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

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

3. 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

4. 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

5. 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

6. 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

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

8. 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

9. 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.

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

11. 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.

12. 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!!

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

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

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

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

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

18. 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

19. 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?

20. 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.

21. 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

22. 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

23. 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

24. 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.

25. Time
Planned work takes less time than reactive.
Snowball effect

26. Jones Lang LaSalle PM ROI Study
Developed a Financial Model

27. Establish $ per sq/ft for PM Work

28. 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.

29. 545% ROI in a PM Program
Accurate projection of replacement and extended asset life
LOWER OVERALL COST OF OWNERSHIP

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

31. 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

37. Thank You
Forrest Cooper Applications Engineer FacilityDude