introduction to estates master facilities benchmarking and cost prediction model
DESCRIPTION
Introduction to Estates Master Facilities Benchmarking and Cost Prediction Model A presentation to Breakfast Briefing: ‘State-of-the-art Benchmarking and Cost Management of Facilities in Large Estates’ by Prof. Bernard Williams FRICS IFPI Ltd 14th June 2013. Contents. - PowerPoint PPT PresentationTRANSCRIPT
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Introduction to EstatesMasterFacilities Benchmarking and Cost Prediction
Model
A presentation to Breakfast Briefing:‘State-of-the-art Benchmarking and Cost Management of Facilities in Large Estates’
byProf. Bernard Williams FRICS
IFPI Ltd 14th June 2013
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ContentsContents• What is EstatesMaster ?• Modules• What is it used for?• Who uses it?• How does it work?• The data – sources and application• Levels of access • Accuracy• International application
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What is EstatesWhat is EstatesMasterMaster??
• intelligent decision-making tool• web-enabled • uses current cost and performance data • predicts the costs of facilities services
without measured estimating• can be applied to single buildings or whole
estates of up to 10,000 buildings.
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Current modulesCurrent modulesWeb-enabled• Maintenance • Cleaning• Security• Energy/CO²• Distribution• Stationery• Service chargeExcel (pending web-enablement)• Archiving• Catering• ReprographicsExcel (in development)• Grounds maintenance• Water consumption• Space use
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What is it used for?What is it used for?
•Cost benchmarking•Performance level benchmarking•Facilities strategy•Due diligence on bids•Preparing to outsource•Cost management to best performance targets•Negotiating contract extensions at benchmarked prices
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Who uses it?Who uses it?
• Estate owners• Service Providers• Managing Agents• Educationalists
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Challenges to financial benchmarkingChallenges to financial benchmarking
• Allocation of expenditure – where and what for?
• Every building is different!• Good comparable data• Exact match of buildings and
performance• Exact match of resource drivers
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International challengesInternational challenges
• Understanding the local labour market• Cross-border cultural differences• Language barriers
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EstatesEstatesMasterMaster model model – – the principlesthe principles
Unit cost - per sq m / per capita etc.
BusinessDrivers
OutputPerformance
FunctionalRequirements
FacilitiesPolicy
1.Service LevelDrivers - Quality
Staff
Equipment
QualityControl
Specificationof Works
2.
Consumables
Service LevelDrivers -Local Factors
Specificationof Regime
Frequency
Time of Day
3.OperationalDrivers
Access
Design
Occupation
Problems ofOperation
4. 5.
How Much /How Many
QuantitativeDrivers
Volume
Areas
Head-count
Economic Drivers
6.
Macro-
Micro-
£
7.
TotalCosts
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Problem of identifying Problem of identifying scopescope of activities of activities
Site A Site B Site C Site D Site E Site F
Occupiable areasSpecial areasToilets and washroomsFurniture and equipmentPest controlGeneral wasteSecure waste
Cost / £ m² GIA pa 15 9 9 12 7 8
Ext.WallsWindows
Cleaning scope and cost differentials - same service levels and drivers
Activity Included / excluded from budget
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How does it work ? – granular benchmarksHow does it work ? – granular benchmarks
• EstatesMaster benchmarks the scope items in each generic cost centre.
• The known cost range for each scope item has been assessed and the cost drivers identified and weighted.
• The program’s questionnaires address the key cost drivers for each scope item
• The benchmark within the range for each scope item is calculated from the answers given to the questions
• The values of scope items for each generic cost centre (Cleaning, Maintenance etc.)
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How does it work ? – granular benchmarksHow does it work ? – granular benchmarks
E.g.•Say Window Cleaning has a normal cost range of £0- £3.00 per sq. m GIA (£0- £ 0.27 per sq.ft.GIA).
•The cost drivers are:– Window/floor area ratio– Standards of cleanliness achieved – and for how long– Local factors affecting condition– Accessibility– Design of windows– Market rates for window cleaners– Competitive basis of any overarching managing
contract
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How does it work ? – granular benchmarksHow does it work ? – granular benchmarks• Depending on the answers to the questions the
program will select a figure somewhere between the known min/max in £/sq.m or sq.ft GIA i.e. from:
£0 - £3.00 per sq. mor£0- £ 0.27 per sq.ft
• The result will be added to the results of all the other scope items in Cleaning to give a benchmark for the Cleaning Cost Centre
• All the ranges used in the program relate to best performance
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EstatesMaster Results GraphicEstatesMaster Results Graphic
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Granular analysis – E.g. SecurityGranular analysis – E.g. Security
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Where does the data come from?Where does the data come from?
• Consultancy benchmarking studies• EstatesMaster surveys• Due diligence for service providers
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How is the data used?How is the data used?
• The raw data is not accessed directly by the program.
• A model for each facilities service module with reference to the identified best-performance.
• A good comparable would be the reference to tendered prices by Quantity Surveyors in construction cost planning.
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Some organisations benchmarked by the authors of Some organisations benchmarked by the authors of EstatesEstatesMasterMaster
• BAT• British Telecom• Bank of America• Bank of England• BSRIA Benchmarking Group• Dept. of Trade & Industry• Dept. of Educ. &
Employment• Dept. of Health & Soc.
Security• Min.of Agriculture Food
&Fish• Govt. Comm. Bureau• Min. of Defence• Salamon Smith Barney• Financial Services Authority• National Air Traffic Service
• The Barbican• Welsh Development Agency• IBM• Sun Alliance• WH Smith• GSK• Superdrug• Home Office• Gilead • London Borough of
Southwark• Zurich Insurance• BAE• British Airways• Kings College London
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……and some more - by no means and some more - by no means exhaustiveexhaustive
• Rolls Royce• Astra Zeneca• Royal Bank of Scotland• Becta• Berwins• Birmingham & Solihull
NHS• BP• Chase Manhattan Bank• College of West Anglia• Corporation of London• Cabinet Office• Barnet Hospital• Kodak• Irish Estates
• Kent CC• One-2-One• Powergen• Rothschilds• Royal Mail• Post office counters• Royal Navy• Schroders• Simmons & Simmons• Shell• St.Bartholemews
Hospital • Wessex water• DEFRA• Bath College of HE
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EstatesEstatesMasterMaster building data entry building data entry
EstatesMaster Buildingcode
Building name
Category No.of storeys
(av)
GIA m² Av. W idth m
Average storey ht.
mANS-AA-001 AA-001 WSI 1 9963 3 5ANS-AA-001#2 AA-001 OA 1 431 12 3ANS-AA-002 AA-002 WSI 2 8186 30 5ANS-AA-002#2 AA-002 OA 2 484 12 3ANS-AA-003 AA-003 WSI 2 5998 30 5ANS-AA-003#2 AA-003 OA 2 472 12 3ANS-AA-004 AA-004 WSI 1 10778 30 5ANS-AA-005 AA-005 WHG 1 4520 15 5ANS-AA-006 AA-006 WHG 1 1527 15 5ANS-AA-006#2 AA-006 OA 1 485 12 3ANS-AA-007 AA-007 WSI 1 3526 30 5ANS-AA-007#2 AA-007 WHG 2 1618 15 5ANS-AA-008 AA-008 WSI 1 14018 30 5ANS-AA-008#2 AA-008 OB 1 612 10 3ANS-AA-010 AA-010 WHG 1 262 15 5
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3 Levels of application3 Levels of application
• Free - +/- 35%• Level 1 - +/- 25%• Level 2 - +/- 12.5%• Level 3 - +/- 5%
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3 Levels of application3 Levels of application
• Why and where are the differences?.......
• ……more questions asked about the cost drivers at Levels 2 and 3.
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Identifying the scopeIdentifying the scope
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Questions – Answers and HelptextQuestions – Answers and Helptext
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Answer for Categories Answer for Categories
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Answer for Individual BuildingsAnswer for Individual Buildings
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Levels 2 & 3 – Question Levels 2 & 3 – Question NavigationNavigation
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Level 3 QuestionsLevel 3 Questions
• Actual Costs?• Scope?• Quality per scope item?• Detailed resource drivers per
scope item?
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Level 3 Results – 8,000 Level 3 Results – 8,000 buildingsbuildings
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Benchmark analysisBenchmark analysis
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Cost ManagementCost Management
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Cost ManagementCost Management
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Group Overview Cost Summary:Group Overview Cost Summary:Actuals v BenchmarkActuals v Benchmark
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Current international coverage - Current international coverage - EstatesEstatesMasterMaster
• UK• Canada• USA• France• Germany• Italy• Spain• Eire
• Netherlands• Finland
In development• Australia• New Zealand• Nigeria • Philippines
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User CommendationUser Commendation• We took our time deciding whether or not to
use this tool but now we have it and are deriving benefit, we’re pleased we adopted it.
• Large estate owners are highly likely to benefit from software such as this….
• …. it really does make it very simple to derive meaningful benchmarks, control costs and performance across significant and diverse property portfolios.
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Application OptionsApplication Options
• Licence only• Licence with permanent call-off
consultancy• Licence with introductory call-off
consultancy
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EstatesEstatesMasterMaster Web-site Web-sitewww.estatesmaster.comwww.estatesmaster.com
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ThankyouThankyou for your interestfor your interest
• Malcolm and Jenny are sitting at the back
• Please ask either of them if you would like a demo now….
• …or leave your business card for a separate visit.