Presented at MAPMA's Inaugural Seminar on 6 Aug 2009 at PWTC, KL

2. SUSTAINABILITY IN ASSET
MANAGEMENT:
The Practical Approach
Presenter: A.I.Che-Ani
Team : W.H.W.Badaruzzaman
T.Z.T.Mahmood
M.S.I.Syahrial
UKM Perunding Kejuruteraan
dan Arkitek Sdn. Bhd.

3. WHAT IS SUSTAINABLE ASSET
MANAGEMENT?
Manage asset in sustainable way means reuse, recycle, maintain,
fixing, avoid waste, upgrade so that maintenance can be optimize
while minimizing their impact on environment.
In short, the paradigm of “cradle to the grave”
Among the purpose:
a. to reduce maintenance cost and improve service
b. minimize impact on environment
Asset refers:
a. Aset Alih
b. Aset Tak Alih
c. Aset Hidup
d. Harta Intelek

4. The
government
hope via TAM PERANCANGAN
PERANCANGAN
TAM model for PELUPUSAN REKA BENTUK
PEWUJUDAN ASET
infrastructure/ PEMULIHAN
&
building assets PENGURUSAN
NAIK TARAF PEROLEHAN
PRESTASI FAEDAH
ASET YANG
OPTIMUM
PENILAIAN PEMBINAAN
OPERASI
&
PENTAULIAHAN
SENGGARA
PENERIMAAN
PENGURUSAN
NILAI & RISIKO

5. BUSSINESS
HUMAN
PROCESS
HOW?
SYSTEM
(IT MECHANISM)
Asset life cycle
Architectural Engineering Construction Operation
Building Performance Evaluation

6. Effectiveness
review
Market/need
analysis Program
Planning Programm
ing review
Feed
forward into Building
Recycle Performance Design
next building
Criteria
cycle
Post - Post
occupancy occupancy Design
construction
evaluation evaluation review
Commissioning
Building Performance
Evaluation

7. BUSSINESS
HUMAN PROCESS
HOW
SYSTEM
(IT MECHANISM)
CONSTRUCTION
OPERATIONS
BUILDING INFORMATION
EXCHANGE (COBIE)
: a FOUNDATION for
sustainable
facilities

8. Problem HUMAN
BUSSINESS
PROCESS
Building Documentation Is Fragmented
HOW
Construction Operations & Maintenance
submittals in unorganized, usable format SYSTEM
(IT MECHANISM)
Results
1. Data quickly lost
2. Poor preventive maintenance
3. More costly repairs
4. Warranties not maintained or lost
Adverse impact on mission of
the building occupant

9. COBIE/ BIM FOR LIFE LIFE- CYCLE HUMAN
BUSSINESS
PROCESS
INFORMATION MANAGEMENT HOW
SYSTEM
(IT MECHANISM)

10. CRITICAL DATA LOST IN HUMAN
BUSSINESS
PROCESS
BUILDING PROCESS HOW
1. Decisions made as ideas & parts are SYSTEM
(IT MECHANISM)
transformed into designs & buildings are
not captured
1. Translation of information for
downstream use looses much of what is
known during the previous phase

11. COBIE GOALS HUMAN
BUSSINESS
PROCESS
HOW
1. capture product, equipment, system, SYSTEM
and warranty data as created during (IT MECHANISM)
construction
2. transfer to maintainer’s, operator’s, and
asset manager’s systems.
3. produce format and specification
4. demonstrate software for captured
during construction and exchange with
commercial software

12. WHAT COBIE DOES . . . HUMAN
BUSSINESS
PROCESS
HOW
1. gather information during
construction submittal SYSTEM
(IT MECHANISM)
2. define min. required information
submittals to verify performance
3. direct import to CMMS’s
4. integration with building space model Transfer
information
not e-paper
existing
contract
exchange
points

13. MEASURING COBIE RESULTS . . . HUMAN
BUSSINESS
PROCESS
• costs less to create & manage than
HOW
current paper/e- paper methods SYSTEM
(IT MECHANISM)
• easy & authorized access to capture, use,
and review information
• information captured as work is being
accomplished
• acceptable to all tiers of contractors,
suppliers, subs, etc..
• requirements are clearly identified in
specifications
• use existing legal framework (i.e.
deliverables/contracts)
• demonstrate framework for
exchange/retrieval
• import of data included in commercial
systems
• import users all data provided

14. PREVAILING BUSINESS CASE
– The Nature of The Business Space
Every Business Begins With An Investment in Assets or Infrastructure.
Example as Follows :
# Nature Of Business Infrastructure Primary Returns Secondary Returns
1 Healthcare Hospitals Medical Fees and other fees The Value of the Healthcare
related to Healthcare company
2 Education Schools, Universities Student fees , Boarding Fees The Value of the Company,
etc.. appreciated value of the assets
3 Properties Accommodations, Office space Rental and Service Fees Appreciated value over time,
and surrounding support out-right sales of the properties
infrastructures
4 Government Infrastructures Al types of government offices, Services rendered to citizens Via extended useful life of the
living quarters, parks and utilities from taxes, quit rents, assets
assessments etc..
5 Manufacturing Plants and machineries Goods produced from plants The Value of the assets based
and machineries on the efficient use of the plants
and machineries
6 Other Types Of General Assets, specialized Services rendered to customers Extended value of the company
Businesses. Eg equipments and mobile based on ability to sustain
Telecommunications, infrastructures / assets services rendered
Utilities and others
7 Passive Property Properties Rental Yield Incremental Value
Investment

15. PREVAILING BUSINESS CASE
– The Keyword is Building Infrastructures
All development starts with development and construction involving
an investor and builders. Other parties, mainly be, supporting
professionals and authorities.
Planning
Approval CAPITAL
Investment
Construction EXPENDITURE
Value
Equipments
Non Mechanical
Assets
M&E
Development
Architects Engineers The Property(s)
Stages
Civil
Engineers Suppliers
and Installers
Authorities Contractors
Authorities
COMPLETION

16. PREVAILING BUSINESS CASE
– Investment Ready for Stream Of Returns
Once construction completes, revenue stream will start , but with it
also operational cost which is divided into two main categories, fixed
and variable. Where variable is total cost to maintain the developed
properties
Return Stream
Revenue Generated From
The Assets
REVENUE
Net Revenue
Fixed Cost
Operation Cost
Minor Repairs (COST)
Usage Issue
Vandalism
Equipment Faults
Cost Incurred To Operate Breakdowns
The Assets Variable Cost

17. PREVAILING BUSINESS CASE
– Combining Investment Development
and Stream Of Returns
When both stages combined the issues became noticeable.
Investment Cost Investment Returns
Monitor Investment Ensuring Sustainable
Expenditure Return
Cost
Related To
Monitor Project Cost Upkeep Of The
Property(s)
The issue:
Cost Of Maintenance

18. BUSSINESS
HUMAN PROCESS
HOW
SYSTEM
(IT MECHANISM)

19. BUSSINESS
HUMAN PROCESS
HOW
SYSTEM
(IT MECHANISM)

20. BUSSINESS
HUMAN PROCESS
HOW
SYSTEM
(IT MECHANISM)
Example Of
Maintenance
Management
Failure…
The Star 28th
April 2009

21. BUSSINESS
HUMAN PROCESS
HOW
SYSTEM
(IT MECHANISM)
Example Of
Maintenance
Management
Failure…
The Star 28th
April 2009

22. BUSSINESS
HUMAN PROCESS
HOW
SYSTEM
(IT MECHANISM)
Example Of
Maintenance
Management
Failure…
The Star 28th
April 2009

23. BUSSINESS
HUMAN PROCESS
HOW
SYSTEM
(IT MECHANISM)
It wasn’t hit by the massive earthquake. In true fashion of the
Ripley Legacy, it was built to reflect the odd 1812
earthquake that measured 8.0 on the rick. The building has
now become one of the most photographed in the world.

24. PREVAILING BUSINESS CASE HUMAN
BUSSINESS
PROCESS
HOW
SYSTEM
(IT MECHANISM)
Return Stream
THE BEST WAY TO HANDLE THIS ISSUE IS TO PLAN
MAINTENANCE MANAGEMENT EARLY BY WAY OF
THE RIGHT STRATEGY USING CMMS AS THE TOOL.
WHICH IS WHAT WE DO ….
COMPUTERIZED
Simple Repair MAINTENANCE
Operation Cost
Major Failure
Major Replacement MANAGEMENT SOLUTION
(CMMS)
Equipment Failure
Other types of damages

25. PREVAILING BUSINESS CASE HUMAN
BUSSINESS
PROCESS
– The result in having a good CMMS would simply be
HOW
managed cost, keeping customer satisfaction level
high hence sustainable revenue with extended life SYSTEM
cycle of asset…This is something investor willing to (IT MECHANISM)
pay for.
Return Stream
THE BENEFIT
Customer Satisfaction 1. Translate to reduce and
level high manageable maintenance
cost
2. Better profit margin
3. Sustained to incremental
asset value
HOW Better cost control through
1. Deployment of appropriate good CMMS solution
Operation Cost
corrective maintenance
2. Well planned preventive
maintenance
3. Accurate predictive maintenance

26. BUSSINESS
HUMAN PROCESS
Human aspect in implementing the
HOW
idea (with reflect to malaysian
construction industry) SYSTEM
(IT MECHANISM)
Core business/services Professional service provider (based from
programme outcome outlined by MQA)
a. Building design ARCHITECT
b. Engineering/Structure/Infra. ENGINEER
c. Cost and contract admin. QUANTITY SURVEYOR
d. Valuation and estate agent VALUATION SURVEYOR
e. Town and regional planning TOWN PLANNER
f. Lanscape LANDSCAPE ARCHITECT
g. Land survey LAND SURVEYOR
h. Interior design INTERIOR ARCHITECTURE
i. Building control/performance BUILDING SURVEYOR
One man show....does it really work??

27. BUSSINESS
HUMAN PROCESS
Sustainable asset HOW
management...who’s who SYSTEM
(IT MECHANISM)
Core business/services Professional service provider (based from
programme outcome outlined by MQA)
a. Building design ARCHITECT
b. Engineering/Structure/Infra. ENGINEER
c. Cost and contract admin. QUANTITY SURVEYOR
d. Valuation and estate agent VALUATION SURVEYOR
e. Town and regional planning TOWN PLANNER
f. Lanscape LANDSCAPE ARCHITECT
g. Land survey LAND SURVEYOR
h. Interior design INTERIOR ARCHITECTURE
i. Building control/performance BUILDING SURVEYOR
- ALL OF US -

28. CASE STUDY: UKM SOLUTION HUMAN
BUSSINESS
PROCESS
Maintenance Approach of UKM HOW
SYSTEM
(IT MECHANISM)
Reactive Maintenance
“Run it until it breaks”
Preventive Maintenance
“Scheduled or planned
maintenance”
Predictive
Maintenance
“Strives to detect
failures before they
occur with testing”
Reliability Centered
Maintenance
“Based on assessment of
condition and serviced in context
to operating requirements”

29. CASE STUDY: UKM SOLUTION
Maintenance Approach of UKM
To strive maintenance management towards
excellence through Best Practices
The move in practice can
only be realized with a very
experience embedded
system (in this case we are
using WebTMA)

30. CASE STUDY: UKM SOLUTION
Maintenance Approach of UKM
Some Key Benefits And Advantages Are As Follows :
Extend the Useful Life of Assets.
• Reduced assets/facilities/equipment down time through
improved scheduling.
• Improved reliability through better tracking and repair of
failures.
• Allows staff to be proactive through automatically
generated preventive maintenance.
Efficiency in Inventory.
• Reduce inventories needs 15% to 20%.
• Reduced inventory costs through better tracking and
restocking process.
• Control of material ordering reduces stock costs.

31. CASE STUDY: UKM SOLUTION
Maintenance Approach of UKM
Some Key Benefits And Advantages Are As Follows :
Preventive Maintenance.
• Extend the useful life of equipment.
• Keep maintenance jobs to a minimum number.
• Increase reliability of equipment and systems.
• Provide adequate justification to regulatory agencies.
Benchmarking / KPI / KRA
• Increase management feasibility through benchmarking
and KPI (Key Performance Index).
• Better understanding though KRA (Key Area Analysis)
and pin-point of areas need for improvement.
• Preparation of budgeting and cost projection for yearly
actual budgeting projection.

32. CASE STUDY: UKM SOLUTION
Maintenance Approach of UKM
Prevailing Elements From Keywords Translated To
Ideas In Generating Value Proposition
KEYWORDS ELEMENTS IDEAS
Facility management practice in Malaysia is Knowledge database of experience
still in developing stage if not infant. in managing facilities based on
HELP AND FACILITATE Facilitating best practices are very much business best practices based on
needed to ensure a proper practices in place. others’ experiences.
To ensure a progressive and systematic Provide consultancy services on
AWARENESS facilitation, awareness creation must be put in facility management
place in full and categorically.
Years of practicing traditional method in
managing assets still prevails until unexpected Provide option on ways to counter
CHALLENGES AND incidences occurred. Forging ahead in issues to manage and contain
SUSTAINABILITY countering challenges and sustain stability will challenges and to sustain them
require a mind-set change backed by best thereafter.
practices
STANDARD AND Standard and performance will facilitate Assured Solution to maintain
PERFORMANCE sustainability of best practices. standard and performance

33. CASE STUDY: UKM SOLUTION
Maintenance Approach of UKM
Painting The Picture Clearer – Typical Current Practice
Assuming Facility Manager Request For Maintenance or Services
From Maintenance and Services Contractor(s)
Buy Side
The Request requires the maintenance
Facility Manager Maintenance contractor to procure parts and labour with
certain level of expertise Of which they do not
Contractor have
• The Contractor will need to procure
parts and material
Demand and Time = Money • The contractor need to engage a
specific labour
Delivery Of Work – May Necessary On Time at The Most Optimal Cost Why ?
• The Maintenance Contractor
may just go for one parts
Parts Supplier Special Labour Performance Completion Of supplier – Issue on the best
Supply Engaged Of Work Work And price
Delivery
• Labour will hike the price as
due to speciality requirement
Urgent Specialty Time • Time is of essence – urgency
Demand Based Factor will naturally hike the price
Based Price Fees

34. CASE STUDY: UKM SOLUTION
Maintenance Approach of UKM
Painting The Picture Clearer – Portal Based Idea
Assuming Facility Manager Request For Maintenance or Services
From Maintenance and Services Contractor(s) Register as user by
subscribing to the portal
and access via system
Maintenance Select the Best Maintenance download
Register their
Contractors Value Services
Contractor For The Job
From The Portal Department of
in the Portal and
access the Development
Knowledge
Parts Suppliers portal via Management (JPP)
system Best Practice
download
Assets Supplier
Provide Price Facility
List ,
Management UKM
Vendors Task Listing , Portal
Capabilities,
Business Process
Education Outfit Locations
System and Solution
Certifications
Technician and Etc..
Engineers System Download

35. CASE STUDY: UKM SOLUTION
Maintenance Approach of UKM
Future Prospect Roadmap
Awareness Utilize Capitalize
Practices based on
actual Data
Shall Begin to
realize the full
• Promotion benefit Ability to fully practice FM best
• Members Recruitment practices and perhaps able to
•Trial Stage market services out of the UKM
• Put Action To Test
• Online Articles Begin to execute transactions.
Members actively participate in the
value chain
Set-up FM Portal filled with
Knowledge Enrichment and Best
Practice. Get stakeholders to
participate
…and to leapfrog
UKM is now here

36. Thank you very much
adiirfan@gmail.com