24 Sep 2019

5 KPI’s A FACILITIES MANAGER MUST TRACK AND WHY

Today’s Facilities Managers need to track all processes and operations to be certain they are making the best decisions that are based on accurate information.

As a Facilities Manager, you must be aware of the importance of tracking Facilities Management metrics at your workplace. These metrics provide in-depth data that reflects the performance of key assets in your organization. Key Performance indicators can be created for almost every process and event, but tracking the right KPI’s can mean the difference between knowing how to improve operations or becoming overwhelmed with data. To simplify the process, Facilities Managers should be tracking these top metrics because identifying the right metrics to measure will keep you from being overwhelmed and slowed down by unimportant data.

In our habit of supporting Facilities Managers, we spoke to Alpha Mead Group’s Head of Planning, Enterprise & Management System (PEMS), Ukeme Peters and he gave us 5 KPI’s a Facilities Manager should track;

  1. Critical Equipment Availability

Facilities Managers must have performance measurements in place to identify opportunities for continuous improvement. This measurement expresses the probability that an asset can perform its intended function satisfactorily when needed in a stated environment. Some of the things to measure are Water treatment plan (WTP), Sewage treatment plan (STP) and lifts, this is because they are very essential to the running of a facility, hence it is important they are tracked and always running. If they are neglected, it would cause extended periods of downtime, which reduces employee productivity. For example, if the STP isn’t measured and the sewage is left untreated, the company might have to be shut down for a day or two because untreated sewage poses a major risk to human health since it contains waterborne pathogens that can cause serious human illness.

Breakdown of equipments must be reduced to the barest minimum which means your Planned Preventive Maintenance (PPM) must be done at the appropriate time because that’s what guarantees proper function of available equipments. A Facilities condition assessment can also be run to know what equipments are functioning well and those that aren’t.

The availability of an asset will diminish over time as the equipment is being used and the availability will not improve unless changes are made to upgrade the asset

By tracking this KPI, you can have a positive environment in your workplace that supports employee productivity and happiness.

  1. Preventive Planned Maintenance (PPM) Compliance

Planned Preventive maintenance compliance (PPMC) is the percentage of preventive maintenance work orders that are executed within a schedule. It measures the percentage of preventive maintenance tasks (PMs) that have been completed on schedule in a specified time period. PPM compliance is a tool Facilities Managers use to track the effectiveness of their planned preventive maintenance program and the efficiency of their processes. PPMC, along with Scheduled Maintenance Critical Percent (SMCP), and Planned Maintenance Percentage (PMP) allows you to optimize maintenance schedules, use resources effectively, and ensure assets are as reliable as possible.

If this KPI isn’t tracked, the probability of reactive maintenance is very high because there will be increase in tool breakdown, this is more expensive and will take more time which is the exact opposite of the duties of a Facilities Manager.

  1. Requests closed within Service Level Agreement (SLA)

This refers to requests closed within the service level agreement (SLA), it breaks down all closed requests in a given time period by status (SLA Target Met and SLA Breached) and then by service type (Maintenance, Repair, Service Management, etc.).

The Facilities Manager has to track and report all closed requests, this provides a quick view of closed requests that meet the SLA target. When the percentage of the closed incidents that meet SLA target is low, the Facilities Manager needs to find out and analyse the weakest links of the process and define actions to improve the service delivery.

  1. Proactive repairs vs Reactive Repairs

This helps the Facilities Manager know whether they are proactive or reactive in their approach. Facilities Managers must track the percentage of planned versus reactive maintenance. In other words, this is a measure of scheduled maintenance compared to on-demand maintenance, for example, if the FM were proactive, the probability of having a sudden HVAC failure is very unlikely because preventive planned maintenance would have been carried out. Reactive repairs will lead to having more downtime and less employee productivity which in turn subtracts from the organization’s bottom line.

This ratio is calculated by dividing the amount of scheduled maintenance cost by the amount of on-demand maintenance costs. As the metric increases from zero, it reflects the average amount of facilities spend being used for reactive maintenance. If the result reaches a value of one, it means the existing reactionary maintenance is equal to scheduled maintenance. As the amount surpasses one, it means more reactive maintenance is required than what is currently scheduled, so Facilities Managers may need to re-evaluate maintenance schedules to help bring down the amount of reactive maintenance.

  1. Customer Satisfaction on Request

It’s not enough for Facilities Managers to close all their requests within the SLA, the customer has to be satisfied with work done. Tracking and measuring the satisfaction levels of customers is critical because poor levels of customer satisfaction will result in customer loss which will adversely affect brand image.

Customers who have great customer experience are 5 times more likely to become brand advocates and recommend the service to others. And people who have a great customer experience are 54% more likely to remain as customers.

It is essential for Facilities Managers to track this KPI because assessing the experiences of customers and promptly addressing issues will prevent loss of valuable clients.

 

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