Abstract
The chapter introduces the topic of monitoring and control of the performance and quality of services highlighting the main activities to be performed for implementing the measurement, the monitoring and the assessment of the service performance delivered by the Service Provider. In particular, an in-depth description of the main tools useful to measure, monitor, control and report the real achieved performance and quality levels during the service delivery phase is provided, focusing on:
-
Service Level Agreement (SLA) and Key Performance Indicator (KPI) system, used to objectively measure the real achieved performance and to assess possible deviations from the expected performance levels stated in the ITT;
-
Reporting system, used to create a documentation base about the service performance, as well as to assess performance levels, initiate the remuneration process, identify weaknesses and strength, and accordingly improve the current FM strategy;
-
Penalty and Incentive Systems, used to encourage the Service Provider to achieve the agreed levels of service performance during the whole period of service provision.
The chapter deepens these tools, highlighting—for each of them—the related information that the Client should include within the ITT.
This chapter is authored by Nazly Atta.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Service Level (SL): “complete description of requirements of a product, process, or system with their characteristics” (ISO 41011:2017).
Service level agreement (SLA): “document which has been agreed between the demand organization and a service provider on performance, measurement and conditions of service delivery” (ISO 41011:2017).
- 2.
Indicator: “measured characteristic (or a set of characteristics) of a phenomenon, according to a given formula, which assess the evolution. (…) Indicators are related to predefined objectives to be achieved” (BS EN 15341:2017).
Key Performance Indicator (KPI): “measure that provides essential information about the performance” (ISO 41011:2017).
- 3.
Single service contracts can be defined as “separate contracts for each service line, i.e. one provider for catering, another separate provider for cleaning and so on” (Wiggins 2010). In this kind of contract, the Provider has to perform the delivery of the requested single service, while the management, planning and monitoring activities are directed and managed by the Client. In this case, the payment consists of a fixed sum corresponding to the value of the service provided.
In the case of integrated multiservice: “one contractor will provide a group of services, i.e. one provider will be supplying cleaning, catering and security as one contract” (Wiggins 2010). Thus, the Service Provider has to design, plan and manage in a coordinated way the requested package of services. The payment arrangement consists of a fixed fee periodically paid (some activities, such as extraordinary maintenance, can be remunerated “extra-fee”).
The Global Service can be defined as “an outsourcing contract based on the outcomes, wherein it is entrusted an integrated system of maintenance activities to an external provider, which has the full responsibility for the outcomes in terms of achieving and/or maintaining the performance levels established by the client” (UNI 11136:2004). Therefore, in case of global service, it is fundamental to develop a structured SLA and KPI system in order to monitor the performance, also because the remuneration depends on the achievement of the pre-established performance levels/outcomes.
- 4.
According to Talamo and Bonanomi (2015), aggregated data can be defined as “a plurality of data, selected on the basis of searching keys, and then processed. In the management process, different types of decision makers define strategies and action lines also by reading and interpreting summary data, which enable trend analyses, comparison between phenomena and situations, monitoring through indexes, etc.” (Talamo and Bonanomi 2015).
References
Aanchal S (2014) The importance of benchmarking in facilities management: adoption of best practices through comparison and innovation. Frost and Sullivan. https://fmlink.com/articles/the-importance-of-benchmarking-in-facilities-management/. Accessed May 2018
Amaratunga D, Baldry D (2003) A conceptual framework to measure facilities management performance. Prop Manag 21(2):171–189
Amaratunga D, Baldry D, Sarshar M (2001) Process improvement through performance measurement: the balanced scorecard methodology. Work study 50(5):179–189
Atkin B (2003) Contracting out or managing services in-house. Nord J Surv R Estate Res 1:18–33
Booty F (2009) Facilities management handbook. Routledge
Buckler B (1998) Practical steps towards a learning organisation: applying academic knowledge to improvement and innovation in business processes. Learn Organ 5(1):15–23
IDBI Bank (2017) Notice for inviting tender for annual maintenance contract for providing facility management services—housekeeping at IDBI bank zonal office Saidapet/Quarters in Chennai region. https://idbi.com/notices-Adv/pdf/AMC-Sweeping-Cleaning-Chennai-2017.pdf. Accessed May 2018
Jensen PA (2017) Strategic sourcing and procurement of facilities management services. J Glob Oper Strat Sourc 10(2):138–158
Lavy S, Garcia JA, Dixit MK (2010) Establishment of KPIs for facility performance measurement: review of literature. Facil 28(9/10):440–464
Maurer W, Matlus R, Parikh K (2003) Outsourcing incentive and penalty best practices. Gartner Research, 22 December
Nazali Mohd Noor M, Pitt M (2009) A critical review on innovation in facilities management service delivery. Facil 27(5/6):211–228
Odisha Mining Corporation Ltd. (2015) Invitation of bids for Facility Management Services (FMS) of IT infrastructure for Directorate of Mines Govt. of Odisha IT infrastructure. http://www.orissaminerals.gov.in/Download/NITforFacilityManagementcontract.pdf. Accessed May 2018
Pitt M, Tucker M (2008) Performance measurement in facilities management: driving innovation? Prop Manag 26(4):241–254
Sarshar M (2006) Improving service delivery in FM: case study of a UK hospital facilities directorate. J Facil Manag 4(4):271–285
Shaw D, Haynes B (2004) An evaluation of customer perception of FM service delivery. Facil 22(7/8):170–177
Talamo C, Bonanomi M (2015)Â Knowledge management and information tools for building maintenance and facility management. Springer International Publishing Â
Trienekens JJ, Bouman JJ, Van Der Zwan M (2004) Specification of service level agreements: problems, principles and practices. Softw Qual J 12(1):43–57
Tucker M, Pitt M (2009) Customer performance measurement in facilities management: a strategic approach. Int J Prod Perform Manag 58(5):407–422
Tuomela A, Puhto J (2001) Service provision trends of facility management in Northern Europe. Teknillinen korkeakoulu
Wiggins JM (2010) Facilities manager’s desk reference. Wiley, Chichester
Standard and Laws
BS EN 15341:2017 Maintenance. Maintenance Key Performance Indicators
ISO 41011:2017 Facility management. Vocabulary
ISO 41012:2017 Facility management. Guidance on strategic sourcing and the development of agreements
ISO 6707-2:2017 Buildings and civil engineering works. Vocabulary. Part 2: Contract and communication terms
UNI 11136:2004 Global service per la manutenzione dei patrimoni immobiliari. Linee guida
Website
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2019 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Talamo, C., Atta, N. (2019). FM Service Monitoring and Control. In: Invitations to Tender for Facility Management Services. Springer Tracts in Civil Engineering . Springer, Cham. https://doi.org/10.1007/978-3-030-04009-3_5
Download citation
DOI: https://doi.org/10.1007/978-3-030-04009-3_5
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-04008-6
Online ISBN: 978-3-030-04009-3
eBook Packages: EngineeringEngineering (R0)