Review of FM and asset management
Redesigning Facilities Management and Asset Management Operating Models for Better Practice Alignment
Grosvenor partnered with a hybrid property portfolio owner managing aged care, childcare and office assets to review and redesign its facilities management and asset management operating model. They evaluated in-house and outsourced options and benchmarked against better practice. As a result, they recommended a future-state model that improved maintenance efficiency, reduced costs and enabled a stronger focus on long-term asset management outcomes.
Situation
The Client has a hybrid model for management of its property portfolio comprising aged care, childcare and office buildings. Preventative maintenance was outsourced. Reactive maintenance was delivered by a large team of largely onsite staff who also delivered porterage tasks (such as running errands).
The model was not delivering outcomes, and created a focus for management on reactive elements. There was a lack of focus on long-term asset management. The impending expiry of the outsourced preventative maintenance contract was seen as an opportunity to undertake a thorough review of the FM and asset management function. In addition, it was a chance to seek greater alignment with better practice and future needs. The current maintenance management system was also now a legacy system and did not have required functionality including asset management capabilities.
Task
Grosvenor were engage to review the Facilities Management and Asset Management functions.
Approach
Grosvenor interviewed stakeholders and compared current arrangements to better practice. We benchmarked costs and resources. Grosvenor determined a complete list of options for the future state model to address all the current issues. This would bridge the gap with better practice. The options considered and analysed included:
- In-sourcing preventative maintenance to have all maintenance managed inhouse
- Outsourcing all maintenance to an FM provider (or providers)
- Shifting onsite maintenance officers who conduct significant porterage tasks to the control of the local facility
- Purchasing a new comprehensive maintenance management system (CMMS) vs including this requirement in an outsourced FM contract
Results
In partnership with the project team, and the Client Executive and Board, a decision was made to outsource the FM including the provision of a CMMS. The benefits of this were expected to include:
- Alignment of preventative and reactive maintenance activities
- Significant savings
- An increased ability for internal management to focus on longer term asset management outcomes, with far fewer staff to manage
- The ability to implement a new CMMS at negligible cost.
The onsite maintenance officers who performed a significant proportion of porterage tasks were also to be shifted to supervision by the local facility. They would still perform non-trade qualified reactive maintenance tasks to reduce maintenance call out charges and maintain current levels of responsiveness. Furthermore, they would continue to act as the eyes and ears of the FM function on the ground supervising onsite trades and lodging qualified trades maintenance requests.
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Start a conversation with Peter Macfarlane, Property Lead