- Dr. Luis (Luigi) Amendola, PhD.
- Articles
- Asset management, Companies, Management
SUMMARY
Today, most facility managers make decisions based on recalling past decisions over a period of time. But as we all know, human memory degrades over time and is not the most reliable. This can lead to poor decisions, increased costs, delayed results, and reduced quality of CAPEX & OPEX budgets.
PMM Innovation Group has a methodology that establishes a priority system for managing CAPEX & OPEX budgets. For example, mandatory projects to meet government requirements and the replacement of certain assets typically take priority, followed by investments for business sustainability.
How does this apply in the world of Facility Management?
Well, facility managers make important decisions daily that have cost and revenue implications for their organizations, such as:
- Approving or rejecting a service provider’s CAPEX & OPEX proposal
- Approving or rejecting an invoice
- Choosing a service provider
- Strategies for asset replacement based on useful life
- Assets with low reliability
How can we minimize poor decision-making? What can we rely on?
Facility Management has evolved into a strategic business function as organizations seek ways to reduce operating costs, improve customer service, and enhance results. Data-driven decision-making is at the heart of this transformation, enabling asset managers to use data meaningfully to generate value for their organizations. Facility Managers are in a unique position to make both short- and long-term data-driven decisions that can positively impact their business outcomes. With the right tools and data, Facility Managers can do everything from optimizing and building teams to optimizing energy use, improving physical asset management, saving money on maintenance and repairs, reducing waste, and more.
Data is everywhere. But having data is not enough: you need the right data, in the right place, at the right time. This is a challenge for any company, but in Facility Management it is even more important to make decisions and take action using real-time data.
Below are some steps to improve data-driven decision-making in your Facility Management processes:
- Conduct a comprehensive facility risk assessment.
- Understand your objective(s) and the data that will help you achieve them.
- Connect all your data sources.
- Prioritize data quality and cleanliness over quantity.
IPR METHODOLOGY
The IPR methodology shows the sequence in which asset needs are prioritized with the support of DECISION – APM (IPR) Software. Once this hierarchy is established and, based on budgetary program criteria (budget constraints and/or commitments to other projects), the different needs are filtered or structured, for example, over a period of X years. The next step is to organize initiatives based on an asset group, by location, or by leveraging economies of scale to achieve greater productivity.
Figure 1. Methodology for prioritizing investments in Capex & Opex (Risk Priority Index), Amendola. L, Depool. T, 2017
DECISION APM INTEGRATION WITH OTHER SOFTWARE
Decision APM integration with other enterprise software (CMMS, EAM, ERP) or other applications provides companies with the ability for systems to “talk” to each other, enabling smoother data exchange, and because of this, integration improves overall asset management processes.
Decision APM integrates with IoT (Internet of Things), Artificial Intelligence, and Machine Learning to provide companies with an effective tool for data-driven decision-making, operations optimization, and cost reduction. Companies gain real-time visibility into financial processes, engineering, production and maintenance, material inventory levels, and customer demand data for decision-making and investment alternatives.
Figure 2. Integration Model of DECISION – APM (IPR) Software with other software, Copyright PMM, 2021, 2024
