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LITERATURE REVIEW: STAGE 1 JIGAR CHAVDA

LITERATURE REVIEW Important Points and Understanding Stage 1

Thesis Topic: FACILITIES MANAGEMENT SERVICE QUALITY INDICATORS (Auditing Systems for

Commercial Buildings in the Indian Context)

JIGAR CHAVDA GUIDE: PROF. NIMITT KARIA

What is Facilities Management? FM is responsible for co-ordinating all efforts related to planning, designing and managing buildings

and their systems, equipment and furniture to enhance the organisation's ability to compete

successfully in a rapidly changing world (Becker, 1990)

FM unit is seldom aware of the overall corporate strategic planning, and does not have a bottom-line

emphasis (Nourse, 1990)

The practise of co-ordinating the physical workplace with the people and work of an organisation;

integrates the principles of business administration, architecture, and the behavioural and

engineering science (NHS Estates, 1996)

The scope of the discipline covers all aspects of property, space, environmental control, health and

safety, and support services (Alexander, 1999)

The practice of FM is concerned with the delivery of the enabling workplace environment ± the

optimum functional space that supports the business processes and human resources (Then, 1999)

Common interpretations of the FM remit: maintenance management; space management and

accommodation standards; project management for new-build and alterations; the general premises

management of the building stock; and the administration of associated support services (Hinks and

McNay, 1999)

A focus on the management and delivery of the business ``outputs'' of both these entities [the real

estate and construction industry]; namely the productive use of building assets as workplaces (Varcoe,

2000)

The primary function of FM is resource management, at strategic and operational levels of support. Generic types of resource management central to the FM function are the management of financial resources, physical resources, human resources, and the management of resources of information and knowledge (Nutt, 2000) ( Tay & Ooi , 2001)

Interpretation: From the Above quotes / definitions it can be said that Facilities management is a profession which cuts across various fields of the building industry but it is basically the integrated management of space where the soft and technical skills of a manager are the core competencies. From which the most appropriate definition can be given in the form of: “Facility management is a profession that encompasses multiple disciplines to ensure functionality of

the built environment by integrating people, place, process and technology” (International Facility

Management Association, 2014).


Need for FM Any facility is designed with the consideration of a certain life expectancy period. Once the project

turns into a facility, the operations and maintenance becomes vital, but often overlooked. Facilities

management focuses on this aspect; it negates the negatives. Since, these changes are not visible;

people do not realize the importance of this discipline. The formal practice of facilities management

is a new phenomenon and hence, subject to misunderstandings and speculations. However, it is a

discipline that has emerged out of practice. Facility management came into existence with the

integration of three key activities, namely:

Property management (real estate) –This includes strategic activities like designing, planning

and refurbishments.

Property operations and maintenance – This consists of operational activities like cleaning,

maintenance, mowing, etc.

Office administration- This focuses on tactical activities like catering, M&E, etc. (Kincaid, 1994)

Facilities management involves strategic planning that optimizes the value and costs of the facilities.

The environment that the facilities provide to the employees, processes and systems has a large

impact on productivity. Facilities management provides strategic direction and development or

guidance to achieve the desired results. Facilities management navigates the requirements and

mitigates the risks.

Facilities management, when executed well, reduces the burden on the resources of the facility.(Roll

& Hudson, 2014)

Benchmarking: "A standard by which a metric can be measured or judged." Thus, benchmarking is the determination

of benchmarks that are appropriate to a given situation in order to generate knowledge and

information to evaluate to the original metrics.(Iss, n.d.)

Benchmarks are goals to aim for. Other names for benchmarks include best practices and exemplary

practices. Businesses choose benchmarks based on standards within their industry. For instance, you

might look to peak performers in your industry and set their performance levels in areas such as

manufacturing or marketing as your benchmarks -- the levels you will strive to reach.

Key Performance Indicators: Key performance indicators are specific measurements used to gauge performance. They're a way to

precisely measure performance. Like benchmarks, performance indicators can be goals, but they're

more like steps on the way to the larger goal. You also can think of key performance indicators as a

way to measure your progress toward the benchmark goal and to gauge how close you are to reaching

that goal.

Interpretation: Benchmarks are best practices and KPIs are tools of evaluating a service / activity in order to progress

to the benchmark.


KPIs for FM: (IFMAs 9 Key Performance Indicators) (Róka-Madarász, 2010)

1. Description of Facilities

Industries represented

Facility use, Ownership

Hours of operation

No. of occupants

Location of facility

2. Sizes and uses of facilities

Gross area, Rentable area, Usable area

Square footage per occupant

Building efficiency rates

Workstation utilization rates

Office space per worker

Support area

3. Office space planning

Vacancy rates

Space allocation policies

Office type and size

4. Relocation and

Churn

Organizational moves

Cost of moves

Churn rate

5. Maintenance, Janitorial and

Indirect Costs

Maintenance costs

• By age of facility

• Percentage of replacement cost

• Repair vs. preventive maintenance

• Outsourcing of maintenance function

Janitorial costs, Indirect costs

6. Utility costs

Utility costs

Utility usage

7. Environmental and life

safety costs

Environmental costs

Life-safety costs

8. Support and Project costs

Security costs

Project costs

Space planning costs

Employee amenities costs

9. Financial Indicators

Replacement value of facility

Lease type and cost

Cost of operations

Cost of providing the fixed asset

Occupancy cost

Financial ratios

Total annual facility costs

Case Study: Pending DQI Paper

Identification of Stakeholders: Facilities Manager (Team)

Builder/Developer Team which includes architects, contractors, consultants etc..

Client/Owner

Staff/End User

Methodology: 1. Literature Review

2. Identification of Stakeholders

3. Preparation of questionnaire to understand the implications of the KPIs and Benchmarks


It will include objective and subjective data

Identify the key metrics for benchmarking

Conduct interviews with the stakeholders to gather more insights on qualitative data.

4. Conduct Surveys in the complexes identified

Shreeji Business Park

Shree Sharan Business Park

Rudra Business Park

Sumel Business Park (1-6)

Pushkar Business Park

Pinnacle Business Park

Parshwanath Business Park

Abhishree Business Park

Devashish Business Park

Advance Business Park

GCP Business Park

Mondeal Business Park

Aaryans Corporate Park

Safal Profitare

Abhishree Corporate Park

Magnet Corporate Park

* Surveys will include questionnaires and Interview Data

5. Data Analysis

6. Rating the Buildings Based on the surveys which will help the facility manager in

understanding the service quality and the satisfaction level of the end user, the builder

understand the efficiency of the workplace and the client in understanding where his/her

workplace is rated in terms of service delivery and space quality.

References

Tay , L., & Ooi , Joseph T.L. . (2001). Facilities management: a “Jack of all trades”? Facilities, 19, 357–363. doi:10.1108/EUM0000000005534

Iss, A. (n.d.). How To Guide : Benchmarking for Facility Professionals.

Róka-Madarász, L. (2010). Facility Management benchmarking. 8th International Conference on Management, Enterprise and Benchmarking, (Rics 2001), 171–181.

Roll, M., & Hudson, M. (2014). Facility Management Trend Report : Emerging Opportunities for Industry Leaders Facility Management Trend Report :

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