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FAQs online signature
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What is the life cycle cost of a facility?
Life cycle cost analysis is a projection of initial and ongoing costs of ownership, or leasing, and operations for a facility or site over its useful life. The intent of the life cycle cost model is to provide comparable economic information for decision makers to consider when choosing among facility alternatives.
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What is the life cycle cost of a facility?
Life cycle cost analysis is a projection of initial and ongoing costs of ownership, or leasing, and operations for a facility or site over its useful life. The intent of the life cycle cost model is to provide comparable economic information for decision makers to consider when choosing among facility alternatives.
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What is the project life cycle of a constructed facility?
The project life cycle of building a house includes stages such as planning, design, construction, monitoring and control, and closure, which involve tasks such as feasibility studies, cost estimates, architectural design, site preparation, foundation, framing, plumbing, and electrical, finishing, final inspection and ...
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Why is life cycle costing (LCC) important to the facility manager?
Life cycle costing allows facilities managers to understand the return on investment from an asset, a repair, or upgrade.
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What is the life cycle of a facility?
A facility is planned, designed, constructed, and operated (see Figure 2-1). This lifecycle, and the importance of taking a lifecycle perspective on projects, has sometimes been referenced as a Cradle-To-Grave perspective.
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How to market a facilities management company?
Conduct market research — Know the characteristics and needs of your customers; know about the service of your competitors. Promote services — Devise a marketing plan that matches services with the right customers. A marketing brochure explaining facility services can be customized for different customers.
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What is the life cycle of a building system?
We divide a building's life-cycle into four different stages: production stage, construction stage, use stage, and end-of-life stage. In the end-of-service the materials can become an environmental burden or have positive impact by feeding them back to the production stage, reducing the extraction of raw materials.
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What is meant by the life cycle of a building?
The Whole Building Life Cycle Assessment (wbLCA) method studies the totality of products present in a building, providing valuable information for decision-making related to the design, construction, operation, maintenance, and eventual demolition or reuse of a building.
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you hello and welcome to the corporate facility council webinar managing risk and delivering facility services everyone has been muted for audio quality and this webinar is being recorded they were recording will be posted to the CFC website within the next 24 hours and if you would like a copy of the PowerPoint you may download one now on your control panel go to the handout section expand that out and you can download that now next slide please I'm happy to introduce our speaker today it is if my board member Laurie Gilmer she is president CEO CEO Oh a facility engineering associate and she's also on the global board for F Emma a qualified instructor and she also holds all of our credentials the FMP SFP and CFM at this time we are going to go ahead and turn over to Lori Lori the floor is yours thank you very much Josh good morning or good afternoon everyone today we're having we're on our September webinar series on the in the first Wednesday's set and today we're going to be talking about risk managing risk and delivering facilities we spent a lot of time thinking about day to day activities usually in our in our FM kind of daily lives and we talked a lot about managing costs and how are we going to meet client expectations but one of the things that that we need to look at is that big picture now a few a few let's see back in June we talked about metrics and KPIs where we we concentrated on what is that big picture how do you get to the big picture how do you link the daily activities of FM into the organizational mission and how do we understand how to measure improve our success what is going to relate and align with what the organization is about today we're going to keep that same hat on and take a look at that big picture for the organization but we're really going to focus on risk is something that we don't spend a lot of time thinking about in our daily lives in facility management but something that we need to in one of the things to think about is how do you manage risk there's risks happening all the time there's lots of things we naturally are going to be dealing with on a daily basis for example how to keep people safe that's something that is regularly built into our processes but if you thought about kind of long term big picture how do I keep people safe we start thinking about events that are difficult to predict or in they may be natural disasters they could be they could be other occurrences that could impact our business and if you thought about that there are a few questions up here that we can ask is we think about that risk question such as how do I plan for the future how do I think about the impacts of potential events how do I make sure that I'm getting what I'm paying for if you thought about that long term and you thought about contracted services for example we'll spend a few minutes on that how do I ensure that day to day expectations are met again looking at we're looking at the daily but we're really taking that high level cut and thinking about long term how are we how are we managing our business and how are we ensuring that we we have minimal impact and then lastly comes a big one that a lot of people think about when they think about risk management it's it's that last one of how can I be sure that we can keep going in the face of big events something big happens a fire a tornado an earthquake what what do I do and am I prepared for that this is our agenda for today it's a four-point agenda so if you're a person who likes to know where are we in this slide deck this will help clue you in a little bit we're going to work our way through these four items we'll start with looking at the risk management process and why do we need that and then we'll take a look at different types of risks identifying them then how do you create a plan and then I'll take you through a couple of different examples in facility management so first off that need for a risk management process in the past as I as I'd mentioned we've we've talked about kind of a high level of facilities and we've talked about the cost center facilities being thought of as a cost center versus a different way to think about it as I'd prefer actually to think about it as an opportunity to invest in our organization success our facilities are really contributing to that big picture and it helps us either facility is sort of very support network for those who are advancing our organization in the more direct activities as facility managers we have a responsibility to maintain maintain the systems and the organization's assets we are also responsible for the alignment of facility management goals and linking those up to the organizational goals and then finally we're responsible for the connection between facility management services and our overall organizational success now our organization doesn't always understand that it's incumbent upon us in facilities to help demonstrate how these things are linked together so we're going to spend a few minutes just unpacking with these different things what these different things are if you were to look at caring for your your assets over the facility lifecycle you could think about it in terms of protecting maintaining and sustaining your facility's protecting we're really looking at things like preventive maintenance and and refreshing surfaces and repairing systems and making sure that we're keeping up with them so sometimes daily and planned activities are are really helping us with that overall large picture of mitigating long-term risk the reason we maintain systems is so that those systems are reliable and they're for us as we need them and as reasonably as we can expect maintaining those systems were again keeping that facility going and then that sustainment if you think about sustainability a lot of times we we automatically think of environmental stewardship environmental sustainability what I'm really talking about is that that long-term sustainment of the facilities keeping them going thinking about it as as more of a life cycle kind of con cept this all holds together to help us meet again that mission of the organization another element is is the strategy where is we're thinking about the alignment of the facility management goals with our organizational goals we're thinking about what was the organization be about therefore what must we in facility management be about how do we link those those missions the the areas that we tend to be honing around are things like safety and security how do we keep people safe how do we keep our assets secure how do we make sure that they're not compromised in resilience we're looking at the ability to return to normal should something happen what is our ability to get back to normal business and support normal business operations in emergency preparedness and business continuity we want our buildings to be able to respond to conditions our facilities and our systems to be able to respond to conditions and then to maintain our core business functions to think about something disruptive how do we not only be how are we not only resilient but how are we also prepared to maintain business operations so that we're not we're not completely sideways in the face of different events and then that sustainability or sustain Minh is that long-term viability of our facilities of our systems of our staff of our personnel and then lastly we have the the connection of FM services to our organizational success and this is again thinking about that alignment looking at what does our organization about therefore what must we be about we have in in any facility any organization you have a lot of people that have their their various agendas to accomplish that are tagging into this this larger picture in facilities we are absolutely no different there is a big picture that our organization needs to meet and we are helping point that that way forward in the very often support kinds of activities that we do so the risk management process again is taking a look at that protect maintain sustain add to that our ability to align our goals and then connect the organization to facility management that is that is playing into our risk management process so as we think about the risks we're going to get to we're getting to the specifics and this is kind of where a lot of us are very at home there's a number of different kinds of risks we tend to think about things like fire there's a picture of a tornado lots of power flooding there's also the people side of the risk the ones that were there's some things that are that are more common than natural disasters those we tend to think about as more social preparation and bicode were prepared so we have things like fire extinguishers in place we have sprinkler systems in place hydrants so we have a certain amount of preparation there where else used to drilling for fire systems tornadoes you may you may drill in your buildings for tornado events if that's if that's something that's relevant in your area and in to deal with these various things we have systems in place so you might have backup power you might have battery power you're going to have your firefighting systems there's some of these things that are already just inherent to the building and we expect that they're going to be there to respond when we need them but there's something bigger there's a much bigger picture that we're trying to put in context here what we don't want to do is we manage our risk we're also trying to figure out aside from just the regular things that we expect to be handled in normal ways how do we deal with things that we haven't thought of how do we keep the bigger picture going how do we have a planned response that gets us back to normal now there's there's an interesting report it's The Horizon report from the business continuity Institute and they took a look at the top ten threats in facilities and this was an interesting one to take a look at they they identified top with cyberattacks and and then data breach and then unplanned IT and telecom outages what was interesting to me and looking at this is this first three are all IT related the rest of them are things like number five adverse weather we're fairly used to thinking about that especially in this day and age we've had a lot of practice at this recently depending on where you live in the country you probably have an event that you've honed in on there is also there's outside sources things like acts of terrorism etc different different people doing things we also have we have other outsiders like supplied to supply to a disruption as well things that we can't necessarily control but we do have something we can do to mitigate mitigate those risks so as we think about this this is a really good list as you're building your risk management plan and your response to a risk management our risk management threat this is a good list to help walk through and take a look at what kinds of things may be impacting you what kinds of things might you need to think about what do you already have in place what could happen and how might you respond so as you're assessing your risk a couple of things to do is number one take a look what is your risk depending on where you're located you may have certain natural risks that are going to come up things like threat of fire threat of earthquake threat of tornado what are your threats you might have safety and security as a much more common one that we're dealing with today so we tend to start thinking about access control those are our first responses things like fire sprinklers access control and whatnot those help us deal with the events itself but we're also thinking bigger bigger picture long term what's going to happen think about your city is there in the location that you're in is there something that is unique and special to your city that may be outside of your buildings control but is something having to do with the regional area that you're in or perhaps maybe in your state if you thought about your state and the weather this is one we looked at last year when we had when we had world work place in Houston we had we had challenges that we were facing and what was interesting is to take a look at this this tornado map in conjunction with events that had recently been experienced and this you again depending on where you're located in the country this may be a bigger or lesser threat this is information available from from Noah and Noah has that's the National Oceanic and Atmospheric Administration they've got climate data so if you're if you're taking a look at natural disaster kinds of threats NOAA is a very good resource as we're thinking about what kinds of things might happen what is the likelihood that it may happen is this really a significant threat if you were in Nevada for example chances are a tornado is not going to be really high on your list experiencial you might know this looking at the data you could absolutely back that up if you're in Texas for example though you might take a look at the data and it's it's much more reinforced that that the likelihood of an event is is much higher than someone in say Nevada so these are some data resources that we can that we can take a look at as we consider what might happen risk assessment the this helps you we're looking at things like what happens if we were to lose our facility for whatever reason whether it be a natural disaster or a power which perhaps the weather is really really hot and we lose power we have rolling blackouts that's been experienced in various various states across the u.s. what happens if we lose personnel and it could be a loss of personnel through tragedy it could be loss of personnel through contract what would you do if those people were to leave loss of telecommunications this gets back to RIT what happens if you lose your data what happens if you lose your ability to communicate in ways that we're normally used to I mean lots of utilities utilities are those things that we typically expect to be their ways back when we when we turn the tap on the water is going to run we expect that when we fold the light switch the lights are going to be there there's a lot of things that we've come to expect but what happens if these things go away so as we're looking at the risk assessment these are some some big broad categories of types of things that could happen independent of a specific weather or a particular event as you're thinking about the risk assessment what we're looking at is what is what is this thing that could happen and then what is the likelihood that it may happen in your area again with tornadoes you could use it as an example if you're Nevada low likely I'd probably not high on the list but something like a fire in Nevada probably a little bit more likely if you're in California definitely very likely wildfires are big right now and then we're looking at the severity of the event and the severity is not a severity of the event itself but the severity and its impact your business so if something like if you were to look at the likelihood of a tornado and then what could it do to your business that starts to give you a risk rating I'll show you an example of that in just a moment and the purpose of a risk rating and understanding the likelihood of an event and then its potential impact on your business is to help give you a prioritized list that shows you what your highest risks are in a really simplified format it kind of certain things are going to float the top sometimes things that are not necessarily on the radar we're going to move on to creating a plan as you think about your your your risk management plan there's a there's four steps here that I've outlined they're pretty simple pretty basic if you're if you're just getting started on a risk management plan these are kind of four key things to think about number one identify your risks we talked about that a few slides ago understand what kinds of things could happen are they weather events if what kinds of weather events might you expect people events what kinds of things could occur do you have secured facilities what happens if someone comes in and has access to certain information or can someone come in and have access to certain people how might you respond and then evaluate your potential your potential is all about what is your exposure what is your exposure to that potential risk and then we're looking at what is our acceptable level of exposure that is the game of risk there are things that are going to happen all of the time and what we're looking to do is to mitigate as much as we can those things that we know how to minimize and then we determine what our response is going to face in the world where many many things can happen there are a set number of things that you can really respond to and there's a certain amount that you can reasonably budget for plan for and determine your response so this is these are kind of our basic four steps now developing a risk management process these are some different examples from different groups that first one the diamonds we've got the risk probability looking at the likelihood that each thing will occur and then the impact what is your potential effect on operations over in the over to the right of that we have a probability versus impact rating this is another way to score the likelihood that an event is going to occur and what will is impact beyond our business and you can see if we have something that is very low likelihood and it doesn't really do that much then we are very low on the scale a lot of times we're looking for is what's that the high likelihood things and or what are the high-end pack things and how do we how do we manage or mitigate that risk on the lower left there is a there's a different way to look at kind of a different take on the same thing as we're looking at probability and I'm looking to lower our risk and then we have rather than saying very high to to very low we have negligible to severe again just different terms these get adopted for different facilities in different groups depending on what language speaks best to that organization and then on the lower right we have again that sort of that that a risk diagram or look at impact versus probability of occurrence if you were to graph if you were to take a number of different risks risk opportunities and graph them on a diagram you could compare them on on a risk like the one on the lower right and then we typically start looking at what are the things that are super high critical and pay attention to those first in terms of what demands our immediate attention our response perhaps our budgeting and and certainly our response planning time the risk register is is an example it kind of takes those those uh those prior tools that you just saw and it categorizes them now this is an eye chart you are not meant to go ahead and read this so you might be very up close to your screen right now trying to look at this I'll walk through an example in just a moment the risk register has a number of things on it this is a really good tool as we talked about identifying your risks this is this is really a good programmatic way of doing that you can take a look at your risk category and then look at what is the thing that could happen so you might have something like a business resilience sort of issue what happens if your HVAC or your cooling fails well if it's a data center it's probably going to be a fairly big deal what is the what's the risk and what is the impact of that thing happening if your data center goes down does it send your business sideways and do you have what is the impact overall and so we're taking a look at what's the probability of that occurrence and what is the potential impact and these are things that is the facility manager you know and then we rank those we rank those risks in terms of which things you're really going to command our biggest attention which things are lower on our lower in our overall priority list so again this is just a really good this is a really good tool that you can use we're going to take a look at examples we're going to back into back into a few different examples of how this really works so the first one is looking at a facility service contract which this isn't this doesn't always ring ring a bell with with people immediately a lot of times what we think about is the natural disasters a news event something that we hear about on the news that's happened in my facilities but facility service contracts are actually that is something that's incredibly important in terms of its potential its potential impact should something go sideways so we're going to talk through a couple of things on this its contracts are controllable to a degree or something we can respond to certainly through facility management and one thing we want to do up front is make sure that we understand our risks as we enter as we enter contracted services there's a few different risks there's a paper that was developed it's the analysis of risks associated with facility management outsourcing from the Journal of facility management or the references actually at the bottom of the screen should you want to go and look at that and and what they looked at or what were the top few risks in contracted services and you can see here there's there's things like an inexperienced client what happens if you're you're the client you're the owner of the building and you've never had contracted services there's some risk there because you're not necessarily aware of what you might be running into and what you need to be aware of so just that the very nature that you are you are a little bit newer on contracted services opens you up to a certain element of risk because you're discovering things along the way and hopefully looking for looking for good advice as you as you go another element on the service provider side is financial soundness financial soundness looks at more busy what is the risk that that business is going to be around long term what happens if their business was we failed would you is that as the owner or the facility manager what would you respond to that to that be if you're if you're contracted service provider suddenly went bankrupt or they had to leave how would that leave you what happens if you have poor quality of service poor quality of service is probably a very well known and well experienced one which we'll talk about in just a minute why that why that happens but that can be very impactful because it impacts the services not only that we deliver but its expectations of the people that we serve and it certainly impacts the daily the daily complaints that we might receive and and and how we're able to go forward and do our jobs on the contract side you might see something like an absence of benchmarks now we talked a few months ago about metrics kpis and one of the reasons we have metrics and KPIs is to help us understand when when things are working well and where they need some attention and correction from a contracts perspective we want to make sure that we have the right metrics in place so we understand that we're getting what we should be getting and when things are outside those lines what should we be doing about that a lot of times from a contracts perspectives we'll try to tie outcomes to to finance and to financial incentives or penalties to ensure that we're that the the essentials of the contract are being met inadequate definition of scope another fun one being unclear between ourselves about owner expectations versus service provider expectations we want to make sure that everybody is crystal clear about what is to be expected if if we are unclear if we're fuzzy then and we get if we we get a poor quality deliverable on the on the client side and the facility management side we might be a backup to that poor quality of service line item and that may that may have its its essence rooted in the inadequate definition of the scope set up in the first place so these things tend to be related and they kind of build on one another poor relationship between the owner and service provider is another classic I am I have seen this one I actually saw in a facility a relationship between it had been very very strong between an overnight owner and a service provider everything had been wonderful for a number of years and a new person on the owners team came in and things were suddenly not very good and and because that relationship went downhill it impacted the team entirely and their ability to really do their work well and so what we started seeing were benchmarks of performance it looked like they were they were going downhill people were leaving so they were losing their continuity of ability to carry out that business that was rooted in a bad relationship those are those are key things to look at in contracted services and then security is another one security can look like access information if you have someone coming in as a contract service provider they're exposed to a lot of information and data they also may have access to various areas of facility and so understanding how we're going to to keep that risk as reasonably low as possible is a key thing that we want to walk through as we're negotiating contracts and thinking about how those services are executed there's a number of things that you can do with risk response this is a really really simple diagram but I'd love this I love it actually for its simplicity the best thing that you can do entirely is you think about your risk response option is avoid the risk altogether if you can the worst thing you can do is accept the risk it tends to be we don't necessarily retain our business value in that and when you think about accepting risk that seems maybe that seems like a vague term or a vague concept accepting risk essentially is is rolling over not thinking about mitigation measures what might you do if you could but just saying oh well things can happen I have new people in my building I'm not going to I'm not going to worry about it we'll just accept that people are going to be coming in and out and the service provider is going to manage it so as an FM you almost start divorcing yourself in that example of any potential any potential consequence and an ability to respond if that's really not a good practice there's a couple of choices in the middle a lot of times we can't always avoid risk entirely and contracted services shouldn't way to avoid the risk of risks introduced by contracted services is not having contracted services but that's not always a possibility it might not be a reasonable choice there may be a very good reason there often is for having contracted services in place but there are things that you can do to reduce or mitigate your to mitigate your risk 1 is is in the very setup of the contract ensuring that you have an appropriate scope ensuring that you understand what the benchmarks are going to be understand your QA process and how you validate that the letter the contract has been met another response that you can have is transferring the risk in other words if something doesn't happen you're pushing that risk off your fear of AFM and you're transferring your risk you're you're giving consequence to someone else now the bad thing about jay sounds like a really good thing and you may be thinking oh I'll just I'll just give that to so-and-so I'll make the service provider pay for that thing the problem with doing that is you start to a zfm you start to lose control and buy-in of what's happening you also start to lose the relationship that hopefully you have worked to build with your contract service provider that just does not put you in a good future position for negotiation and and certainly for conflict resolution which inevitably things things happen so if the best thing you can do is is avoid the risk altogether but then if you can't look at ways that you can reduce that risk this will get a little bit more clear so we're going to talk about evaluating your potential and look at that that that risk register and I've got an example pulled out here we're actually going to take a look at the vendor driven issue of financial failure and if you take a look at that that is it's this risk number 2 up here I think there's little circle that's going to pop up what happens if if the if there's insufficient capital to fund ongoing services this is one that the risk the f-m team walked through and said ok what happens if they fail what happens if they don't have enough money well what's the nature of the risk all right we'll walk through that it's inability of the service provider to fund payroll supplies other operating taxes and expenses okay so then what happens probability of occurence on a scale of 1 to 5 they rate it as a tail so they don't think it's likely to happen but it could happen the impact on the event of the event on a scale of 1 to 5 very impactful why if their service provider in this particular example their service provider has has quite a lot of of control and does quite a lot for them the loss of the service provider would be incredibly problematic for them and so if you were then to look at the risk index or the yeah the risk calculation the risk would then be translated as a 10 that's that 2 times 5 is 10 so it doesn't end there though if you thought about it what could you do to reduce your risk if all you were doing was accepting the risk then you basically just look at this risk register you you review it and you say right ok they need to not fail and on you go but there is something that you can do about it what might you do so we have a another part of that risk register and and as we're walking through it and we think about what could we do to minimize the impact of financial failure this is not something as the FM hiring the contracted service provider you don't have control over their finances and how they manage those but you can take a look at how their business acts so if you were to look at their financial system stability ahead of time and then take a look at their commitments at the resources that they're going to apply you could start to take a look at and get more comfortable with the probability that that occurrence may happen so if it did happen you've rated it as a 2 but perhaps through a pre assessment of that vendor you figured out that they actually are pretty stable which then changes your probability down to this this group has actually rated it down to a 1 and it gives them a new risk index of a 5 so again this is just a really short example that takes a look at it at a process of identifying the risks the potentials and the impacts and then looking at is there something you could do to help avoid that risk or bring it down so that it's not quite so it's not quite a 10 so we've brought it down in this case on a color chart we've brought it down to that medium color of yellow down to a green so I'll talk about a couple of other things in in contracted services a lack of understanding of the contracts go again this is it this is more common than I think we would all like it to be but we basically are seeing things a little bit differently between the between the facility manager / owner and the one providing this service we have a different idea of what it is we are to provide and in that that introduces an element of risk in that from a from an owner/operator facility manager side of things I'm not necessarily getting the level of service that I'm wanting and that's going to have impacts it could mean that I get more complaints from people in the buildings and that takes more of my time it could mean that I'm just straighted all of the time and that's not healthy it could mean that my equipment if it's not being tended to with to the level of detail and specificity that I believe it should be it could mean that I can have premature failures or at least I might think there may be that and this is this is an argument for understanding ahead of time what is it you have how are you expecting it to be cared for and let's be on the same page between our contracted service providers about what those expectations are so that everybody understands what the outcome should look like another one is the the wrong measures being used to judge contract performance this is an interesting ones here I've seen this one more times than I'd care to admit the one of the example that stands out for me is a story of a facility it was a wonderful facility it was huge and and it was a facility that everyone in facilities wanted to be working out it was a premier place for people to work and what was really interesting is they had many many metrics to measure performance of of provided services in this facility and if you were to look at the performance there they're a balanced scorecard for how they were measuring performance you would see that everything was Green there's nothing that was red you may see the occasional yellow but everything looked like it was being done very very well they had tons and tons of data to prove how well this building was being cared for the problem was people were leaving in in higher amounts than were normal and certainly in higher amounts then then where it had been expected and experienced at this facility and it was causing a lot of disruption in service to that particular to that particular location there was a reason for it and and there was a there was a response to it but what stood out to me in that particular case was how in the world could you have so many metrics and everything looks wonderful and between all of those metrics you still can't see that there's a problem as we think about metrics and measures one of the points that we made a few a couple of webinars ago was sometimes more data is just more data having the right information that helps you hone in and understand what's being done well and what isn't going well will help you more quickly identify and mitigate problems before they become much bigger issues that have the ability to undo your services reserves contract providers this is a huge deal we want to make sure that we're that as a service contract provider that we're meeting the needs of of our clients but we're also bound to perform within the confines of a contract so we're trying to make sure that we're on the on the same page having those appropriate measures in place and agreeing to them is really key to that success another risk is the is can is the shortfall in quality control and in what this tends to look like is is that it is sort of an out flowing of the contract what we're supposed to be doing and then how we're measuring our success but if we're done if we don't have a good robust quality control approach and the ability to understand what it is we should be getting and then make sure that we're actually getting that we could have some problems so an example might be ensuring that preventive maintenance tasks are being are being performed completely that all of the PM's that are a log to be done are they really happening are they are they beginning being done adequately and correctly from a from a manager and facility management position you want to make sure periodically that you're checking on those things and that we have that mutual agreement to ensure that that the services provided are really being provided well incorrectly it's in everybody's best interest to do so and again what we're doing is managing our risk in having a quality a good quality control approach we're looking to make sure it's make sure that our systems are maintained well that they're maintained adequately that that we minimize the risk of failure because we've been maintaining preventive maintenance is all about ensuring that the systems operate as they're as they're supposed to and to the best of our ability by caring for them appropriately we want the system to be there to do its job so if we have something like an air conditioning system or a power system fundamentally there to provide power or to deliver air conditioning if we maintain it properly hopefully you can do that for a good long time and and exceed its useful life there's a few other risks with the contracted services some some of these some of these we've gone through there's a couple on here that are in addition mismatch between services delivered and customer expectations that's that's another classic again typically handled through a contract failure to recognize and promptly address contract performance problems so these again these are risks and contracted services I'm actually going to move on to our last example and this ties more to emergency preparedness and business resilience one of the things that that we think a lot about again when we think about emergency preparedness and in resilience is kind of those big events and and those of us who are who are in those who are in that that emergency preparedness especially if you've ever been through an event this will really be really be top of mind there are a lot of benefits from planning you can reduce your your impacts you can minimize health and safety risks really one of the key things is minimizing business interruptions any impacts of those various disruptions you're also minimizing the risk to your corporation one thing that can happen in in big events if the business is highly disrupted some businesses just don't recover and that's from a risk management perspective on the facility management side that's something we very much need to be paying attention to ensuring that our facilities actually are resilient that we do have the ability to the to the best possible ability we can that we can recover now if we under the risk of not planning xiety if we if we haven't really thought much about this we could be introducing additional risks like unsafe conditions for people we can't recover in our facility we can't recover quickly perhaps we can deal with the immediate event but long term so we might be able to get people out of the building in a fire threat or or another natural disaster threat but long term our facility and our organization might not be robust in the way that that is really needed we had an example in this particular example is really literally close to home for me we had if if you remember well actually you probably remember if you've been watching the news at all California's had a lot of issues with with fires lately the last year really so about 11 months ago there was a huge huge fire that broke out in Sonoma County and it was it rocked the community it rips through the area and and people came from all around the world to help fight these fires the facility that that I'm in was closed for two weeks it was inaccessible closed off by the National Guard so there's this there's a good so it's not just that we wanted to keep it closed because that you just could not get to that to that facility and employees were displaced so those were kind of a there's are the impacts that we immediately saw inability to get there there are a lot of other impacts but from a business perspective it was a closed building and people that are that they can't go back to the building the way that they were used to so the positives from a this is actually a good story in the middle of a tragedy the positives that came out of that was was my team had made a business continuity plan and had talked through what happened what could happen in the event of it of a disaster or for some reason the building was unaccessible and one of the good things I will tell you on a footnote with this was we could not have foreseen the massive fire that was just not on our radar and I suspect for a lot of people that would not be on the radar but what we did talk about is what if you couldn't get into the building what would you do and there's many reasons you might not be able to get to a building it could be an earthquake it could be a tornado it could be a fire it could be a hostage event many many things can lead to your inability to get to your building but what do you do if you can't get in and so so through that business continuity plan we had talked about it and practice it and establish as a result of that remote work locations the critical data and information was backed up temporary housing for employees was provide and bottom line business continued it was inconvenient definitely but the positive thing was we were able to move forward in spite of the craziness of that particular event so that was that is probably the closest to home example that I've ever experienced where I could see business continuity planning and risk management in action it's again that ability to take a look at what could happen what will you do what's your plan for maintaining continuity of business so again not just getting people out of the building and keeping them safe that is your first call but from a bigger perspective and managing risk what do you do after that how do you keep the business going how do you how do you manage that that risk and put steps in place so the business can continue so as you think about as we wrap up and we're a bit early today as you think about the value of evaluating and managing your risk think about it in these terms the job of the facility manager is to enable your customer to continue its mission so it may be you may be the facility manager and this is your this is your company you could be a service provider actually and this is your employer but we're looking at helping that organization continue to do what it needs to do and we're managing that risk managing that risk to that end we're thinking about how to protect maintain and sustain operations so that our organizations can continue so with proper planning you can minimize your impacts of a disruption any kind of disruption you can improve your overall performance and then also minimize your corporate risk or your organization's risk and that that wraps up our webinar today excellent very informative Laurie I just want to remind everyone if you do have a question you can type it into your question box on the control panel now we'll give you just a moment to do that and also as a reminder a recording of this webinar will be posted on the CFC website and if you've ever missed any of the webinars or you want to go back and look through it's a great resource if at the time something didn't strike you as something necessary but now you need that topic I really encourage you to go to I believe that CFC if ma org go there and look through their archive of webinars and if you do have any questions about this webinar that come up to you after the fact Laurie Gilmer or email is on the screen right now Laurie Gilmer Debbie APC when you read just another moment before we wrap it up is there anything you wanted to add Laurie oh I'm taking I you know that the that this thing that always is that always occurs to me as I wrap up these things it's sort of the stories of things that happen in facilities and the things that we hear people comments after presentations like this a lot of times we'll hear about people have their own personal stories of what's happened and sometimes sometimes what happens to us in facilities is we're kind of we're busy with the day-to-day and we don't necessarily think about long-term impacts we know that we need to come and what what really makes us think about it is if we have an event of our own whether it's a fire or you had an intruder come in it drives us to think about those particular events and plan ingly if that if an event has not happened to you this is a good opportunity to take a pause take a step back and and reevaluate how you think about threats and exposure and business continuity if you've not thought about this ever before a really easy place to start is to take a look at a few buckets information like our buckets of sort of how you categorize ideas like what would cause you to keep people in a facility and have to shelter in place what would cause you to cut to make people leave a facility or not be able to come into the facility and how would you handle those two conditions there's kind of a short-term and there's a long-term response so in the short-term you're concerned with keeping people safe and that may be why you have people in the building or you push them out of the building and then long-term what do you do to make sure that your business can continue is there a I was at a sort of facility recently it was really interesting it was a it was a government facility and we were taking a look at some equipment and I happen to be in this one this this one room and I asked about the the particular piece of equipment there's an HVAC system 100% outside air not running and the gentleman I was with could not recall he actually didn't know the piece of equipment and he could not recall having ever seen it on a maintenance list and it didn't exist in their inventory which was keenly interesting to me in looking at this and looking at the group that it served what we surmised was it was a critical piece of equipment meant to meant to provide dedicated space conditioning in the event of a disaster that would allow this particular group to to be on its own they wouldn't have to be on a building system and the risk that popped out to me at that moment was I thought my goodness this this piece of equipment I don't know if I don't know how they're maintaining it what I what I couldn't tell you is whether or not it was on any kind of maintenance plan what I could tell you is they didn't seem to know about it which would suggest nobody's maintaining it now for a critical critical piece of equipment that's there it's meant to be there in times of distress that's something that should throw up a red flag right there and so taking taking some of those moment so that was that was taken to the facility manager who identified that as a potential issue but it's little things like that that that that we are we have insights into everyday little things like that that pop up where we we sometimes put systems in place but we in that case we forgot about it and and didn't realize that we needed to maintain it now think about that if for some reason let's say the big HVAC system that's meant to be there I'm in as a backup for a potential disaster and let's say we had old filters or or a fan belt that had snapped and and you throw that system in the service and it can't do its job well then you've got a very expensive system that that is not backing you up the way that that your plan would suggest is should so as we as we think about risks and we think about mitigation measures this is the kinds of things that we're walking through to ensuring that our preventive maintenance plans are complete they're practice that we audit them that we understand what critical equipment we have if we've got a critical plan that's supposed to be enacted is our equipment there to support it that's those those are really important measures to walk through and and you can kind of start at that that high cut level of what would cause people to exit the building is there anybody who stays if there's a critical area that has to maintain it has to be up all of the time what are the dependent systems that that play into that if it is until we have an emergency generator can they get lights can they get regular power do they have space conditioning is there equipment power and walking through those and then backing into you some facilities have dual power they have two different power sources just in case they lose main power off of one transformer or if they have a transformer go they at least have a secondary option but there's there's lots of different ways and some people have more much more sophisticated systems and than others wouldn't one of the key things to start out with is understanding just what do you have are you maintaining it and can you prove it excellent um I do need to correct one thing I gave the wrong web address it's actually is my CFC org so I encourage you to check out the website and I want to do a shout out and a pitch for the CSE meeting at world workplace it will be Wednesday morning on the day that world workplace starts it's free to attend so if you're in the Charlotte area or you're attending world workplace look I would encourage you to come a tendancy FC meeting again it's free of charge starts at 8:00 a.m. and there will be a breakfast provided Lauren I've gotten something back that they really enjoyed the presentation so I want to thank you for your time for another great presentation I want to thank everyone for attending have a great rest of your week everybody you
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