What is Value Leakage in Facilities Management & How Do You Stop It?

Facilities managers often face stark differences between the expectations of facility service providers and actual results. This is known as value leakage in facilities management, which can amount to 20 percent, if not more, of outsourced services, reports Newswire. However, value leakage is not inevitable, and your organization can take a few steps to help stop it.

Know Where You Stand With Value Leakage in Facilities Management

Stopping value leakage begins with a robust analysis of existing facilities management services providers or managing partners. Facilities managers should review their existing contracts for “fine print and hidden fees,” which may allude to higher rates for afterhours or emergency services.

For example, if you expect your current contracted rate to cover emergency services, it should be clearly defined within the service level agreement (SLA).

Value leakage may also include delayed repairs, poor-quality work, hidden fees or extra costs. These factors also increase the total cost ownership (TCO) of assets.

Optimize Your Work Order Schedule

Consider using a computerized maintenance management system (CMMS) to help manage work orders, but it should be much more than Excel on steroids. An effective CMMS will automatically prioritize and optimize work orders, as well as manage scheduled maintenance. This will reduce repeat work and costs incurred by field service technicians.

Use Analytics to Track Performance, Activities, Financial Data and More

Analytics tracks thousands of data points to determine the best way to manage your activities, including maintenance work orders. However, the key to successfully using data goes back to knowing which data to track. Your CMMS should track the right information, like response time, number of resolved work orders and percentage work orders from deferred maintenance. This establishes accountability, so if value leakage in facilities management begins, it can be identified and stopped. Therefore, field service techs have a vested interest in providing the best service and work possible.

Analytics also enables a review of financial benefits versus losses from outsourced facilities management services, including auditing of past invoices, identification of lost opportunities and more.

For example, if a technician arrives to fix one problem, items soon due for replacement or maintenance may be addressed during the same visit, thus, reducing costs to the field service vendor and downtime for your company.

Work With a Services Provider Experienced in Optimizing and Developing Hiring and Training Tools

Outsourcing is an effective way to reduce overhead costs and get a handle on your maintenance backlog. Yet, a services provider that does not verify licensure and skill among field service technicians will result in value leakage. Choose a facilities management services provider that proactively manages field service partners, which reduces the risk of repeat or poor-quality work. This also helps ensure adherence to optimum levels among metrics.

Work With QSI Facilities to Reduce Value Leakage in Facilities Management

There will always be parts of facilities management that need to take place in your back-office, like making day-to-day decisions, but effective facilities services partnership can help reduce risk and improve profitability, while simultaneously reducing your burden of work. Select a facilities management provider that actively works to reduce value leakage in facilities management. In fact, eliminate risk and uncertainty from the equation by contacting QSI Facilities online today.

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