Transcript What is FM? - Adil Abdalla

Adil Abdalla
Dubai, 2012
‘An integrated approach to operating, maintaining,
improving and adapting the buildings and infrastructure of
an organization in order to create an environment that
strongly supports the primary objectives of that
organization’
(Adapted from Barrett and Baldry, 2003)
‘The practice of coordinating the physical workplace with
the people and work of the organization. It integrates the
principles of business administration, architecture and the
behavioral and engineering sciences’
(The British Institute of Facilities Management – BIFM)
‘Management of a vital asset – the organization's facilities.’
(The International Facility Management Association – IFMA)
Landlord
Regulator
Contracts
EXECUTION
Design Package
Construction Package
Revenues
Renovation
OPERATIONS
Property CRM
FM Packages
Contracts
Handover
Facilities Management
Project Management
Regulator
Premises
Leasing
Facilities
Management
Strategy
Facilities
Management
Modeling
Facilities
Management
Procurement
Strategy
& Branding
Benchmarking &
Standardization
Prequalification
Corporate
Quality Manual
Service
Optimization
Operations
Quality Manual
FM
Operations
Award &
Mobilization
Tendering
FM
Quality Manual
Facilities
Management
Operations
Sustainability:
The indispensible framework to sustain and
maintain the invested assets in the built
environment.
Convenience:
The management of occupied habitats to
meet demands and expectations of end-users.
Growth:
The tools to extend both life cycle and value of
the Real Estate products.
Integration:
The knowledge and professional applications
to integrate systems and preferences of Real
Estate.
Market Share
Public
Corporates
Target Quality
Commercial
Private
Tier-1
Tier-2
Tier-3
Tier-4
Tier-5
5%
25%
20%
15%
35%
20%
20%
35%
25%
Marketing Tools
Flayers
e-Mart
Ads
Service Expectations
One-to-one
Convenience
10%
15%
Cheapest
5%
25%
25%
20%
40%
Auditability
60%
Attire
Administration
Procurement
Strategy
Corporate
Biz Development
Contracts
Communications
Manuals
Customer Care
Templates
Quality
Audit & Improve
Records
Call Center
Service Zones
Clients
Service Packages
Service Enabling
Operation
Service Managers
Teams Leaders
Baselines:
 Convenient Scope & Specifications of Service
 Trained Supervisors & Attendants
 Adequate Pricing against the Service
 Customer Relation Management
 Governance & Key Performance Indicators
Service Packages:
 Soft Service
 Engineering Service
 Health, Safety and Security Service
 Space Making Management
 Commercial Service
The Board
Quality Office
FMO
Call
Center
Snr Mgr
Property Mgt
Strategy
& Biz Dev
Managing Director
Snr Mgr
Administration
Snr Mgr
Hard Service
Snr Mgr
Soft Service
Snr Mgr
HSSE Service
Back of
House
Contract
Contract
Contract
Contract
Outsourced
Enabling
Facilities
Account
Director
Account
Director
Account
Director
Account
Director
Staff
Stores &
Workshops
Field
Team
Field
Team
Field
Team
Field
Team
Equipments
Subcontractors
Account Director
(Office 1,000,000 ft2+)
Call Center
Officer
Client Relations
Mgr
Reception
Mgr
Soft Service
Mgr
Engineering
Team Leader
Housekeeping
Receptionists
Supervisor
Engineering
Operatives
Housekeeping
Team Leader
Engineering
Supervisor
BMS
Team Leader Others
Operatives
CLN + LSC + FCD
Mgr
Security Ops
Team Leader
Security Ops
Guards
Security Ops
Mgr HSSE
Technician
Engineering
Team Leader BMS
Technician
BMS
Mgr Fit-out
Supervisor
Car Parking
Document
Controller
Operative
Car Parking
During Development Planning:
 Outline convenience of space descriptions
 Outline convenience of finishing materials
During Design Development:
 Approve durability and functionality of materials
During Construction:
 Approve Testing & Commissioning
 Take over premises and O/M manuals
Post Construction/Asset Management:
 Property Management & Operations
 Operations of FM Service
Target
2000
Developer
Facility Manager
2005 <
Project Manager
Developer
Construction Team
Development Manager
1990
< 1985
Developer
Project Manager
Construction Team
Developer
Project Manager
Construction Team
Facility Manager
Lease Operations
Project Manager
Tenancy Operations
Construction Team
Tenant/Client
Facility Manager
Lease Operations
Tenancy Operations
Lease Operations
Lease Operations
Tenancy Operations
Tenancy Operations
Tenant/Client
Facility Manager
Tenant/Client
Tenant/Client
1:5:20 Theory:
 Respectively; costs of EPC and FM during the Life
Cycle of a Building
Tier
SFT
ENG
HSE
1
31%
59%
10%
2
21%
41%
38%
3
31%
36%
33%
4:3:2 Role:
 Respectively; costs of Manpower, Consumables
and Management to provide the FM Service
Service Packages:
Tier One, Tier Two, and Tier Three
ROI Framework:
 Invoicing Cycle of 90:120 days
 Recovery of Invested Capital in 3:5 years
 Conservative Profitability 20%
1990th
Environmental
& Advanced FM
2010th
Green Bldg
Energy Control
Business Support
Sustainability
Intelligent Bldg
Carbon Control
Habitat
Urban
Metropolitan
Facilities Mgt
Community Mgt
Town Mgt
Business Driven
Socially Driven
Politically Driven
+15%
(GCC $ 900 Billions by 2030)
Single Bundle Service Providers
Immature Market
+/- 0%
Futuristic
& Innovative FM
Engineering
Housekeeping
Security
21st Century
Operating Margin
Conventional
& Basic FM
IFM Companies
Mature Market
Time
FM Contractors:
Serco,
Emril,
Emcor,
Dalkia,
Imdad,
Serve U,
Farnek Avireal,
Idama,
Obron, and
Drake & Scull
FM Consultants:
Reliance FM,
Mace Macro
Industry:
 Regulated by Local Authorities (RERA & EDD)
 10-15 Cos. provide Professional FM Service
 Many Cos. provide independent bundles
Market:
 MENA Leader of $8 billion; with 11% growth
 Estimated market value by 2045 at $700 billion
Resources:
 The only MENA FM Consultant operate in UAE
 Most MENA FM Professionals work in UAE.
 MEFMA had been launched in UAE
Engineering
Packages
HSSE
Packages
Landscape
& Gardens
BMS
Management
Health
Management
Housekeeping
Service
Engineering
Management
Safety
Management
Reception
& Front Office
Plant
Management
Environmental
Management
Façade Cleaning
ICT
Management
Security
Management
Specialized
Cleaning
AV Systems
Service
Pest Control
Service
Look & Feel
Look
Feel
Tier Three
Tier One
Tier Two
Soft
Packages
Service Packages:
 Residential sector needs Basic Tier-1
 Commercial sector needs the common Tier-2
 High-End & Public needs Tier-3
 Independent Permits for Security Services
Target Clients:
 Generally; Government and Public Sector
 Corporates and Foreign-owned facilities
 Educational & Healthcare facilities
 Residential free-hold properties
Corporate
Quality Manual
FM Quality Manual
FM Ops Manual
(FM Baselines)
(FM Operations)
Strategy
Specifications
Procurement
Management
The Brand
Method
Statement
KPIs, Efficiency
& Technical Audit
Obligations
Deliverables
Management
& Supervision
Feasibility
Measures
Corporate
Performance
Strengths:
 Hands-on-the-trade with appropriate skills
 Chances to attract professionals within UAE
 Strong networking within UAE
Weaknesses:
 Mature market, with defined pros & cons
Opportunities:
 Acute demand for reasonable service
 Growing demand for quality and auditability
 Diversify markets, Clients and Soft Resources
Threats:
 High competition on Rates
Landlord
CR Mgt
Clients
Operations
Planning
Quality Manual
Satisfaction
KPIs
Call Center
Operations
CAX
FM Provider
Corporate Targets:
 To be among Top Ten FM Co. within 5 years
 To be among Top Ten Market Leader in I-FM
 To evolve into T-FM by 2020
 To develop a parallel FM Training Service
Commercial Targets:
 To serve 30 million ft2 within 5 years
 To be main service provider for the Government
Financial Targets:
 To turn from Debt into Profit in 2 years
 Growth rate will be directed by the Board
Total
Year-1
Year-2
Year-3
Year-4
Year-5
INFLOWS
SALES
35,100,000.00
2,400,000.00
8,850,000.00
7,950,000.00
7,950,000.00
7,950,000.00
PROJECT COST
(12,994,800.00)
(1,148,250.00)
(9,062,000.00)
(75,000.00)
11,819,950.00
(1,365,000.00)
(205,050.00)
(1,449,200.00)
(75,000.00)
(694,250.00)
(694,250.00)
(3,276,000.00)
(235,800.00)
(1,903,200.00)
(2,784,600.00)
(235,800.00)
(1,903,200.00)
(2,784,600.00)
(235,800.00)
(1,903,200.00)
(2,784,600.00)
(235,800.00)
(1,903,200.00)
3,435,000.00
3,026,400.00
3,026,400.00
3,026,400.00
(1,370,375.00)
(1,513,200.00)
(1,513,200.00)
(1,513,200.00)
(1,388,500.00)
2,064,625.00
1,513,200.00
1,513,200.00
1,513,200.00
(694,250.00)
1,370,375.00
1,513,200.00
1,513,200.00
1,513,200.00
2,400,000.00
8,850,000.00
7,950,000.00
7,950,000.00
7,950,000.00
COST OF GOODS SOLD
(1,365,000.00)
(3,276,000.00)
(2,784,600.00)
(2,784,600.00)
(2,784,600.00)
GROSS PROFIT/(LOSS)
1,035,000.00
5,574,000.00
5,165,400.00
5,165,400.00
5,165,400.00
OPEX
(205,050.00)
(235,800.00)
(235,800.00)
(235,800.00)
(235,800.00)
Salary
(1,449,200.00)
(1,903,200.00)
(1,903,200.00)
(1,903,200.00)
(1,903,200.00)
Depreciation
(15,000.00)
(15,000.00)
(15,000.00)
(15,000.00)
(15,000.00)
(634,250.00)
3,420,000.00
3,011,400.00
3,011,400.00
3,011,400.00
OUTFLOWS
OPEX
SALARY
CAPEX
NET COMPANY CASH FLOW
EQUITY INJECTION
DIVIDENDS (50%)
50.00%
CUMULATIVE CASH FLOW TO THE
COMPANY
CASHFLOW TO EQUITY INVESTORS
10.00%
Weighted Average Cost Of Capital (WACC)
8,427,713.94
484.33%
3,611,408.62
201.58%
COMPANY NET PRESENT VALUE (NPV)
COMPANY INTERNAL RATE OF RETURN (IRR)
Equity NPV
Equity IRR
PROFIT & LOSS ACCOUNT
SALES
EXPENSES
EARNINGS BEFORE INTERST AND TAXES
EBIT
Action Item
Proposal Negotiation & Approval
Target Deadline
0 Day
MOU on Engagement and Article of Association
10th Day
Launch Corporate Analysis and Planning
10th Day
Acquisition of Corporate Station
15th Day
Legal Formation of FMCO
15th Day
Launch Resources Planning, Allocation and Appointment
20th Day
Launch Marketing and Business Development
20th Day
Sign off the 1st FM Contract
75th Day
Kick off the FM Service of 1st Contract
100th Day
Proposal
Corporate
Formation
Sustainable Contracts & Projects
Corporate
Expansion
Corporate
Planning
Resources Planning
Corporate Planning
Y1M1
Sign
Off
AOA
Y1M2
Y1M2
Y1 M4-6
Y2
Y3
Implementations
Sign
Off
CONT-1
Sign
Off
FMCO
Y1 M6-12
Mobilize
Phase-1
Realization
Phase-2
Identification
Phase-3
Verification & Improvement
Phase Four
Projects Operations & Development