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LITERATURE REVIEW
Important Points and Understanding Stage 1
Thesis Topic: FACILITIES MANAGEMENT SERVICE QUALITY INDICATORS (Auditing Systems for
Commercial Buildings in the Indian Context)
JIGAR CHAVDA
GUIDE: PROF. NIMITT KARIA

What is Facilities Management?

FM is responsible for co-ordinating all efforts related to planning, designing and managing buildings
and their systems, equipment and furniture to enhance the organisation's ability to compete
successfully in a rapidly changing world (Becker, 1990)
FM unit is seldom aware of the overall corporate strategic planning, and does not have a bottom-line
emphasis (Nourse, 1990)
The practise of co-ordinating the physical workplace with the people and work of an organisation;
integrates the principles of business administration, architecture, and the behavioural and
engineering science (NHS Estates, 1996)
The scope of the discipline covers all aspects of property, space, environmental control, health and
safety, and support services (Alexander, 1999)
The practice of FM is concerned with the delivery of the enabling workplace environment the
optimum functional space that supports the business processes and human resources (Then, 1999)
Common interpretations of the FM remit: maintenance management; space management and
accommodation standards; project management for new-build and alterations; the general premises
management of the building stock; and the administration of associated support services (Hinks and
McNay, 1999)
A focus on the management and delivery of the business ``outputs'' of both these entities [the real
estate and construction industry]; namely the productive use of building assets as workplaces (Varcoe,
2000)
The primary function of FM is resource management, at strategic and operational levels of support.
Generic types of resource management central to the FM function are the management of financial
resources, physical resources, human resources, and the management of resources of information
and knowledge (Nutt, 2000)
( Tay & Ooi , 2001)

Interpretation:
From the Above quotes / definitions it can be said that Facilities management is a profession which
cuts across various fields of the building industry but it is basically the integrated management of
space where the soft and technical skills of a manager are the core competencies.
From which the most appropriate definition can be given in the form of:
Facility management is a profession that encompasses multiple disciplines to ensure functionality of
the built environment by integrating people, place, process and technology (International Facility
Management Association, 2014).
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Need for FM
Any facility is designed with the consideration of a certain life expectancy period. Once the project
turns into a facility, the operations and maintenance becomes vital, but often overlooked. Facilities
management focuses on this aspect; it negates the negatives. Since, these changes are not visible;
people do not realize the importance of this discipline. The formal practice of facilities management
is a new phenomenon and hence, subject to misunderstandings and speculations. However, it is a
discipline that has emerged out of practice. Facility management came into existence with the
integration of three key activities, namely:

Property management (real estate) This includes strategic activities like designing, planning
and refurbishments.
Property operations and maintenance This consists of operational activities like cleaning,
maintenance, mowing, etc.
Office administration- This focuses on tactical activities like catering, M&E, etc. (Kincaid, 1994)

Facilities management involves strategic planning that optimizes the value and costs of the facilities.
The environment that the facilities provide to the employees, processes and systems has a large
impact on productivity. Facilities management provides strategic direction and development or
guidance to achieve the desired results. Facilities management navigates the requirements and
mitigates the risks.
Facilities management, when executed well, reduces the burden on the resources of the facility.(Roll
& Hudson, 2014)

Benchmarking:
"A standard by which a metric can be measured or judged." Thus, benchmarking is the determination
of benchmarks that are appropriate to a given situation in order to generate knowledge and
information to evaluate to the original metrics.(Iss, n.d.)
Benchmarks are goals to aim for. Other names for benchmarks include best practices and exemplary
practices. Businesses choose benchmarks based on standards within their industry. For instance, you
might look to peak performers in your industry and set their performance levels in areas such as
manufacturing or marketing as your benchmarks -- the levels you will strive to reach.

Key Performance Indicators:

Key performance indicators are specific measurements used to gauge performance. They're a way to
precisely measure performance. Like benchmarks, performance indicators can be goals, but they're
more like steps on the way to the larger goal. You also can think of key performance indicators as a
way to measure your progress toward the benchmark goal and to gauge how close you are to reaching
that goal.

Interpretation:
Benchmarks are best practices and KPIs are tools of evaluating a service / activity in order to progress
to the benchmark.

LITERATURE REVIEW: STAGE 1

JIGAR CHAVDA

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KPIs for FM: (IFMAs 9 Key Performance Indicators)

(Rka-Madarsz, 2010)
1. Description of Facilities

2. Sizes and uses of facilities

3. Office space planning

Industries represented

Vacancy rates

Facility use, Ownership

Gross area, Rentable area,

Usable area

Hours of operation

Square footage per occupant

Office type and size

No. of occupants

Building efficiency rates

Location of facility

Workstation utilization rates

Space allocation policies

Office space per worker

4. Relocation and
Churn

Support area
5. Maintenance, Janitorial and
Indirect Costs

Organizational moves

Maintenance costs

Cost of moves

By

Churn rate

Percentage

age of facility

6. Utility costs
Utility costs
Utility usage

of replacement cost

Repair

vs. preventive
maintenance

Outsourcing of maintenance

function
7. Environmental and life
safety costs

Janitorial costs, Indirect costs

8. Support and Project costs

9. Financial Indicators

Security costs

Replacement value of facility

Environmental costs

Project costs

Lease type and cost

Life-safety costs

Space planning costs

Cost of operations

Employee amenities costs

Cost of providing the fixed asset

Occupancy cost
Financial ratios
Total annual facility costs

Case Study: Pending DQI Paper

Identification of Stakeholders:

Facilities Manager (Team)

Builder/Developer Team which includes architects, contractors, consultants etc..
Client/Owner
Staff/End User

Methodology:
1. Literature Review
2. Identification of Stakeholders
3. Preparation of questionnaire to understand the implications of the KPIs and Benchmarks
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It will include objective and subjective data
Identify the key metrics for benchmarking
Conduct interviews with the stakeholders to gather more insights on qualitative data.
4. Conduct Surveys in the complexes identified
Shreeji Business Park
Shree Sharan Business Park
Rudra Business Park
Sumel Business Park (1-6)
Pushkar Business Park
Pinnacle Business Park
Parshwanath Business Park
Abhishree Business Park
Devashish Business Park
Advance Business Park
GCP Business Park
Mondeal Business Park
Aaryans Corporate Park
Safal Profitare
Abhishree Corporate Park
Magnet Corporate Park
* Surveys will include questionnaires and Interview Data
5. Data Analysis
6. Rating the Buildings Based on the surveys which will help the facility manager in
understanding the service quality and the satisfaction level of the end user, the builder
understand the efficiency of the workplace and the client in understanding where his/her
workplace is rated in terms of service delivery and space quality.

References
Tay , L., & Ooi , Joseph T.L. . (2001). Facilities management: a Jack of all trades? Facilities, 19, 357
363. doi:10.1108/EUM0000000005534
Iss, A. (n.d.). How To Guide: Benchmarking for Facility Professionals.
Rka-Madarsz, L. (2010). Facility Management benchmarking. 8th International Conference on
Management, Enterprise and Benchmarking, (Rics 2001), 171181.
Roll, M., & Hudson, M. (2014). Facility Management Trend Report: Emerging Opportunities for
Industry Leaders Facility Management Trend Report:

LITERATURE REVIEW: STAGE 1

JIGAR CHAVDA