Sustainable in asset management

SUSTAINABILITY IN ASSET MANAGEMENT:

The Practical Approach

Presenter: A.I.Che-Ani

Team : W.H.W.Badaruzzaman T.Z.T.MahmoodM.S.I.Syahrial

UKM Perunding Kejuruteraan dan Arkitek Sdn. Bhd.

WHAT IS SUSTAINABLE ASSET MANAGEMENT?

Manage asset in sustainable way means reuse, recycle, maintain, fixing, avoid waste, upgrade so that maintenance can be optimize while minimizing their impact on environment.

In short, the paradigm of “cradle to the grave”

Among the purpose:a. to reduce maintenance cost and improve serviceb. minimize impact on environment

Asset refers:c. Aset Alihd. Aset Tak Alihe. Aset Hidupf. Harta Intelek

The government

hope via TAMTAM model for infrastructure/ building assets

PENGURUSAN

PERMIN

TAAN

PENGURUSAN NILAI & RISIKO

PENGURUSAN

SUMBER M

ANUSIA

PE

NG

UR

US

AN

KE

WA

NG

AN

PENGURUSAN

DATA

PE

NG

UR

US

AN

PR

ES

TAS

IFAEDAH

ASET YANGOPTIMUM

PERMINTAAN

KOMUNITI

PERMIN

TAAN

KOMUNIT

I

PERMIN

TAAN

KOMUNIT

I

PERMINTAAN

KOMUNITI

PELUPUSAN

PERANCANGAN

PERANCANGAN

REKA BENTUK

PEROLEHAN

PEMBINAAN

PENTAULIAHAN

PENERIMAAN

OPERASI&

SENGGARA

PENILAIAN

PEMULIHAN&

NAIK TARAF

PELUPUSAN

PENGGUNAAN ASET

PE

WU

JU

DA

N A

SE

T

HOW?

BUSSINESS PROCESS

HUMAN

SYSTEM(IT MECHANISM)

Architectural Engineering Construction Operation

Asset life cycle

Building Performance Evaluation

Effectiveness review

Program review

Design review

Commissioning

Post - occupancy evaluation

Market/need analysis

Building Performance

Criteria

Feed forward into next building

cycle

Planning Programming

Recycle

Post occupancy evaluation

construction

Design

Building Performance Evaluation

CONSTRUCTION OPERATIONS

BUILDING INFORMATION EXCHANGE (COBIE): a FOUNDATION for

sustainable facilities

HOW

BUSSINESS PROCESSHUMAN


Problem Building Documentation Is Fragmented Construction Operations & Maintenance submittals in unorganized, usable format

Results1. Data quickly lost2. Poor preventive maintenance3. More costly repairs4. Warranties not maintained or lost

Adverse impact on mission of the building occupant

HOW



COBIE/ BIM FOR LIFE LIFE- CYCLE INFORMATION MANAGEMENT

HOW



CRITICAL DATA LOST IN BUILDING PROCESS

1. Decisions made as ideas & parts are

transformed into designs & buildings are not captured

2. Translation of information for downstream use looses much of what is known during the previous phase

HOW



COBIE GOALS

1. capture product, equipment, system, and warranty data as created during construction

2. transfer to maintainer’s, operator’s, and asset manager’s systems.

3. produce format and specification4. demonstrate software for captured

during construction and exchange with commercial software

HOW



WHAT COBIE DOES . . .

1. gather information during construction submittal

2. define min. required information submittals to verify performance

3. direct import to CMMS’s4. integration with building space model

existing contract exchange

points

Transfer informationnot e-paper

HOW



MEASURING COBIE RESULTS . . .

• costs less to create & manage than current paper/e- paper methods

• easy & authorized access to capture, use, and review information

• information captured as work is being accomplished

• acceptable to all tiers of contractors, suppliers, subs, etc..

• requirements are clearly identified in specifications

• use existing legal framework (i.e. deliverables/contracts)

• demonstrate framework for exchange/retrieval

• import of data included in commercial systems

• import users all data provided

HOW



PREVAILING BUSINESS CASE – The Nature of The Business Space

Every Business Begins With An Investment in Assets or Infrastructure. Example as Follows :

# Nature Of Business Infrastructure Primary Returns Secondary Returns

1 Healthcare Hospitals Medical Fees and other fees related to Healthcare

The Value of the Healthcare company

2 Education Schools, Universities Student fees , Boarding Fees etc..

The Value of the Company, appreciated value of the assets

3 Properties Accommodations, Office space and surrounding support infrastructures

Rental and Service Fees Appreciated value over time, out-right sales of the properties

4 Government Infrastructures Al types of government offices, living quarters, parks and utilities

Services rendered to citizens from taxes, quit rents, assessments etc..

Via extended useful life of the assets

5 Manufacturing Plants and machineries Goods produced from plants and machineries

The Value of the assets based on the efficient use of the plants and machineries

6 Other Types Of Businesses. Eg Telecommunications, Utilities and others

General Assets, specialized equipments and mobile infrastructures / assets

Services rendered to customers Extended value of the company based on ability to sustain services rendered

7 Passive Property Investment

Properties Rental Yield Incremental Value

PREVAILING BUSINESS CASE – The Keyword is Building Infrastructures All development starts with development and construction involving an investor and builders. Other parties, mainly be, supporting professionals and authorities.

The Property(s)

Inve

stm

ent

Val

ueD

evel

opm

ent

Sta

ges

PlanningApproval

Authorities

Construction

Contractors

CAPITAL EXPENDITURE

COMPLETION

Architects

Authorities

Civil Engineers

M & E Engineers

EquipmentsNon Mechanical Assets

Suppliers and Installers

PREVAILING BUSINESS CASE – Investment Ready for Stream Of ReturnsOnce construction completes, revenue stream will start , but with it also operational cost which is divided into two main categories, fixed and variable. Where variable is total cost to maintain the developed properties

Ret

urn

Str

eam

Ope

ratio

n C

ost

Revenue Generated From The Assets

Cost Incurred To Operate The Assets

Fixed Cost

Variable Cost

Minor RepairsUsage Issue

VandalismEquipment Faults

Breakdowns

REVENUE

(COST)

Net Revenue

PREVAILING BUSINESS CASE – Combining Investment Development and Stream Of ReturnsWhen both stages combined the issues became noticeable.

CostRelated To Upkeep Of The Property(s)

Investment Cost Investment Returns

Ensuring Sustainable Return

Monitor Investment Expenditure

Monitor Project Cost

The issue:Cost Of Maintenance

HOW



HOW



http://heliconia.wordpress.com/2007/05/24/hari-tukang-cuci-semalaysia-they-r-all-over-the-frontpages/cleaners-dayjpg/

http://heliconia.wordpress.com/2007/05/24/hari-tukang-cuci-semalaysia-they-r-all-over-the-frontpages/jlndutacourt1jpg/

Example Of Maintenance Management Failure…The Star 28th April 2009

HOW



HOW



It wasn’t hit by the massive earthquake. In true fashion of the Ripley Legacy, it was built to reflect the odd 1812

earthquake that measured 8.0 on the rick. The building has now become one of the most photographed in the world.

PREVAILING BUSINESS CASE R

etur

n S

trea

mO

pera

tion

Cos

t Simple RepairMajor Failure

Major ReplacementEquipment Failure

Other types of damages

THE BEST WAY TO HANDLE THIS ISSUE IS TO PLAN MAINTENANCE MANAGEMENT EARLY BY WAY OF

THE RIGHT STRATEGY USING CMMS AS THE TOOL.

WHICH IS WHAT WE DO ….COMPUTERIZED

MAINTENANCE MANAGEMENT SOLUTION

(CMMS)

HOW



PREVAILING BUSINESS CASE – The result in having a good CMMS would simply be managed cost, keeping customer satisfaction level high hence sustainable revenue with extended life cycle of asset…This is something investor willing to pay for.

Ret

urn

Str

eam

Ope

ratio

n C

ost

Customer Satisfaction level high

Better cost control through good CMMS solution

1. Translate to reduce and manageable maintenance cost

2. Better profit margin 3. Sustained to incremental

asset value

1. Deployment of appropriate corrective maintenance

2. Well planned preventive maintenance

3. Accurate predictive maintenance

HOW

THE BENEFIT

HOW



Human aspect in implementing the idea (with reflect to malaysian

construction industry)

Core business/services Professional service provider (based from programme outcome outlined by MQA)

a. Building designb. Engineering/Structure/Infra.c. Cost and contract admin.d. Valuation and estate agente. Town and regional planningf. Lanscapeg. Land surveyh. Interior designi. Building control/performance

ARCHITECTENGINEERQUANTITY SURVEYORVALUATION SURVEYORTOWN PLANNERLANDSCAPE ARCHITECTLAND SURVEYORINTERIOR ARCHITECTUREBUILDING SURVEYOR

HOW



One man show....does it really work??

Sustainable asset management...who’s who

Core business/services Professional service provider (based from programme outcome outlined by MQA)

a. Building designb. Engineering/Structure/Infra.c. Cost and contract admin.d. Valuation and estate agente. Town and regional planningf. Lanscapeg. Land surveyh. Interior designi. Building control/performance

ARCHITECTENGINEERQUANTITY SURVEYORVALUATION SURVEYORTOWN PLANNERLANDSCAPE ARCHITECTLAND SURVEYORINTERIOR ARCHITECTUREBUILDING SURVEYOR

HOW



- ALL OF US -

CASE STUDY: UKM SOLUTIONMaintenance Approach of UKM

Reactive Maintenance“Run it until it breaks”

Preventive Maintenance“Scheduled or planned maintenance”

Predictive Maintenance “Strives to detect failures before they occur with testing”

Reliability Centered Maintenance “Based on assessment of condition and serviced in context to operating requirements”

HOW



To strive maintenance management towards excellence through Best Practices

The move in practice can only be realized with a very experience embedded system (in this case we are using WebTMA)


Some Key Benefits And Advantages Are As Follows :

Extend the Useful Life of Assets. • Reduced assets/facilities/equipment down time through

improved scheduling.• Improved reliability through better tracking and repair of

failures.• Allows staff to be proactive through automatically

generated preventive maintenance.

Efficiency in Inventory. • Reduce inventories needs 15% to 20%.• Reduced inventory costs through better tracking and

restocking process.• Control of material ordering reduces stock costs.


Preventive Maintenance.• Extend the useful life of equipment.• Keep maintenance jobs to a minimum number.• Increase reliability of equipment and systems.• Provide adequate justification to regulatory agencies.

Benchmarking / KPI / KRA• Increase management feasibility through benchmarking

and KPI (Key Performance Index).• Better understanding though KRA (Key Area Analysis)

and pin-point of areas need for improvement.• Preparation of budgeting and cost projection for yearly

actual budgeting projection.


Some Key Benefits And Advantages Are As Follows :

Prevailing Elements From Keywords Translated To Ideas In Generating Value Proposition

KEYWORDS ELEMENTS

HELP AND FACILITATE

AWARENESS

CHALLENGES AND SUSTAINABILITY

STANDARD AND PERFORMANCE

Facility management practice in Malaysia is still in developing stage if not infant. Facilitating best practices are very much needed to ensure a proper practices in place.

To ensure a progressive and systematic facilitation, awareness creation must be put in place in full and categorically.

Years of practicing traditional method in managing assets still prevails until unexpected incidences occurred. Forging ahead in countering challenges and sustain stability will require a mind-set change backed by best practices

Standard and performance will facilitate sustainability of best practices.

IDEAS

Knowledge database of experience in managing facilities based on business best practices based on others’ experiences.

Provide consultancy services on facility management

Provide option on ways to counter issues to manage and contain challenges and to sustain them thereafter.

Assured Solution to maintain standard and performance


Assuming Facility Manager Request For Maintenance or Services From Maintenance and Services Contractor(s)

Facility Manager

Buy Side

Maintenance Contractor

The Request requires the maintenance contractor to procure parts and labour with certain level of expertise Of which they do not have

• The Contractor will need to procure parts and material

• The contractor need to engage a specific labour

Parts Supplier Supply

Special Labour Engaged

Performance Of Work

Completion Of Work And Delivery

Delivery Of Work – May Necessary On Time at The Most Optimal Cost Why ?• The Maintenance Contractor may just go for one parts supplier – Issue on the best price

• Labour will hike the price as due to speciality requirement

• Time is of essence – urgency will naturally hike the price

Urgent Demand

Based Price

Specialty Based Fees

Time Factor

Demand and Time = Money


Painting The Picture Clearer – Typical Current Practice

Assuming Facility Manager Request For Maintenance or Services From Maintenance and Services Contractor(s)

Parts Suppliers

Assets Supplier

Vendors

Education Outfit

Technician and Engineers

Maintenance Contractors Register their

Value Services in the Portal and access the portal via system download

Provide Price List ,

Task Listing ,

Capabilities,

Locations

Certifications

Etc..

Facility Management

Portal

Knowledge

Best Practice

Business Process

System and Solution

UKM

Register as user by subscribing to the portal and access via system

download

System Download

Department ofDevelopment

Management (JPP)

Select the Best Maintenance Contractor For The JobFrom The Portal


Painting The Picture Clearer – Portal Based Idea

Awareness Utilize Capitalize

Set-up FM Portal filled with Knowledge Enrichment and Best

Practice. Get stakeholders to participate

• Promotion• Members Recruitment• Trial Stage• Put Action To Test• Online Articles Begin to execute transactions.

Members actively participate in the value chain

Shall Begin to realize the full benefit Ability to fully practice FM best

practices and perhaps able to market services out of the UKM

Practices based on actual Data

UKM is now here


Future Prospect Roadmap

…and to leapfrog

Thank you very [email protected]

mailto:[email protected]

Sustainable in asset management

Real Estate

Transcript of Sustainable in asset management