These 10 Facility Management Cost Reduction strategies are being implemented across all industries as a result of the current crisis. Even without the present economic situations all over the world, every country and nation is always clamoring for pluses in the finance of the country, and this slopes down to the everyday firms and individuals. Even if maximization of income port is not being realistic then reduction in the cost spent on already established expenses should be achievable without necessary reducing efficiency and effectiveness.
Today’s businesses are seeking ways to save costs and find innovative methods to do more with less. As a result, meeting a company’s strict budget constraints is one of the major needs of a contemporary facilities manager. An FM is expected to start lowering expenses right away, even if the company doesn’t have a particular strategy or the proper technologies to do it. Here are some of our best operational cost-cutting recommendations for FMs:
1. Consider the long term
One of our earliest facilities management cost-cutting solutions necessitates long-term planning. Facility managers should see each decision they make as an investment in the future. When weighing your alternatives, keep in mind the long-term ROI (return on investment) of your choices. These would give a view into the priority, process, and policy of the business and would make a fight toward foreseen challenges and diverse means to cater for it before it gets so close. Different means can be used to combat cost hikes when considering the long-term aim and they differ as the problem being pose.
2. Strive for continual progress
Your efforts should be precise if you wish to really minimize operational expenses in your facilities. Facility management cost-cutting initiatives frequently need ongoing improvement and study. This can be a difficult task, but the payoff can be substantial in the long term. Ascertain that a strategy, as well as essential KPIs, are defined and implemented. The procedure would be easier if you divided your activities into smaller jobs and projects.
3. Keep an eye on your indoor air quality (IAQ)
Air quality for installations and their personnel has grown increasingly important over time. Long-term exposure to poor indoor air quality has been linked to an increased risk of respiratory illness, heart disease, and even mortality.
It is very essential to make sure that every employee gets quality air. At so doing an indoor air system power consumption is high, so a check must be made on and to what degree of air would be enough, then unnecessary dispense of air to part of the organization that is less-visited should be cut-off or constantly switched off, and on only when in used.
4. Establish maintenance processes that can be replicated
One method to cut labor expenses is to simplify your maintenance process. Internally, creating standard reproducible procedures at each level of your operation is not just one of the finest cost-cutting ideas for facility management, but it can also drastically reduce the number of labor hours necessary. This is very paramount because it helps to cut off unnecessary replicas of the same process.
5. Make Your Purchases More Informed
Shift your focus to value rather than the price of items or services provided as a tactical cost-cutting opportunity. Is your supplier, for example, willing to collaborate with you to suggest cost-cutting measures or new inventive ideas to help you meet your goals? The ideal supplier should be willing to question your processes and make recommendations for cost-cutting opportunities.
It’s time to bargain on pricing once you’ve found the correct vendor. Consolidating all of your orders with a single vendor can sometimes save you money on delivery and management.
6. Maintenance that is proactive
Cutting reactive maintenance is a cost-effective strategy to save money. Reactive maintenance necessitates urgent attention as well as the costs of resolving a problem that is already affecting operations and, potentially, customer and employee experiences. Regular, planned checks and maintenance, whether it’s testing machinery/computer systems or inspecting the toilets to verify they’re working properly, will help you avoid costly after-hours or emergency service calls.
Finally, if you collaborate closely with suppliers who understand your difficulties and are open to new technology and green solutions, you’ll be well on your way to big cost savings for your company.
7. Smart Technology
Commercial energy expenses can be astronomically high, so it’s always something to keep an eye on. The expansion of technologies around the concept of the Internet of Things has been the most major change in FM over the previous decade (IoT).
When space is (or isn’t) being utilized, sensors in the Internet of Things can monitor occupancy levels and adjust heating, cooling, and lighting accordingly. Of course, smart technology implementation necessitates a financial investment, which isn’t always feasible but, a compelling business case detailing ROI can go a long way and if there’s no way to fit it into the budget.
8. Implement a preventative maintenance plan (PMP)
Maintenance itself is to reduce the cost of worn-out of facilities which would lead to the purchase of new facilities instead of constant and effective use of an efficient facility. A maintenance schedule has to be established to reduce machine breakdowns and maintenance expenses. It also reduces the amount of time it takes for repairs to be completed. Very paramount to note is the boost in operator safety. All these successfully create a great profit margin for the organization.
9. Ensure that safe work practices are followed
It’s only significant. Your technicians and maintenance people will have a significantly lower probability of injuring themselves or the equipment if they handle their jobs with care and caution. Both can be quite costly.
10. Combine the costs of several facilities
If you operate numerous (or more than one) facilities, it’s in your best interests to take advantage of economies of scale to reduce operating expenses. If you offer various facilities each year, you will almost certainly receive the greatest costs for items like power, mechanical, and maintenance.