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Importance of operational efficiency in an organization

As demands have increased, so has a reliance on technology solutions specifically designed to meet them.

  1. Once you recognize trends, take deeper dives into data to develop specific reports that clarify the trends or identify necessary action. A simple, challenging fact, compounds these problems.
  2. Based on results of a recent survey, building owners and facility managers see the value of broadening their view. If yes, is it successful?
  3. Another possibility is that you have trending reports that answer the question at a high level, and need to take a deeper dive into metrics to provide more specific answers. You might perform a root cause analysis to definitively tie recognized problems to less-recognized efficiency issues.
  4. IT operations could generate a report showing physician availability between 12 p.

As the technology transformation has evolved and importance of operational efficiency in an organization a linchpin for successful operations management, another reality has come with it — a deluge of data. But greater demand for increasingly granular analysis and reporting means that individuals from all levels of operations and maintenance management are starting to use data in a more insightful and actionable way.

The timing is right, as data can help enable facility professionals to streamline, automate, control, audit and improve operations. As systems, sensors and the Internet of Things churn out more metrics, leaders are increasingly turning to business intelligence tools to not only generate data, but to help transform that data into consistent processes.

Operations software systems enable facility managers to gather, sort and analyze data for insights about what happened in the past. With reporting and analysis tools, business intelligence gives organizations greater insight into operational metrics and provides answers to questions such as: Using visual tools such as dashboards, spreadsheets and charts, business intelligence applications make data easier to analyze, understand and use to make better decisions.

The continuing transformation of facility management data through business intelligence is one in which information becomes knowledge, and that knowledge can then be used to drive improvements across the business.

  • When the Colorado school district operations officer began including data-driven recommendations in his operational reports, the financial and educational officers soon followed suit;
  • Coupled with the rapidly increasing volumes of data being generated and the increasing rate of disparity as data arrives from external sources, the situation needs a better solution;
  • Chris Megill Associate Director of Technology Services, George Washington University By measuring success and adjusting for weaknesses, an institutional IT unit can adapt more quickly to changing needs and improve the efficiency of the campus-wide technology services;
  • As the technology transformation has evolved and become a linchpin for successful operations management, another reality has come with it — a deluge of data.

This type of data is also key for justifying staffing levels and capital investments as well as improving operational efficiencies and identifying under-or over-performing operations. Data helps future-proof organizations by enabling them to play offense against oncoming trends that threaten to impact operational efficiency and production. One trend facility managers are facing is a projected decline in operations professionals in the workforce.

On top of that, fewer students are earning facility management accredited degrees. To combat this reality, data-driven analysis can drive better FM decision-making and greater efficiency through automation, despite declining resources. Key performance indicators KPIs hone in on metrics that will provide the answers management needs to make critical business decisions.

KPIs are navigational tools that measure how well an organization is doing against strategic goals and objectives and can vary, depending on organizational goals. The most effective KPIs target areas that will make the most impact in an organization.

The importance and benefits of operational decision making

As an example, one of the top KPIs for facility managers is typically the ratio of preventive work orders to all proactive and reactive work orders. This is important to monitor as a preventive maintenance program can reduce catastrophic failures by 60 percent and decrease cost of work orders by 30-40 percent on average.

Another critical KPI is work hours per employee per week. It may also identify and justify the need for additional maintenance resources.

One KPI that frequently rises to C-level attention is the current replacement value and facility condition index. This helps prioritize spending and informs capital planning. The operations team meets daily to review KPIs, determine focus and assess progress toward goals. Generating reports and graphs using real-time metrics helps them pay attention to details that give them an accurate picture of performance.

Tracking daily progress equips them to take action and make improvements quickly. KPIs have enabled them to watch for trends in how long it takes to resolve IT issues.

  1. IT can take this a step further to help to identify bottlenecks by providing report break downs by the type of wait time.
  2. Without agility, your organization can't consistently carry out a new strategy without an extended period of change. You must constantly refine and update it to keep up with competitors, market shifts, and consumer preferences.
  3. As an example, one of the top KPIs for facility managers is typically the ratio of preventive work orders to all proactive and reactive work orders.
  4. After all, if your operations haven't changed, no customer or other associate is likely to notice—they won't detect the change in your pricing or how it affects them. Arrival time to patient seen by nurse Patient seen by nurse to patient seen by MD Patient seen by MD to check out item IT could then overlay the patient experience reports with network status during those same timeframes and across different locations to begin to assess the root cause and analyze further.
  5. Examine and record redundant tasks, redundant efforts, and points of delay or production excess.

Addressing them quickly improves efficiencies within IT, while at the same time, reducing instructional down time. Based on results of a recent survey, building owners and facility managers see the value of broadening their view. Benchmarking performance against peers provides a deeper and wider level of analysis that enables organizations to optimize efficiencies even further.

Comparing at a macro level, such as the overall energy efficiency of a facility, for instance, or down to a micro level, such as the life cycle of a heating, ventilation and air conditioning system component, peer-to-peer benchmarking capabilities help organizations: For a state department of education, benchmarking can reveal how capital and maintenance funds are being used at the local level, help prioritize future funding and even demonstrate need at a federal level.

Benchmarking has become an important tool for the Colorado school district. Comparing data at a micro level enables them to measure how they stack up against other school districts.

FMJ - March/April 2017

Benchmarking against districts on a state, regional and national level gives them access to a wider swath of data and peer-to-peer best practices to compare against and learn from. Through access to data from schools from across the country, they can see that they rank in the top 20 percent of institutions nationally in facilities and operations.

Benchmarking gives them a framework as they work toward their goal to continually improve to rank in the top 10 percent. Benchmarking also enables organizations to identify gaps — Are there metrics not being measured that should be? When it comes to justifying budgets and staffing in an environment that demands doing more for less, benchmarking allows facility managers to highlight successes, which helps clear a path to getting what they need to improve operational efficiencies.

When the Colorado school district operations officer began including data-driven recommendations in his operational reports, the financial and educational officers soon followed suit. What began as a push for importance of operational efficiency in an organization in facility operations has expanded across all areas of administration, with KPIs and benchmarking becoming part of the culture.

Business intelligence helps build partnerships focused on achieving improvements for the entire organization. At its core, data gets people talking.

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It solidifies opinions, identifies trends and justifies expenses. Optimizing operational efficiencies today is about not just tracking operations more effectively, but using the resulting data for internal and peer-to-peer benchmarking — all with an eye on making more strategic data-driven decisions and plans.

He has 15 years of technology marketing and facility management experience, including leadership roles in a start-up that has grown into a high-growth, capitalized cloud company.

Published by International Facility Management Association. This page can be found at http: