Strategically Sourcing Facilities Services   Gary Rudkin, Senior Facilities Manager Spirit AeroSystems- Wichita, Kansas
Determining the long-term strategic sourcing plan Developing proposals and supplier qualification process Awarding contrac...
Reduce operating cost Increase competitive spirit with employees Focus on core activities Staff to the valleys of the busi...
Increase cost- price escalation Impact to customer satisfaction Cost and effort to manage service providers Loss of skill ...
Long-term Strategic Sourcing Plan <ul><li>Take advantage of the opportunities and mitigate the risks </li></ul><ul><li>Ana...
Long-term Sourcing Strategy
Determine Possible Sourcing Opportunities <ul><li>Identify facilities processes and services </li></ul><ul><ul><li>Buildin...
Rating the Services <ul><li>Asses the importance and need of all services </li></ul><ul><ul><li>Core competencies and oper...
Rating the Services <ul><li>Identify the cost of the services  </li></ul><ul><ul><li>Understand internal cost to perform s...
Rating the Services <ul><li>Asses the skill and ability requirements to perform the service </li></ul><ul><ul><li>Higher s...
Rating each service provides a short list of possible sourcing opportunities!
Proposals and Supplier Qualification Process <ul><li>Identify a clear and thorough Statement of Work (SOW) </li></ul><ul><...
Developing a SOW <ul><li>Involve the employees if possible </li></ul><ul><li>Determine level of scope </li></ul><ul><ul><l...
Developing a SOW <ul><li>Identify tools, equipment and software needed </li></ul><ul><li>Provide material and inventory re...
Base-line Internal Performance <ul><li>KPI examples </li></ul><ul><ul><li>Cost to self-perform </li></ul></ul><ul><ul><ul>...
Develop Request for Proposals (RFP) <ul><li>Develop a proposal team </li></ul><ul><ul><li>Procurement </li></ul></ul><ul><...
Develop Request for Proposals (RFP) <ul><li>Incorporate KPI’s as a performance scorecard </li></ul><ul><li>Identify perfor...
Selection Criteria Matrix
Identify and Qualify Potential Service Providers <ul><li>Research the Web, FM consultants, peers in the FM community and s...
Identify and Qualify Potential Service Providers <ul><li>Distribute RFP’s to qualified service providers with a timeline <...
Awarding Contracts and Managing Supplier Relationships for Long-term Value <ul><li>Schedule pre-contract clarification mee...
Awarding Contracts and Managing Supplier Relationships for Long-term Value
Awarding Contracts and Managing Supplier Relationships for Long-term Value <ul><li>Select provider based on best value  </...
Awarding Contracts and Managing Supplier Relationships for Long-term Value <ul><li>Identify Contract Manager </li></ul><ul...
Maintaining Strong Relationships with Employees and Unions <ul><li>Job security is a major issue </li></ul><ul><li>Most cr...
Maintaining Strong Relationships with Employees and Unions <ul><li>Secrets are hard to keep in most companies </li></ul><u...
Questions? Thank You!
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5.6 Gary Rudkin.ppt

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5.6 Gary Rudkin.ppt

  1. 1. Strategically Sourcing Facilities Services Gary Rudkin, Senior Facilities Manager Spirit AeroSystems- Wichita, Kansas
  2. 2. Determining the long-term strategic sourcing plan Developing proposals and supplier qualification process Awarding contracts and managing supplier relationships for long-term value Maintaining strong relationships with employees and unions Course Objectives
  3. 3. Reduce operating cost Increase competitive spirit with employees Focus on core activities Staff to the valleys of the business cycles Offset demographics, attrition and decline of entrants Reduce employee health and safety issues Outsourcing Opportunities
  4. 4. Increase cost- price escalation Impact to customer satisfaction Cost and effort to manage service providers Loss of skill and control of services Liability of safety and environmental risks Damaging relationships with employees Risks of Outsourcing
  5. 5. Long-term Strategic Sourcing Plan <ul><li>Take advantage of the opportunities and mitigate the risks </li></ul><ul><li>Analyze your companies long-term growth plan </li></ul><ul><li>Asses the skills and age of your facilities staff </li></ul><ul><li>Identify customer service and cost issues </li></ul><ul><li>Determine possible sourcing opportunities </li></ul>
  6. 6. Long-term Sourcing Strategy
  7. 7. Determine Possible Sourcing Opportunities <ul><li>Identify facilities processes and services </li></ul><ul><ul><li>Building and grounds maintenance </li></ul></ul><ul><ul><ul><li>Janitorial service </li></ul></ul></ul><ul><ul><ul><li>Painting service </li></ul></ul></ul><ul><ul><ul><li>HVAC and chiller maintenance service </li></ul></ul></ul><ul><ul><li>Capital and expense projects </li></ul></ul><ul><ul><ul><li>Project management service </li></ul></ul></ul><ul><ul><ul><li>Engineering service </li></ul></ul></ul>
  8. 8. Rating the Services <ul><li>Asses the importance and need of all services </li></ul><ul><ul><li>Core competencies and operational impacts </li></ul></ul><ul><ul><li>Technology may eliminate the need </li></ul></ul><ul><ul><li>Requirement went away but the service remained </li></ul></ul><ul><li>Identify the workload and size of the services </li></ul><ul><ul><li>Opportunity must attract service providers </li></ul></ul><ul><ul><li>Bundle with other services </li></ul></ul>
  9. 9. Rating the Services <ul><li>Identify the cost of the services </li></ul><ul><ul><li>Understand internal cost to perform services and internal competitive advantages </li></ul></ul><ul><ul><li>Perform market research on service provider costs </li></ul></ul><ul><li>Consider response time requirements </li></ul><ul><ul><li>Identify response time impacts for each service </li></ul></ul><ul><ul><li>Asses internal ability to respond </li></ul></ul>
  10. 10. Rating the Services <ul><li>Asses the skill and ability requirements to perform the service </li></ul><ul><ul><li>Higher skilled service generally cost more </li></ul></ul><ul><ul><li>Physical demands raise safety concerns </li></ul></ul><ul><ul><li>Maintaining internal ability and control </li></ul></ul><ul><ul><li>Future risks if internal skill is lost </li></ul></ul>
  11. 11. Rating each service provides a short list of possible sourcing opportunities!
  12. 12. Proposals and Supplier Qualification Process <ul><li>Identify a clear and thorough Statement of Work (SOW) </li></ul><ul><li>Base-line internal performance </li></ul><ul><li>Develop Request for Proposals (RFP) </li></ul><ul><li>Identify and qualify potential service providers </li></ul>
  13. 13. Developing a SOW <ul><li>Involve the employees if possible </li></ul><ul><li>Determine level of scope </li></ul><ul><ul><li>Process level- Building and grounds maintenance </li></ul></ul><ul><ul><li>Service level- Janitorial </li></ul></ul><ul><li>Describe the tasks, frequency and volume (headcount optional) </li></ul><ul><li>Provide work management data </li></ul><ul><ul><li>Process flow diagrams </li></ul></ul><ul><ul><li>Work order history </li></ul></ul><ul><ul><li>Project logs </li></ul></ul>
  14. 14. Developing a SOW <ul><li>Identify tools, equipment and software needed </li></ul><ul><li>Provide material and inventory requirements if applicable </li></ul><ul><li>Describe roles, responsibilities and expectations </li></ul><ul><li>Identify Key Performance Indicators (KPI) </li></ul>
  15. 15. Base-line Internal Performance <ul><li>KPI examples </li></ul><ul><ul><li>Cost to self-perform </li></ul></ul><ul><ul><ul><li>Labor </li></ul></ul></ul><ul><ul><ul><li>Burden </li></ul></ul></ul><ul><ul><ul><li>Tools and equipment </li></ul></ul></ul><ul><ul><ul><li>Efficiency and effectiveness </li></ul></ul></ul><ul><ul><li>Response time </li></ul></ul><ul><ul><li>Schedule compliance </li></ul></ul><ul><ul><li>Customer satisfaction </li></ul></ul>
  16. 16. Develop Request for Proposals (RFP) <ul><li>Develop a proposal team </li></ul><ul><ul><li>Procurement </li></ul></ul><ul><ul><li>Facilities Management </li></ul></ul><ul><ul><li>Legal </li></ul></ul><ul><ul><li>Operations customers </li></ul></ul><ul><li>Embed the Sow into the RFP </li></ul>
  17. 17. Develop Request for Proposals (RFP) <ul><li>Incorporate KPI’s as a performance scorecard </li></ul><ul><li>Identify performance incentives </li></ul><ul><ul><li>X% of implemented cost reductions </li></ul></ul><ul><ul><li>$X for an X% increase in customer satisfaction </li></ul></ul><ul><li>Include standard terms and conditions </li></ul><ul><li>Develop selection criteria matrix </li></ul>
  18. 18. Selection Criteria Matrix
  19. 19. Identify and Qualify Potential Service Providers <ul><li>Research the Web, FM consultants, peers in the FM community and suppliers </li></ul><ul><li>Contact and meet the potential providers- Data/intuition </li></ul><ul><li>Understand their capabilities and financial position </li></ul><ul><li>Visit their customers’ sites </li></ul>
  20. 20. Identify and Qualify Potential Service Providers <ul><li>Distribute RFP’s to qualified service providers with a timeline </li></ul><ul><li>Schedule on-site visits to answer questions </li></ul><ul><li>Receive and review proposals for compliance </li></ul><ul><li>Narrow the list of potential service providers to three or less based on best value </li></ul><ul><li>Consider your in-house team as one of the options </li></ul>
  21. 21. Awarding Contracts and Managing Supplier Relationships for Long-term Value <ul><li>Schedule pre-contract clarification meetings with the remaining service providers </li></ul><ul><li>Perform final negotiations </li></ul><ul><li>Complete the selection criteria matrix </li></ul>
  22. 22. Awarding Contracts and Managing Supplier Relationships for Long-term Value
  23. 23. Awarding Contracts and Managing Supplier Relationships for Long-term Value <ul><li>Select provider based on best value </li></ul><ul><li>Develop contract document- Mitigate risks </li></ul><ul><ul><li>Increase cost- price escalation clauses, CPI </li></ul></ul><ul><ul><li>Impact to customer satisfaction </li></ul></ul><ul><ul><li>Cost and effort to manage service providers </li></ul></ul><ul><ul><li>Liability of safety and environmental risks </li></ul></ul><ul><ul><li>Incorporate SOW and RFP </li></ul></ul><ul><ul><li>Determine contract duration- Three year, option for two more </li></ul></ul><ul><ul><li>Define audit rights and record retention </li></ul></ul><ul><ul><li>Develop scorecards with quarterly reviews- Criteria matrix </li></ul></ul>
  24. 24. Awarding Contracts and Managing Supplier Relationships for Long-term Value <ul><li>Identify Contract Manager </li></ul><ul><ul><li>Provide supplier management training </li></ul></ul><ul><ul><li>Develop implementation plan and timeline with supplier and affected employees </li></ul></ul><ul><li>Sign the contract </li></ul><ul><li>Anticipate upfront energy and effort developing a partnership and working through the implementation </li></ul><ul><li>Keep in contact with the customer- seamless transition </li></ul><ul><li>Conduct quarterly reviews with diligence </li></ul>
  25. 25. Maintaining Strong Relationships with Employees and Unions <ul><li>Job security is a major issue </li></ul><ul><li>Most craftspeople and Facilities Professionals are proud of what they do </li></ul><ul><li>Change can be painful </li></ul><ul><li>Outsourcing may violate their trust </li></ul><ul><li>Unions lose work, members and dues </li></ul>
  26. 26. Maintaining Strong Relationships with Employees and Unions <ul><li>Secrets are hard to keep in most companies </li></ul><ul><li>Be upfront and open with employees </li></ul><ul><li>Strategically sourcing Facilities services can minimize employee impact long-term </li></ul><ul><li>Involve the employees and union when possible </li></ul><ul><li>Communicate, communicate, communicate </li></ul>
  27. 27. Questions? Thank You!

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