Risk Management: What’s a CMMS got to do with it? Innovative Technologies in Facility Management

Introduction Forrest Cooper Applications Engineer With the Dude since 2013 Why am I talking about this stuff?

Dude Facts: Founded in 1999 9,000+ Organizations 4+ Billion ft2 Facilities Managed 1.5M Work Orders/mo Processed 1 WO per minute 24/7/365 470+ US-Based Employees

What am I? Everyone in the world has it Everyone uses it whether they want to or not It can be bought, sold, traded and stolen It has $0 value but is one of the most precious commodities in the world

TIME Everyone in the world has it Everyone uses it whether they want to or not It can be bought, sold, traded and stolen It has $0 value but is one of the most precious commodities in the world

Agenda What is a CMMS? How does a CMMS tie to Risk Management? FD internal PM Master study External PM ROI study Discussion and questions

Computerized Maintenance Management Software What is CMMS? Computerized Maintenance Management Software Software used to track the business processes around facility maintenance and energy operations.

Basic Risk Management Identify Assess Prioritize Legal, Financial, Accidents (Employee & Customer Safety), Disaster, or Vandalism? Assess Cost vs. Effectiveness vs. Pain Prioritize Risk level vs. ability to solve it

8 Keys of CMMS / Risk Management Integration Adding a value proposition. Part of the organizational processes. Part of the decision making process. Systematic and structured. Decisions based on best available information. Account for human error and status quo. Transparent and Inclusive. Responsive to change. Provide for continual improvement and enhancement.

Adding a Value Proposition The value you receive vs. the effort you exert 500%+ ROI for any preventative maintenance task.

Part of the organizational processes Tracking of day to day operations. All departments, all the time. Creating custom inspection forms. From mowing schedules to equipment and habitat inspections.

Part of the decision making process Equipment and asset replacement cost accuracy. Major project prioritization and tracking. Using data to make your decision for you (or at least help). Justifications!!

Systematic and structured Standard Operating Procedures (SOPs) for safety inspections and park openings/closings. PM Templates Quick training turn-around Documentation Consistency

Based on best available information Peers Groups Industry Associations (AZA,IPRA,NRPA IFMA) Vendor and client hosted webinars. Institutional Knowledge!!

Account for Human Error & Status Quo Reward top performers Train less efficient Easy problems can be solved Obligation vs. Opportunity

Transparent and Inclusive Access vital information anywhere. Ease of use. Garbage in…Garbage out

Responsive to change Inspection findings tie to emergency work Failures move projects to higher priority

Provide for continual improvement and enhancement Don’t get complacent A CMMS is a LIVE system, it breathes. It needs support Garbage in…Garbage out Up to date and accurate

CMMS and Risk Areas Financial- know what you spend and know what is and is not critical. Equipment replacement at the optimal time. Budgeting. Forecasting Legal- documentation, standard process, this was my plan, this is how we did it. Accidents- inspections, equipment maintenance Disasters- cost tracking for insurance, FEMA claims. Vandalism- track our cost and time and damage. Is it worth assessing? If so by how much?

Risk Summary How Does a CMMS Mitigate Risk? Creates an executable plan, holds you accountable Instant access to all past inspections, work and repair incase of accident or emergency Standard Operating Procedures for all types of work. More accurate fiscal decisions driven by data Planned maintenance defers cost of replacement and can prevent major repair.

Internal PM Study Top 250 users of FacilityDude CMMS Daily, weekly, monthly, semi, and annual schedules Equipment, safety, and inspections 5 year time frame of implementation and results

Cost Impact of Consistent Preventative Maintenance 50% - 65% reduction in the rate of emergency work Lower cost per work order with the average cost per work order being 28.6% to 39.3% less

In emergency work orders Rate of Emergency Work Rate of Emergencies Average for Group Rate of Emergencies for PM Masters Reduction in Emergencies PM Master Group 1.89% 1 out of 53 work orders 0.67% 1 out of 147 work orders 64.5% In emergency work orders

PM Reduces Corrective Work Over a 5-year period, a sampling of PM Masters garnered a 16% reduction in corrective maintenance. Corrective work as a percent of the total work is reduced from 87% to 71% of the total work performed.

Time Planned work takes less time than reactive. Snowball effect

Jones Lang LaSalle PM ROI Study Developed a Financial Model

Establish $ per sq/ft for PM Work

Example 10- year old, 7 HP Air Compressor. $32,000 Replacement Cost. 25 Year Plan. $472 per year PM Work Order. $944 per repair. With PM Program ($50,600)- 20 year lifespan. 1 of every 4 years at $944 per repair ($472/yr PM, $236 a year Repair) Replaced in year 10. Without PM ($73,675)- 16 year lifespan. 1 of every 3 years repaired. ($315/year repairs) Replaced at year 6 and year 20.

545% ROI in a PM Program Accurate projection of replacement and extended asset life LOWER OVERALL COST OF OWNERSHIP

Helping with AZA Accredidation Physical Facilities (PF) Safety/Security (SS) Guest Services (GS)

Summary An effective PM Program will have at least 3 unintended benefits Overall reduction in RISK and increase in exercised safety Over 500% ROI on the PM plan cost A planned and organized day allowing you more stability, security and…..TIME  

Thank You Forrest Cooper Applications Engineer FacilityDude forrest.cooper@FacilityDude.com 919-674-8766