1 _________________ 3 __________________

___________________ ___________________
F0044 F0044

FACILITY PLANNING Long-Range Facility Planning Process

Long-Range Facility Planning Process

___________________ ___________________
___________________ Types of Corporate Planning
Exhibit 2.1 ___________________
Corporate planning is a formal, systematic,
___________________ Degree of Degree of Penalties
___________________
___________________ ___________________
managerial process organized by Uncertainty Complexity for Errors
responsibility, time, and information to Strategic Very High Very high Possible
ensure that operational planning, project Planning loss or
planning, and strategic planning are carried
out regularly, to enable top management to
control the future of the enterprise.
___________________ Operation Low in the Low
bankruptcy
Short- term
___________________
___________________ ___________________
al short term, loss
Planning but
increasing

___________________ Project
with time
Ranges from High- Loss of ___________________
___________________ ___________________
Planning high to low medium Capital or
depending Opportunit
on the y

___________________ ___________________
project

Facility Planning * Property of STI

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___________________ Facility Planning * Property of STI
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___________________

2 _________________ 4 __________________
___________________ ___________________
F0044 F0044

FACILITY PLANNING Long-Range Facility Planning Process

This generally accepted definition of the

___________________ ___________________
planning process within the corporate
structure suggests that a substructure of ___________________ Strategic Concept of the Business Mission
___________________
___________________ ___________________
three distinct types of planning occurs
within the general concept of corporate Inventory of Available Information
planning.

These types are:

___________________ Building of Database ___________________
1. Strategic planning

2. Operational planning
3. Project planning
Facility Planning
___________________
___________________
___________________
___________________
___________________
* Property of STI
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___________________ Facility Planning
Facility Management Information System
___________________
Project Types ___________________
Action ___________________
___________________
Exhibit 2.2
Facility Management Decision System
___________________
* Property of STI
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___________________
 5 _________________ 7 __________________
___________________ ___________________
F0044 F0044

Long-Range Facility Planning Process Strategic Facility Management Functions

___________________ ___________________
___________________ ___________________
2. Assisting in capital accumulation

3. Origination of strategic moves

___________________ 4. Information networking among divisions

and operations, which provides the basis
___________________
___________________ for:

• Annual Operating Plan (AO)

___________________
___________________ •
•
•
Long-Range Business Plan (LRBP)
Strategic Business Plan (SBP)
Long-Range Facilities Plan (LRFP) as
___________________
___________________ part of the manufacturing strategic
plan ___________________
___________________ 5. Risk assessment and control
___________________
___________________ ___________________
___________________ ___________________
Facility Planning * Property of STI
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___________________ Facility Planning * Property of STI
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___________________

6 _________________ 8 __________________
___________________ ___________________
F0044 F0044

Strategic Facility Management Functions Strategic Facility Management Functions

Facility management is the process of ___________________ More specifically, the functions of real estate ___________________
___________________ ___________________
managing all aspects of real estate and and facility asset management are:
facility assets from acquisition to
disposition. 6. Deal structuring

More specifically, the functions of real estate

and facility asset management are:
___________________ 7. Facility design
___________________
___________________ ___________________
8. Construction
1. Protection of the market values of the real
estate inventory 9. Maintenance and operations

___________________ 10.Administrative services ___________________

___________________ Synchronizing Corporate Planning and
Corporate Facility Management
___________________
___________________ ___________________
___________________ ___________________
___________________ ___________________
Facility Planning * Property of STI
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___________________ Facility Planning * Property of STI
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___________________
 9 _________________ 11 _________________
___________________ ___________________
F0044 F0044

Strategic Facility Management Functions Strategic Facility Management Functions

___________________ 3. Analyses and implementation of

___________________
How has the evolving investment climate
affected the corporation's need for
___________________ corporate plans for growth and
contraction through merger,
acquisition, divestiture, and
___________________
___________________ ___________________
specialized real estate and facility services?
liquidation of assets
The dramatic expansion of required services
means the real estate and facility analyst or
4. Marketing and management of fixed-
marketing specialist must have the
expertise and insight necessary to take
advantage of the following new
___________________ asset projects
___________________
opportunities:
___________________ ___________________
___________________ ___________________
___________________ ___________________
___________________ ___________________
___________________ ___________________
Facility Planning * Property of STI
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___________________ Facility Planning * Property of STI
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___________________

10 ________________ 12 _________________
___________________ ___________________
F0044 F0044

Strategic Facility Management Functions Strategic Planning

1. Real estate portfolio review and analysis ___________________ Strategic planning with respect to the
___________________
___________________ ___________________
through the establishment of corporate corporation's facilities is at the heart of an
real estate program/profit objectives, effective facility management function
along with corporate real estate policy
and procedures

2. Raising corporate funds through the

___________________ ___________________
planning, packaging, and marketing of
surplus corporate assets; the disposition
and marketing of surplus corporate
___________________ ___________________
buildings and leaseholds; corporate real
estate financing ___________________ ___________________
___________________ ___________________
___________________ ___________________
___________________ ___________________
___________________ ___________________
Facility Planning * Property of STI
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___________________ Facility Planning * Property of STI
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___________________
 13 ________________
___________________
F0044
Strategic Planning
Issues to Address in a Strategic Facilities Plan:
___________________
1. Capacity requirements forecast ___________________
___________________
2. Facility location, relocation, expansion,
and consolidations
3. Facility acquisition, utilization, and
divestiture
___________________
4. Life-cycle costing and productivity
incorporating perspectives on trade-offs
___________________
___________________
___________________
___________________
___________________
Facility Planning * Property of STI
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___________________
14 ________________
___________________
F0044
Strategic Planning
___________________
___________________
5. Facilities financing, including the
capital budgeting plan
6. Financial statement effects of real
estate organizational structure,
management policies, and action
___________________
7. Implementation policies and procedures ___________________
8. Facilities standards
___________________
___________________
___________________
___________________
___________________
Facility Planning * Property of STI
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___________________
15 _________________
___________________
F0044
Strategic Planning
Information Required to Develop the
___________________
Strategic Facilities Plan:
___________________
___________________
1. Marketing distribution plans, inventory
management, and sales forecasts by
product/service type
2. Financial objectives, including funding,
profitability, and profile
___________________
___________________
___________________
___________________
___________________
___________________
Facility Planning * Property of STI
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___________________
16 _________________
___________________
F0044
Strategic Planning
3. Organizational structure for operating, ___________________
___________________
regulatory, and liability management
4. Human resources as related to site-
specific operating costs and
relocations ___________________
5. Real estate and facility inventory and
utilization data, historical and
forecasted
___________________
___________________
___________________
___________________
___________________
___________________
Facility Planning * Property of STI
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___________________
 17 ________________
___________________
F0044
Strategic Planning
6. Strategic and operating requirements for
___________________
each strategic business unit
___________________
___________________
7. Ancillary services related to facility
operations (utilities, amenities, etc.)
___________________
8. Market information respecting the
commodity (space and location)
9. Corporate policies related to or involving
facilities ___________________
___________________
___________________
___________________
___________________
Facility Planning * Property of STI
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___________________
18 ________________
___________________
F0044
Strategic Planning
The Planning Process:
___________________
___________________
1. Parties involved in the development of
___________________
the strategic facilities plan
2. Corporate strategy input
___________________
3. Operations management: the dynamics of
the environment
4. Physical plant inventory management ___________________
5. Real estate and facility inventory and
utilization data, historical and forecasted ___________________
___________________
___________________
___________________
Facility Planning * Property of STI
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___________________
19 _________________
___________________
F0044
___________________
___________________
___________________
Assembly of a Strategic Facilities Plan:
___________________
1. Statement of corporate objectives for the
upcoming period, players, timetable,
resources, constraints
___________________
___________________
___________________
___________________
___________________
Facility Planning * Property of STI
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___________________
20 _________________
___________________
F0044
Assembly of a Strategic Facilities Plan:
___________________
___________________
2. Identification of specific facilities requirements
per strategic business unit (type, amount,
where, when, budget, linkages):
___________________
3. Identification of alternative solutions to
accommodate the objectives, with specific
___________________
notation as to the related costs, benefits,
trade-offs; risks, impact, and externalities.
___________________
___________________
___________________
___________________
___________________
Facility Planning * Property of STI
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___________________
 21 ________________ 23 _________________
___________________ ___________________
F0044 F0044

___________________ ___________________
Assembly of a Strategic Facilities Plan: Implementation Program:

4. Identification of a comprehensive and 1. Capital allocation requests and acquisitions

___________________ ___________________
integrated set of recommendations and
rationale for the actions proposed, 2. Land and space banking
constituting a basic strategic facilities
plan

5. Senior management review and adoption

___________________ 3. Divestitures

4. Inventory redeployment
___________________
(with modifications)
___________________ 5. Cost management measures ___________________
___________________ 6. Refinancing of real property interests
___________________
___________________ ___________________
7. Pursuit of cost-offsetting opportunities

8. Relocation

___________________ ___________________
___________________ ___________________
___________________ ___________________
Facility Planning * Property of STI
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___________________ Facility Planning * Property of STI
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___________________

22 ________________ 24 _________________
___________________ ___________________
F0044 F0044

Strategic Planning Annual Operating Plan

___________________ The annual operating plan (AOP), or
___________________
Assembly of a Strategic Facilities Plan:

6. Development of implementation plans and

___________________ annual budget, represents the short-
term part of the budgeting cycle,
normally restricting the operating unit
___________________
procedures for both corporate facility
management personnel and the strategic
business units and staff departments
___________________ to plus and minus forecasts of one
year ___________________
involved in executing the action plans
___________________ ___________________
___________________ ___________________
7. Implementation monitoring, notation of
feedback, and realignment of plan details as
necessary

___________________ ___________________
___________________ ___________________
___________________ ___________________
___________________ ___________________
Facility Planning * Property of STI
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___________________ Facility Planning * Property of STI
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___________________
 25 ________________ 27 _________________
___________________ ___________________
F0044 F0044

Annual Operating Plan The basic objectives of an LRP are as follows:

Specific AOP contents describe and analyze

___________________ 1. To assess and define the economic and ___________________
___________________ ___________________
competitive environment that is likely to
the proposed plan of operation under a
be faced within the LRP period
number of topical headings, all illustrated
by narrative and quantitative material.

___________________ ___________________
2. To establish goals for the LRP that is
consistent with the company's approved
strategic objectives

___________________ ___________________
___________________ ___________________
___________________ ___________________
___________________ ___________________
___________________ ___________________
___________________ ___________________
Facility Planning * Property of STI
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___________________ Facility Planning * Property of STI
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___________________

26 ________________ 28 _________________
___________________ ___________________
F0044 F0044

The Long-Range Plan The basic objectives of an LRP are as

Just as the Annual Operating Plan (AOP)

___________________ follows:
___________________
signifies by its title the short-term nature
of the projection cycle, the long-range
plan (LRP) denotes an attempt to forecast
___________________ 3. To identify and define the major actions
required to achieve the LRP goals ___________________
corporate business prospects over a longer
period—usually five years or more. ___________________ 4. To determine the timing, scope, resource
requirements, and major milestones of each ___________________
___________________ ___________________
planned action

___________________ ___________________
___________________ ___________________
___________________ ___________________
___________________ ___________________
___________________ ___________________
Facility Planning * Property of STI
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___________________ Facility Planning * Property of STI
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___________________
 29 ________________
___________________
F0044

The Long-Range Plan

The basic objectives of an LRP are as follows:

___________________
5. To prepare reasonable estimates ___________________
6. To assess the major risks

7. To evaluate the aggregate resource

___________________
8. To arrive at an agreed-on plan ___________________
___________________
___________________
___________________
___________________
___________________
Facility Planning * Property of STI
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___________________