Which KPIs Should Facilities Managers Track?

Faced with the combined challenge of keeping up with changes and the inherent difficulty of identifying what success looks like within their field, facilities managers should be able to correctly identify which key performance indicators or KPIs to use.

Simply put, identifying and measuring the correct KPIs can spell the success or failure of a business organization.

KPIs vs. Metrics

KPIs and metrics may seem similar, but in reality, the two are vastly different. Metrics offer a single snapshot while KPIs utilize different snapshots and angles by taking into account different sets of data available.

For facility managers, asset cost and maintenance cost and hours are among the most common metrics used.

Viewed on their own, metrics can provide facility managers and other decision-makers in an organization with invaluable information. However, ignoring how these individual pieces of information relate to a broader picture can be costly to the company over the long run.

KPIs may also be used as a threshold or indicator. For example, once a certain point in the KPI has been reached, this should serve as a prompt for an equivalent action.

The Importance of KPIs

With the use of the right facilities management software, managers can use data provided by different shareholders in determining the appropriate KPIs and monitoring these.

Furthermore, KPIs can be used in conjunction with one another to create a matrix for evaluating performance from multiple perspectives. In turn, this matrix can prove to be an invaluable tool in making critical decisions.

Another key benefit of using KPIs is enabling decision-makers to contextualize numbers against the strategies being implemented in the organization. This contextualization makes it easier to fine-tune your strategies to meet organizational goals.

Finally, KPIs enable key personnel to make more meaningful conversations anchored upon accurate information.

5 Key KPIs to Use and Track

The KPIs that facilities managers use will vary depending on the current situation and the goals of their individual organizations.

However, this list of KPIs is a good starting point for many companies and are worth considering.

1. Deferred work backlog

This KPI refers to work that will be assigned for the future, depending on the level of priority of the department that has made the request. Typically, this KPI is measured in hours, and the ideal backlog is four to six weeks.

2. Reactive work percentage

Reactive maintenance refers to work that is done as a reaction to a breakdown of a piece of equipment. Ideally, reactive maintenance should be kept at around 20% to 30% as this type of maintenance is about four to six times more costly than proactive maintenance.

3. Proactive maintenance compliance

Proactive or preventive maintenance refers to work done to anticipate and avoid the potential breakdown of equipment. Ideally, the performance of works associated with a proactive maintenance program should be around 99%.

4. 80-20 completion

The Pareto principle or 80:20 rule dictates that 80 percent of the results can be attributed to 20 percent of causes. In facilities management, this means 20 percent of a company’s assets will consume 80 percent of its resources. Through the use of charts and graphs, facilities managers can effectively deploy their crew to target critical assets that require more attention.

5. Schedule compliance

With this KPI, you can determine the facilities management crew’s efficiency in keeping their promise of fulfilling requests made by other departments.

Choosing the Right Software

The appropriate tools can help you get the job done right. For facilities management, which is the more effective tool: enterprise resource planning (ERP) software or asset lifecycle management (ALM) software?

ERP software is often marketed as a comprehensive solution that enables companies to collect data from different departments in an organization, including human resources, finance, operations, marketing, and maintenance.

However, this type of software may be insufficient in meeting the demands of some organizations due primarily to their complexity and scope. Costs of implementation can also be prohibitive for smaller companies and rollout may be time-consuming.

A Better Alternative

For companies that want to maximize their investments in their assets, ALM software can prove to be the better choice. How can this type of software allow you to meet this goal?

For one, ALM software enables your crew to focus on actual work rather than spend an excessive amount of time on paperwork. Errors are minimized because work orders are automated.

• Costly repairs are kept to a minimum through improved scheduling and prioritization. This means that your employees can spend more time working with your machinery instead of being hampered by unscheduled downtime.
• ALM software can also keep an inventory of vital spare parts, ensuring these are readily available even before these are needed. This makes your maintenance crew more efficient. Along with this, unnecessary downtime is virtually eliminated.
• Finally, unscheduled capital expenditure is practically eliminated because the software can predict the lifespan of an asset. Even before a machine has to be decommissioned, decision-makers in the organization are alerted when it is time to make a new investment.

With the right KPIs and software, companies can minimize (if not totally eliminate) waste through the efficient use of resources and an investment in the right software.