Key Performance Indicators In Facility Management

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Key Performance Indicators in Facilities Management
Contents Page no
1.0 Introduction 2
2.0 Key Performance Indicators 2
3.0 Building Performance Indicator (BPI) 4
4.0 Annual Maintenance Expenditure (AME) 7
5.0 Age coefficient 7
6.0 Conclusion 8
7.0 References 9

1.0 Introduction
Over the past two decades, the business sector has become increasingly competitive and with this increased competitiveness comes the drive for greater efficiencies in what are deemed non-core activities such as building maintenance (Lavy and Shohet 2010). This means that facility managers, who are responsible for all strategic decisions with respect to facility operations, are required to minimise operational costs by managing a building in an effective and efficient manner, whilst attaining a high standard of quality and performance (Cotts et al., 2009). One of the management techniques used to measure performance is the use of Key Performance Indicators (KPI’s) at all stages of a building’s life. This report critically discusses the different types of KPIs used in facility management, highlighting their advantages and disadvantages in the context of a non-residential building. The report starts with a definition of KPIs in the context of this report, which is followed by commonly used KPI’s with reference to a health care facility.

2.0 Key Performance Indicators
Facility management has evolved from dealing with building performance such as energy efficiency, fire safety and spatial efficiency to satisfying occupants’ expectations and demands. Modern facilities management aims to ,create productive and durable space with efficient internal environments (Shohet and Lavy 2004). According to the British In...

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...ensity Coefficient and the Building Performance Indicator. Other KPIs include Annual Maintenance Expenditure and the Maintenance Efficiency Indicator. It is suggested that the choice of KPIs depends on the type of facility; however some KPIs such as the Building Performance Indicator, the Age coefficient and the Annual Maintenance Expenditure could be applied to any building in any business sector.

It is further concluded that to maximise effectiveness, the KPIs should be agreed and addressed from the design of a facility to ensure life long adaptability and efficiency through the life of that facility. These performance indicators can be used to promote efficiency in the physical environment and in the quality of the service offered. This data is also useful in the strategic decision-making process that determines the long term business goals of an organisation.

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