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FACILITY MANAGEMENT STRATEGY
BUSINESS DRIVERS
- include market opportunities, competition,
product launch windows, rationalization of operations, and
downsizing.
Organizational Management Levels
Investment in a new facility has to be considered strategically,
tactically, and operationally.
Organizational management levels:
 Strategic level
- retain flexibility to deal with changes in the
environment.
 Tactical level
- broad intentions have to be turned into workable
plans.
 Operational level
- ensure that employees are working according to
laid- down procedures and not deviating from it.
Strategy Formulation
- considers the organization’s business objectives, needs, and
policies, as well as the practicalities imposed by its space
requirement.
Strategy Formulation for facility management:
1. Strategic analysis
- assessment of expectations and objectives relevant
to services, resources, market, portfolio, and space
audit.
2. Solution development
- generating, evaluating, and selecting options for
facility strategy.
3. Strategy implementation
- people, communication, resource planning,
procurement, outsourcing, and entire organizational
system relevant to strategy implementation.
Organizational considerations in strategic analysis:
 Portfolio and space audit
- undertaken to assist in establishing the extent to
which the facility requires servicing.
 Services audit
- critically review the current delivery of services
through a comprehensive examination of existing
policy.
 Resources audit
- concentrate on the skills of the people, the
capability of providers or suppliers, and the status
of all procedures and technology.
 Market audit
- consider testing the market at intervals to
determine the extent to which current service
delivery matches the demand, including the cost of
services.
Organizational considerations in solution development:
 Criteria for evaluating
- develop specific measures for judging relative
merits of options on a facility strategy.
 Generation of options
- suggest alternatives for the facility strategy
through consultation.
 Evaluation and selection of the preferred
- apply the established criteria in selecting the best
option for the facility strategy.
Organizational considerations in strategy implementation:
 People and systems
- develop the competence and skills of personnel
through proper education, training, and mentoring.
 Communication
- effective message to ensure that strategy
implementation is both understood and acted upon
by the employees.
 Resources planning
- plan the use of production factors efficiently and
effectively to ensure proper allocation and control.
PROCESS SELECTION
- way an organization chooses to produce its good or services.
Key aspects of an organization’s process strategy:
 Capital intensity
- mix of equipment and labor that will be used by
the organization.
 Tactical level
- can be adjusted to changes in processing
requirements due to factors such as changes in
product or service design, volume processed, and
technology.
Basic process types:
 Job shop
- relatively small scale.
- low volume of high- variety goods or services will
be needed.
 Batch
- moderate volume of goods or services is desired.

 Repetitive
- higher volumes of more standardized goods or
services are needed, and monotonous processing is
required.
 Continuous
- very high volume of non-discrete, highly
standardized output is desired.
 Project
- nonroutine, with a unique set of objectives to be
accomplished in a limited time frame.
Technological Innovation
- discovery and development of new or improved products,
services, or processes.
Technology
- applications of scientific discoveries to the development and
improvement of goods and services.
Scope of technology:
 Process technology
- methods, procedures, and equipment used to
produce goods and provide services.
 Information technology (IT).
- computers and other electronic equipment to
store, process, and send information.
Automation
- machinery that has sensing and control devices that enable
it to operate automatically.
Different kinds of automation:
 Fixed automation
- high-cost, specialized equipment for a fixed
sequence of operations.
 Programmable automation
- high-cost, general-purpose equipment controlled
by a computer program.
Programmable automation:
o Computer-aided manufacturing (CAM
- computers in process control, ranging
from robots to automated quality control.
o Numerically controlled (N/C) machines
- machines that perform operations by
following mathematical processing
instructions.
 Flexible manufacturing system (FMS)
- group of machines that include supervisory
computer control, automatic material handling, and
robots.
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LINE BALANCING
- process of deciding how to assign tasks to workstations.
Cycle time
- establishes the output rate of a line.
FORMULA:
Output Rate = Operating Time per day/Cycle Time
PROCESS LAYOUT
- can be influenced by both internal and external factors.
FORMULA:
Daily Transportation = Distance x Workflow
PRODUCTIVITY
- measure of how effective or efficient an individual performs
a given task, under a different set of circumstances.
Factors that affect productivity:
 The nature of work
- link between personal satisfaction of an employee to
his/her workplace and the effectiveness of the
individual and organization.
Different types of work setup:
o Telecommuting
- information and communication technology
(ICT) and virtual private networks in
accomplishing work.
o Flexible working hours
- better work-life balance, especially for those
with typical family arrangements.
o Out-of-office working
- satellite centers and the concept of the
virtual office.
 The organization
- focusing on the personnel as a resource.
- potential that can be realized through training and
personnel development.
 Communication
- periods of quiet concentration for employees to
allow creative or complex thought.
 The work environment
- internal working conditions of the employees.
Different factors that affect the productivity:
o Air quality
- stale air, which is a common complaint that
arises from inefficient ventilation.
o Noise and vibration
- physiologically and psychologically harmful.
o Lighting
- not only on visual task performance, but also
in controlling the physiological and
psychological functions of the human body.

o Heating
- thermal comfort, which tends to receive the
highest number of complaints from
employees.
Sick Building Syndrome
- illnesses and symptoms that afflict multiple occupants of a
particular building.
- very design of workplaces might be creating ill health for the
employees.
Design Issues
- must address not only an individual’s lower-order needs,
such as safety, security, and physical comfort, but also
higher-order needs such as self- esteem.
Unconventional Working Arrangements
- revising space utilization requires the abandonment of
designated spaces or workstations.
Principles must guide the total workplace concept:
1. Breaking down barriers to encourage functional
diversity and mixing people who would not normally
mix
- increase the beneficial exposure of employees to
differences and diversity.
2. Access to the physical resources necessary for
effective work, with environmental equity
- increase the productivity of the employees.
3. Varying the optimal setting in accomplishing work
according to variations in an individual’s work over
time
- positive impact on personnel productivity.
5S Workplace Organization
- creating a clean, orderly environment where there is a place
for everything.
 S1 – Sort ( Seiri )
- going through all the tools, materials, etc. in the
work area and keeping only essential items.
 S2 – Shine ( Seiso )
- primary activities, which involve getting the
workplace clean, maintaining its appearance, and
using preventative measures to keep it clean.
 S3 – Set in order ( Seiton )
- need for arranging tools and equipment in an
order that promotes optimum workflow.
 S4 – Standardize ( Seiketsu )
- creating best practices relevant to continuous
improvement in the workplace.
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 S5 – Sustain ( Shitsuke )
- maintaining the momentum generated during the
initial implementation of 5S and creating
sustainability programs to keep the discipline.
Compliance
- should cover planning, organization, control, monitoring, and
reviews.
Followed by an organization to minimize risk:
 Organizational
- policy, management and organization, and safety
rules and procedures are well cascaded to their
personnel.
 Noticeboards
- and safety policy, including emergency
procedures, are clearly displayed in the facility of
the organization.
 Accident reporting
- keep an accident book, which will serve as a
reference for the most common accidents
encountered by the personnel of the organization.
 Training
- conduct a general health and safety awareness
program through the help of a specialist.
 First aid
- availability of an adequate number of first aid
personnel during the operations of the facility.
 Fire precautions
- conduct a fire risk assessment and periodic
evacuation drills for their personnel.
 Statutory risk
- undertake a risk assessment for the facility by
evaluating the effect of hazardous substances under
relevant legislation.
 Inspections
- periodically examine the facility for physical
hazards.
 Work equipment
- periodically inspect the facility for any form of
physical hazards.
 Protective equipment
- carry out assessments to determine the
requirements of personnel in terms of protective
gears and equipment.
 Off-site
- assess the risks of the personnel involved in
visiting other sites or working outside.
 Service providers
- provide an on-site policy document that all service
providers must read and sign as evidence of their
awareness of their duties and obligations with
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regard to health and safety requirements of the
organization.
Security and well-being of the personnel within the
workplace:
 Unsatisfactory working conditions
- poor-quality of internal environment.
 Mental and physical overload from excessive
work-related demands
- long working hours, lack of breaks, working
weekends, and cancelled holidays.
 Role ambiguity and inconsistency in management
style
- senior managers who lack leadership skills and
whose actions result in confusion and discord.
 Responsibility for other personnel
- assuming a position for which one is ill-equipped
or unsuited.
 Personal relationships
- conflict or tensions between individuals or groups
within the organization.
 Under-promotion or over-promotion
- failing to reward or, conversely, moving personnel
to new positions where they are unable to cope.
 Poor organizational structure/culture
- ineffective management of social infrastructure to
the extent that personnel become disillusioned,
downbeat, and distrustful.
aligned with the processes of the organization.
 Feedback from staff and customers
- based on the feedback of internal and external
customers for process improvement.
Areas for Improvement:
 Health and safety committees, representatives,
and departmental safety groups
- monitor the performance of key personnel
involved in maintaining the facility.
 Hazard identification policies and procedures
- identify safety threats in the facility, which may
affect the productivity of the employees to position
a solution.
 Job descriptions
- ensure that the job descriptions of each key
personnel are aligned with the objectives of the
organization.
 Communication channels
- eliminate communication barriers to establish an
open communication in the workplace.
 Training equipment and resources
- ensure that they have all the equipment or
resources needed in facilitating training for
performance improvement of the key personnel.

Health, safety, and security system

- competitive advantage and a reflection of management
strength.

Reasons for System Review:

 Scheduled review
- based on a set timeline depending on the nature
of the business.
 Change in management or key health and safety
staff
- change in management or any key personnel
directly involved in maintaining the health and
safety of the employees.
 Change in company direction
- particular goals or objectives have been changed.
 New products and services have been introduced
- align the new products and services that it offers
to the market.
 Injuries, illness, or incidents have taken place
- avoid future accidents in the workplace.
 Policies and procedures may be outdated.
- before updating the policies and procedures of the
organization.
 New equipment and technology have been
introduced
- ensure that new equipment or technology is