How Can I Effectively Target Capital Spend in Facilities Management?

January 22, 2018 James Walton

Real-time Visibility and Tracking Are Essential to Target Capital Spend in Facilities Management.

Targeting capital spend in facilities management is a common goal of the C-Suite and Facility Managers, but figuring out how to accomplish this goal is still challenging. How do Facilities Managers know what is spent, what its perpetual costs look like, and why capital spend on proactive maintenance is less than reactive maintenance? The answers to these costs lie in increasing visibility across a distributed portfolio and tracking asset and facility performance in the following key ways.

  1. Track Operating Costs to Target Capital Spend in Facilities Management

Facilities managers should use a centralized platform to track and monitor operating costs, explains Centralized management means all costs are considered when determining capital spend in facilities management, and reports help keep stakeholders informed of what is saving money and what is costing money.

  1. Deploy Sensors to Monitor Asset Performance

Next, Facilities Managers should deploy sensors throughout the facility to track and measure asset performance. Retrofitting outdated systems, like HVAC units, thermostats, and even security systems can drill down into line-item costs that stakeholders can see. As a result, they are more likely to receive approval for increased budgets that will eventually have dramatic cost savings.

  1. Implement a Data-Based Asset Management Playbook

Using data collected from sensors and connected devices, Facilities Managers can create an asset management playbook. The playbook defines when a given asset, like an HVAC unit, should be repaired or replaced when something goes wrong. Also, it details warranty information, serial numbers and OEM parts frequently ordered parts to help determine the capital spend for each item. As equipment ages, the playbook should be updated to reflect changes on when it should be replaced.

New Call-to-action

  1. Monitor Field Service Technician Activities and Performance

Requesting a service technician to make repairs might be complicated to check, but today’s systems and equipment can track exactly what technicians do in performing maintenance. This eliminates cases of fraudulent repairs and ensures your company only pays for services rendered.

  1. Use Analytics to Increase Value Across Your Distributed Portfolio

Analytics leverage the power of the internet and cloud-processing capability to derive cost savings from small changes in operations. Although line-item costs may decrease by fractions of a penny, savings may add up to hundreds of thousands of dollars over the course of a year and across your enterprise. 

  1. Leverage Managed Services to Keep Systems Using the Latest Technology

Even the most advanced of facility management teams have a slight disadvantage over dedicated managed services. Managed services, including software-as-a-service (SaaS) platforms, have a personal stake in producing the accurate reports and leverage software and business intelligence tools to derive value. This means companies who embrace managed services, including smart building systems, can take advantage of the newest technology without investing heavily with hardware, servers, software licenses, etc.

Use These Tactics to Target Capital Spend in Facilities Management Today

Targeting capital spend in facilities management is essential increasing ROI and decreasing total cost ownership. Targeted capital spend begins and ends with greater insight into everyday costs, including energy use and system optimization. Optimize your facility assets by implementing a proven smart building solution, like ENTOUCH.One or ENTOUCH.360. Visit ENTOUCH online to learn how to get started.

Previous Article
How Does Poor Facilities Management Affect the Customer Experience?
How Does Poor Facilities Management Affect the Customer Experience?

Poor Facilities Management Linked to Customer Dissatisfaction. In a U.S. Department of Labor st...

Next Article
Five Steps to Using Real-Time Data for Better Capital Planning for Facilities Managers
Five Steps to Using Real-Time Data for Better Capital Planning for Facilities Managers

Facilities Managers can leverage historical and real-time data through smart building solutionsf...