14th Annual National PPP Summit
Day 1 – Tuesday 3rd June 2014
Case Study: Facilities Management
Best Practices
John Hesket...
• The opportunity for facility managers
• A framework for evaluating O&M best practices
• Examples of best practice from S...
The integration of processes
within an organisation to
maintain and develop the agreed
services which support and
improve ...
In Practise this Means...
Understanding how a
clients’ infrastructure
assets support its core
business and then
designing ...
And why is the facility
manager’s contribution
critical in a global sense?
The Global Infrastructure Gap
Source: World Economic Forum (in collaboration with The Boston Consulting Group, “Strategic ...
1. Reduce demand
2. Build new assets
3. Optimise existing
assets
Three Levers to Close the Gap
O&M Best Practices
• Enhance peak
capacity
• Apply demand
management
• Optimise
availability
• Adopt customer-
centric mod...
A Framework for Evaluation
Task
• Identify all maintenance related processes
Evaluation
•Are all processes necessary?
•Is ...
Part 2
SEQ Schools - Examples of Best
Practice O&M
SEQ Schools PPP
• Successful proponent: Aspire Schools
• Contract award: April 2009
• Contract value: $340m
• Term: 30 yea...
Best Practice Example – Increasing Utility
Managing capacity
enhancements using modular
units
• Modular units can be added...
Optimising availability
through maintenance
planning
The use of comprehensive
and integrative planning of
maintenance and
...
Enhancing the user
experience
“The best thing about the new
school is the sense of pride the
children and the community
ha...
Customer Centric Approach
The provision of a 24/7 help
desk provides a single point
of contact for teachers and
other key ...
Sustainability
• Rain water harvesting for
use in toilets and
landscaping irrigation
(saving of 60,000 litres of
potable w...
Whole of Life Approach
Input to design of the sports
halls resulted in the
installation of drop down
lights – eliminating ...
The FM’s Evolving Role and Opportunity
An increasing opportunity
to optimise the utility of
assets and enhance the
value o...
Part 3
Strategies for Effective Service
Relationships
Effective Service Relationships
Client
Commitment
Clear objectives and aims
Contract and contract
management
Partner selec...
Particular characteristics
to FM contracts:
• Perceptions
• Multiple clients and
needs
• Cost versus value
• Often only ap...
Performance Management
Perceived
Quality
Technical
Quality
Functional
Quality
Observed and measured
maintenance quality
Se...
Developing KPIs
1. Identify the user’s
expectations
2. Assess how do the O&M
services impact achieving
these expectations
...
SEQ Schools PPP – Example
KPIs
Service Requirement Performance Standard
Reporting Service Provider (SP) shall submit a
dai...
• Flexibility benefits both the asset owner and the
service provider
• Evolving risks – legislation changes, technology
de...
• Significant opportunity for the
FM profession
• Best practice O&M optimises the
utility of assets
• Framework of interna...
Thank you
Questions?...
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John Hesketh - Leighton Contractors - Case Study: Facilities Management Best Practices

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John Hesketh delivered the presentation at 2014 National PPP Summit.

The National PPP Summit is the leading annual event for industry stakeholders to gather and discuss the issues across the national and global PPP markets. The 2014 agenda reviewed current and emerging financing models as well as showcasing best practice strategies for the procurement process, risk transfer and whole-of-life project management.

For more information about the event, please visit: http://www.informa.com.au/PPPSummit14

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John Hesketh - Leighton Contractors - Case Study: Facilities Management Best Practices

  1. 1. 14th Annual National PPP Summit Day 1 – Tuesday 3rd June 2014 Case Study: Facilities Management Best Practices John Hesketh, Leighton Contractors
  2. 2. • The opportunity for facility managers • A framework for evaluating O&M best practices • Examples of best practice from SEQ Schools PPP • Strategies for effective service relationships Overview
  3. 3. The integration of processes within an organisation to maintain and develop the agreed services which support and improve the effectiveness of the primary activities Source: RICS Guidance Note, Nov 2013 Facilities Management - Definition
  4. 4. In Practise this Means... Understanding how a clients’ infrastructure assets support its core business and then designing and delivering services that improve the core services
  5. 5. And why is the facility manager’s contribution critical in a global sense?
  6. 6. The Global Infrastructure Gap Source: World Economic Forum (in collaboration with The Boston Consulting Group, “Strategic Infrastructure: Steps to Operate and Maintain Infrastructure Efficiently and Effectively”, April 2014
  7. 7. 1. Reduce demand 2. Build new assets 3. Optimise existing assets Three Levers to Close the Gap
  8. 8. O&M Best Practices • Enhance peak capacity • Apply demand management • Optimise availability • Adopt customer- centric model • Enhance the user experience • Use smart technologies • Implement lean processes • Optimise outsourcing • Rightsize mgt functions • Sustainability and HSE focus • Embed HSE & sustainability • Stakeholder co- operation • Invest in maintenance • Control asset stress • Enhance disaster resiliance • Whole life cycle approach • Value for money contracting • Efficient project deliver Adapted from: World Economic Forum (in collaboration with The Boston Consulting Group, “Strategic Infrastructure: Steps to Operate and Maintain Infrastructure Efficiently and Effectively”, April 2014
  9. 9. A Framework for Evaluation Task • Identify all maintenance related processes Evaluation •Are all processes necessary? •Is maintenance planned on a risk based basis? •Are resources effectively utilised? •Are the size of workforce teams optimal? etc Outcomes • Improvement plan
  10. 10. Part 2 SEQ Schools - Examples of Best Practice O&M
  11. 11. SEQ Schools PPP • Successful proponent: Aspire Schools • Contract award: April 2009 • Contract value: $340m • Term: 30 years • Scope: Finance, design, build, maintain seven schools (6 primary schools, 1 secondary college)
  12. 12. Best Practice Example – Increasing Utility Managing capacity enhancements using modular units • Modular units can be added to the schools to increase capacity delivering a number of benefits: • Minimises initial capital investment • Provides flexibility to meet changes in demand • Can be deployed quickly
  13. 13. Optimising availability through maintenance planning The use of comprehensive and integrative planning of maintenance and refurbishment works optimises the availability of the schools Best Practice Example – Increasing Utility
  14. 14. Enhancing the user experience “The best thing about the new school is the sense of pride the children and the community have in their school...the school provides the platform to be the best we can be.” Tammy Swaine, School Principal Best Practice Example – Customer Centric
  15. 15. Customer Centric Approach The provision of a 24/7 help desk provides a single point of contact for teachers and other key stakeholders to provide feedback and register service requests. Best Practice Example – Increasing Utility Performance: 97% of issues resolved at first contact
  16. 16. Sustainability • Rain water harvesting for use in toilets and landscaping irrigation (saving of 60,000 litres of potable water) • LED lamp replacement – estimated saving of $30k per year Best Practice Example – Reduce Cost
  17. 17. Whole of Life Approach Input to design of the sports halls resulted in the installation of drop down lights – eliminating safety risks, reducing cost of maintenance and minimising risk of damage to flooring system Best Practice Example – Extend Life
  18. 18. The FM’s Evolving Role and Opportunity An increasing opportunity to optimise the utility of assets and enhance the value of PPP solutions
  19. 19. Part 3 Strategies for Effective Service Relationships
  20. 20. Effective Service Relationships Client Commitment Clear objectives and aims Contract and contract management Partner selection Service Provider People Expertise Structure Understanding Reliability Continuous improvement Service culture Contract Flexibility Performance management Leadership Cultural Alignment Communications Adapted from: Ishizaka & Blakiston, “The 18C’s model for a successful long-term outsourcing arrangement”, Industrial Marketing Management, March 2012
  21. 21. Particular characteristics to FM contracts: • Perceptions • Multiple clients and needs • Cost versus value • Often only apparent when fails Performance Management Augusta 20 BayView 13 Brightwater 26 Coomera Rivers 18 Murrumba 23 Peregian Springs 22 Woodlinks 15 Event History Summary May 2014 - All Events
  22. 22. Performance Management Perceived Quality Technical Quality Functional Quality Observed and measured maintenance quality Service recovery quality Source: Rasila & Gersberg, “Service quality in outsourced facility maintenance services”, Journal of Corporate Real Estate, Vol. 9 No. 1, 2007
  23. 23. Developing KPIs 1. Identify the user’s expectations 2. Assess how do the O&M services impact achieving these expectations 3. Evaluate the consequence of O&M service failure KPIs should reflect this relationship
  24. 24. SEQ Schools PPP – Example KPIs Service Requirement Performance Standard Reporting Service Provider (SP) shall submit a daily performance report Performance report submitted by 9:00am Cleaning Provide routine cleaning to ensure facilities cleaned to specified standard for start of each day No failure to provide routine cleaning Maintenance Provide planned maintenance Maintenance services provided as per programme Helpdesk Provide helpdesk to receive, record, action and monitor faults, incidents, service failures and requests No failure to log reports Maintenance Trapped occupants of lifts are released within 45mins Occupants released within 45mins Security SP to respond to security and safety incidents within 30mins Response within 30mins
  25. 25. • Flexibility benefits both the asset owner and the service provider • Evolving risks – legislation changes, technology developments etc • Pricing refresh mechanisms Managing Change
  26. 26. • Significant opportunity for the FM profession • Best practice O&M optimises the utility of assets • Framework of international best practices provides an excellent evaluation tool • Be customer centric • Performance management and flexibility key to a successful service relationship Summary and Conclusions
  27. 27. Thank you Questions?...
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