences in preference mean realizing both can describe the same thing is essential.
Start Tracking the Right Enterprise Facilities Management KPIs with an Integrated Facilities Services Partner
Enterprise facilities management continues to undergo pressure to do more with less and generate opportunities to reduce the total cost of ownership for facilities. By tracking the right enterprise KPIs, facility managers can achieve these goals. Of course, an added distinctive layer exists for organizations that leverage integrated facility services and work with a dedicated partner to streamline management and everything it entails.