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Building Operating Management

Delphi, Facility Management Provider Focus On Savings Opportunities





By Alan R. Fyffe, John Jarrett, and Martin C.P. McElroy   Outsourcing

OTHER PARTS OF THIS ARTICLEPt. 1: Rigorous Approach To Outsourcing Can Pay Off In Facility Management ChoicePt. 2: How Delphi Selected A Facility Management Service ProviderPt. 3: This Page

Today, monthly reviews examine the value of expenditures and readiness to capture savings opportunities. Discussions are escalating from "what," "when," and "how much" to "why," "what if," and "why not." Savings are tallied, without asterisks and footnotes. Gains are incremental and sometime hard-won, with occasional back-sliding.

As the owner, Delphi is responsible for providing direction, feedback, and support. It has engaged its individual sites to foster consistent scope and expectations. Especially in the baseline year of the contract, unreasonable demands and overpromises were mutually taboo, as both sides committed to candor, open-mindedness, and a willingness to learn.

Key performance indicators and metrics-with-meaning emphasize the quantity and the quality of work and help focus continuous improvement initiatives. For example, on-time preventive maintenance compliance rose 5 percent to 94.9 percent between 2012 and 2013, and safety-related preventive maintenance compliance is at 99.98 percent. Response time for reactive (breakdown/corrective/hot-colds) maintenance is tracked as less than 24 hours, 24-48 hours, and greater than 48 hours. The first category improved from 56 percent to 82.5 percent between 2012 and 2013. On a site-by-site basis, spending on subcontractors is monitored to improve utilization of on-site labor by raising their skill sets. Improvements of $37,000 and $28,800 were noted at key sites in the most recent year. Minor HVAC repairs, for example, are performed faster and cheaper in-house, enabling contractors to focus on higher-value work.

Management has set five value criteria for the contractor's performance reviews and evaluations: safety, technical expertise, leveraged sourcing, process and systems, and financial reporting. (See "Evaluation Criteria" sidebar for more detail.) These criteria enable Delphi and its service contractor to collaborate, mechanize, automate, systemize, and train to optimize processes. Leadership aligns their organizations to address real-world issues in real time. Peak value service contract management is a progressive path toward the ultimate success of the enterprise.

Alan R. Fyffe, P.E., is U.S. regional facilities manager, Delphi Automotive, PLC.

John Jarrett, CPSM, is facilities category leader — North America maintenance, construction, PME, and leasing, global supply management, Delphi Automotive, PLC.

Martin C. P. McElroy, CFM, is principal, MartinCompany Management Consultants, Inc.

Delphi's Evaluation Criteria for Service Contractors

1. Safety

  • Zero violations from jurisdictional authorities (e.g., OSHA).
  • Accountability for facility-related accidents or injuries — that is, an injury to anyone due to a facility defect requires a facilities countermeasure.
  • Structured workforce safety training, underpinned by pre-task safety plans.

2. Technical Expertise

  • Highly qualified technicians at competitive wages, with cross-functional work teams, skill-based compensation, and continuing education.
  • Predictive maintenance technologies to reduce operating and maintenance costs, while creating a gateway to overall equipment effectiveness, extended asset-life, and reliable capital renewal planning.

3. Leveraged Sourcing

  • Enhanced service and support from a nationwide vendor base, with common processes across the portfolio.
  • Agile problem solving, with a rolling slate of "top 5 issues" attacked by root-cause analysis and continuous improvement initiatives (Kaizen).

4. Process and Systems

  • Technologies (integrated workplace management systems, CMMS), adapted and integrated across the service contractor and its subcontractor and supply base and with Delphi into a seamless, single system.
  • Practical and reliable data to support problem resolution, benchmark standards, resource utilization, productivity gains, enhanced customer satisfaction.

5. Financial Reporting

  • Credibility, emerging from the constant stream of timely, accurate details about wages, hours, pass-throughs, mark-ups, estimates, and forecasts. 
  • Pinpoint metrics that foster valid strategies for continuous improvement. For example, the service contractor replaced retiring technicians with a journeyman electrician and HVAC mechanic to help reduce reliance on outside services, one of Delphi's basic measures of performance. Hand-held technology will provide time stamps on work order response times, completion times, and workloads to improve utilization and efficiency; it will also improve access to maintenance histories, work instructions, and parts.

— Alan R. Fyffe, John Jarrett, Martin C.P. McElroy


Continue Reading: Outsourcing

Rigorous Approach To Outsourcing Can Pay Off In Facility Management Choice

How Delphi Selected A Facility Management Service Provider

Delphi, Facility Management Provider Focus On Savings Opportunities

posted on 11/5/2014

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