crc fm report feb07

8/11/2019 CRC FM Report Feb07

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FM as a business enabler

Solutions for managing the built environment


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INDU

STR

Y

GOV

E

RNM

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NT

RESEA RCH

Department of Main Roads

Department of Public Works

Department of State Development,Trade and Innovation

CRC for Construction Innovation participants


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FM as a business enabler

Solutions for managing the built environment


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Icon.Net Pty Ltd 2007

Cooperative Research Centre for Construction Innovation9th Floor, Level 9, QUT Gardens Point2 George Street, Brisbane, Qld, Australia 4000Telephone: +61 7 3864 1393Email: [email protected]: www.construction-innovation.info

All intellectual property in the ideas, concepts and design for this publication belongs toIcon.Net Pty Ltd.

The authors, the Cooperative Research Centre for Construction Innovation, Icon.Net Pty Ltd, and theirrespective boards, stakeholders, officers, employees and agents make no representation or warranty

concerning the accuracy or completeness of the information in this work. To the extent permissible bylaw, the aforementioned persons exclude all implied conditions or warranties and disclaim all liability forany loss or damage or other consequences howsoever arising from the use of the information in thisbook.

First published 2007 by Cooperative Research Centre for Construction Innovation, for Icon.Net Pty Ltd.

Cover images courtesy of Sydney Opera House and upper images 14 courtesy of Peter Brandon.

For further information on our publications, please visit our website: www.construction-innovation.info

RRP $35.75 (including GST)

ISBN 978-0-9775282-5-7


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iii

Foreword

Sydney Opera House is internationally acclaimed as an icon of 20th century architecture andcontributes immensely to Australia in terms of cultural, commercial and tourism value. Themanagement, maintenance and protection of Sydney Opera House as a performing arts centre and itsiconic status is paramount. It was recognised that a facility which was conceived nearly 50 years agorequires the highest quality of facilities management to enable this icon to be protected while it stillfunctioned as a business enterprise.

The Government was approached under the Facilities Management (FM) Action Agenda andCooperative Research Centre (CRC) for Construction Innovationto support this initiative along with anumber of industry participants and research organisations. Our support has played a part in ensuringthe protection of this national icon of the built environment while assisting with applied researchcontributing to the body of FM industry knowledge.

The FM Exemplar Project has focussed on the three main research streams: digital modelling, services

procurement and performance benchmarking. These have been combined into an integrated FMsolution intended to have applications for the broader FM industry. The project also has an internationalflavour with iconic facilities from around the globe being invited to participate, providing an opportunityto learn from others and showcase Australias FM applied research expertise on the world stage.

The project also addresses a number of recommendations coming out of the FM Action Agenda, whichis one of more than 30 sector-specific Action Agendas developed by the Government in partnership withindustry. They provide a powerful mechanism for industry and Government to work together to identifyopportunities and impediments to industry development. I am proud to be the champion of a number of

Action Agendas, including the FM Action Agenda which promotes the industrys vital role in improvingthe productivity and sustainability of Australias built environment.

A large number of individuals and organisations identified in this report have been involved with the FMExemplar Project at various times. We have been fortunate to have such an excellent mix of high quality,committed industry and research professionals from the CRC for Construction Innovation. They are tobe congratulated for their generosity and willingness to work collaboratively to achieve these outcomeswith benefits to the Sydney Opera House, the FM industry and the community at large.

I commend this report to you.

The Hon Bob Baldwin MP

Parliamentary Secretary to the Minister for Industry, Tourism and Resources


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ContentsForeword ...........................................................................................................................................iii

Acknowledgements ...........................................................................................................................v

Preface ...........................................................................................................................................vii

About the FM Action Agenda .............................................................................................................viii

About the Cooperative Research Centre for Construction Innovation...........................................viii

Acronym list ........................................................................................................................................ix

Executive summary ............................................................................................................................x

1. Introduction ...............................................................................................................................1

1.1 Background and focus of publication ................................................................................... 1

The need for information ....................................................................................................... 1

The need for integrated information systems ....................................................................... 1

About the FM Exemplar Project: Sydney Opera House ....................................................... 1

1.2 Integrated FM Solution .......................................................................................................... 3

2. Development of integrated solution for FM .............................................................................4

2.1 Objectives .............................................................................................................................. 4

2.2 Total Asset Management (TAM) at Sydney Opera House .................................................... 4

Results, services and asset dependency ............................................................................. 5

The role of digital modelling in the development of an integrated FM solution ................. 8

The role of services procurement in the development of anintegrated FM solution .......... 15

The role of benchmarking in the development of an integrated FM solution ...................... 17

3. Information alignment ...............................................................................................................22

3.1 Alignment of information in the FM process ......................................................................... 22

3.2 Modelling of building, FM and performance information ..................................................... 22

Maintenance management and operational information...................................................... 23

3.3 Integrated FM solution model through information alignment ............................................ 24

4. Performance alignment .............................................................................................................25

4.1 Performance alignment with business drivers ...................................................................... 25

4.2 Establishment of integrated performance measurement ..................................................... 25

4.3 Developing key performance indicators (KPIs) .................................................................... 25

4.4 Integrated FM solution model through performance alignment .......................................... 27

5. Project outcomes ......................................................................................................................28

5.1 Conclusions ........................................................................................................................... 28

5.2 Future developments ............................................................................................................ 29

6. Bibliography ..............................................................................................................................30


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v

Acknowledgements

FM as a business enableris based on the outcomes of the Cooperative Research Centre (CRC) forConstruction Innovations FM Exemplar Project: Sydney Opera House. The FM Exemplar project teammembers are:

Project leader

Stephen Ballesty Rider Hunt, Facility Management Association of Australia and FM Action AgendaImplementation Board

Research contributors

Sunil Madan Brisbane City Council

Lan Ding CSIRO

Robin Drogemuller CSIRO

John Mitchell CSIRO

Hans Schevers CSIRO

Marcello Tonelli CSIRO

Selwyn Clark Queensland Department of Public Works

Andrew Frowd Queensland University of Technology

Stephen Ballesty Rider Hunt Terotech

Nicholas Ferrara Rider Hunt Terotech

Jason Morris Rider Hunt Terotech

Ankit Shah Rider Hunt Terotech

Paul Akhurst Sydney Opera House

Alan Griffiths Sydney Opera House

Chris Linning Sydney Opera House

Gary Singh Sydney Opera House

George Spink Transfield ServicesDavid Leifer University of Sydney

Dirk Schwede University of Sydney

Janet Henriksen University of Sydney

Kat Martindale University of Sydney

Jeremy Wu University of Sydney

David Marchant Woods Bagot


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CRC forConstruction Innovationgratefully acknowledges the financial support it has received for thisproject from the Department of Industry, Tourism and Resources.

Our thanks go to the 22 facilities and organisations who participated in the benchmarking survey. TheCRC for Construction Innovationalso acknowledges Max Winter of WinterComms for review and editingassistance.

Without the financial and collaborative efforts bringing together industry, government and appliedresearchers, this valuable report may not have been successfully delivered to our industry.

Project partners

Industry Government Research

Australian Government

Department of Industry,Tourism and Resources


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vii

Preface

Sydney Opera House is not only an Australian icon, but has now been transformed by the FacilitiesManagement (FM) Exemplar Project into an example of best practice in applied research through thecollaborative efforts of Government, Sydney Opera House and the CRC for Construction Innovationsresearch and industry partners. The FM Exemplar Project has provided a unique opportunity toinvestigate and develop professional FM practice demonstrating its significant contribution in supportinga high-profile multi-faceted business enterprise such as Sydney Opera House.

In the pursuit of its objective to explore FM as a business enabler, the FM Exemplar Project hasfocussed on the three research streams: digital modelling, services procurement and performancebenchmarking. However, beyond these essential components of modern FM, the project has combinedthem into an integrated FM solution. The intent of the project was always to use the uniqueness andcomplexity of Sydney Opera House to develop a body of knowledge which would form the basis forfuture innovation, learning and standards with applications for the broader FM industry.

We are confident that the FM Exemplar Project has exceeded expectations and truly represents worldclass applied research from which vast recognition, productivity and sustainability benefits will flow.

Minister Ian Macfarlane MP, Warren Entsch MP, and more recently Bob Baldwin MP and the staff of theDepartment of Industry, Tourism and Resources are to be applauded for their unflagging support of theFM Action Agenda and its FM Exemplar Project in recognition of the importance of Managing the BuiltEnvironment.

Similarly the CRC for Construction Innovationhave been exceptionally fortunate in the leadership andcommitment demonstrated by our project participants including Sydney Opera House, TransfieldServices, Rider Hunt, CSIRO, University of Sydney, Brisbane City Council, Queensland Departmentof Public Works, Queensland University of Technology, Woods Bagot and the Facility Management

Association of Australia.

We would like to thank and congratulate all who have contributed to this project.We are proud to commend this report to you.

John V. McCarthyChair, CRC for Construction InnovationChair, FM Action Agenda

Keith D. HampsonCEO, CRC for Construction Innovation

Stephen P. BallestyProject Leader, FM Exemplar Project: Sydney Opera House, CRC for Construction InnovationChairman, Facility Management Association of AustraliaDeputy Chair, FM Action AgendaDirector, Rider Hunt


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About the FM Action Agenda

The Australian Governments Facilities Management (FM) Action Agenda chose Sydney Opera Houseas the focus of its FM Exemplar Project and partnered with the Cooperative Research Centre (CRC) forConstruction Innovationto develop innovative strategies across three research themes. The findingshave been integrated in order to achieve an FM solution beyond its component parts demonstrating FMas a business enabler.

The Australian Government, through the Department of Industry, Tourism and Resources, seeks tomake Australia more competitive by working closely with industry to identify new opportunities forgrowth. Action Agendas are a means by which selected industries work with the Australian Governmentto identify and then implement strategies to overcome impediments to growth.

The focus in Action Agendas is on the actions industry itself can take to achieve its objectives.

The FM Action Agenda had its origins in requests to the Australian Government from the FacilityManagement Association of Australia (FMA Australia) on behalf of the industry. FMA Australia identifieda number of key concerns for the industry. These included recognition of the industry, establishment ofa distinct facility management career path, industry-wide innovation, recognition of sustainability as adriver of business in the future, and the impact of regulation in the industry. The FM Action Agenda wasannounced by the Hon Ian Macfarlane MP, Minister for Industry, Tourism and Resources, on 19 January2004, and one of the outcomes of the FM Action Agenda was the FM Exemplar Project: Sydney OperaHouse, to demonstrate FM as a business enabler.

About the Cooperative Research Centre for

Construction Innovation

The CRC for Construction Innovationis a national research, development and implementation centrefocussed on the needs of the property, design, construction and facility management sectors.Established in 2001 and headquartered at Queensland University of Technology as an unincorporated

joint venture under the Australian Governments Cooperative Research Program, ConstructionInnovationis developing key technologies, tools and management systems to improve the effectivenessof the construction industry. Construction Innovationis a seven-year project funded by a Commonwealthgrant, and industry, research and other government support. More that 300 individuals and an allianceof 21 leading partner organisations are involved in and support the activities of this CRC.

There are three research areas:Program A Business and Industry Development

Program B Sustainable Built Assets

Program C Delivery and Management of Built Assets.

Underpinning these research programs is an Information Communication Technology (ICT) Platform.

Each project involves at least two industry partners and two research partners to ensure collaborationand industry focus is optimised throughout the research and implementation phases. Thecomplementary blend of industry partners ensures a real-life environment whereby research can beeasily tested and results quickly disseminated.

FM as a business enableris part of a series of publications produced by the Sydney Opera House: FMExemplar Project and presents the collective findings from the Digital modelling, Services procurementand Performance benchmarkingreports. It outlines the integration of these streams into an integratedFM solution that demonstrates FM as a business enabler.


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ix

Acronym list

3D Three Dimensional

AM Asset Management

BCI Building Condition Indices

BFI Building Fabric Indices

BPI Building Presentation Indices

CAD Computer-Aided Design

CCTV Closed Circuit Television

FM Facilities Management

FMA Australia Facility Management Association of Australia

GIS Geographic Information System

ICT Information and Communication Technology

IFC Industry Foundation Classes

IAI International Alliance for Interoperability

KPIs Key Performance Indicators

PAC Performing Arts Centre

SAM Strategic Asset Maintenance

TAM Total Asset Management


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Executive summary

ObjectivesAs a functioning performing arts centre, commercial enterprise, tourist attraction and major nationalasset, Sydney Opera House must continue to demonstrate the optimal use and effectiveness of itsfacilities management (FM) to provide value for its stakeholders. To better achieve this, the CooperativeResearch Centre for Construction Innovationfocussed on the following three themes for investigation inthe FM Exemplar Project Sydney Opera House:

digital modelling developing a building information model capable of integrating informationfrom disparate software systems and hard copy, and combining this with a spatial 3D computer-aided design (CAD)/geographic information system (GIS) platform. This model offers a visualrepresentation of the building and its component elements in 3D, and provides comprehensiveinformation on each element. The model can work collaboratively through an open data exchange

standard (common to all compliant software) in order to mine the data required to further FMobjectives (such as maintenance) more efficiently and effectively.

services procurement developing a multi-criteria performance-based procurement frameworkaligned with organisational objectives for FM service delivery

performance benchmarking developing an FM benchmarking framework that enables facilities/organisations to develop key performance indicators (KPIs) to identify better practice andimprovement strategies.

These three research stream outcomes were then aligned within the broader context of Sydney OperaHouses Total Asset Management (TAM) Plan and Strategic Asset Maintenance (SAM) Plan in arriving ata business framework aligned with, and in support of, organisational objectives.

The Sydney Opera House is managed by the Sydney Opera House Trust on behalf of the Government

of the State of New South Wales. Within the framework of the TAM Plan prepared in accordance withNSW Treasury Guidelines, the assimilation of these three themes provides an integrated FM solutioncapable of supporting Sydney Opera Houses business objectives and functional requirements. FM as

a business enablershowcases innovative methods in improving FM performance, a better alignmentof service and performance objectives and provides a better-practice model to support the businessenterprise.

Key findings

The research has established that:

alignment of services, performance criteria and supporting information with an organisations

business objectives is crucial for the organisation to achieve an integrated FM solution

digital modelling using the open data exchange standard such as industry foundation classes (IFC)has clearly demonstrated benefits in the support of FM processes, asset management applicationsand broader organisational objectives

alignment of performance with organisational objectives requires the use of performancebenchmarking to develop effective KPIs used in establishing an integrated performance hierarchyassessment model. This performance assessment model is used to address any shortfall that existsbetween the organisations objectives and good practice targets.

an integrated information FM framework needs to be supported through:

an open data exchange standard across multiple applications

the use of data mining as an information gathering tool for analysis across the TAMPlan and FM service delivery to support the overall business framework and decision-making.


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in the case of Sydney Opera House, where FM service delivery is integral to the core objectives ofthe enterprise, innovative steps were taken to ensure contractor understanding and appreciationof organisational culture. These steps contributed to moving the perception of FM servicesprocurement and delivery from the simple provision of operational-level necessity to an integratedstrategic element.

The FM Exemplar Project research should be expanded to include other facility types to verify thedatasets and performance benchmarks. The research could then be used to develop an integratedFM solution framework with broader industry application.

The FM Exemplar Project has aimed to provide a tangible basis to showcase innovative methodsto improve FM performance and promote best practice in order to better measure and manage theeconomic, social and environmental impacts of FM across industry, business and the community.

Business drivers Results& services Asset

dependency

Serviceperformance

Assetperformance

Facilitiesmanagement

KPIs

Benchmarking

KPIs

Managementcollaboration

Data & modelinteroperability

TAM Plan Strategy & project

Building Digital modelling

Procurement Procurement data

Benchmarking Benchmarking data

Service delivery Performance data

Integrated FM solution model through performance alignment


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Courtesy of Sydney Opera House, Australia international benchmarking survey participant


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1

1. Introduction

1.1 Background and focus of

publicationFacilities Management (FM) is a businesspractice that optimises people, process, assetsand the work environment to support delivery ofthe organisations business objectives, FacilityManagement Association of Australias Glossaryof Facility Management Terms (1998).

The need for information

The face of business has dramatically changedin the past 60 years as corporations haveresponded to increasing competition in abusiness environment that has expandedexponentially from local, to national, to global.These pressures have forced corporations tobe flexible and responsive to rapidly changingmarket conditions, political impacts andregulatory requirements.

This accelerated rate of change has also seensenior management increasingly broughtto account in relation to critical areas suchas corporate governance and performancemanagement.

Shareholders and stakeholders are no longersatisfied with using annual reports to measureperformance outcomes. Correspondingly,senior management are no longer able to usehistorical information such as annual reports tomake decisions that impact on organisationalperformance.

Performance management, therefore, is allabout timely performance measurement, andsenior management not only need to have thisinformation, they need to have it in a format thatenables strategic decision-making.

The need for integrated information systems

FM has benefited from embracing thisapproach, since it has brought some focus onits contribution toward organisational objectives.However this added focus has also driven theneed for the integration of disparate informationmanagement systems, firstly in order to betteralign FM performance objectives with theorganisational objectives, and secondly tofurther FM objectives in terms of better and moreeffective FM practices and service delivery.

In response to this increasing need, the FacilitiesManagement (FM) Exemplar Project usedSydney Opera House to conduct research

on FM, with the focus on maintenancemanagement. The project focusses on the threeFM research streams specific to Sydney OperaHouse, with the immediate objective of usingthe research to demonstrate FM as a businessenabler and to provide insight into the need todevelop a more generic integrated FM solutionfor the FM industry as a whole.

About the FM Exemplar Project:Sydney Opera House

Sydney Opera House is recognised throughout

the world as a building icon of 20th centuryarchitecture and an iconic symbol of Australia.As a performing arts centre (PAC) it is one ofthe busiest in the world, staging some 1500performances per year, attended by 1.1 millionpatrons, with a further 1000 non-performance-related events ranging from exhibitions tocorporate launches and weddings. An estimated4.5 million people visit Sydney Opera Houseeach year, with many taking tours and visitingthe five restaurants and bars.

Although difficult to quantify, it has been

estimated that Sydney Opera House contributesmore than $200 million per annum to theeconomy. As a business Sydney Opera Housegenerates some $38 million per annum fromsales, services and sponsorship, and receives$34 million in annual NSW Government grantsincluding $19 million for maintenance (excludingone-off capital renewal grants)1.

The success of Sydney Opera House andits many partners ranging from performingarts companies to restaurateurs, retailers andbusiness partners, is intimately linked to the

world-famous building and therefore to thestandard of FM at Sydney Opera House. Thecorporate vision and goals reflect the synergybetween business, building and FM throughsuch references as inspiration of the building,an architectural masterpiece and leveragingits assets.

More than in most buildings, FM at SydneyOpera House is a core business function directlycontributing to the visitor experience andtherefore to the success of the business. Formany visitors to Sydney Opera House, including

those who tread the boards, the building is theattraction part of the experience.

1Sydney Opera House Trust, From Inspiration to Execution, Sydney Opera House Trust Annual Report 2005, Sydney Opera

House Trust, Sydney, 2005


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The project was initiated by the FM ActionAgenda, supported by the AustralianGovernments Department of Industry, Tourismand Resources through the FM Action Agenda,and delivered by the Cooperative ResearchCentre (CRC) for Construction Innovationalongwith Sydney Opera House, FMA Australia,Transfield Services, Rider Hunt, Woods Bagot,Brisbane City Council, Queensland Departmentof Public Works, CSIRO, QUT and University ofSydney.

The project features three key themes.Digital modelling research developed abuilding information model capable ofintegrating information from disparatesoftware systems and hard copy, andcombining this with a spatial 3D computer-aided design (CAD)/geographical informationsystem (GIS) platform. This model offers avisual representation of the building and itscomponent elements in 3D, and providescomprehensive information on each element.The model can work collaboratively through

an open data exchange standard (commonto all compliant software), in order to minethe data required to further FM objectives(such as maintenance) more efficiently andeffectively.

1.

Services procurement research developed aperformance-based procurement frameworkaligned with organisational objectives, thatuses multiple criteria, weighted and definedin terms of performance objectives, for FMservice delivery.

Performance benchmarking researchdeveloped an FM benchmarking criteriaframework that enabled facilities/organisations to formulate key performanceindicators (KPIs) to identify better practiceand improvement strategies.

For Sydney Opera House, the digital modelling,services procurement and benchmarkingresearch streams provide a basis for optimisingtheir FM practice and performance. The effectiveintegration of these three streams shouldtherefore produce superior outcomes for FM,and better outcomes for organisational strategyand decision-making. It is in this respect that theproject aimed to achieve collaboration acrossthese three areas as a basis for demonstratingFM as a business enabler.

2.

3.

Budget inputcost plan for jobs (by

Program Manager)

Orders inputPurchase

Requisitions

PR entered by BUA/Program Manager / BDG

into TAM and sent to

Purchasing Dept.

Reports output (budgetmonitoring, financial

progress, order tracking)

Purchase orders raised,sent to supplier, copy of

PO sent to PM

TAMManager

Budgeting

SUNCorporateFinancials

MAINPACJob sheets

HARDCATAsset register

TAM Manager updatedevery day with SUN info.

such as PO status

supplier, payment etc.

Monthly cost oftransacted hoursallocated to jobs

in TAM Manager

PR entered byPurchasing Dept.

into SUN

The Sydney Opera House FM Exemplar Project comes at a pivotal time in the history of FM at SydneyOpera House. FM is delivered by a Facilities Portfolio that is undergoing a process of change from ateam distanced by disparate systems, to one that is fully engaged in the core business activities ofperforming arts and tourism.

Figure 1 illustrates some of the information silos and manual handling between silos used by the FMteam at Sydney Opera House.

Figure 1 Systems presently deployed at Sydney Opera House


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3

1.2 Integrated FM solution

Digital modelling, services procurement andperformance benchmarking present differentdimensions of the FM equation. These three

areas are closely related.

Significantly, as the research has developedinto each of the three study areas, theyhave been found to be mutually supportive effective risk-sharing in procurement requireshistoric information and benchmarks for futureperformance, benchmarking gathers vastquantities of data that can only be exploited ifproperly analysed and digital modelling providesthe means to manage such data.

While the digital model has not been used to

support contractual administration processeswithin this project, the data model used torepresent Sydney Opera House also supportsthe capture and storage of this information. Ifthe required extensions were made, the digitalmodel would directly support the procurementprocesses. Data mining could be used to reporton trends which could also be used to influencethe selection of procurement methods in thefuture.

Hence the integration across the three areas iscrucial in providing the supporting information

and processes in the development of theintegrated FM solution used for improving FMperformance. The alignment and placement ofthis integrated FM solution within the frameworkof a Total Asset Management (TAM) Plan in turn,is crucial in its ability to support an organisationsobjectives.

The integrated FM solution, through its alignmentwith the organisations objectives as outlined inthe TAM Plan, demonstrate FM as a businessenabler.

Courtesy of Pinacoteca Giovanni e Marella Agnelli, Italy

international benchmarking survey participant

Courtesy of The Scottish Parliament, Scotland



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2. Development of an

integrated solution for

FM2.1 Objectives

Corporate goals and business prioritiesdetermine the level of service delivery for theorganisation and bring special requirementsto asset functions. For example, iconic andperforming arts facilities have different resultsand services requirements to factories, resultingfrom their business characteristics.

These results and services form the objectives of

a Results and Services Plan, which sits within thebroader framework of TAM. Marquez and Gupta(2006) have defined Asset Management (AM)as collaborative activities of management thatdetermine the facilities objectives, strategies andimplementation. This definition has similaritieswith the Facility Management Association of

Australias definition of FM quoted previously.FM can be considered to be the businesspractices that support the objectives of assetmanagement.

2.2 Total Asset Management atSydney Opera House

Sydney Opera Houses objectives are set outin a Results and Service Plan (as required bythe NSW Treasury), which is comparable with acorporate plan. The Sydney Opera House Total

Asset Management Plan identifies the linkagesbetween services and assets by assessingthe dependency of service delivery on assetperformance. Key performance indicators (KPIs)that demonstrate the relationship betweenservice outcomes and asset condition also revealthe role of FM as business enabler at SydneyOpera House and its integration with servicedelivery. Figure 2 illustrates the integration ofbusiness objectives (results and services), asset

planning and FM.TAM planning in accordance with the NSWTreasury guidelines comprises the following:

Asset Strategy Plan

Capital Investment Strategic Plan

Asset Maintenance Strategic Plan

Asset Disposal Strategic Plan

Office Accommodation Strategic Plan

Heritage Asset Management Plan.



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5

TAM planning is intended to support theprimary functions of a facility in order that therequired resources are adequately funded withperformance measures put into place so that thefunctional efficiency and effectiveness can bemonitored and deficiencies overcome.

As with any successful business enterpriseSydney Opera House Trust has definedcorporate business goals as follows:

be Australias pre-eminent showcasefor performing arts and culture and an

international leader in the presentation ofdeveloping artists and their work

attract and engage a broad range ofcustomers and provide compellingexperiences that inspire them to return

maintain and enhance Sydney Opera Houseas a cultural landmark, performing arts centreand architectural masterpiece

create a customer-focussed workplace wherepeople are recognised for their contribution,realise their potential and are inspired to

achieve outstanding results

invest in the performing arts, culturalactivities and audience development bymaximising business results for SydneyOpera House and leveraging its assets,resources and brand.

Results, services and asset dependency

Within the TAM Plan, Sydney Opera Housesresults and services are clustered into threegroups related by outcomes:

Performing artsservicecoveringprogramming and producers unit, venueservices, support to the arts and educationprogram. It delivers the outcomes on cultureactivities, support to the performing artsindustry and education to young people.

Visitor experience service covering visitorservice, amenities and tourism. It delivers theoutcomes on continuous appeal to visitorsand theatre patrons, promoting SydneyOpera House as an icon nationally andinternationally, and contributing to economicgrowth.

Building and property servicecoveringpresentation and preservation of SydneyOpera House and its security. It delivers theoutcomes on an outstanding and uniquearchitectural masterpiece, on its capabilities

as a place of public entertainment andheritage building, and on comfort and a safeenvironment for visitors.

Similarly, Sydney Opera Houses assets aregrouped by related themes. This enablesthe dependency of services upon assets tobe illustrated in a simple table, effectivenessmeasures to be identified, and gap analysisundertaken as shown in the following tables.

Business drivers

Results and services

Asset service dependency

Assetperformance

Buildinginformation

Conditionindex

ProcurementAsset

managementMaintenancemanagementBenchmarking

Integrated FM solutionInformation Services Benchmarking

Asset strategy

Alignment between businessdrivers, services provided and assetdependency

Management and collaboration

Multi-dimensional assetmanagement, business alignment,performance alignment andinformation alignment

Total Asset Management Plan

Three research themes:- digital modelling- services procurement- performance benchmarking

Integrated FM solution

Figure 2 The role of the integrated FM solution in supporting the TAM Plan, and TAMs contribution toward the business outcomes


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Asset group Required performance Gap Management response

Visitor facilities

a) Compliance withrelevant legislation.

b) Facilities (signage,retail, catering etc.)appropriate for aworld class PAC andtourist attraction.

Lack of equitableaccess.

Inadequate signageand information (afrequent complaintby customers).

Develop renewalplans.

Signage Manualcompleted,enhance way-finding and complywith heritagerequirements (nilfunding available forinstallation).

Service cluster

Asset groups as defined in Sydney Opera Houses TAM Plan

Theatretechnical

facilities(audio,

lighting,stagingan

d

stagemanagemen

t)

Securitysystems

(CCTV,cyberlocks

andswipecards)

Staffandpresente

r

facilities(offices,

dressingroomsan

d

toilets)

Visitorfacilities

(retail,catering,

ba

rs

publictoilets)

Mechanical,

electricaland

hydraulicsystems

Fireservices

Informationand

communication

technology(ICT)

Buildingandsite

(structuraland

buildingfabric)

Performing arts H L M M M H H L

Visitor experience M M L H L H H H

Building and property M H M M H H H H Notes: H: High risk to service from a substandard functional space or asset group

M: Medium risk to service from a substandard functional space or asset groupL: Low risk to service from a substandard functional space or asset group

Table 2 Example of asset performance definition and gap analysis (Sydney Opera House TAM Plan 2006)

Table 1 Asset dependency to the service clusters (Sydney Opera House TAM Plan 2006)


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7

Service cluster Service performance measure Asset performance

Visitor experience

Tour attendances

Number of people taking paidtours

Customer satisfaction andgrowth of the tours businessis dependent upon well-maintained assets which othermeasures suggest could beimproved to meet our visionto excite and inspire theimagination.

Building Presentation Index

Cleanliness of the buildingcompared to as-new.

Both indices are reported at10% below target, indicatingthat heritage values, conditionsfor staff and presenters, and

visitor experience need toimprove to deliver our vision infull.

Building Fabric IndexThe condition of the buildingcompared to as-new.

Customer Satisfaction Survey

Satisfaction of visitors andpatrons following a visit toSydney Opera House.

Customer satisfaction withfacilities is rated at 7 to 8out of 10. This is consistentwith Presentation and Fabricindices and similarly below thatrequired to provide visitors witha truly inspiring experience.

The role of the TAM Plan is to identify the linkage between business goals, services and assets toachieve the highest possible total return on investment, and eventually to reduce the gap betweenexisting asset functionalities, service delivery requirements and maintenance provisions. Assetperformance standards and measures at the corporate and asset levels have been developed in theTAM Plan for Sydney Opera House to best support business goals and service delivery.

An example of the asset performance standard and measure at Sydney Opera House to supportits dependent services is the asset performance satisfaction levels demanded by performing artscompanies. These satisfaction levels highlight any serious issues and provide drivers for developingprocedures, processes, or, in some instances, capital expenditure for the improvement of buildingservices.

Courtesy of The Federation Square, Australia international benchmarking survey participant

Table 3 Example of service and asset performance measures (Sydney Opera House TAM Plan 2006)


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The role of digital modelling in the development of an integrated FM solution

Figure 3 A three-dimensional (3D), computer-aideddesign (CAD) example of the visual component

of digital modelling at Sydney Opera House

in this case presented as a sectional side-

elevation. Courtesy ARUP & Johnson Pilton

Walker JPW. Copyright Sydney Opera House.

FM generates, and is dependent upon, a vastarray of information and inputs that begin with

strategic plans and projects, and extend toinclude facilities data, maintenance schedules,performance records and cost data. As the datahierarchy develops, it transcends the specificneeds of the FM department and aligns with theperformance of the organisation as a whole. Thevalue of digital modelling in the developmentof an integrated FM solution is through itsprovision of enhancing data through its currency,accessibility and the ability to correlate onedataset with another.

The integrated FM solution in turn provides the

information derived from the correlation andprocessing of data to support organisationalobjectives, and demonstrates FM as a businessenabler.

Figure 1 (see Introduction) illustrates the rangeof data sources used in FM at Sydney OperaHouse to which can be added numerous othertypes of data including drawings and operationalmanuals that support the flow of FM operations,as illustrated in Figure 4.

Courtesy of Pirelli Real Estate Headquarters, Italy international benchmarking survey participant


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9

Site Building

Building storey

Functional area Functional space

Building element Fabric element Service element

Asset register

Asset register

Facilities data

Sydney Opera House

maintenance and service data

Service procurement data

Request/Task Work order Year Project codeMaintenance stream Maintenance type

Regularmaintenance

Majormaintenance

Routinemaintenance

Correctivemaintenance

Reactivemaintenance

Preventivemaintenance

Inspect, maintainand repair

Perform majorrepair

Perform majorrepair

Replace

Refurbish

Clean

Time Cost Asset performance Service provider (ID)Risk assessment

Digital modelling, through the establishment ofa building information model, can be designedto support such information dependencies asshown in Figure 4. The information model offersa visual representation of the building and itscomponent elements in 3D CAD, and providescomprehensive information on each element,and can integrate property data for GIS data.The model enables the collection of data fromdisparate software systems, hard copy, andnew model-based systems, through the use ofan open data exchange standard (common toall compliant software). This data can then befurther analysed and processed to provide theinformation needed to support the business

process.

The digital modelling concept recognises andallows for the fact that it is unlikely that onesingle application package will meet the needsof all parties involved in asset management,from strategic partners to the designersand constructors, to facilities managers andmaintenance personnel. The International

Alliance for Interoperability (IAI)2has addressedthis key issue through the developmentof a standard information protocol for theconstruction industry known as an industryfoundation class (IFC). Software that adoptsthe IFC protocol will be able to readily sharedata with other compliant software enablingpractitioners to select the best software for a

given application and to share data betweensystems.

2The IAI is a worldwide alliance of over 550 construction industry businesses and government agencies covering Architecture,

Engineering, Construction and Facilities Management (AEC/FM) from 21 countries.

Figure 4 Illustration of the different datasets and information dependency


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Generic attributes of digital modelling

The key generic attributes are:

robust geometry objects are describedby faithful and accurate geometry that ismeasurable

comprehensive and extensible objectproperties that expand the meaning of theobject objects in the model either havesome pre-defined properties, or the IFCspecification allows for the assignment of anynumber of user or project-specific propertiesaccording to a common format. Objects canbe richly described with items such as amanufacturers product code, or cost, or dateof last service.

semantic richness the model providesfor many types of relationships that can beaccessed for analysis and simulation, forexample is-contained-in, is-related-to, oris-part-of

integrated information the model holds allinformation in a single repository ensuringconsistency, accuracy and accessibility ofdata

lifecycle support the model definitionsupports data over the complete facilitylifecycle from conception to demolition. Forexample, client requirements data such asroom areas or environmental performancecan be compared with as-designed, as-builtor as-performing data a vital function forFM.

Digital modelling benefits

The key benefit of digital modelling is itsaccurate geometrical representation of the partsof a building in an integrated data environment.

Related benefits are:faster and more effective processes information is more easily shared, can bevalue-added and reused

better design building proposals canbe rigorously analysed, simulations canbe performed quickly and performancebenchmarked, enabling improved andinnovative solutions

controlled whole-of-life costs andenvironmental data environmental

performance is more predictable, lifecyclecosts are understood

better production quality documentationoutput is flexible and exploits automation

automated assembly digital product datacan be exploited in downstream processesand manufacturing

better customer service proposals areunderstood through accurate visualisation

lifecycle data requirements, design,construction and operational information canbe used in FM

integration of planning and implementationprocesses government, industry andmanufacturers have a common dataprotocol.

Courtesy of Australian Parliament House, Australia international benchmarking survey participant


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11

The digital modelling research demonstratedthe significant benefits in digitising designdocumentation, and operational andmaintenance manuals. Since Sydney OperaHouse does not have an integrated digital modelof their facilities, there was an opportunity toinvestigate the application of digital facilitiesmodelling using a standardised and re-usabledigital model for FM applications. While recentworks at Sydney Opera House have used 2Dand 3D CAD systems, the opportunity for digitalmodelling and further interoperability benefitsstill remained, since each consultant was still freeto choose their own software package and workto only a general specification for 2D drawingdata presentation.

Since 2002, a number of projects in Finland,Sweden, Norway, Germany, France, Singapore,UK and Australia have demonstrated thecapacity of digital models to represent andprocess data across a range of integratedapplications including:

amalgamation of architectural, structural andbuilding services design information

automated building code checking

automated manufacturing of components

construction programming, including

visualisationthermal performance calculations

automated take-off of material schedules

facilities management.

The ability to integrate data from a numberof software packages is dependent uponinteroperability, defined as the seamlesssharing of building data between multipleapplications (or disciplines) over any or alllifecycle phases of a building developmentproject. Although digital modelling may beconsidered as an independent concept,in practice, the business benefits of digitalmodelling are dependent on the shared use andvalue-added creation of integrated model data.

To access model data therefore requires aninformation protocol, and although severalvendors have their own proprietary databaseformats, as mentioned previously, the only openglobal standard is that published by the IAI in theform of IFCs.

IFC is regarded as a standardised form of digital

modelling and has been developed to supportarchitecture, engineering, construction and FMdomains.

The FM Exemplar Project has established thata digital model is an appropriate and potentiallybeneficial technology enabling storage andretrieval of integrated building, maintenance andmanagement data for Sydney Opera House.Specifically the research team has demonstrateda prototype integrated digital model capable ofhandling integrated information using BentleyStructural, Graphisoft ArchiCAD, the CRC forConstruction InnovationIFC Viewer and a linkwith Sydney Opera Houses building conditionindex (BCI) database.

There are many advantages in using anintegrated digital modelling approach, suchas consistency in the data, intelligence in themodel, multiple representations, an integratedsource of information for existing softwareapplications, and integrated queries for datamining. The standardised building model acts asthe main data structure which can be extendedwith other data sources as each element (wall,furniture, room, grouping elements) has a uniqueidentifier. This unique identifier can be used tocorrelate different datasets, opening up querycapabilities across different datasets.

The IFC open building exchange standardprovides comprehensive support for FMfunctions, and offers new management,

collaboration and procurement relationshipsbased on sharing of data. The major advantagesof using an open standard are:

information can be read and manipulated byany compliant software

reduced user lock in to proprietarysolutions

third party software can be the best ofbreed to suit the process and scope athand.

Standardised digital model solutions consider

the wider implications of information exchangeoutside the scope of any particular vendor.Information can be archived as ASCII files forarchival purposes, and data quality can beenhanced as the now single source of usersinformation has improved accuracy, correctness,currency, completeness and relevance.


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The following FM model schema in IFC hasbeen recommended by the FM Exemplar Projectteam for the development of FM informationinteroperability for Sydney Opera House:

IfcFacilitiesMgmtDomainsdefines basicconcepts in the FM domain. It capturesinformation that supports specific businessprocesses that are completely within thedomain of interest of the facilities manager.Together with the IfcProcessExtension,IfcSharedMgmtElementsandIfcSharedFacilitiesElementsschema, itprovides a set of models that can be usedto exchange information between FMapplications.

IfcSharedMgmtElementsdefines basic

concepts that are common to managementthroughout the various stages of the buildinglifecycle. It captures information that supportsthe ordering of work and components,the development of cost schedules andthe association of environmental impactinformation. The primary classes in theschema are all subtypes of IfcControlandact to manage or regulate the conduct of theproject in some way.

IfcSharedFacilitiesElementsdefines basicconcepts in the FM domain. It supports ideas

including:furniture

grouping of elements of systems furnitureinto individual furniture items

asset identification

inventory of objects.

IfcProcessExtensioncaptures ideas aboutthe planning and scheduling of work andthe tasks and procedures required for itscompletion.

Since IFC is a predefined standard, it coversa large scope of interoperability that includesdisciplines such as architecture, structure, fireengineering, building services and FM domainsand, as a result, it is complicated. For domain-specific applications such as FM, some detaileddomain-specific information may be lacking,and this can be overcome through extendingIFC towards an enriched domain-specific modeland customising it for the specific use of SydneyOpera House.

The current availability of FM applications basedon digital modelling is in its infancy but focussedsystems are already in operation internationallyand show excellent prospects for implementationsystems at Sydney Opera House. To supportthe FM processes using the IFC, guidelinesand modelling practices formalised in the formof a Sydney Opera House specification wasdeveloped. This specification describes howinformation and conventions specific to SydneyOpera House can be incorporated in the digitalmodel. Tests with partial digital FM model datademonstrated that the creation of a completeSydney Opera House digital FM model isrealistic, but subject to resolution of complianceand detailed functional support by participatingsoftware applications.

Courtesy of Portcullis House, UK international benchmarking survey participant


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Figure 5 A showcase of integrated FM information model using IFC

Figure 5 presents the showcase for the

integrated FM information system for SydneyOpera House. The showcase develops anintegrated FM information model that combinesthe IFC models and a benchmarking data modelcontaining Building Presentation Indices (BPI)and Building Fabric Indices (BFI) of SydneyOpera House. It allows facilities managers toview the 3D models of Sydney Opera Houseand locate the building condition assessmentdata collected from building maintenance andcleaning services.

The digital modelling showcase demonstrates

the enrichment of information through thedevelopment of integrated FM informationmodels using IFC. When combined with data-mining techniques the resulting analysedinformation is then aligned with FM performancecriteria, TAM and ultimately business drivers.

The showcase has demonstrated successfullythat IFC-based exchange is possible with severalcommon digital-model-based applicationsthrough the creation of a new partial modelof the building. Data exchanged has beenreasonably geometrically accurate, consideringthe complexity of Sydney Opera Housesstructure, and the volume and scope of the richinformation supported in describing the typesof building element objects, and their propertiesand relationships.

The structural model has been imported from

an architectural CAD system where the IFCmodel was enriched with spatial elements suchas rooms and furniture elements based on theSydney Opera House specification. Based onthis enriched IFC file, a showcase system hasbeen developed on which the Sydney OperaHouse information can be visualised andrestructured. Facilities performance and cleaningcontract data has been inserted and correlatedwith the IFC model offering functionality to queryand to get visual feedback of this correlateddataset.

Courtesy of Portcullis House, UK international benchmarking survey participant


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The following conclusions were made:

Standardised digital modelling as anintegrated information platform for FMdelivery is feasible.

IFC offers interoperability between CADsystems, enabling re-use of buildinginformation.

The IFC model being standardised can use avariety of different software FM systems.

Commercial FM software systems areavailable using IFC data.

Related software such as energy modellingand monitoring are available using IFC data.

The IFC model is extensible and can

incorporate organisation-specificrequirements.

Integrated datasets can be constructedoffering enhanced query results andvisualisation.

The digital modelling research stream hasdeveloped a framework for an integrated FMinformation system for Sydney Opera House.In this framework, IFC is used for informationexchange and model interoperability betweendifferent FM applications including CAD systems,FM and benchmarking data repositories.

This framework can be extended to cover theaspects of collaboration and communicationacross the organisation at different locations byusing intranet/internet network for informationprovision.

The building and engineering data, corporatestrategic planning data, FM operational data,performance and KPI monitoring data, andbenchmarking data are collected in a digitalformat and stored in different repositories or acentralised database for supporting multipleFM applications. IFC is used for FM informationexchange and model interoperability. Intranet/internet network functionality is added to thedifferent FM applications to provide a commonspace for collaboration and communicationacross the entire organisation or thedepartments at different locations.

As a result of digital modellings clearlydemonstrated benefits in the support of FMprocesses, asset management applicationsand broader organisational objectives, the FMExemplar Project team support and endorse theadoption of IFC by the FM industry as an integralinformation management tool in supporting FMas a business enabler.

Figure 6 shows an example of IFC-compliantsoftware for FM that charts energy management.

RYHTI software is developed for themanagement of buildings or entire buildingstocks. Developed in cooperation withleading real estate owners and maintenanceorganisations, the RYHTI system is based on

modules enabling the development of operationmodels and to process data into information.

The Esplanade Theatres on the Bay, Singapore international benchmarking survey participant


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15

Figure 6 Use of Product Models in Taloinfo System for the

generation of energy usage reports for Senate

Properties, Finland, Olaf Granlund

(Courtesy of Olaf Granlund)

The role of services procurement in the

development of an integrated FM solutionThe practice of outsourcing part or all theFM services by organisations is relativelycommonplace in the industry, and for SydneyOpera House, the procurement process becamean opportunity to align FM with businessobjectives and deciding best-value selection.

The research into procurement is presentedas a case study which outlines an approachto FM procurement in which alignment withthe principals business objectives and cultureare the central considerations. While such anapproach to procurement has undoubtedly beentaken before, the case study will be of value tothose seeking to implement or improve an FMprocurement strategy that is integrated with corebusiness activities and organisational culture.

The research program took into account SydneyOpera Houses decision to continue to outsourcegeneral building maintenance and cleaningfunctions, while retaining management skillsand knowledge in-house through a professionalmanagement team and a small trade workforce.The case study followed the tendering of the

building maintenance and cleaning contracts toreplace two contracts that were expiring.

Prior to developing specifications for each ofthe contracts, an extensive consultation processwith stakeholders was undertaken. From thisit became apparent that there was a generalview that the existing contracts did not supportthe Sydney Opera House business in terms ofperformance or means of delivery. By continuingto work with stakeholders, procurementprocesses and contract specifications weredeveloped that reflected the expectations ofSydney Opera House as a whole. In comparisonto previous procurement methods, a numberof innovations were developed that are brieflydiscussed below.


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Building Condition Indices (BCI)developed for building fabric condition andcleaning using a percentage-based scoringsystem with 100% equalling as newand defined standards below this in 10%decrements. Indices were further linked totime-based criteria (e.g. opening times) andaligned to service standards. The indicesalso provide a tool for internal benchmarkingand comparison.

Expressions of Interest (EOI)documentation was prepared in anticipationof a large number of applicants of whom onlya small number would have the requisiteskills and experience. These concernswere addressed by including within the EOIfour key questions to which inappropriateanswers automatically eliminated anapplicant. Having reduced the initial numberof applicants the remaining EOIs wereevaluated in detail to produce a final listfor interview. Invitations to EOI interviewsinsisted that each company was representedby contract management staff rather than asales team.

Request for tender (RFT) documentationincorporated mandatory pre-tenderworkshops as an essential aspect of the

procurement process. Following circulationof a draft RFT all tenderers were invited toattend individual workshops to discuss anddevelop the document. To encourage freeand open discussion the workshops wereinformal and did not form part of the tenderevaluation process. On completion of theworkshops the RFT document was finalisedand formally issued to tenderers.

Culture and enterprise throughout theprocurement process it was made clearto tenderers that an understanding of the

Sydney Opera House culture and enterprisewould be critical to the success of atender. This was achieved through in-depthdiscussions during the pre-tender workshopsand by encouraging tenderers to use othermeans to gain a full understanding of theSydney Opera House business (such asannual reports, attending performances andtaking public tours).

Stakeholder representation in additionto extensive stakeholder consultation, thestakeholders were represented on the tender

evaluation committee. This required that timewas spent explaining the procedures andprobity of evaluation processes to people notusually involved in such workings. Emphasiswas placed on the role of committee

members in championing the appointedcontractor at the end of the process.

These innovative steps contributed to movingthe perception of FM services procurement and

delivery from the simple provision of operationallevel necessity to an integrated strategicelement. FM must support an enterprisescore business and culture. Though it is still tooearly to confirm the success of either contractfeatured in the case study, a post-tender surveyof all participants provides some insight intothe effectiveness of the procurement process.The majority of tenderers and all the tenderevaluation committee members participatedin the survey, which led to a number ofconclusions:

There was a high level of confidence in theprocess.

There were no significant differences in theopinions of successful and unsuccessfultenderers.

The EOI process was effective in the timelyreduction of the number of applicants.

A number of characteristics were identified thatseparated those invited to tender from the otherapplicants interviewed at the EOI stage and theywere:

Those invited totender demonstrated:

Those not invited totender:

a personal passionfor Sydney OperaHouse the icon

comprehensiveresearchthrough web,annual reports,informal sitevisits (including

public tours andattending a show)

an adaptability totailor corporatesystems to clientneeds

an understandingof inspiringexperiences

a team culturewith most or

all attendeesparticipating in theinterview.

lacked personalaffinity for SydneyOpera House

had not attemptedto view SydneyOpera House fromthe patrons ortourists point ofview

offered a corporateservice packagewith expectationsof clientcompliance

allowed oneperson todominatethe interview(essentially a salespitch).


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While the case study emphasises the experienceof Sydney Opera House, it also demonstratesthe value provided in the alignment ofprocurement strategies with overall businessobjectives. Where the provision of FM servicesis less central to core organisational culture, astudy of procurement strategies and methodsfrom published research and FM good practicewill supply FM with alternative procurementroutes.

Sydney Opera Houses FM team are confidentthat they have selected two contractors capableof making a positive contribution to SydneyOpera House as a business enterprise. Thereal test of the procurement process will be thelong-term success of the building maintenanceand cleaning services contracts. The FMExemplar Project team concluded, therefore, byrecommending that a further post-tender reviewbe undertaken in 12 months time.

The role of performance benchmarking in thedevelopment of an integrated FM solution

Benchmarking and KPIs provide tools formeasuring the effectiveness of an organisationand making comparisons with otherorganisations. KPIs are generally internalmeasures used to monitor strategically importantactivities within an organisation. They may beused to monitor trends and/or set targets thatare central to an organisations success. Bycomparison, benchmarking may be considereda comparative process between organisationsthat can be used to establish best practice. Thesame data that underpins KPIs may be used inbenchmarking. Depending upon the willingnessof a group of organisations to share data, therange of benchmarks is likely be smaller thanthe range of KPIs used by an organisation thisrelationship can be illustrated in the form of aVenn Diagram (see Figure 7).

Figure 7 KPIs and benchmarking

Within the Australian FM industry thereare a number of examples of comparativebenchmarking data.

Tertiary Education Facilities Management

Association (TEFMA)TEFMA is an association of facilities managersworking in the tertiary education sector of

Australia, New Zealand, Hong Kong andSingapore. It conducts an annual benchmarksurvey that contains cost and performance datain 12 areas:

backlog liabilities

cleaning and waste management

energy

grounds

maintenanceoperating costs

parking

recycling

refurbishment

security

statistical data

water.

Property Council of Australia (PCA)

The PCA represents a wide range of interests inthe property market including institutional andprivate investors, developers, asset managers,building consultants, and constructioncompanies and suppliers. The PCA annuallypublishes state-based office benchmark surveyscovering operating income, statutory charges,operating expenses and recoverable expenses.Expense-based items are listed below:

administration

airconditioning

carparking

cleaning

electricity

energy management

fire protection

gas and oil

insurance

landscaping

lifts and escalators

pest control

repairs and maintenance

securitysupervision.

Key PerformanceIndicators

(internal measures)

Benchmarks

(external,

comparative

measures)


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In 2004, the PCA published a white paper oncorporate real estate performance measurementthat noted that whilst cost per unit area or peremployee data was common, the measurementof the asset management contribution to anorganisation was less well defined.

Facility Management Association of Australia(FMA Australia)

In 1999, FMA Australia published FacilityOperating Cost Benchmarksthat identified facilitycosts for office, education, health and industrialfacilities.

In each of the above examples the benchmarksfor the most part use readily definable, financiallydescriptive measures to compare similar andcommon types of facilities. For PACs or iconicbuildings, however, there are no publiclyavailable FM benchmarking datasets.

The FM Exemplar Project investigated thepracticality of developing FM benchmarksfor PACs and iconic buildings by using dataalready collected by such organisations, theobjective being to provide a framework by whichicons such as Sydney Opera House wouldhave a basis to benchmark their performance.

A particular challenge in the benchmarkingof icons is that their very uniqueness mightcompromise the validity of any comparisonbetween two such facilities.

The research team undertook an internationalsurvey of various iconic facilities and PACs thatsought to establish:

the level of interest in developing a set ofbenchmarking tools

the range of FM-related KPI data collected byeach organisation

whether existing KPI data could readily beused to establish benchmarks.

Of 82 facilities contacted worldwide, 22responded to the initial survey and 15 completeda second, more detailed, survey (see Table 4).The organisations were selected on the basis ofexisting contacts with members of the researchteam, thereby increasing the likelihood ofobtaining a response. Although the number ofparticipants was small, it was considered easierto focus on a small group to initially establisha benchmarking framework that could then beextended to other organisations rather thantrying to coordinate a larger group.

Table 4 Summary of participants by building function

FunctionSurvey stage

1Survey stage

2

Gallery/Museum

3 3

Hotel 1 0

Office 3 1

Other 1 0

Parliamentary 3 3

Performingarts centre

10 8

Stadium 1 0

Total 22 15

Most organisations participating in both surveyswere PACs, followed by galleries/museums andparliamentary buildings (14 out of 15). These 14organisations are profiled in Table 5.

Courtesy of Philharmonie Berlin, Germany



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Table 5 Profile of benchmarking participants

No. Facility/Organisation City Country

1 Adelaide Festival Centre Adelaide Australia

2 Queensland Performing Arts Centre Brisbane Australia3 Australian Parliament House Canberra Australia

4 Federation Square Melbourne Australia

5 Sydney Opera House Sydney Australia

6 Telstra Stadium Sydney Australia

7 Canadian Museum of Civilization Quebec Canada

8 Royal Danish Theatre Copenhagen Denmark

9 Opera National de Paris Opera Bastille Paris France

10 Philharmonie Berlin Berlin Germany

11 Gasteig (includes Philharmonie Mnchen) Munich Germany

12 Pirelli Real Estate Headquarters Milan Italy

13 Pinacoteca Giovanni e Marella Agnelli Turin Italy

14 The Scottish Parliament Edinburgh Scotland

15 The Esplanade Theatres on the Bay Singapore Singapore

16 HSB Turning Torso Malmo Sweden

17 Burj Al Arab Dubai UAE

18 Portcullis House London UK

19 Royal Festival Hall London UK

20 Smithsonian National Air and Space Museum Burke USA

21 The Sears Tower Chicago USA

22 Minnesota Orchestra Hall Minneapolis USA

Fifteen organisations completed both surveysand confirmed their interest in developingbenchmarking tools. However, the establishmentof comparative benchmarks was found tobe more difficult than originally thought. Thetwo surveys found that, with the exception of

electricity consumption, the range of FM-relatedKPIs currently collected was limited and variedin nature between the organisations. It wastherefore not possible to use existing KPIs todevelop a comprehensive set of benchmarksand to meet the researchs ultimate objective offormulating a framework for benchmarking.

Although the Survey stage 2 sample groupcontains only 14 organisations covering threefunctions there are nevertheless significantdifferences in the age, size and number ofemployees between the facilities. This serves

to demonstrate the challenge of developingbenchmarking tools when these differences arelikely to contribute to the ranking of facilitiesby a benchmarking framework. Unless thesedifferences can be eliminated or accounted for,

benchmarks should only be used as an indicatorof best practice.

Notwithstanding its limited scope and sizethe survey has yielded two datasets that mayhave some value to a future benchmarking

exercise. The survey found that outsourcingof FM services is common to 11 of the 14organisations. This opens up the possibility ofbenchmarking procurement methods (a possibleextension of the procurement research), contractmanagement and contractor performance. Inaddition, monitoring trends in FM procurementmay reveal useful information on the benefits ofdifferent approaches.

While it is reasonable to expect that allorganisations collect at least basic informationregarding electricity, water and gas consumption

in the form of units consumed and cost throughperiodic billing from suppliers, some of therespondents to the survey stated that suchinformation was either not retained, or not withinthe FM function.


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This led the research team to suspect thatmany icons may either not be regarded asbusiness enterprises, or that the gathering of thisinformation was not seen to be the responsibilityof the FM function. Ten organisations providedelectricity consumption data, but traditionalmeasures such as those demonstrated in theargument made by PCA in its CRE white paperreferred to previously were of no assistance,given neither megawatts per hour nor megawattsper square metre relate energy use to businessactivity. For facilities such as Sydney OperaHouse, this comparison exercise may bemore valid using a comparison of electricalconsumption with the number of performances,and the number of patrons and/or openinghours.

The benchmarking research has found thatcurrent FM benchmarking practices are confinedto common or similar building types and needfurther development to fully illustrate the valueof FM as a business enabler. An opportunity hasbeen created with 14 organisations worldwideto begin the development of more appropriateFM benchmarks for iconic facilities and PACs,possibly relating electrical consumption tobusiness activity as a starting point.

Analysis of the benchmarking data from Survey

stage 1 has identified that the highest-orderitems that could be considered core to FMbenchmarking framework would include:

condition assessment building structureand services, public spaces, internal fittingsand finishes

energy management rate of consumptionand management

accessibility security provision andinformation for visitors

contractors performance quality ofservice, safety, timeliness and compliance.

These are shown in Table 6.

Key performance areas Status drivers Benchmarking framework

Recognition for excellence

Value for money

Pride in a key symbol

The experienceArtistic and industrydevelopment

Access and equity

1.

2.

3.

4.5.

6.

Functionality

Landmark status

Operational efficiency

Cultural heritage

1.

2.

3.

4.

Condition assessment

Energy management

Accessibility

Contractors performance

1.

2.

3.

4.

Survey stage 2 was sent to stage 1 respondentsto elicit more detailed information, particularlyregarding condition assessment and energymanagement. Analysis of responses identifiedthat:

criteria used to evaluate are equally sharedby simple data measure and engineeringassessment / computer modelling /simulation, and of those responses 90%indicated that their facilities evaluated energyagainst design standards

most facilities are assessed manually andassessments tend to be more detailedwhen the interval between assessments isextended.

Furthermore, the Survey stage 2 also identifiedthe assessors and frequency involved inconducting assessment from highest to lowestranking as follows:

condition assessed by internal staff,consultants and contractors (annually,quarterly, monthly, weekly and daily)

presentation assessed by internal staff,visitors/customers and contractors (annually,monthly, weekly and daily)

energy management assessed by internalstaff, consultant and contractors (monthly,annually, quarterly and weekly).

Measurement metrics and particularly KPIsshould be tempered by the corporate objectivesand culture. For iconic facilities, and specificallyPACs, this may require reference to the missionor vision, or issues such as the six areas ofkey performance for arts centres: recognitionfor excellence, value for money, pride in akey symbol, the experience, artistic andindustry development, and access and equity(Radbourne 1998).

Table 6 Performance benchmarking areas used in the current implementation of benchmarking stream


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It is noted that different organisations and/orfacilities (even different PACs) have differentlevels of sophistication and development inperformance measurement systems for FM.Given the wide variation in roles, missions (forexample, the focus may be financial in somebut artistic in others) and facilities portfolios, itis not surprising that there are variations in FMsystems.

Further research on the FM Exemplar Projectoutputs would assist in developing a broaderFM benchmarking framework which could haveapplications to other facility types and benefit theFM industry and the community at large.



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3. Information

alignment

3.1 Alignment of information in theFM process

The digital modelling team in the FM ExemplarProject has investigated the feasibility of using astandardised digital model that incorporates IFCfor the integration of FM information to supportcollaborative FM activities and processes.Having demonstrated successful outcomes ofthe digital model the team recommended thatthe Sydney Opera House should use a set ofguidelines to help in adopting digital modelling

for FM.FM as a business enablerextends the digitalmodelling research findings to outline:

its support of the activities and informationdependency across the enterprise and theTAM Plan in the information hierarchy

the integration of the modelling of building,FM and performance as a whole to supportservice delivery.

3.2 Modelling of building, FM andperformance information

As Figure 8 shows, performance information is

supported through the development of buildingcondition index KPIs and service providerperformance KPIs, which are compared againstactual performance data and benchmarkinginformation to identify gaps. PerformanceInformation in turn provides the informationnecessary for FM operational requirementsincluding procurement information relating toservice providers, building information, andmaintenance and service information.

FM operational information in turn supports theFM planning information required for operational

and capital expenditure maintenance tasks andprojects, and associated budget information. FMplanning information is itself a vital componentof the Strategic Asset Maintenance (SAM) Planwhich contributes to the TAM Plan.

The TAM Plan itself is built upon a set ofcollaborative activities comprising investmentplanning, asset design, KPI monitoring, riskassessment, asset decommissioning anddisposal planning, and monitoring of levels ofFM streams.

TAM Plan

information

Asset maintenancestrategy information

Assetperformance

data

Strategicinformation

Planninginformation

Operational

information

Performanceinformation

Maintenance task, projectand budget information

Building

information

Maintenance and service

information(work schedule and order)

Procurement

information(service providers)

Service providerperformance

data(quality, time,cost and risk)

Assetperformance

KPIs(building

condition indices)

Service providerperformance

KPIs(multi-criteria and

weightings)

Performancecriteria

Actualperformance

Actual

performance

Performance

criteria

Benchmarking database

Gap Gap

Figure 8 An integrated hierarchical information model to support the TAM process


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In order for TAM to operate as an integralcomponent of the organisations hierarchicalsystem of information, the key areas ofinformation needed are:

performance information and KPIs across alllevels

knowledge of asset dependency and trends

condition assessment information

inventory of investment, budget and finance

information about resources

the ability to transition TAM Plan informationto the management of FM streams at alllevels, in order to align with organisationalobjectives, and to close the information loop

for continual improvement.

Maintenance management and operationalinformation

FM, and specifically the maintenance role, canbe optimised by using standardised proceduresfor tracking all maintenance projects andtasks, allocating time and resources for jobs,addressing financial shortfall (or prioritising) withrespect to budget, and identifying best valueselection of procurement routes for outsourcingservices.

The key areas of information and informationapplications required by the maintenancemanagement and operational processes are:

visualisation of the management ofinfrastructure, asset, space and furniture

historical maintenance services data, costand service providers

generation of real-time reports of ongoingactivities projects and task data

work order generation and work prioritisation

tracking of scheduled and unscheduledmaintenance activities

tracking of work orders

tracking of capital and labour cost

asset registers

lifecycle project information.

The lifecycle project stores information anddata related to the lifecycle management ofa maintenance project, and includes the totallifecycle cost of the maintenance project, andthe aspects of operability and quality. Thelifecycle maintenance project informationenables management to measure the impact of adecision affecting the project as whole.

These information-capture activities are mostlysupported by the IFC model for data integration.The resulting information obtained can thereforebe integrated and aligned to support TAM,the integrated FM solution and ultimatelyorganisational objectives.

Courtesy of The Scottish Parliament, Scotland international benchmarking survey participant


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3.3 Integrated FM solution model through information alignment

Figure 9 presents a model proposed for an integrated FM solution, focussing on the alignment ofFM information with business process requirements, and the mining of data for further analysis andprocessing into information for supporting management decision-making.

Figure 9 Integrated FM solution model through information alignment

Data mined from the Integrated FM Information System (which is supported by building information,procurement information and benchmarking information streams) is collated and analysed to establishlead indicators that impact firstly on service delivery and its contribution to TAM and facilities strategies,and ultimately contribute to organisational objectives. While business drivers still dictate the criteria andstrategies used down the information chain, it is the ability to integrate the data into usable informationthat completes the continuous performance improvement loop.

While the generic framework developed demonstrates its value in aligning information with corporateobjectives for the FM industry, further development would be required to achieve a comprehensivesolution.

IntegratedFMi

nformationsystem

Business drivers

TAM Plan/

Facilities strategies

Multi-dimensional asset

management and

collaboration

Asset management

information framework

Data mining for analysis

and decision-making

Results and services

Asset dependency

BuildingInformation Model

Service procurement

Benchmarking

Functional performancemeasures and standards

Data collection

Service delivery

Building

information

Procurement

information

Benchmarking

information

Discovery of

trends and

variations

Outcome

prediction

Forensic

analysis


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4. Performance

alignment

4.1 Performance alignment withbusiness drivers

Performance is regarded as a key measure ofany system. Performance assessment plays animportant role in the overall asset managementprocess and determining service levels for theorganisation. This section develops performancealignment by following the routes below:

establishment of integrated performancemeasurement

defining measurable, reliable and informativeKPIs

alignment of KPIs with business drivers

use of benchmarking for developing andmonitoring performance targets.

4.2 Establishment of integratedperformance measurement

Where business drivers can be translated intoa hierarchy of performance metrics a powerfulstrategic FM service delivery framework wouldresult. The hierarchy is in a form of mapping,namely, operational level performancemeasurement aligned with strategic levelperformance targets. These measurements

are used as monitors or feedback to corporateplanners, facilities managers and operators, toallow them to report the real impact of actions atspecific and overall performance levels.

Sydney Opera House has developed a set ofhierarchical performance measures across therange of its business activities, including KPIsfor corporate services, asset status and serviceproviders.

The integrated hierarchical performancemeasurement at Sydney Opera House providesbenefits of overall performance control formanagement (see Figure 10).

4.3 Devel

crc fm report feb07

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