OM107-Facilities Management Lecture Notes PDF

OM107-FACILITIES MANAGEMENT Lecture No.1 Introduction to Facilities Management Prepared by: AGCortez 1st Semester, SY 2024-2025 1  Nature of Facilities Planning Facilities planning and management has develo...

OM107-FACILITIES MANAGEMENT Lecture No.1 Introduction to Facilities Management Prepared by: AGCortez 1st Semester, SY 2024-2025 1  Nature of Facilities Planning Facilities planning and management has developed in the past decade into a major, thriving business sector and discipline and continues to grow in many countries. – Competition? Strategies ----Customer Satisfaction Facility planning engages in supervising the planning, programming, designing, construction approach, operations, and maintenance of facilities to make possible the achievement of organizational goals. Facility planners deal with optimizing workflow inside the planned area. Facility planning determines how an activity’s tangible fixed assets best support achieving the activity’s objectives. – What is the objective of the facility? – How does the facility achieve that objective? 2  Nature of Facilities Planning (continued) Facilities Location of the facility means the position in relation to customers, suppliers, and other facilities with which it crosses boundaries. Facilities Design refers to the design components of a facility consisting of the facility systems, the layout, and the handling systems. – Facility systems include structural systems, lighting/electrical/communications systems, life safety systems, and sanitation systems. (the structure (of a building), power, light, gas, heat, ventilation, air- conditioning, water, and sewage needs) – Layout refers to the entire equipment, machinery, and furnishings inside the building. the production areas, related support areas, and personnel areas. – Handling systems comprise the mechanisms needed to go with the required facility interaction. The materials- personnel, information, and equipment to support manufacturing. 5 Nature of Facilities Planning (continued) Characteristics Elements Total Integration Flexibility Modularity Blurred Boundaries Upgradability Consolidation Adaptability Reliability Selective Operability Maintenance Environmental and Economic Energy Friendliness Progressiveness 5  Significance of Facilities Planning a) Continuous relay out and rearrangement. Only in very rare situations can a new process or piece of equipment be introduced into a system without disrupting ongoing activities. A single change may have a significant impact on integrated technological, management, and personnel systems, resulting in sub-optimization problems that can be avoided or resolved only through the redesign of the facility. 6  Significance of Facilities Planning b) Health and safety concerns including Occupational Safety and Health Standards OSHS has been implemented in the Philippines through RA 11058 to provide assurance for every working individual of a safe and healthful working environment that safeguards human resources. Concerns about occupational safety and health standards must be considered during the initial design stage of the new facility or redesign or revamping of the existing facility, Equipment and/or processes that may create hazards to workers’ health and safety must be in areas where the potential for employee contact is minimal. 7  Significance of Facilities Planning c) Energy Conservations Energy has become an important and expensive raw material. Equipment, procedures, and materials for conserving energy are introduced to the industrial marketplace as fast as they can be developed. As these energy-conserving measures are introduced, companies should incorporate them into their facilities and manufacturing process. LEED has become an important factor in assuring that the environmental and energy implications of facilities planning are fully addressed. 8  Significance of Facilities Planning d) Community considerations, fire protection, security, and consideration for physically challenged individuals. Noise, Air pollution, and disposal of both liquid and solid waste which concerns community rules and regulations. Fires that may extensively disrupt the facility operation could be attributed to poor housekeeping or facility design. Facility that is “barrier-free” for the well-being of those physically challenged employees in compliance with RA 7277 (otherwise known as “Magna Carta for Disabled Persons”) 9  Significance of Facilities Planning e) Pilferage This problem can be prevented and losses to the organization can be minimized through the inclusion of a control design. f) Customization of Facilities when building facilities around the world. Globalization has created a need to customize facilities intended for global supply chains. The customization has to create modifications based on labor costs, construction costs, and savings from the lower purchase price of equipment. 10  Objectives of Facilities Planning 1) Improve customer satisfaction by being easy to do business with, conforming to customer promises, and responding to customer needs. 2) Increase return on assets (ROA) by maximizing inventory turns, minimizing obsolete inventory, maximizing employee participation, and maximizing continuous improvement. 3) Maximize speed for quick customer response. 4) Reduce costs and grow the supply chain profitability. 5) Integrate the supply chain through partnerships and communication. 6) Support the organization’s vision through improved material handling, material control, and good housekeeping. 7) Effectively utilize people, equipment, space, and energy. 8) Maximize return on investment (ROI) on all capital expenditures. 9) Be adaptable and promote ease of maintenance. 10) Provide for employee safety, job satisfaction, energy efficiency, and environmental responsibility. 11) Assure sustainability and resilience 12 Facilities Planning Process 12  Strategies in Facilities Planning Planning is a primary responsibility that concerns facilities planning besides location and design. Facilities planning itself, considers the process of planning and designing a manufacturing facility, building it, and installing and using the equipment. Business strategy is the art and science of utilizing organizational resources to accomplish its objectives. 13  Strategies in Facilities Planning The following 10 issues may have a long-range impact on the strategic facilities plan: 1. Number, location, and sizes of warehouses and/or distribution centers 2. Centralized versus decentralized storage of supplies, raw materials, work-in-process, and finished goods for single- and multibuilding sites, as well as single- and multisite companies 3. Acquisition of existing facilities versus design of modern factories and distribution centers of the future 4. Flexibility required because of market and technological uncertainties 5. Interface between storage and manufacturing 14  Strategies in Facilities Planning 6. Level of vertical integration, including “subcontract versus manufacture” decisions 7. Control systems, including material control and equipment control, as well as the level of distributed processing 8. Movement of material between buildings and between sites, both inbound and outbound 9. Changes in customers’ and suppliers’ technology as well as a firm’s own manufacturing technology and material movement, protection, storage, and control technology 10. Design-to-cost goals for facilities 15  Examples of Inadequate Planning 1) A large consumer products company decided to allow each of its acquisitions to remain independent, thus requiring the management of many duplicate supply chains. The supply chains consisted of duplicate planning functions, execution systems, and facility locations. After poor performance, the management team soon began to question the rationale of the separate organizations. 2) A major manufacturer in the Midwest made a significant investment in storage equipment for a parts distribution center. The selection decision was based on the need for a “quick fix” to a pressing requirement for increased space utilization. The company soon learned that the “solution” would not provide the required throughput and was not compatible with long-term needs. 16 Credits Camilar-Serrano, Angelita O., Facilities Planning and Management (2016), Unlimited Books Library Services and Publishing, Philippines Lapides, Paul D., Facility Management (2006), Wiley and Sons Inc. Levitt, Joel D., Facilities Management: Managing Maintenance for Buildings and Facilities (2013), Momentum Press and Publishing Roper, Kathy & Payant, Richard, Facilities Management Handbook (2014), AMACOM Varied online sources fppt.com 17