PRSM 2012 Best Practices - (Page 85)

FOrECASTiNg A MAiNTENANCE ANd rEPAir BudgET AUTHOR shawn browning, leed-green Assoc., FMA, rFMP , territory Facility Manager COMPANY nike chAllenge: To successfully obtain the money needed to properly maintain stores, sufficient and accurate historical data is critical. Five years of data is ideal and it should include cost spent per trade per store as well as the age of the store and its equipment. It may also be beneficial to know what remodels the store development department is implementing in the coming budget year. best PrActice: Who can help set up the maintenance and repair budget? • Meet with the finance team. Discuss challenges, preferred processes, goals and leadership expectations, etc. If you both are on the same page, it makes the process much smoother. The finance department can help track down the historical data including money spent per trade per store. What information should be included? • Approximately five years of financial data should be sufficient for an accurate budget. Check the data to ensure the money charged in the past was assigned properly. Depending on the size of the discrepancy, it could skew the forecast. • Incorporate any anomalies in the previous years’ budgets. For example, an economic downturn caused a budget reduction in Q3 FY09 of 10 percent. This could impact forecasts if the economy has changed. • Review any savings or overages tracked in the previous years. If feasible, they should be incorporated in future budget forecasts. For example, lamp costs are increasing due to lack of resource availability. The increase is forecasted to last for many years. This should be incorporated and noted in the budget forecast. • Note any remodels or upgrades being completed by other departments. For example, store development is including HVAC replacements in its upcoming remodel. This should reduce the maintenance and repair forecast for this particular trade and store. • Review any new programs scheduled to be implemented that could impact the budget, such as an Energy Management System, which could affect HVAC and lighting spend. • How should the budget be allocated? • Some retailers take the total annual budget and divide by 12 for the monthly forecast. If most of the budget is contracted work that is paid in scheduled intervals, then this process may work. • Other budgets are seasonal. For example, Back to School and Holiday are the two most popular retail seasons so the forecast is higher in the 1-2 months preceding the seasons and much lower afterward. A seasonal budget is more indicative of the retail environment. Why forecast a budget? • In some situations, the M&R budget is a substantial spend. The bigger the budget the more eyes will be on it. results: Establishing a sound, accurate budget make take some time and energy; but, it will help establish or improve credibility with leaders. VeriFicAtion oF eFFiciency And sAVings cAPtured: On average, it is optimal to hit budget numbers within two percent of the approved amount (under/over). This may vary depending on the corporate policy and/or economic conditions. 2012 Best Practices | 85

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