This document discusses establishing a facilities management plan to avoid interruptions and reduce costs. It recommends developing a 3-year capital expenditure plan to replace aging equipment on a scheduled lifecycle. An expense budget should also be created to maintain equipment and complement the capex plan. This will result in smoother, more predictable facility costs while ensuring business continuity by replacing inefficient HVAC systems and other older equipment before failures occur.

1. Facility Management
Business Continuation
Addressing Capex and Expenses

2. Vision Statement
 Establish a business continuation focus
to avoid interruptions and losses

3. Capex Life-Cycle Concept
 Plan equipment replacement to avoid sudden
interruptions in service
 Provide executives with a plan that can be
budgeted for success
 First understand your portfolio of equipment
 Develop a 3-year plan for replacement of
equipment that has reached it’s useful life
 Develop a complimentary expense budget to
maintain equipment sometimes beyond useful
life to work with the capex plan

4. What is the present situation?
 Inefficient HVAC causing service
interruptions
 Same older equipment causing spikes in
utility costs
 Same older equipment causing
unexpected repairs driving expenses
beyond the budget

5. How does this occur?
 Lack of vision and no capex or expense plan
that works towards the goal
 Reduction of the wrong components of a budget
that makes the situation worse causing high
investments in spikes rather than a smooth and
continual implementation
 Loss of business continuation due to the lack of
planning

6. Solutions
 Get executive approval by making the
presentation of how budgets can be smoothed
out over time to reach the goals
 Disadvantage is a first cost to get the plan in
place
 Advantage is predictable facilities costs and
manageable budgets to help the bottom line
while avoiding business interruptions

7. Recommendation
 Establish a capex budget for the overall plan
 Establish an expense budget to compliment the capex
budget and plan
 Expect a smooth running facilities plan
 Predictable capex and expenses allows the corporation to
focus on core business
 Identify facilities condition and associated equipment
inventory
 Lay out a plan for life-cycle replacement and modify with
CFO to reach success for all parties
 Implement the plan and keep executives informed of the
successful plan with specific facts as a result of
implementing the plan