Key cost metrics to track when benchmarking Facility Management

Do you believe that you could save costs for your company, but don’t know how to prove it? Do think your maintenance expenditures are considerably lower than those of other buildings but lack some evidence to get recognized for it? Here are the key cost metrics you should be looking after. 

For ages benchmarking as a method has been applied by business managers of all kinds to improve business processes and grow operational efficiencies. As a tool, benchmarking represents the continuous process of measuring one’s services, products and practices up against industry peers.

Without any surprise, costs make up the most frequently tracked metric most when evaluating Facility Management performance and thereby also a key element of any benchmarking system.

A rule of thumb in the industry is that about 95% of all operating costs tie into utilities, maintenance, janitorial and security. But how can you figure out if you’re performing under or over the industry average and realize where operations can be improved?

In the following graphic, we have lined up some of the most frequently benchmarked cost metrics that you might consider tracking next time you’re benchmarking your Facility Management performance.

Benchmarking Facility Management

 

Utility costs

Utilities consume a significant amount of energy. Because utility costs and consumption run in parallel benchmarking tools that tracks one often track the other. Utility costs and consumption also tie into sustainability modules, as energy is a major component of most sustainability models.

Maintenance costs

Many companies today are cutting back on preventive maintenance in the name of immediate cost savings. This is despite that cutting back on preventive maintenance generally causes a significantly greater increase in corrective maintenance.

Benchmarking studies show however that companies with a higher ratio of preventive maintenance spend less total dollars on maintenance. Working with benchmarking allows to present findings like these to management and making a cogent argument for spending more on preventive maintenance.

Benchmarking all cost metrics can be very time consuming and not all costs need to be tracked at fine levels of detail. Facility professionals should start by tracking the areas where they think they have problems or may be underperforming. If their suspicions are correct, they can track them in more detail.

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