Facilities Department Not Revenue Center – But Can It Be?
If you have remained in the center industry enough time, you have actually most likely heard on numerous occasions “the Facilities Department is not an earnings center “,” facility is a necessary evil”, “you are simply overhead”, and numerous other beauties. While the centers department does not necessarily manufacture the widgets or process the transactions of our respective organizations, it does have a direct effect on how well and how quickly those profits creating functions take place. Unfortunately, management as well as center staff labels the department as an expense center and not an enabler of revenue. Feel free to read more on selling house quickly
What if you went to management with a concept that would increase worker efficiency by 8 % – would they listen? An 8 % production boost would equate to $2.4 million dollars. Regretfully, facility companies are more driven by reducing expenses than by enhancing production – this is both self-induced and thrust upon by upper management; mainly because neither comprehends nor attempt to quantify the impact the efficiency of centers and its groups have on production. Fortunately there have been numerous researches carried out that aid to quantify that effect. Let’s explore some of those findings and utilize them to reveal our fellow facility specialists and upper management the larger function centers plays in driving the bottom line.
Let’s begin with hot/cold calls – yes, the bane of numerous FMs … But, seriously, there is a much larger concern than simply the hot/cold call. Initially, we have to think about how much efficiency is lost after the impacted employee hangs around talking to neighbors – “Hey, are you hot?”, “What about you?”, and so on; then once they are inflamed enough, they lodge a grievance with the center service desk or grab you as you are hurrying down the corridor to put out another fire … Next, you need to respond, troubleshoot, and work with the occupant to ideally fix the issue. Just how much time did that take? Just how much performance and money was lost? Regrettably, the studies I examined did not measure the above scenario; however, they did discover that a basic 2 degree-Fahrenheit boost in temperature lowered employee performance by 8 % – each degree increase resulted in a 4 % performance loss. What type of temperature level swing do your occupants experience in a day? Furthermore, they found that topics whom felt warm produced 56 % more errors than when they fit. Alternatively, being too cold has its results. For example, at 18C/64F, a research study arranged that worker mistakes enhanced by 28 % and reading speed decreased by 7 %. Another analyzed the impact of low relative humidity on employee performance. They discovered that a low RH (below 25 %) slowed typing by 3 %, proofreading by 7 %, and simple addition by 5 %. So the hot/cold calls do matter – they affect the bottom line.
While some causes of hot/cold calls are out of a FM’s control, there are things that can and should be done much better handle thermal comfort; such as establishing and maintaining consistent set points (generally 68F to 72F winter and 70F to 74F summer). The aforementioned potential performance gains may give you the fodder you need to validate the controls and HVAC system upgrades that you have actually been begging for the last couple of years.
Indoor Air Quality
One experiment reported a 6.5 % reduction in performance, 8 % increase in typing errors, and more complaints of headaches just by having carpeting next to a partition where the test topics were sitting. A third discovered that higher ventilation rates increased worker efficiency by 3 % to 10 %; the variation in that gain is directly associated to the controllability each topic had by means of the adjustable vents for the underfloor air distribution system. An experiment determined a 9 % productivity gain in replacing a dirty supply air filter with a clean one – 9 %, simply by altering a filter!
As the last example plainly highlights, easy facility maintenance practices, such as air filter replacements, can have a considerable effect on the bottom line and employee health. This, of course, requires a robust O&M program so that center companies can realize high conclusion rates on preventive maintenance work orders. I strongly advise a computerized maintenance management system (CMMS) as a crucial tool for determining and managing the effectiveness and effectiveness of a facility O&M program.
Again, I will repeat the value of RCx as it can be utilized to measure and validate that the amount of outside air permitted into the center is appropriate and make sure that the OSA dampers are calibrated and working appropriately.
Strong consideration must be offered to the products set up in a center, including how they are cleaned (method, frequency, and chemicals), when to replace them, and what to change them with (solid surface areas are sounding better, or need to I state “smelling” much better …) A capital replacement program would be rather practical in helping with the preparation and budgeting for such replacements, as the condition and type of materials has a substantial effect on the bottom line and the health of workers.
Is the Facilities Department a profit? No, but as recognized above, facilities and how they are run and maintained drastically impact the total earnings and success of a company. It is incumbent upon center managers to plainly understand how they and their groups provide value to the general company and champ that recognition to their fellow employees, department supervisors, and the C-suite.