Strategies for IT Adoption
in Facility Management Industry.
(Draft 2)
JAE MIN LEE
1. Overview of the selected Industry Sector
1.1 Scale of a industry sector
Construction industry is one of the biggest industrial sectors in most of country. Especially in korea, construction industry charge 17% in GDP. It’s total cost is 50 billion dollars in 1996. But, In the view of life cycle cost, the building construction cost is not a main part of it’s total cost.
As like above Figure, Construction cost is concentrated in short time, but management cost has continued from construction to destruction. So, total cost of building management is 4 or 5 times more than construction cost. Generally The percentage of construction cost is 16~18% , and Management cost is 80% in Total cost. Although, Facility management market is shared long time than construction market, it is not a small business sector because of the volume of construction industry.
1.2 The costs in LCC of building view.
According to the army corp. of engineering, The total LCC of buildingcan be broken down like following.
“
- DATA FROM THE ARMY CORP OF ENGINEERING -
Initial Costs: The cost of design, construction, and equipment of facility is included. And, all planning, engineering and architectural fees, building and utility construction, equipment purchases and installation, site preparation and project administration cost is added.
Finance Costs: It means the cost of interest for bellowing money.
Program Costs: the personnel or staffing costs, transportation costs, warehousing and distribution costs, training cost and the required for the operation of the facility are included.
Operational Costs: Operational costs are directly related to the operation of the facility itself and it also include custodial care, utilities, security, and employee services.
Maintenance and Repair Costs: It means the cost of regularly scheduled preventative maintenance and emergency repairs.
Energy Costs: This includes the cost of all services for heating, cooling, and power delivered to the building including gas, oil, electric, steam, chilled water etc.
Environmental Costs: Environmental costs include the cost associated with waste management, regulatory compliance, pollution prevention, and site remediation.
Replacement Costs: This includes the cost of replacing those major building system or components which have useful lives shorter than the original facility.
Municipal Service and Other Costs: This includes the cost paid to the local municipality to reimburse them for providing police, fire, and other services. It also includes other identifiable costs not covered elsewhere such as insurance.
Residual Value and Salvage Value: Residual or salvage value is the value at theend of the study period. Salvage value may be based upon the remaining un-depreciated useful life of the initial building and subsequent component replacements, or it may reflect the projected market value at the end of the study period. Residual value may be negative if disposal costs are significant.“
As we see above, Facility management are related all of the cost except for initial cost. So, There are a lot of possibility to reduce the total cost by facility management.
Figure 2. Relation between The costs and FM
2. The Building Entities and Activities in Facility Management
With the checking list used actually for FM, we can find out what kind of building entities and activities are. By identifying the building Entities and activities, we can know more clearly the structure of FM.
2.1 The Physical Building Entities for FM.
Fire Protection : Fire Alarm, Sprinkler system, Fire Water Pumps, Smoke Control system, Fire door.
Heating, Ventilation, and Air Conditioning: Air Handling Units, Re-circulating Pumps, Chillers, Boilers, Air Distribution Devices, Duct System, Controls, Fuel Oil Dispensing system for boiler, Fuel Storage Tanks for Boilers, Heat Transfer Devices, Cooling Towers, Chilled Water Distribution system, Steam Distribution system.
Plumbing : Domestic Hot and Cold Water system, Sanitary Drain System, Storm Drain system, Food Service Equipment, Cart Washes, Waste Disposal system, Water Fountains.
Vertical and Horizontal Transport : Elevators, Dumb Waiters, Escalators, Pneumatic Tube system, Automatic Box Conveyors,.
Electrical : Emergency Generators, Automatic Doors, Essential Electrical Distribution system, Normal Power Electrical Distribution, Fuel Oil Dispensing system for Emergency generators, Fuel Storage Tanks for Emergency generators.
Structural : Roof, Fire Proofing, Exterior wall, Exterior Door, Windows, Loading Ramps/Platforms.
2.2 The Physical Building Entities for FM
2.2.1 Equipment maintance checking
- Were Mechanical / Electrical and Equipment areas clean and uncluttered?
- Were the proper spill control/ hazard control materials found per the hazards used or as required by the dept. safety SOP?
- Were fire extinguishers, in equipment spaces, inspected on a monthly basis?
- Were air handling units’ filters clean?
- Was all duct work properly insulated, secured and free of leaks?
- Were all temperature and pressure gauges operational?
- Were all pumps and piping properly secured and free of leaks?
2.2.2 Interior Appearance and maintains checking
- Was it easy to find one’s way around the facility utilizing the current way-finding system?
- Were floor finishes is good condition?
- Were interior surface in good condition?
- Were elevator in good condition with no sign that outages are frequent?
- Were all fire doors in good condition and operating properly?
- Were all exit signs lit and emergency lights in proper working order?
- Were all lighting fixtures and lamps clean and in proper working order?
- Were all ceiling tiles properly installed and in good condition?
- Were wall bumper guards securely fasten and at the correct elevation, preventing wall damage?
- Were interior doors in main traffic areas in good repair and operable?
- Were emergencyelectrical outlets properly identified?
- Were hazardous materials properly stored?
- Was the FM able to access all secured areas?
- Were all areas with in the control of the FMB free of cigarette butts?
- Was all fire proofing material on structural elements in good condition?
- Were crawl spaces and basements dry?
- Were all observed unsealed penetrations through fire or smoke barrier listed in the SOC and PFI?
2.2.3 Exterior Appearance and Maintenance.
- Were exterior walls in good repair and not showing signs of leakage?
- Are windows and exterior wall panels caulked properly?
- Were the MTF’s grounds properly maintained?
- Were parking lots properly maintained?
3. The relation between The costs , The Activities, and Entities
3.1 Traditional Relation
Main character of Traditional way
( without computer, Just keeping book what happened and what they did).
1) It did not consider Entities relation, structure and hierarchy. .
2) It did not Organize cost structure too, so it is very hard to find out the cause and effect relation between Building Maintain action and costs change.
3) Action data ( Checking, replacing, and repair) is not organized. So It is hard to organize what they did as a history data . so experience is not stored.
3.2 Current FM solution
Main Character of current FM
1) Most of them use relational DB and 2D interface
2) Actions and Entities history is recorded in RDB. So, we can easily find out the relation between actions and entities.
3) The relation between costs and Entities also save in RDB. So, we can use this information not just to find out data, but also to set up future plan in strategically.
4) 2D interface make us understand data more easily, and clearly.
Reference and data sources
1.
2. Paper. Life cycle cost analysis. 1989. korea house organization lab.
2. Paper. The building management system using CAFM. 2001. kim, buyng seon
3. Facility management. Pdf Medcom pam.
4. GUIDELINES FOR LIFE-CYCLE COSTING ON STATE BUILDING PROJECTS
State of Wisconsin Department of Administration Division of Facilities Development December, 1997
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