I am indebted to Dr. Johan R. Edelheim of Southern Cross University Lismore, for the foundation of these slides.

Dr Johan R. Edelheim (PhD)Lecturer, Hotel and Resort Management

Southern Cross University, Coffs Harbour CampusPersonal researcher page:

http://works.bepress.com/johan_edelheim/

Operational considerations Management plans - macro vs.

micro considerations (design/ops) Design & space – facility around

space or space fitted into facility? Departments & FM – OS&E

(Operating supplies & equipment) + FFE (Furniture, fittings & equipment)

Accommodation planning Regulations and Outsourcing Service & Trends

Appreciate the importance of providing sufficient cabling for audio visual (AV) and information technology (IT) demands in a hospitality enterprise;

Recognise the importance of managing heat, ventilation and air conditioning (HVAC) and lighting in both economical and environmental terms;

Analyse the different types of maintenance performed, and understand the strategic importance of incorporating maintenance issues in planning;

Distinguish when and how a facility, or a part there of, is deemed to be obsolete or redundant in terms of hospitality enterprises;

Assemble the general features of a condition report in terms of content, frequency and scope.

Next topic: Asset Management

Repairs & Maintenance Repairs:

Reactive processes Maintenance

Planned processes Promoting productive facility

R & M elements The facility Departmental facility Specialised equipment

Integration into strategic outcomes Returns for stakeholders

Owners / managers / customers / community

The maintenance plans are facility-wide documents

Integrating organisational objectives On-going training for department

heads / supervisors Training for front-line staff Inclusion of maintenance (FM)

strategies into induction programs for new staff

Understanding of the facility Past, present, and future

Evaluation Taking time to review good bits and bad bits

In the 21st C - this is a critical aspect of all businesses

Key concerns: Current business needs Occupancy term Future needs

Changes in information & communication technology (ICT)

Social and commercial trends

These range from a phone and a current-technology local area network (LAN) connection in a general office to several strands of fibre optic cable to support high bandwidth applications, along with a coaxial cable to support broadband video distribution and several cables to support multiple PCs in a financial institution.

The facility manager must estimate how long the organisation is likely to remain in its current building.

How long are current users expected to make use of the system?

Determine the level of data traffic in existing systems, and how that will be affected by expansion of operations or adoption of new technologies (Langston & Lauge-Kristensen, 2002, pp. 55).

High cost element for the FM Justification for IT spend

This can be problematic: returns are not instantly seen by owners / managers

Returns can be seen most quickly by customers

Retro-fitting can be expensive Computerised Facility Management

Systems (CFMS) Problems with software packages often

stem from the fact that end-users rarely select them

Presents the interconnection between IT systems and FM,

he describes the possible benefits that can be achieved by utilising computers and highlights also potential problems with the systems.

‘If a business is small, a paper-based system might suffice. However, after reaching a certain number of service assets, it will not be easy to keep track of when the next maintenance task is due, if that entails the regular checking of facility and component cards … a Computerised Facility Management System (CFMS) can help manage problems and complexity by providing performance feedback data that can be analysed and interpreted for fact-based decision-making’ (2004, pp. 178).

Heating; Ventilation; HVACAir-condition; Electrical – more examples on next slide; Water; Transportation; Waste; Fire safety; Energy control; Communications; Boiler technologies; Lighting controls; Security alarm systems.

Energy & utilities Power, lighting, AC etc Gas, solar (the Green Hotel)

Energy performance / conservation Energy audits Energy management systems Energy monitoring / information

Usage analysis Staff awareness

In order for a manager with responsibilities over facilities to provide additional value to the enterprise, strategic planning of operational procedures is essential.

One area that consumes a lot of an enterprise’s assets is the cost of energy. If managers can pin-point where energy is consumed, what times most consumption occurs and how the energy is consumed then energy saving measures can be implemented. ‘Occupancy-based control of lights and computer monitoring and control of air conditioning systems can save a significant amount of money per year. Direct digital controls which tie each unit into a [building management system] BMS, which is monitored and operated through a personal computer terminal, minimises the need for people to check and adjust systems’ (Langston & Lauge-Kristensen, 2002, pp. 63).

Langston and Lauge-Kristensen continue by pointing out that ‘facility managers need to be sure the system is installed and functioning properly through testing and evaluation. This will ensure fewer start-up problems, better environmental control, lower energy use and fewer long-term maintenance problems’ (2002, pp. 64).

Types of maintenance programs: Corrective (unplanned)

Day to day maintenance work Unforeseen breakdowns, damage, emergency Repairs rather than maintenance

Predictive Planned maintenance Using measurements of equipment

performance Preventative

Planned work Longer term view of maintenance Includes cyclic processes

Other program inclusions: Routine / Corrective / Preventative / Emergency

Issues to consider in maintenance strategies Response time Down time of ‘lost’ equipment / facility Costs:

can only do what’s available in the budget! Inspections

The ‘human’ aspect of maintenance programs Legislative compliance

Air conditioning systems Fire and evacuation systems Food service systems

Maintenance structure [Lawson, 1995: p. 317]

The strategic and tactical tasks involved in facilities management can, as mentioned earlier, add extra value to the business;

maintenance on the other hand keeps the operation going. Langston and Lauge-Kristensen (2002) divide maintenance into three

categories; corrective, basically unexpected maintenance in which unforseen failures, damages and emergencies are corrected;

predictive, which are planned repairs made based on average life-cycle calculations; and preventative, planned repairs that aims at restoring equipment to an acceptable standard (2002, pp. 122). Lawson adds to that ‘running maintenance facilitated by the installation of duplicate equipment (pumps, fans, plant) and

independent access. Shutdown maintenance requiring the closure of rooms or equipment, best planned to enable other work in the area to be carried out at the same time. Breakdown maintenance applying to the numerous small items of equipment which require replacement at irregular times for which advance provision can be made by way of spares, materials, labour and equipment’ (Lawson, 1995, pp. 316-

317).

Maintenance strategies Time-based

Routine & time-based preventive maintenance Performance-based

Measuring known indicators - then CM Breakdown-based

Reactive and emergency Renovation-based

Modification and design-out maintenance Usually for older equipment

Integration TPM - total productive maintenance RCM - reliability-centred maintenance

Whatever maintenance strategy is adopted for a system or equipment, there are always ‘‘5R maintenance actions’’ to be involved eventually, namely:

retaining, repairing, replacing, redesigning and retrofitting the system to its required

function in support of the hotel business (Chan et al., 2001, pp. 499-500).

Maintenance structure 2 [Chan, Lee and

Burnett, 2001: p. 499 (from Facilities, vol. 19 no.13/14]

Measuring maintenance performance KPIs for the engineering / maintenance

dept. Business availability Personnel utilisation Urgent repair index Failure frequency Unit repair time Corrective to preventive Energy use index

This index calculates the time the hospitality facilities are operational and their down time. For a hotel it could, for example, be a calculation of rooms available for sale divided by total number of rooms – thus including also those that are reported as being out-of-order of some reason. The closer the index is to 1 the better. Similar calculation can be done for restaurant seats, space at conference centres, and similar.

This is an indicator that reflects how well the maintenance workforce has been utilised, defined as: MUI = man hours spent on maintenance work in a period / total man hours available for maintenance in the same period.

This index indicates if the maintenance department is sufficiently staffed – or if there are periods of under- or over-utilisation of the staff. The index should be as close to 1 as possible, if it is below it means that the facilities are overstaffed, if it is over it means that the facilities faces staff shortage, and that much work is probably conducted as expensive overtime.

Generally, people have higher demand or expectation of comfort and facilities when they are in a hotel in return for what they have to pay. It is not uncommon to receive complaints from guests, such as noise emanating from the fan-coil unit in the guestroom. There are also requests for emergency maintenance from in-house staff, such as chefs and housekeepers. URI is defined as:

URI = UR / UR + GR where UR is the number of urgent repair requests

arising from guests and in-house staff, and GR is the number of general requests for repair of the building facilities … It should be noted that if the engineering staff are able to carry out maintenance on a continuous basis to keep the equipment and systems in good order, the amount of urgent repairs would be reduced (Chan et al., 2001, pp. 501-502).

The sum of urgent and general repairs given in Table IV is sometimes referred to as the failure frequency. In particular, the average time required to repair each fault is of concern, as it indicates how capable the engineering staff are to respond to and rectify failures … The overall average repairing time [at the hotel the article referred to] is 0.62 hour per failure, which is considered to be acceptable, and can be used as a benchmark for future performance as well as a reference for other hotels (Chan et al., 2001, pp. 502).

One measurement of the maintenance programme’s effectiveness is the ratio of preventive maintenance to corrective maintenance actions in terms of MH used, called the preventive maintenance ratio (PMR). In a report of power plants (Barber and Hilberg, 1995) the average ratio was between one and two. It is expected that the PMR of hotels will not be as high as that for power plants, as the latter requires a much higher reliability. In the hotel studied the ratio is 0.38, implying that the maintenance workforce is tied up with corrective works, which is commonly observed in hotels. For long-term improvement, the management must turn their attention to shifting the maintenance emphasis from corrective maintenance to preventive maintenance. As the preventive maintenance programme gradually matures, the ratio should increase if the engineering systems are maintained healthy(Chan et al., 2001, pp. 502).

In hotels the amount of energy use is affected by weather conditions, number of guestroom and occupancy rate, number of food covers served, and the operating efficiency of plants and equipment (Lee et al., 2000). Poor or insufficient maintenance will cause the system to operate inefficiently, in particular the cooling plant, leading to waste of energy. Results of industrial energy audits and case studies indicate that reduction in energy consumption from improved operation and maintenance activities can average between 8 per cent and 12.5 per cent (Thumann, 1999) (Chan et al., 2001, pp. 502).

Renovating / refurbishing / Reconstruction

The most severe maintenance program Redundancy

Not the same as obsolescence Rehabilitation

Economic benefits Environmental benefits Social benefits

Adaptive reuse Change the facility Change the space – Westin at Martin Place, Medina at

Central Relocation

Move the complete facility Move within the facility

Buildings can become redundant when they are superfluous to their owners, even though they may be attractive to other potential owners – or other potential users – for example the laundry department at Intercontinental Helsinki was outsourced and half a floor was left empty, but that space was redeveloped to conference meeting rooms.

Economic benefits – takes less time to rehabilitate compared to build new 33-50% of the time. Cost less because most material is already there.

Environmental benefits – recycling materials, older building usually used quality materials with longer life-expectancy than new materials, massive structures reduce energy leakages

Social benefits – attractive streetscapes, add character, provide status and image. Older buildings often have advantageous positions in city centres, close to transports.

Obsolescence(for buildings, departmental facility, equipment) Physical

The physical life of the elements Economic

The economic life of the element stops making money stops being productive

Functional Original function changes, over time

Technological New technology takes over from older systems

Social Changes to fashion and trends

Legal Changes to legislation (e.g.: water usage in NSW)

The effective life of buildings is particularly hard to forecast because of premature obsolesce caused by one of the factors listed above.

Involvement in maintaining the facility staff customers

Being observant Attempting to pre-empt problems Facility complaint handling

Poor maintenance could reflect: Risks to staff and customers

OH & S issues Risks to image Risks to markets Risks to performance Risks to profitability

Strategic maintenance could reflect: Positive & productive workplace A proactive vision of maintenance A structured and planned process / system Integration of FM into other organisational

strategies

What do youSEE…

4.1; Dittmer, PR 2002, ‘Lodging facilities’ in Dimensions of the Hospitality Industry 3rd Ed, John Wiley & Sons, New York; (pp. 249-255).

4.2; Lawson, F 2000, ‘Investment, maintenance, upgrading’ in Congress, Convention and Exhibition Facilities – Planning Design and Management, Architecture Press Oxford and Woburn, MA; (pp. 205-210).

4.3; Wagner, G 2003, ‘Remaking History at the Del’, Lodging Hospitality, vol. 17, no. 1, pp.18-20.

4.4; Langston, C & Lauge-Kristensen, R 2002, ‘Obsolescence and refurbishment’ in Strategic Management of Built Facilities, Elsevier Butterworth-Heinemann, Oxford; (pp. 128 – 133).

4.5; Hassanien, A & Baum, E 2002, ‘Hotel repositioning through property renovation’, Tourism and Hospitality Research, vol. 4, no. 2, pp. 144-57.

What is the benefit of an intelligent building? What sort of cost efficiencies could be

reached by having specific data for different departments?

What is the reason for facility managers wanting to keep the energy consumption at an equal level? and

What sort of measures can a manager implement to reach this goal?

From your experience, what sorts of maintenance have you seen most in the hospitality industry; corrective, preventative, or predictive?