Facility Dude

How to devise a cost-efficient budget

By FacilityDude
Oct 04, 2013

Facilities Management

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calculator and pen Budgeting is a tedious task that plagues nearly every facilities manager, especially given the recent economic climate. Devising and adhering to a cost-efficient budget is a complex process, but it doesn't necessarily have to be a nerve-wracking one. There are many measures that a facilities manager can take to increase operations and cost efficiency.

According to FacilitiesNet, one person cannot take on facilities maintenance on his or her own. It is crucial to have a reliable staff that will provide facilities managers with invaluable insight into the building's various operating departments. By employing supervisors throughout the operational sectors within a facility, managers can have each become their eyes and ears. Supervisors can monitor the consumption within their particular department, research market prices for items in need of repair or replacement, and make maintenance suggestions. A facility's general manager can investigate these recommendations, as well as refer to an inspector for secondary assessments of all equipment. With this information, a manager can then ultimately create an appropriate budget plan.

Changing management mindset to trim budgets

Having the proper mentality is key in facilities maintenance budgeting. FacilitiesNet states that a manager has to be perpetually planning ahead, anticipating operations maintenance costs well in advance. Facilities maintenance managers should start formulating a budget for any given year at least 10 months beforehand. Referencing past financial records and tracking current operations conditions will enable managers to prepare an informed budget plan, making adjustments accordingly as the year approaches.

For facilities maintenance managers to successfully prepare a cost-effective budget ahead of time, they must shift their primary focus from operations to strategy, IWMSNews reports. While addressing operational maintenance as a component of overall facilities management, a manager should also recognize that it is a direct result of strategic management. If managers use tactical organization through strategic management, the effects will trickle down to operational management and improve facilities as a whole.

One such tactic that facilities managers can implement is adhering to an optimal ratio of reactive and preventive maintenance.Managers often spend a great deal of their budget on emergency repair costs. By focusing more on preventive maintenance strategies and less on these costly reactive maintenance measures, facilities managers will be able to pare down their budgets and increase operations efficiency. IWMSNews recommends that managers utilize monitoring software to track facilities assets and systems. After analyzing the information collected, managers can then incorporate the software into their facilities to automate maintenance tasks, thereby reducing human error and maximizing an operation’s ability to further cut costs.

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