PRSM 2012 Best Practices - (Page 72)

ASSET ANd SErviCE wArrANTy TrACkiNg ANd MANAgEMENT MOrE FuLLy rEALiziNg ThE vALuE OF BudgET ExPENdiTurES AUTHOR Alex tavangar, P President and co-Founder .e. COMPANY totalFacility inc. chAllenge As the result of an interdepartmental review, a large box retailer identified a potentially significant opportunity for cost savings by focusing on and tracking asset and service warranties across all locations. This realization however was proving to be very challenging until the right solution was identified. suPPorting dAtA According to data published in the 2010-2011 Whitestone Facility Maintenance and Repair Cost Reference, a typical retail store incurs $4.79 per square foot of facility maintenance and repair cost per year. This translates into $95,800 per year for a 20,000 square foot store. Across a 500 store chain, this cost totals $47,900,000 per year. With a 1% cost avoidance resulting from an effective warranty tracking program, the same retail chain can potentially realize savings of $479,000 per year. Any CFO will certainly want to make sure that such potential savings are not ignored or left to chance. best PrActice Based on the industry data, the client was motivated to take actions towards implementing a solution. The first step was to outline the purpose, plan and process. The purpose of warranty tracking is fourfold: 1. 2. 3. 4. To avoid double payment for assets that the company has already paid. To avoid double payment for services that the company has already paid. To use the information to optimize future asset/equipment and service purchases. Maintain visibility into facility expenditures as part of the company’s financial controls and management processes. As obvious as the listed objectives may seem to be, most organizations don’t implement robust and systematic processes to manage this cost-saving process. At first glance, asset and service warranty tracking may appear to belong entirely within the purview of the facilities department. However, this process is ultimately a financial controls measure, deserving a direct line of sight by the CFO and the accounting department. The deceptive aspect of asset and service warranty tracking is because it’s a collection of numerous small and disparate expense items, and therefore it often is relegated to the bottom of corporate priority lists. The following may be a few reasons why: a. The difficulty of collecting the required information that resides with numerous sources from OEMs to landlords, service providers, real estate departments, and others. b. A large number of seemingly non-correlated small spend items. c. A large number of varied specialties or trades go well beyond any one individual’s core expertise. d. The number of transactions and interventions that are required for performing asset and service warranty management effectively make the task appear too resource-intensive and thus low on the ROI side. All of the above points to the fact that asset and service warranty tracking and management are at its core a data management process. An efficient process to collect, manage and mine asset and service warranty data in a timely manner can turn the resulting small savings into real gains that can in fact move the financial needle on any CFO’s dashboard. 72 | 2012 Best Practices http://www.prsm.com/bestpractices

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
Index.

PRSM 2012 Best Practices

http://www.nxtbook.com/nxtbooks/naylor/PRSS0113
http://www.nxtbook.com/nxtbooks/naylor/PRSG0012
http://www.nxtbook.com/nxtbooks/naylor/PRSS0612
http://www.nxtbook.com/nxtbooks/naylor/PRSS0512
http://www.nxtbook.com/nxtbooks/naylor/PRSS0412
http://www.nxtbook.com/nxtbooks/naylor/PRSMBestPractices2012
http://www.nxtbook.com/nxtbooks/naylor/PRSS0312
http://www.nxtbook.com/nxtbooks/naylor/PRSS0212
http://www.nxtbook.com/nxtbooks/naylor/PRSS0112
http://www.nxtbook.com/nxtbooks/naylor/PRSG0011
http://www.nxtbook.com/nxtbooks/naylor/PRSS0611
http://www.nxtbook.com/nxtbooks/naylor/PRSS0511
http://www.nxtbook.com/nxtbooks/naylor/PRSS0411
http://www.nxtbook.com/nxtbooks/naylor/PRSS0311
http://www.nxtbook.com/nxtbooks/naylor/PRSS0211
http://www.nxtbook.com/nxtbooks/naylor/PRSS0111
http://www.nxtbook.com/nxtbooks/naylor/PRSS0610
http://www.nxtbook.com/nxtbooks/naylor/PRSS0510
http://www.nxtbook.com/nxtbooks/naylor/PRSS0410
http://www.nxtbook.com/nxtbooks/naylor/PRSS0310
http://www.nxtbook.com/nxtbooks/naylor/PRSS0210
http://www.nxtbook.com/nxtbooks/naylor/PRSS0110
http://www.nxtbook.com/nxtbooks/naylor/PRSS0609
http://www.nxtbook.com/nxtbooks/naylor/PRSS0509
http://www.nxtbook.com/nxtbooks/naylor/PRSS0409
http://www.nxtbook.com/nxtbooks/naylor/PRSS0309
http://www.nxtbook.com/nxtbooks/naylor/PRSS0209
http://www.nxtbook.com/nxtbooks/naylor/PRSS0109
http://www.nxtbookMEDIA.com