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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.
The NHS has adopted a performance measurement system that is based on the concept of balanced scorecard in order to obtain a broader view of performance within the organisation (Department of Health, 2001). Although, measuring performance evaluation of health care system could be difficult, it can on the other hand serve several purposes and can help facilitate change and improvements in the effectiveness and quality of health care. It seems peculiar to focus on performance measures in organisation such as NHS, but even NHS is facing increasing competitive pressures when considering ageing populations increasing demand, improved treatment...
At its most fundamental core, quality improvement of healthcare services and resources requires disciplined attention to the measurement, monitoring, and reporting of system performance (Drake, Harris, Watson, & Pohlner, 2011; Jones, 2010; Kennedy, Caselli, & Berry, 2011). Research points to performance measurement as a significant factor in enabling strategic planning processes and achievement of performance goals (Tapinos, Dyson & Meadows, 2005). Thus, without a system of measurement that accounts for the performance behaviors of healthcare professionals, managers and administrative employees, quality improvement remains a visionary abstraction (de Waal, 2004).
Metrics are very important in Operations Management within an organization because it provides functions such as control, reporting, communication, opportunities for improvement and expectations. It is a certifiable measure stated in either quantitative or qualitative terms types of measurements. In addition, metrics has different types of categories in the organizations. One of which is “Organizational Focus”, that have four different types of level within the organization or firm. 1. Organizational Metrics – this type of measure, capture and describe the performance of an organization (i.e.…market share and rate of return). 2. Product Metric – it measures cost per unit, contribution margin per unit, or growth in sales.
This book can be summed up in one sentence, "understanding the management techniques of sports facilities is imperative for anyone interested in pursuing a career in the sports facility arena."
Preview: This book provides a lengthy indoctrination of the what and why of performance management. This summary will cover both the pragmatic and practical pieces of the text; while excluding some of the specific instruction for those who oversee the overall orchestration of performance management in the workplace. The purpose of this paper is to allow its readers to grasp some main themes of performance management and develop a vocabulary for discussion and debate of the topic.
The perspectives can be measured by the Baldridge Criteria for Performance Excellence. According to the textbook, Managing for Quality and Performance Excellence; there are five types of measures:
One of the most important resources of any organization is its employees, the human resource. This makes it very important that these resources are properly managed; so that they thrive and grow along with the organization. People stream defines performance management as “A process for establishing a shared workforce understanding about what is to be achieved at an organizational level. It is about aligning the organizational objectives with the employees’ agreed skills, competency requirements, development plans and the delivery of results. The emphasis is on improvement, learning and development in order to achieve the overall business strategy and to create a high performance work force”. The performance management process involves various stages such as goal setting, skills development, performance measuring against the set goals, mentoring/coaching to enable employees to focus and achieve their goals followed by assessment of performance and any further development plans as required. Let us look at these steps one by one.
In the operations area we need to consider five aspects which will be critical to measure. These ‘performance indicators’ are:
Pitt, M., Fong, K. W., & Phua, C. T. (2001). Strategic optimisation of airport passenger terminal buildings. Facilities, 19(11/12). Retrieved from http://search.proquest.com.ezproxy1.apus.edu/docview/219635104
Establishing metrics is crucial to any organization, especially in technology related company projects. Metrics can be defined as a system of parameters or ways of quantitative and periodic assess of a process that is to be measured, along with procedures to carry out such measurement and the procedures for the interpretation of the assessment in the light of previous or comparable assessments. The results of the metrics can be used to record trends, efficiency, capital, and etcetera. Metrics permit organizations to measure its performance against industry sectors to determine how well the company is doing. Metrics allow organizations to optimize its productivity.
"Green Building: Advantages & Disadvantages." Green Building: Advantages & Disadvantages. N.p., n.d. Web. 12 Nov. 2013. .
These benefits are best discovered and maximized if used in conjunction with KPIs. A KPI is a key performance indicator and they allow a company to measure and manage ...
Business Excellence can be defined as “excellence in strategies, business practices, and stakeholder-related performance results that have been validated by assessments based on specific models proven to support the challenging journey towards excellence”. (Ionică et al 2010)
Some points should be change such as changing room stuff facilities zone where it shares with the bathroom, and allowing a cross contamination. In addition, the cash machine which is placed inside the kitchen should be out in somewhere. Even the dry food storage should be away from chilled and frozen food while they do not have other choice because of the building size, so be sure that foodstuffs not beside the refrigerator or freezer or any heat/warm sources that would effect their shelf life badly.
Performance Management is a critical component to organizational success. However, creating, developing, and maintaining a system that captures all the characteristics of an ideal performance management system should involve an ongoing collaboration between leadership and employees to achieve a successful outcome. After all, the performance and success of the organization is dependent upon the employees. Therefore, performance management should incorporate organizational goals, employee goals, and continuous feedback that reflect individual’s contribution (NorthCoast 99, 2012).