Facilities Management 101

One of the core functions of Facilities Management (FM) is managing assets effectively, the principles of which are as follows:

• All organizations use assets to fulfill their purpose / mission.
• Organizational Objectives are used to define and measure success in terms of mission achievement.
• Asset Management coordinates activities that manage assets needed to achieve Organizational Objectives.
• Organizations should utilize a Management System for Asset Management to improve organizational performance through efficient and effective management of assets. This Management System  is commonly referred to as an Asset Management System or in the past a Computerized Maintenance Management System (CMMS).
• Asset Management Objectives are set using the Asset Management System to optimize achievement of Organizational Objectives through adept management of assets and coordination of the activities that manage assets.
• Disciplined Asset Management leads to implementation of a Total Cost of Ownership philosophy that encompasses the establishment of policies, objectives, and processes to achieve these objectives in order to attain best practice status.

TCO (Total Cost of Ownership) has become a standard for measuring costs, making strategic decisions and comparing performance. It is important to put TCO practices in place that help you manage your assets effectively and strategically through a more holistic view of costs and performance to foster better decisions and more cost-effective outcomes from construction to operations and eventually disposal. To make TCO a success, you must have buy-in from your organization as well as the commitment to collect, record and utilize the data necessary to begin making data-driven decisions.

If you are interested in learning more or need assistance with your TCO journey, R Ledbetter & Associates can help - Let’s Start a Conversation. We were honored to participate in developing the American National Standards Institute (ANSI) Standard for TCO.

Contact me at: Randy@rledbetter.com

Thank you

Randy