- Leverage the experience of people who work with the facility and know it best.
- Increase visibility and tracking of lifecycle costs.
- Start small to gain some experience identifying cost drivers and to generate some quick, visible successes.
- Reward lifecycle cost management, rather than short-term cost reduction.
It takes time and effort to change an organization's mindset from thinking about the "now" to thinking about the total impact of facility assets. But actively managing total lifecycle cost is a powerful way to reduce cost over the long-term, improve performance, and make sure that we are getting the most out of our facilities.
About the Authors:
Jim McIntosh is a director at Censeo Consulting Group, a firm that advises clients on strategic issues related to operations, supply management and procurement. Russ Witt is a senior associate at Censeo Consulting. More information at www.censeoconsulting.com.