Facility management is about much more than managing buildings, infrastructure, and services—it is critical to the successful functioning of every organization, according to a recent IFMA report on strategic decision making.
Asset optimization is all about making strategic improvements to the effectiveness of your overall asset management methodology by providing more holistic adjustments.
But first, a few key terms:
Asset is an item of value owned.
Optimization is the process or methodology for making something as functional or effective as possible.
Creating value with asset management optimization must go beyond simple cost reduction strategies. According to a recent article in Building Operating Magazine, "increases in productivity offer an opportunity to boost long-term profitability in a way that the most aggressive cost-cutting can’t match."
Here we drill down into the top 6 ways that asset management optimiztion will create value at your organization.
1. Strategic Management
Do the right work at the right time to deliver the right level of service.
2. More than Maintenance
Asset management requires leadership to drive change and implement controls through a management system across the organization
3. Improves ROI
Asset management delivers value by contributing to the bottom line – a 30% efficiency savings is typical.
4. Value for your Customers
Better managed assets have less faults and failures, resulting in improved performance.
5. Organizational Objectives
Better managed assets result in a safer built environment and reductions in environmental impact.
6. The Digital Difference
Better managed information and data analysis can save at least 5% for an organization's total expenditures.
In conclusion, when considering value in asset management it is essential that organizations "evaluate the balance between cost, risk and performance, thereby allowing better-informed decisions," according to a resent study by the Institute of Civil Engineers.
The discipline of Facility Management is about more than managing property assets, it is crucial to achieving maximum value from workplace and environmental benefits that improve productivity and protect employees and consumers.
Therefore it is absolutely essential to move beyond cost-cutting strategies and to implement a holistic asset management optimization methodology in order to truly create long-term value at your organization.
Ready to learn more?
Research and Resources
CGI Whitepaper, "The Value of Optimization in Asset Management," https://www.cgi.com/sites/default/files/white-papers/cgi-the-value-optimization-asset-management-wp.pdf.
Gager, Andrew, "Implementing a Successful Asset Management Program," Facility Maintenance Decisions, https://www.facilitiesnet.com/maintenanceoperations/article/Implementing-a-Successful-Asset-Management-Program--17614.
IFMA’s Knowledge Library, "The Strategic FM Framework," https://www.ifma.org/news/what's-new-at-ifma/what's-new-at-ifma-details/2018/04/19/new-fm-framework-provides-best-practice-on-strategic-decision-making.
Parlikad, Ajith Kumar and Rengarajan Srinivasan, "An approach to value-based infrastructure asset management," Institute of Civil Engineers, https://www.repository.cam.ac.uk/bitstream/handle/1810/265053/jinam.17.00003.pdf?sequence=1&isAllowed=y.
Sullivan, Ed, "Adding Value," Building Operating Magazine, https://www.facilitiesnet.com/facilitiesmanagement/article/Adding-Value-Facilities-Management-Facilities-Management-Feature--2738.