When it comes to facilities management, there’s a tall list of things to track. Equipment, work orders and fleet maintenance are just a few of the responsibilities that might appear on this list. In an ever-changing, modern landscape, having the ability to quickly check and manage your facilities keeps processes running efficiently, which saves on costs in the long-run.
One of the ways that a facilities manager can measure success is through Key Performance Indicators, or KPIs. Think of KPIs as a set of metrics that helps you stay on top of the most important aspects of your facility management tasks while also helping to inform better business decisions. Here, we share six KPIs you might not have known about that, when tracked, give you an idea of how well your facilities management processes are performing so you can keep things running smoothly.
Keep your eye on these key facility management KPIs to drive smarter business decisions
1. Reactive maintenance percentage
Similar to healthcare, preventive maintenance is significantly more cost-effective than reactive maintenance, which is why it’s important to know what percentage of your total maintenance is being completed reactively versus preventively. Knowing what proportion of your facility management efforts is reactive helps you set concrete preventive maintenance goals, and these goals can result in big cost-savings over time. It helps you identify patterns and see what types of requests or work orders are showing up again and again, so you can plan ahead more strategically. A facility management software can help you do all this very easily. As there are higher costs associated with reactive maintenance, a good rule-of-thumb is that less than a quarter of all maintenance tasks should be reactive.
2. Backlog work orders
Another important facility management KPI for facility managers, every organization has a backlog, an ongoing list of work items that a facilities manager hasn’t had a chance to address. It typically contains noncritical work tasks that have been requested but have not been prioritized. While a single backlog work order may not be a big deal in itself, a long backlog may indicate inefficiencies in the current facility management process. As small items add up, the ability to effectively manage and prevent them from occurring in the first place decreases. By reviewing backlog work orders using work order software, a facilities manager might discover gaps in areas like machine utilization or available staffing and take steps to course-correct and get the workload back on track.
3. Budget schedule
A big part of facilities management is making sure that the right job functions are receiving the necessary budgets, budgets are staying within means, and all costs are being reported accurately. Keeping a detailed account of expenses gives facilities managers a better sense of which dollars stretch the farthest and can provide insights into any areas that might benefit from having additional funds. Setting a budget lets facilities managers see how funds are being distributed across different areas—equipment upkeep, vehicle maintenance, and staffing, to name a few. It also allows them to audit costs and flex accordingly.
4. Preventive maintenance compliance
As stated earlier, preventive maintenance is preferable to reactive, but it’s important to note that simply scheduling PM tasks isn’t enough. Preventive maintenance compliance takes it one step further by pinning down specific time frames in which different work tasks should be completed. This helps to not only gauge how well your organization is doing at completing work orders, but how many of them are actually being completed on time. You want to maintain as high a compliance rate as possible and strive for 100%.
5. Average time to completion
Measuring how long it takes for work orders to be completed is an important part of identifying inefficiencies and knowing what areas need improvement. Are tasks being assigned quickly but then lapse in a queue waiting to be done, or are they being completed immediately? Minimizing average time to completion helps ensure facility management assignments are completed in a timely manner and will serve as a benchmark for how long it takes different tasks to be closed out.
6. Reactive response time
Like average time to completion, reactive response time measures the ability to respond to more urgent requests. It helps facility management processes be more agile by tracking how long it takes a high priority work request to be completed from the time it’s submitted. This is important because a faster response time not only provides prompt service, but can help reduce the overall unproductive time by minimizing any downtime between tasks. Having a clear understanding of how long it takes to finish different kinds of assignments can prevent cascade failures where certain repairs must be done within a specific time frame or risk consequent breakdowns.
From setting a budget schedule to tracking the average time it takes to complete a work task, it’s important to have a set of KPIs that you can point to and compare your performance against. Facility management KPIs provide you with a baseline of how well your organization is executing tasks and where you should be looking to improve. Good facility management KPIs help facility managers understand how effective your current job processes are and serve as a starting point on what you can do to make them even better.
Looking for a way to incorporate these KPIs into your own facility management framework? ManagerPlus Lightning is a customizable tool that conveniently provides these insights and more every time you log in. Always know exactly where you are and what is next.