PRSM 2012 Best Practices - (Page 110)

CrEATiNg BEST-iN-CLASS SNOw ANd iCE MANAgEMENT whiTE PAPEr AUTHOR grant Mitchell, senior Vice President, Provider relations COMPANY divisions Maintenance group The late American Statistician and Consultant W. Edwards Deming coined the phrase, “In God we trust; all others must bring data.” In snow and ice management services, data is king. Facility professionals who analyze and understand their own historic numbers — weather, spend and property specifications — can effectively budget for their snow season. Equipped with this historic cost to price data analysis and a strong co-sourcing effort with your external service provider, you can increase your facility’s operational efficiencies and take the guesswork out of the snow clearing cost equation. As the movement toward partnering with regional and national service providers continues, more than ever, retailers must institute sound strategies to manage costs and operations. Regardless of the type of contract you currently maintain with your snow service provider — seasonal, per push, per inch or some hybrid — it is important to understand whether you are overpaying or underpaying for this service. The answer you seek is in the data. FinAnciAl snow strAtegy — weAther dAtA To understand your numbers, first document the snowfall data records for your area(s) over a selected period of time, as shown in the example “Monthly Snowfall Summary” on the right. This will allow you to calculate average snowfall and standard deviation, which is the measurement used to show how much variation there is from the average snowfall. In our case study, the average snowfall per year is 28.5 inches with a 14.6 inches standard deviation. When relating this information to a bell curve, a clear understanding of risk in relationship to weather is evident, as seen in the chart below, “Bell Curve Related to Snowfall.” The probability of snowfall between the average and plus or minus one standard deviation is 68.2 percent of the time. Or, better yet, snowfall will be at or below the average plus the standard deviation 84.2 percent of the time. FinAnciAl snow strAtegy — sPend dAtA The next step is to analyze the spend for snow management services at your specific location(s) over a period of time by (1) documenting the location’s total square footage for parking lots and sidewalks, (2) the season’s total spend for snow management at that location, and (3) the annual snowfall that year, as seen in the chart below, “Historical Pricing Data.” From this data, you will be able to calculate a snow removal cost based on snowfall in relationship to parking lot size. This data provides you with a price per inch/per square footage for each location. The information leads to the total average cost of a set of locations in a particular region or state. In the example to the right, the overall cost is $0.00256 per inch per square foot. This is the benchmark cost per inch/per square foot that the service provider and facility owner should be managing. weAther dAtA Versus sPend dAtA Taking the parking lot square footage (in our example it is 475,000 square feet) and multiplying this by the average snowfall of 28.5 inches times the average square inch cost of $.00256, the fair market value for the average snow year is $34,656. This number becomes your benchmark for snow management costs for your facility, as seen in the chart on page 112, “Cost Pricing Model.” It is not only useful for managing costs, but it serves as a powerful budgeting tool. If fixing a budget to a maximum spend 110 | 2012 Best Practices

Table of Contents for the Digital Edition of PRSM 2012 Best Practices

Conducting Multi-Site Paving Improvements to Ensure Continuity
Conducting Multi-Site Paving Improvements to Ensure Continuity
Exterior Rebranding
Exterior Rebranding
Getting the Most Value Out of Roof Management
Getting the Most Value Out of Roof Management
Pervious Concrete Pavement Solves Drainage Challenge
Pervious Concrete Pavement Solves Drainage Challenge
Pervious Pavement: Concrete Solutions to Driveway Stormwater Drainage and Sustainability Problems
Pervious Pavement: Concrete Solutions to Driveway Stormwater Drainage and Sustainability Problems
Applying Bipolar Ionization to Improve Indoor Air Quality and Save Energy
Determining Responsibility for Ceiling Leaks
HVAC Maintenance and Repairs Quote Review
Managing HVAC Energy Usage Without Installing an Energy Management System
Solving HVAC Issues on Landlord Operated Systems
Creating a Standardized Cleaning Chemical Program
Floor Replacement Planning and Execution
Improving Pest Control Monitoring to Maintain Store Cleanliness
Streamlining Store Cleaning Through Internal Benchmarking
LED Conversion Bolsters Ambiance, Bottom Line and Environment.
LED Gas Canopy Lighting Upgrade
Lighting Maintenance
Retrofitting Signage with LED Technology
Performing Basic Troubleshooting to Save Money
Implementing Repair Audits to Ensure Customer Safety
Improving Quality, Cost and Schedule Through Safety Education
Managing Extended Power Outages Through Emergency Response
Managing Risk Through Slip Resistance Testing
Creating Energy Teams to Pursue Opportunities
Formulating Green Solutions
Making Data Centers LEED Compliant
Outfitting Facilities with an Eye on ENERGY STAR Certification
Recycling Cooling Water From Air Conditioning Systems for Toilet and Landscaping Use
Sustainability-How the Facilities Team Can Contribute
Driving Down Waste Expense
Reducing Trash and Recycling Expense for Retail Locations
Transferring Compactor Maintenance to a Service Vendor
Waste Service Efficiency and Compliance
Waste Evaluation and Right Sizing to Reduce Cost
Asset and Service Warranty Tracking and Management: More Fully Realizing the Value of Budget Expenditures
Conducting an Organized Meeting
Proactive Maintenance Scheduling and Delivery
Repair Reductions by Participating in Design and Construction Table
Streamlining the Store Closing Process
Achieving Process Improvement Through Onsite Assessment of KPIs
Forecasting a Maintenance and Repair Budget
How to Calculate Return on Investment
Tracking Finances for Facilities
Centralizing Vendor Training and Management
Creating a Service Vendor Call Center to Save End Users’ Money
Answering a Call Status Challenge with an IVR Solution
Communicating Product Recalls Using a CMMS-Inspired Module
Doing More with Less and Saving Money in the Process
Ensuring the Accuracy of Web-Based Maintenance Requests
Establishing an End to End Procure-to-Pay Process
Leveraging Existing Technologies to Provide Updated Process Improvements
Quality Management of Bundled Periodic Services
Reduced Dashboard Time at Supply Houses
Parking Lot Management
Creating Best-In-Class Snow and Ice Management White Paper
Energy Savings/HVAC Air Filter Bypass
Managing a Retail Lighting Retrofit Project – Bright Ways to Improve Your Lighting and Your Bottom Line!
Managing Energy Usage with Interval Meter Calibration
Navigating the Department of Energy’s Higher Efficiency Regulations
Supplier Insights into Competitive Sourcing White Paper
Testing HVAC System Options to Reduce Costs and Labor
Understanding Retail Facilities Sourcing White Paper
Glossary of Acronyms and Terms

PRSM 2012 Best Practices