Understanding your facilities management spend helps in unlocking your organization’s total cost ownership. Depending on the size of your facility, HVAC systems, lighting and other assets can cost thousands and, if left to deteriorate, the total cost of ownership of such systems will go unchecked. Further, a higher facilities management spend contributes to higher total cost ownership, but by focusing on effective control of a few of these key areas, you can alleviate the total cost of ownership.
1. Proactive Maintenance Enables Better Facilities Management Spend for Field Service Technicians
Field service technicians may charge a base visit rate, hourly rates, and premium charges depending on when you need their services. Unfortunately, waiting until the last minute to address maintenance needs, otherwise known as reactive maintenance, results in a higher facilities management spend for field service technicians. Extensive projects and long-term maintenance may involve hundreds of pages of documentation, resulting in difficulty in understanding field service technicians’ impact on overall facilities management spend. However, proactive maintenance reduces total cost of ownership by helping to prevent reactive maintenance.
2. General Maintenance Upkeep Improves Occupant Experiences, thus, Improves Profitability
Total Cost of ownership also depends on your organization’s total repeat customers. Poor maintenance like plumbing, inefficient lighting, and faulty door handles diminish customers’ chances of returning to your business. However, taking care of issues as they arise and preventing them from impacting occupant experiences will encourage customer and employee retention and improve profitability in your company, thereby, decreasing total cost of ownership.
3. High-Efficiency Systems Lead to Decreased Utility Cost of Ownership
Planned, preventative maintenance keeps your assets running at maximum efficiency. Although energy-efficient systems are the standard today, continued, scheduled maintenance is essential to maintaining energy ratings, explains Greg Zimmerman of FacilitiesNet. Failure to do so results in increased total cost ownership and growing facilities management spend. Thus, scheduled maintenance decreases the impact of utilities on your business’ total cost of ownership.
5. Effective Risk Management Contributes to Lower Facilities Management Spend
Facilities management spend includes costs relating to analyzing and mitigating risk. Moreover, effective risk management strategies reduce the likelihood of adverse events and damage to your assets; furthermore, ensuring proper upkeep of your facilities will effectively reduce total cost of ownership, says Janelle Penny of Buildings.com. This includes reduced total cost of ownership by preventing adverse events, which may result in savings on your company’s insurance premiums.
6. Consider Facilities Management Spend in Prioritizing & Reducing Deferred Maintenance
Deferred maintenance is one way of controlling facilities management spend, but deferred maintenance is a ticking time bomb. Eventually, it will go off and the cost to make repairs will skyrocket. Also, addressing your deferred maintenance backlog with a holistic approach will increase short-term facilities management spend, but you can maximize your total cost ownership in addressing deferred maintenance through proper prioritization and scheduling. In other words, tackling the problems most likely to have a larger impact will help reduce total cost ownership.
Remember Centralized, Integrated Platforms in Your CMMS Enable Maximum Control over Total Cost of Ownership
The best-laid plans for reducing total cost of ownership through control of facilities management spend will fail if visibility is lacking. Therefore, documentation for corrected and planned maintenance activities including work orders with your vendors should be contained within your computerized maintenance management system (CMMS), utilizing key performance indicators and metrics to keep your team on track, as explained by Bruce Wesner of FacilitiesNet. This added level of visibility provides one-stop control over facility management spend and insight into your total cost of ownership.