6 Effective Ways Facilities Management Can Reduce Costs

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Facilities management professionals are strategic key difference-makers in many businesses’ day-to-day operations, whether improving the lifespan of buildings, managing maintenance or catering projects from start to finish, or ensuring workers walk into a safe, conducive, and sane environment.

However, one of its most significant potential benefits is how good facilities management minimizes costs across an organization.

Investing in a facility management service will pay huge dividends down the road, which permits the organizations to work more effectively and productively.

Here, we look at six ways to reduce cost in business with the help of facilities management professionals and tactics that can help them improve their results drastically.

How Can Facilities Management Cut Costs?

  • Proactive maintenance preparation
  • Improvement On Time Management
  • Automation of Time Consuming Processes
  • By Making the Workplace More Welcoming to Staff
  • Asset Management Improvements
  • Plan-Monitoring That Is More Precise

Proactive Maintenance Preparation

To begin with, good facilities management can result in significant asset savings across an organization.

Teams that rely on reactive maintenance, that is, waiting for a feature to fail before reacting, would typically incur higher costs than those that use a preventive or predictive approach, and this is because of several factors:

  • Waiting for parts to break before reacting raises the chances of replacing parts due to damage, which is more expensive than routine maintenance.
  • If a component fails and isn’t noticed right away, it can continue to consume resources while offering little value.
  • Without preventive measures, an organization wouldn’t find out the current state of its facilities to act accordingly.
  • Employee safety may be jeopardized if an asset fails, and your business may suffer as a result.

Predictive maintenance saves 8% to 12% more than preventative maintenance and a whopping 40% more than reactive maintenance. You can reduce the risk of accidents and breakdowns and the higher costs associated with them by scheduling routine maintenance of assets based on your knowledge of them.

Consistent maintenance also helps to prolong the life cycles of properties. While an unmaintained HVAC(heating, ventilation, and air conditioning) device will fail in a few years, one that has been adequately treated and maintained would likely last several years longer before needing to be replaced. 

This will help the business conserve a lot of money on asset management expenses in the long run. It’s essential to have a perfect understanding of the data surrounding your different properties to benefit from this facilities management cost reduction ultimately.

To fully profit from facilities management cost reductions, you must understand the data concerning your various assets, which can then be used to plan future maintenance activities.

Efficient Time Management in Service Provision from Facilities Managers

Time management in facilities management has to do with how quickly a facility management company can handle or fix issues and manage facilities.

Time is one of a company’s most valuable assets. Therefore it is wise never to squander your time on processes that software can perform better and quicker.

  • For clients and consumers, speed has a positive effect on your product.
  • Traditionally time-consuming tasks, such as routine administrative entries, can be automated, freeing talent to concentrate on more critical tasks.
  • The return on investment (ROI) is significantly increased as fewer costs are spent for better returns than before.
  • Instead of just sustaining the company, the organization’s team can devote sufficient resources to growing it.

By Automating Time-Consuming Processes

Using spreadsheets to collect asset data, Inventory control and restocking, filling out sales invoices and other paperwork are tasks and processes that had to be completed manually in previous years. It is tedious and inefficient.

A manual solution is simply not practical or cost-effective for the sheer number of activities that FMs must oversee to keep an organization operating smoothly.

That is why embracing the cost-saving facilities management software is very profitable for any organization because these tools can seamlessly automate the most time-consuming and repetitive activities.

For example, there are operations in a sophisticated computer-facilitated facility management tool that can streamline and automate the following and more:

  • Inventory control
  • Recurring maintenance tasks
  • Asset categorization
  • Reservations for facilities

An organization will dramatically minimize the time and effort it takes to capture information and respond to it by leveraging CAFM tools and a company that offers such service. That frees up more time and money spent on tasks.

By Making the Workplace More Welcoming to Staff and Client

One of the main objectives of facilities management is to make workplaces more welcoming to workers daily.

They do that in many ways, but amidst all is the ability to contribute to employee satisfaction in various ways, including maintaining rooms, quickly reacting to any unsightly debris, spillages or blockages, and creating spaces.

Furthermore, the happier an employee is in their workplace, the more likely they are to choose to stay with the company in the future. It’s easy to overlook the role of workplace quality in employee satisfaction in comparison to other factors like pay, benefits, and management relationships, but it’s a significant factor.

Research done by The Society for Human Research Management reveals that the expense of replacing an employee directly can be as much as 50% to 60% of their annual pay, with overall turnover costs ranging from 90% to 200%t.

Not to mention the costs of training and developing a new employee. Therefore, keeping workers satisfied is one way a facility management service can help your business save costs.

Asset Management Improvements

Why not treat your properties better than you already do?. Your facilities and products are the lifeblood of your business. Investing in a facility management service will save you a lot of money, which is a great decision.

The cost savings are produced in two ways in the above regard: 

  • The total small costs are reduced (such as providers waiting on information, late reporting, non-instantaneous response time).
  • High future costs are reduced (e.g., a leak is instantly reported, analyzed, then assigned without unnecessary waiting times or communication).

Plan-monitoring That Is More Precise

Excellent facilities management is one way to reduce costs; one way that is achieved is by enabling better monitoring and time tracking of facilities to ensure that significant future issues on costs are avoided.

Accurate time monitoring allows teams to easily detect inefficiencies and address them before they result in significant losses, thus identifying any risks, enabling them to be addressed before they have a substantial financial effect.

There is less chance of expenses exceeding the budget if all projects are closely monitored, and opportunities to maximize efficiencies can be found as the job progresses.

Conclusion

Successful facilities management will result in reduced costs, as you should now be able to see. However, it is critical to invest in the right resources to help the Facilities Management team maximize the potential of these cost-cutting capabilities.

Our ultimate facility management approach holds total cost management and extends efficiencies further than ever before. We help clients get significant savings on costs and get an optimized work environment. This also extends to home environments in terms of home cleaning. Contact us today by emailing info@eliezergroup.com or using the other options on our contact page.

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