KPIs for facility's performance assessment, Part II: identification of variables and deriving expressions for core indicators

Abstract

Purpose-The purpose of this paper is to identify key variables that affect the quantifiable key performance indicators (KPIs) and to derive equations to measure these indicators. Qualitative KPIs are also discussed in terms of the aspects that need to be covered while carrying out qualitative performance assessment. Design/methodology/approach-A combination of literature and an industry opinion-based qualitative approach is applied to develop equations to calculate the quantifiable KPIs. A facility asset management consulting firm is included in the process of deriving the equations. Key aspects of a facility's qualitative performance assessment are categorized and discussed by performing a literature review. Findings-Mathematical expressions for core performance indicators are presented and discussed along with key variables. In addition, the information needed to quantify these core indicators is also discussed. Research limitations/implications-This paper represents the second step towards establishment of a relevant list of quantifiable and measurable core KPIs, which were identified and categorized in Part I of this paper. In Part II, the authors derive equations to quantify the core KPIs. Future research is needed to use relevant information from industry for validating these equations. Practical implications-A need for a concise and relevant list of KPIs was identified in Part I of this paper. Part II provides an approach to quantify the core KPIs based on information that is available in the industry. This research will help facility management professionals in not only selecting the indicators of choice, but also quantifying them based on available information yielding enhanced facility management decisions with measurable facility performance outcomes. Originality/value-This paper provides equations and variables to measure a facility's physical, functional and financial performance using both quantitative and qualitative performance assessments.

Search for Facility Management’s KPIs to manage the hospitals infrastructure in Colombia

“…Within the first 50 documents, the following 20 articles have been taken into account: [20], [21], [22], [23], [24], [25], [26], [27], [28], [29], [30], [31], [32], [33], [34], [35], [36], [37], [38], [39]. All of these articles meet the requirements, since they indicate a number of KPIs that can be used to manage the infrastructure, and most of them also display different categorizations.…”

Measuring the Performance of Assets: A Review of the Facility Condition Index

“…Worth to be notice that DoI, describes the calculation methodology for FCI in its institutional documents, though for the actual computation, it refers to the use of Figure 7. Classification of references by type of FCI described and provenance (Rush, 1991;Kaiser, 1993;Fagan & Kirkwood, 1997;AAPPA, 2000;Vanier, 2000;Ho, E. H. W. Chan, Wong, & M. Chan, 2000;Teicholz & Edgar, 2001;Brooks, 2004;Uzarski & Grussing, 2008;IFMA, 2008;Roberts, 2009;Lavy et al, 2010Lavy et al, , 2014bBello & Loftness, 2010;Attalla, MacDonald, & Dunn, 2012;Lavy, 2013;Karanja & Mayo, 2016;Dejaco et al, 2017) Complex Differs from the previous for the calculation methodology of deferred maintenance and current replacement value (Capital Asset Management -Asset Strategies, 2011;Geldermann & Sapp, 2007;Kaiser, 2009;Maltese et al, 2017;Quirk, 2006;Rashedi & Hegazy, 2016;Selman & Schneider, 2004) Combined Indicators derived from the basic or extended version of FCI, combined with other metrics (Federal Facilities Council, 2001;Mills, 2001;NASA, 2003;Selman, 2003 Since the definition of its first version in Eq. (1), the indicator had been revised and other versions have been proposed.…”

“…Even if it has been demonstrated that economic and financial indicators are too narrow to achieve a comprehensive knowledge of assets' performances (Pärn, Edwards, & Sing, 2017;Yang et al, 2010), they are widely used in Asset Management (AM). Thus, the aim of this research is to present a critical review concerning the Facility Condition Index (FCI): one of the most acknowledged financial indicators (Lavy, Garcia, & Dixit, 2010, 2014a, 2014b. The FCI allows to quantify in a scale from 0 to 100 (where 0 represents the best value) the condition of an asset, based on the expense dedicated to maintenance operations, calculated as the ratio between the cost of Deferred Maintenance (DM) over the Current Replacement Value (CRV).…”

Facility managers' perceptions on building performance assessment

“…Suitability of a space for specific activities is commonly identified as a functionality indicator (Lavy et al, 2014). Thermal comfort, humidity control, air quality, light quality, noise and workplace pollution are generally considered as indicators of comfort/well-being that are also related to functional performance (Atzeri et al, 2016, Ornetzeder et al, 2016.…”