Innovation in Facilities Manaagement
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These are the slides presented to the CIDB Malaysia RCW'12 Conference in Kuantan, Pahang on 24 November 2012
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Innovation in Facilities Manaagement
- 1. “The Role of Facilities Management Innovation in Property Life Cycle and the Built Environment.” Presented by Mark Whittaker, Business Development Manager, Integral UK Limited
- 2. Content 1. Introduction 2. What is innovation and why is it important? 3. What have been recent major innovations in Facilities Management? 4. What 5 benefits have these innovations brought? 5. How can the Malaysian FM industry benefit from innovation? 6. What does the future hold? #CIDBFM
- 3. Objectives of today‟s presentation To help provide you with a personal insight into: ▪ How do we define what is true innovation in facilities management? ▪ What key innovations have there been over the last five years? ▪ How can we all make innovation happen and what obstacles are there?
- 4. 1. My Background in FM
- 5. Facilities Management in the UK – Key Facts ▪ £127 billion - forecast value of UK Facilities Management sector by 2013 ▪ Facilities Management is worth 5% of the UK‟s GDP ▪ 60% of the FM Market in the UK is “outsourced” ▪ Facilities Management is a relatively “new” sector in the UK economy, with a growing profile and importance .
- 6. What is at the core of Facilities Management? "A profession that encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place, process and technology."
- 7. 2. What is Innovation in FM? “Innovation in facilities management is the introduction of a new product or process, which delivers tangible and measureable benefits in terms of operational cost reductions, increased efficiency and optimising building usage and performance. It is not merely process improvements.” Can you do better? #CIBDFM
- 8. How do others define “innovation”?
- 9. Why is Innovation important?
- 10. Is Innovation being delivered in the UK? ▪ 60% of respondents agree innovation is being delivered in the facilities management industry. ▪ “True innovation often requires a financial input from the client. Most clients are cutting back on investments and research and development, which causes difficulty in delivering cost effective and innovative solutions”
- 11. 3. Key Innovations in Facilities Management
- 12. (1). Building Information Modelling (BIM)
- 13. (1). Building Information Modelling (BIM) BIM Benefits: ▪ Co-ordination & Collaboration ▪ Easier Maintenance of Building Lifecycle ▪ Greater connection between building designers & end users ▪ Greater customisation and flexibility ▪ Easier conflict detection & resolution ▪ Optimisation of cost ▪ Improved asset database & understanding
- 14. (2). Space Utilisation ▪ Greater analysis of how building assets are being used. ▪ Identification of cost savings as companies downsize operations ▪ More scientific measurements of space utilisation, particularly in building design ▪ A key driver in the design of new properties, particularly within the education sector
- 15. (3). Flexible Workspaces ▪ “Hot desking” more common ▪ More flexible shift patterns ▪ Greater home working ▪ Greater focus on enjoyable working environment & the impact on businesses performance
- 16. (3). Flexible Workplaces – Media City
- 17. 3). Flexible Workplaces – 1 Angel Square
- 18. (4). Service Integration - IFM ▪ Greater bundling of FM services to achieve economies of scale ▪ Greater outsourcing opportunities ▪ Ability for organisations to concentrate on their core business activities
- 19. (5). Greater Collaboration/Partnership ▪ Private Finance Initiative (now Public Private Partnerships) with crucial element of building life cycle costings. ▪ Longer term contracts encourage investment ▪ Greater outsourcing ▪ Shared targets and goals & reward schemes
- 20. Advantages of Longer Term Contracts ▪ Partnership Approach & Relationship Building ▪ Joint Goal and Target setting ▪ Stability and reliability ▪ Supplier Investment ▪ Innovation in Service Delivery ▪ Reduced Procurement costs ▪ Flexibility in service delivery
- 21. (6). New/Enhanced Technology ▪ LED Lighting ▪ Voltage Optimisation ▪ More integrated Building Management Systems ▪ Smart Energy Meters ▪ Data Loggers
- 22. (7). Information/Knowledge Share ▪ Integrated CAFM Systems ▪ Web access ▪ Real Time Data ▪ Detailed Management Reporting ▪ Electronic Certification ▪ Social Media
- 23. (8). Sustainability ▪ The „Green Agenda‟ will grow in importance in the future ▪ Helping customers achieve their Carbon Reduction Commitments ▪ Green Technology, such as biomass boilers, Combined Heat & Power (CHP) systems ▪ Focus on Ethical Trading and Waste Management and recycling
- 24. Most significant FM Innovations? “I think the biggest impact has been the way the new technologies - GPS/Tablets/Social media etc. have been utilised by different organisations to eliminate wasted process and provide smarter service.” Martin Pickard, FM Guru Consulting “The biggest change for me has been the development of the outsourced market. There are a number of suppliers in the industry who now really understand what FM is all about and are providing a service that matches the clients‟ needs.” Julie Kortens, Head of FM,Channel 4 “The one area which does look as if it will impact is the advent of Building Information Management systems, albeit that these systems are very much in the infancy and current CAFM technology is not up to speed with it. Iain Murray, Principle Consulting
- 25. 4. Five Key Benefits innovation can deliver in FM?
- 26. 5. Facilities Management in Malaysia “The lack of integration between control systems in buildings today is a main inhibitor to optimized facilities management.” (Frost & Sullivan) “The ultimate benefit of FM, i.e. value appreciation of the property, image and long term cost, has to be fully understood and appreciated by building owners for the industry to develop.” (Mr Tung Chee Kuan, Jurutera)
- 27. 5. How can Malaysian FM implement innovation? Attracting & the professionally development of new professionals into the FM industry Make “Innovation” part of an outsourcing selection process & ongoing strategy Deliver an integrated service solution Involve Facilities Managers during the building design and build process Learn from the mistakes of others Become FM Advocates
- 28. What can stifle innovation? Price based procurement Short term contracts Lack of partnership/collaboration Mistrust Lack of internal support for FM at Senior/ Board Level Being afraid to take risks
- 29. 6. What does the future hold? ▪ More flexible & better utilised workspaces ▪ Buildings designed & built with greater engagement with users and Facilities Managers ▪ Greater outsourcing in a bundled service provisions ▪ Greater building and asset knowledge ▪ Greater focus on larger, leaner FM providers delivering cost reduction strategies ▪ Professionally recognised “Collaborative Working” standards ▪ Longer term contracts ▪ Joint “Innovation Strategies”
- 30. Terima kasih kerana mendengar ▪ Email: mark.a.whittaker@integral.co.uk @Whitbags http://whitbagsinfm.wordpress.com/
Editor's Notes
- Salam SejahteraAn absolute honour to be invited to speak to you today. Thank you to the Construction Industry Development Board for the opportunity to talk to you and share some of my knowledge & experience. I come from a place called Rossendale. None of you will have heard of it, but no doubt you have heard of Manchester (United)? I live 20 miles from Manchester.An unusual start but can I take a picture of you.? My daughter was so excited about my trip to Malaysia, she is planning to do a presentation to her class and I wanted to show her who I am speaking to. I will also be writing an article about the trip for the UK FM press and I really want to understand about the Malaysian FM and what is important to you.How many people use social media or business? Facebook? Linked In? Twitter? If you are tweeting about this session or today, why not use the hashtag #CIDBIf we have a chance, let’s have some questions at the end and if not then, I will be here all day and would love the chance to talk further.
- Over the next hour there are 6 key areas I want to discuss with you.My own background in FM.How do we define innovation & is it that important?Details some of the main innovations in recent years.What benefits have innovation brought?What is the gap between the UK & Malaysian Facilities sectors & how can Malaysian FM maximise the benefits of innovation?What does the future in the sector hold?
- I always like to start any presentation with a clearly stated aim of the next hour.It is to provide you with personal views on what:What is real innovation and note merely improvements?Detail some of the key benefits innovations have delivered?How can we make innovation happen?
- In UK, Facilities Management is a career of chance not choice.Only recently have University’s recognised it’s importance to the economy and the increased job opportunities.Still a male dominated industry in the UK.I started in the sector over 10 years ago & now lecture to UK students and this summer to a visiting party of University of Malaya students.Also work with BIFM.
- UK: FM is multi-disciplined. In US it has historically always been about the “buildings.”Increased importance & contribution to UK economy.Seen by many public sector bodies as an opportunity to outsource and save money, yet drive innovation/change/improvement.Increased importance due to link between working environment = staff morale, staff productivity, staff absenteeism & staff turnover.Improved environment = increased productivity & reduced costs.
- People – both those delivering the services & those building users.Process – how the services are organised.Technology – how does this aid the deliveryFinally, the place – the building and how it operates and is managed.
- My definition is this.Key is that it has to be new, not a reworking and “a new idea become innovation when it delivers a measurable benefit”Can others do better? Use #
- I posed the question to the UK Twitter community and these are some of their thoughts. Is it high lighting and resolving a problem?Add value without cost. Some innovations may involve initial costs but the benefits outweigh the investment.
- So now we have an idea what it is in FM, why does it matter?
- Every year Sheffield Hallam University & an Integrated FM provider, Interserve produce a report on the views of the UK FM industry.Two important aspects of this recent research are that:FM believe innovation is happening.The recession is hampering innovation, as companies cannot afford the initial financial outlay.
- So what developments have we seen in the industry?
- Historically architects design buildings on what they perceive building users want and the end users and in particular the Facilities Manager come in to equation post completion.Building Information Modeling (BIM) is a digital representation of physical and functional characteristics of a facility. A BIM is a shared knowledge resource for information about a facility forming a reliable basis for decisions during its life-cycle; defined as existing from earliest conception to demolition. (National BIM Standard - United States)[BIM, as many of you may know, tries to engage more people in the development stage, using 3d software and asset collection software COBie. (Construction Operations Building Information Exchange)I would be interested today to find out how much is BIM used in Malaysia?In the UK, it is mainly public sector led, but will be the way forward for new and some older (retro surveyed) buildings.
- The benefits we have seen BIM deliver are:Going back to the definition:What has BIM addressed? Buildings built without the end users needs in site
- How can we use buildings better by understanding how they are used.This is particularly relevant for organisations who are looking at reducing operational costs and make better use of their buildings.Thus in calculating space efficiency they have calculated:Space utilisation- is the room fit for purposeSeat occupancy (using infra red devices)Room frequency – e.g.. meeting rooms, lecture theatresUniversities have been looking at this very closely in their new builds and linking with FM to decide how best to light , heating and cool these spaces as well as reducing energy usage.
- How many have heard of Hot desking?Born out of space utilisation studies.Greater flexibility due to:Different working patterns for businesses away from 9-5.Transport infrastructure problems, e.g.. London OlympicsBetter use of available spaceWork/life balance
- Completed in 2011, British Broadcasting Corporation moved from London to Manchester.2,300 staff employed there. Cost £1bn to move.Wanted a creative and fun environment, few desks but meeting areas and pods.
- Building:The building is part of the £800 million NOMA development in the northern quarter of Manchester city centre.One Angel Square is 72.5 metres tall and has been nicknamed the 'Sliced Egg' because of its distinctive formMore than 4,000 workers from over 90 companies were involved in the building's construction making it the largest building site outside South East EnglandThe building will be one of the largest in Europe to have the BREEAM Outstanding distinction as a result of its high, sustainable energy credentialsThe exterior's double skinned façade will create natural heating, cooling and lightingThe heat recovery system from the atrium collects heat from the sun and computer systems will recycle waste heat. A recycling system for used water and a rainwater harvesting will be installed. Can fit an Airbus 380 (largest aeroplane in the world) in the Atrium. FlexibleNo one has a desk. Flexible workspace and size and design was based on the needs of the business, FM feedback and space utilisation. Approx 3,000 staff will work there.
- Integrated FM is not new and comes in and out of fashion.There is a growing tendency for large organisations to move to TFM model due for cost effeiciencies. E.G. Lloyds Banking Group, HSBC & Barclays (ISS). Organisations have been stripping back to concentrate on their core business whether it is banking retail, local Govt.Multi skill peopleGreater co-ordination.Streamlined management and communication channels.Central Management Information reporting via CAFM
- PFI/PPP transformed building infrastructure in UK for hospitals, schools, offices.It came out of private companies obtaining better lend terms than public sector, so basically they have built new hospitals for e.g. and the occupier rents it back from them over 25 year deal. It has fuelled the development of FM in UK.These PFI contracts encouraged outsourcing companies to enter 25/30 year contracts and be responsible for the maintenance & replacement of equipment.Big debate at the moment is if they have got value for money, as deals negotiated in terms of economic boom.
- Ave contract lengths in UK: Catering: 4.3yrs, M&E: 4.1 yrs, Security: 3.8 yrs, Cleaning: 2.9 yrs TFM:6.6 yrs (FM World October 2012)How does Malaysia compare?So what are the benefits of these contracts?Read and discuss each.
- Electricity and Gas prices are soaring and companies have need to look inwardly to reduce operational costs.E.g. PepsiCo is UK have to reduce operational costs by 10% each year for next 5 years, without any price increase in product.LED lighting - lighting accounts for a significant part of a budgetVoltage OptimisationBMS systems so that heating and cooling systems are working together, not against each other.Energy monitors help to cut CO2 emissions and reduce utility (water, gas and electricity) costs. 40% of electricity is from servers and central IT equipment. Data loggers – looking at how efficiency equipment is working and what factors are influencing levels of temperature and humidity, e.g.. museums.
- Do we bombard FM’s with too such information.Currently in UK there are 48 Computer Aided Facilities Management Systems such as Plannon, Concept, etcPDAs & tablets provided real team information and M.I.Social Media - sharing ideas and best practice.
- Sustainability is widely regarded.David Jones is his book “Who Cares Wins” has mentioned that “social media is forcing businesses, politicians and leaders to be more socially responsible. It will reward those who are.” It has taken Corporate Social Responsibility out of the silo and into the boardroom.”FM has a part to play in the use of green technology,
- I have asked major people in UK regarding what has been the most important innovations in FM.New technologyOutsourcingBIMOthers: Professionalisation of industry through qualifications.
- Five key benefits of innovation:Cost savingsImproved profitabilityStreamlined ProcessedBetter knowledge & understandingMarket differentiation/advantage.
- I have done some research into FM in Malaysia and where you are on your journey. Some quotations I have read include:“FM is in its infancy”For the Facilities Management Asia 2011 Conference, one study said83% said FM can improve a company’s core business by improving the cost efficiency of the asset in operations and maintenance 74% said FM can improve workplace environment and productivity”72% said they needed more training on strategic FM& 91% said top of every FM’s agenda should be Changing the perception of FM as an influencer of core business activity”
- Yes, FM in Malaysia may be in it’s infancy compared to other countries but there is also the chance to learn from mistakes made by others.These suggestions may be aspirational but worthy of consideration?
- In conclusion, what are the likely “hot” areas in FM in the future?
- “Thank you for listening”Please do keep in touch via Linked In, Twitter & my Blog.