CHALLENGE: Restrictive & Costly Facilities Maintenance Budget Management
One of the largest international automotive manufacturers was implementing a facilities maintenance budget across 56 North American facilities with highly restrictive requirements on achieving monthly budget forecasts. This company wanted to understand how their administrative costs and processes for creating and managing facilities maintenance projects compared to other large international manufacturing organizations. They sensed that the tight restrictions were elevating administrative costs related to project controls and budget reporting, and causing a high level of frustration at the project manager and program manager levels. This was a critical issue to the corporation as they had insufficient funds for facilities maintenance and needed to maximize the value received for their overall facilities maintenance budget.
SOLUTION: Best Practices Benchmarking
Continuum Advisory Group was engaged to design and execute a qualitative study to determine industry best practices for the creation and management of project budgets for facilities maintenance projects in a heavy manufacturing setting. The firm spoke with high-level individuals within 11 of the largest US and international corporations and government agencies with facilities maintenance programs of similar size and project complexity. Continuum Advisory Group designed a qualitative study that accurately captured a breadth of information regarding each respondent organization’s process for facilities program planning, project definition, budget creation, risk analysis, and project management. The study also delved in to related topics such as project manager expectations and skill development.
RESULTS: Knowledgeable Foundation for Strategic Process Restructuring
Continuum Advisory Group was able to provide the client with detailed, relevant information on industry practices related to creating and managing facilities maintenance project budgets to help them understand how to restructure their own process. The information gathered allowed the client to assess their costs and processes related to the development and management of project budgets for facilities maintenance projects in North and South America and consider changes to reduce administrative costs while providing adequate project oversight and results. Particular attention was paid to risk management practices and appropriate levels of investment in project management skills.