quality assurance in work order management

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QUALITY ASSURANCE IN WORK ORDER MANAGEMENT Paying the Right Price for Every Work Order

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Page 1: QUALITY ASSURANCE IN WORK ORDER MANAGEMENT

QUALITY ASSURANCE IN WORK ORDER MANAGEMENTPaying the Right Price for Every Work Order

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© 2021 CBRE | FACILITYSOURCE | CONFIDENTIAL & PROPRIETARY 2

Quality assurance: a term so commonly used in the business world- but what does it even mean?

In the modern-day world, we strive to make everything perfect and error free, so having experts in each area double and triple check work helps gives us a piece of mind.

For example, when you take our car to the shop, you want mechanics to take every possible measure to ensure your car gets the maintenance needed, right? You probably also want to pay the best price for parts (so, perhaps car dealerships should be avoided at all costs). With that in mind, imagine walking into a car shop, learning that you overpaid for a car part and that the mechanic who worked on your car had only been working on cars for about a month. Not a great feeling.

As humans, we want the services we use to be managed by experts to ensure as little error as possible. No matter type of service, rather it be a car repair or getting a business HVAC unit replaced, including subject-matter-experts in the process can help a consumer gain the best experience and peace of mind possible.

So how does this fit into facility management?

HOW DO YOU KNOW IF YOU’RE OVERSPENDING?

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© 2021 CBRE | FACILITYSOURCE | CONFIDENTIAL & PROPRIETARY 3

QUALITY ASSURANCE IN FACILITY MAINTENANCE

As any service or industry, quality assurance is especially important in the facility management industry.

The industry is huge. In fact, the facility management market is projected to reach approx. $2 Trillion USD by 2026, with a current growth rate of 4.9% annually.

With a market with that much cash flow, it’s vital for facility managers to ensure money isn’t going down the drain.

As a facility management company, we have tons of work order data- over 4 billion data points to be exact. Because of this, we like to think we know a thing or two about how much one should be spending on work orders.

But…

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WHAT IF WE TOLD YOU THAT YOU COULD BE

OVER-SPENDING ON MATERIALS BY MORE THAN

30 PERCENT?

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© 2021 CBRE | FACILITYSOURCE | CONFIDENTIAL & PROPRIETARY 5

ENTER THE TRADE SPECIALIST

MATERIAL COSTSTHE SILENT FACILITY MANAGEMENT BUDGET DRAINERS

While there are many aspects that gointo facility management costs, onecost that can easily get out-of-hand:materials.

Think about it: one work order canrequire the installment of manymaterials. The replacement of ahand dryer in a facility restroom canrequire over 5 pieces of materialincluding MC cables, breakers, anda dry wall patch. If those materialsare quoted too high by a vendor orservice provider, then those costs caneasily add up.

As a facility management company, we recognized the need for subject-matter-experts to review work order quotes to ensure accurate pricing. Material pricing can vary by region or distributer, so prices can greatly range.

That’s why in August of 2019, we established our Trade Specialist team to ensure optimal quality assurance in the work order quoting process.

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© 2021 CBRE | FACILITYSOURCE | CONFIDENTIAL & PROPRIETARY 6

At CBRE | FacilitySource, we like to consider our Trade Specialists the subject-matter-experts in each trade. Many of our Trade Specialists have previous experience in their given trade. They could have been previously licensed or certified in specific trade work or have some sort of education that focuses on a trade.

The foundation for a Trade Specialist Roles is to review all trade related proposals for repair in replacement. For example, if we receive a quote from a service provider that includes repair on a roof-top unit, our HVAC Trade Specialist will review the quote to determine:

1. If the number of proposed hours the service provider is estimating seams acceptable for a given job

2. If the material cost on the quote is being quoted at the best price possible

HOW TRADE SPECIALISTS HELP DRIVE QUALITY ASSURANCE

We employ experts in the following trades:

Electrical Plumbing

HVAC/REmergingTrades

General Repair

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OUR TRADE SPECIALISTS HAVE THE EXPERIENCE TO ENSURE OPTIMAL QUALITY ASSURANCE

Toni, Electrical Trade Specialist Steve, HVAC/R Trade Specialist

FAST FACTS• 12 years as an HVAC Technician

• 7 years in City HVAC Control Systems

• 4 years in retrofit HVAC & Installation Management

FAST FACTS• 8 years as a Journeyman Electrician

• 5 years in Electrical Service Work

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CASE STUDYA Real-Life Work Order with Real-Life Savings

To: A Major, National, Multi-Site Communication Company

Description of Work: Service provider to remove (2) hand towel dispensers and replace with (2) XLERATOR hand dryers; one for each restroom. Service provider will run a dedicated line for each hand dryer and install (2) new single pole 20-amp breakers to the panel. Drywall patch and paint match will be necessary.

Work Order Summary: By evaluating this work order, a Trade Specialist was able to identify that the hand dryer was quoted too high, therefore saving the client $486.90. This work order is one out of approx. 4.1M work orders we annually process.

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CBRE | FACILITYSOURCE TRADE SPECIALISTSSAVING MONEY FOR OUR CLIENTS SINCE 2019

“By leveraging trade expertise, our team can promote quality assurance in order to

meet and exceed clients’ operational

goals.”

Allen WatsonSr. Global Manager Trade Specialist Team

4M+Work Orders serviced by Trade

Specialists each year

38%Materials Cost Avoidance in

2019

$16,000,000Typical Annual Savings

Portfolio-Wide due to Trade Specialists

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CONCLUSION:

Quality assurance is extremely important in facility management. Overlooking something as

minute as material costs can really impact a facility management budget.

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CBRE © 2021 All Rights Reserved. All information included in this proposal pertaining to CBRE—including but not limited to its operations, employees, technology and clients—are proprietary and confidential, and are supplied with the understanding that they will be held in confidence and not disclosed to third parties without the prior writtenconsent of CBRE. This letter/proposal is intended solely as a preliminary expression of general intentions and is to be used for discussion purposes only. The parties intend that neither shall have any contractual obligations to the other with respect to the matters referred herein unless and until a definitive agreement has been fully executed anddelivered by the parties. The parties agree that this letter/proposal is not intended to create any agreement or obligation by either party to negotiate a definitive lease/purchase and sale agreement and imposes no duty whatsoever on either party to continue negotiations, including without limitation any obligation to negotiate in good faith or in anyway other than at arm’s length. Prior to delivery of a definitive executed agreement, and without any liability to the other party, either party may (1) propose different terms from those summarized herein, (2) enter into negotiations with other parties and/or (3) unilaterally terminate all negotiations with the other party hereto. CBRE and the CBRElogo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.

THANK YOU

For More Information:Josh Holecko| Vice President

[email protected]+1 614.301.8212