1999
Reduction of O&M Costs – Benchmarking was used to establish operation and maintenance targets for all major expenses. The corporate Maintenance Program was realigned based on a series of Best Practices initiatives to optimize maintenance philosophies and streamline work processes. Existing processes were mapped and then adjusted to reflect Best Practices lessons learned. New workforce practices, staffing levels and required skill levels were evaluated and compared to out-sourcing, out-tasking and co- sourcing options.
Desired features were identified for a computerize maintenance management system. After an extensive evaluation process a commercially available system was selected and implemented. The system successfully supported the execution of O&M task while also providing critical management reports.
Over time, these changes produced saving in O&M time and cost while reducing inventory requirements and storage space needs. The result was an annual savings averaging $20 million for maintenance and operations.
The new Program also included labor/management team building to train and create both union and non-union support for the cost reduction initiatives.
Asset Utilization Improvements – Planning started with developing standards to inventory and analyze the existing asset portfolio of 160 buildings on 30 sites with a value of $300 million. A model to improve space utilization was developed based on usage patterns, organizational projections and extensive benchmarking of similar large corporations. The new space utilization target was implemented at the time of relocations and consolidations. In addition to space standards, architectural, furniture, mechanical and electrical standards were created with direct input from O&M staff. These standards provided procurement leverage and shortened project schedules.
The plan was implemented over a five-year period as leases expired and properties were sold. The results were a reduction in space inventory by more than 500,000 sf and a $100 million reduction of SRP’s investment in facilities. All of this was accomplished during a period of robust SRP customer growth.
User Group Satisfaction – In addition to cost savings, a goal of the Facility Management Program was to maintain satisfaction of all SRP user groups. The plan included developing processes to measure user satisfaction. In fact, user satisfaction increased. This was attributed to streamlined maintenance processes that provided quicker responses and to a Charge Back System that set reasonable expectations and