What is Facilities Management and What is its Importance?

Effective facilities management can decrease a company’s energy costs by up to 30% annually. And according to a study, smart buildings with integrated systems can result in 30 to 50% savings. So, instead of following a traditional road opt for effective facilities management (FM). It is more than just maintaining buildings- it is a strategic function that can significantly impact profit margins, employee well-being, and environmental footprint. 

Here we will look at what is facilities management, its importance, diverse functions, strategies, types and the role of emerging technology.

What is Facilities Management?

Facilities management technology is basically the day-to-day operations necessary to ensure the physical aspects like safety, functionality, comfort and efficiency of buildings supports the business needs and primary function. Various things go into supporting this including coordinating space, infrastructure, people and organization. And the core areas into this are lease management, maintenance,  capital project planning, energy management and more. 

Importance of Facilities Management

Operational Efficiency

Effective facilities management ensures smooth building operations, leading to significant cost savings and improved productivity. For instance, proper space management can reduce real estate costs by up to 30%​.

Employee Engagement

A well-managed facility enhances the workplace experience, leading to higher employee engagement and lower turnover rates. Companies with effective FM see up to 59% less turnover and 17% more productivity​.

Energy Management

With the right energy management strategies, it can slash the energy costs by a whopping 30-50%. Incorporating smart systems can change the way energy consumption is managed, making it more efficient and effective.

Sustainability Through Facilities Management

Facilities management is all about assisting organizations in becoming more environmentally conscious and sustainable by maximizing resource usage. This not only benefits the environment, but also gives a nice boost to the organization’s reputation and ensures compliance with regulations.

Functions of Facilities Management

Real Estate Management

Managing property assets to optimize their value and utility, ensuring they align with the organization’s goals and financial plans.

Capital Projects and Planning

Managing and supervising extensive construction and renovation projects, making sure they are finished quickly and within the allocated budget.

Occupancy and Space Management

Ensuring efficient use of space to support organizational activities, which can significantly impact employee productivity and operational costs.

Lease Administration and Accounting

Managing lease agreements and related financial transactions to ensure compliance and optimize costs.

Workplace Experience

Building a workplace that enhances comfort, productivity, and overall well-being for both employees and occupants.

Operational Efficiencies

Introducing new processes to boost the efficiency of building operations, cut costs, and elevate service delivery.

Regulatory Compliance

Meeting regulatory compliance to operate within legal boundaries and avoid penalties. 

Risk Management

Keeping facilities and occupants safe by identifying and addressing potential risks, ensuring smooth operations and uninterrupted safety.

Sustainability and Energy Consumption

Utilizing efficient management techniques and cutting-edge technology to reduce energy use and damage to the environment. For example, Mapsted’s minimum hardware location technology eliminates the need for investing in big, pricey additional hardware, thus reducing installation and maintenance costs​

Technological Solutions

Integrating cutting-edge technologies will reinvent facility management, leading to a boost in productivity and profitability. Mapsted’s interactive maps and wayfinding solutions streamline navigation within facilities. Thus, improving user engagement and operational performance. 

Facilities managers are now able to do the following because of technological advancements like the IoT, AI, and IWMS:

• Analyze Data: Utilizing data from sensors and smart devices for monitoring and optimizing building performance.
• Predict Maintenance Needs: To execute predictive maintenance seamlessly to prevent equipment failures and reduce downtime. Mapsted’s predictive analytics allow facilities managers to foresee equipment failures and maintenance needs, optimizing operational efficiency​. 
• Enhance Occupant Experience: Latest technologies like AI and IoT help create personalized and efficient environments for occupants.
• Optimize Energy Use: Employ smart systems to manage energy consumption and reduce waste.

Case Studies

ISS A/S

In Denmark, ISS A/S, a facilities management and office services provider managing 25,000 customer buildings, implemented a scalable platform with approximately 700 sensors. These sensors generate data streams that are captured on a cognitive cloud platform and analyzed using cognitive algorithms. This integration has significantly improved the understanding of building usage, leading to enhanced operational efficiency and occupant satisfaction​.

Airbus

Airbus, an aircraft manufacturing company, deployed a solution that offers a comprehensive view of usage, cost, condition, and maintenance-related data for its facilities across four countries. This integrated approach has enabled Airbus to optimize space utilization and improve maintenance efficiency​.

Emerging Trends in Facilities Management

Sustainability

There is a growing emphasis on sustainability in facilities management. Companies are increasingly adopting green building practices and energy-efficient technologies to reduce their carbon footprint and promote environmental responsibility.

AI-Powered Tools

The use of AI-powered tools is on the rise in facilities management. These tools enable facilities managers to analyze large amounts of data, analyze occupancy patterns, predict maintenance needs, equipment failure and optimize building performance more effectively. Mapsted’s AI-powered analytics tools provide real-time insights for informed decision-making, further enhancing facilities management efficiency​.

Challenges in Facilities Management

Budget Constraints

Managing facilities within tight budgets is a common challenge. Facilities managers must find cost-effective solutions to maintain and improve building operations.

Aging Infrastructure

Older buildings often require more maintenance and upgrades, which can be costly and time-consuming.

Evolving Workplace Needs

The shift towards flexible and remote work arrangements has changed the demands on facilities management. Managers must adapt to these new requirements to ensure efficient and effective operations.

Solutions to Overcome Challenges

“Today, any facilities manager looking to stay on top of their game, needs to be increasingly data-driven. The profession is moving away from simply being a reactive, dispatcher of technicians for work requests,” notes David Markowitz, a communication professor at the University of Oregon. This states that leveraging latest technology and strategic planning can really impact the costs, resource use, equipment status, etc.   

Strategic Planning

Effective strategic planning can help facilities managers allocate resources more efficiently and prioritize critical projects.

Leveraging Technology

Adopting advanced technologies like utility tracking software, sensor technology, management software and more that can help overcome budget constraints and improve the efficiency of facilities management processes. Mapsted’s innovative location-based technology and real-time monitoring solutions enhance operational efficiency and reduce costs.

Continuous Training

Providing ongoing training for facilities management staff ensures they stay up-to-date with the latest industry trends and best practices.

Conclusion

Facilities management is responsible for the efficient operation, safety, and comfort of buildings and their environs. Introducing modern technologies and effective management practices, facilities managers can improve the value and functionality of their facilities. Organizations are evolving, which means the role of facilities management will become even more important in enhancing operational efficiency, promoting sustainability and guaranteeing occupant satisfaction. Mapsted’s cutting-edge, minimum hardware location technology can help ease and simplify the process of managing assets. If you enjoyed this blog, take a look at our post on Top 5 Benefits of Implementing Asset Tracking in Your Organization and The Future of Asset Tracking: Emerging Technologies and Innovations to Watch and our informative video highlighting the benefits of our technology.