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|Facility Condition Index (FCI)
|A benchmark or key
performance indicator (KPI) in the facility management
which is used to objectively assess and measure the current condition (ie., physical
health) of a facility
and to make two types of comparisons on the relative condition of that
one facility with:
It is important to note that FCI is a measure of condition relative to the reproduction cost of the building. FCI is not an absolute statement of the size of the backlog of catch-up work. A large and complex facility, with a high reproduction cost, requires a larger backlog of deferred maintenance to raise the FCI than a smaller/simpler building.
Purpose of the FCI
The principal value of an FCI rating, particularly for the owners and operators of a single facility or a portfolio of facilities, can be identified as:
Classes of Reinvestment
There are three general classes of reinvestment that are pertinent to an understanding of the value of a Facility Condition Index. The three classes are listed below.
The FCI formula is the ratio of all the deferred maintenance (the numerator) divided into the Current Replacement Cost of the entire facility (the denominator). [See formula on the right of the screen].
There are two alternative methods for determining the size of the backlog in the numerator of the formula:
FCI Condition Scale
The relative measure of the condition of the facility (or facilities) is usually organized into a four-tiered condition scale, as follows:
FCI Relationship Analysis
Since FCI is a snapshot of the current extent of catch-up, it is necessary to extend the analysis to include other variables, such as facility priority ranking and facility age.
1. FCI and Mission Criticality (Prioritization)
The Portfolio Condition-Priority Matrix (PCPM) plots the relationship between the relative condition and the relative priority of assets or facilities. within a portfolio. Listed below are the four quadrants in the analytic matrix.
2. FCI and Facility Age
The Portfolio Condition-Age Matrix (PCAM) plots the relationship between the relative condition and the relative age of facilities utilizing 5- stage facility lifecycle model as follows:
3. FCI and Energy Efficiency
The Building Energy Performance Index (BEPI) plots the relationship between condition and energy efficiency of the facilities.
4. FCI and Condition and Backlog Quantum
The portfolio condition-priority-backlog (PCPB) matrix plots the relationships between these four variables.
5. FCI and Facility Operatings Standards
Different facilities are governed on different operating standards depending on their mission criticality and budget constraints.
Variations on the FCI Methodology
In order to accommodate regional differences, budget constraints, portfolio attributes and methodological alternatives, there are some variations on the standard FCI, including the following:
Analytics and KPIs
Listed below are some of the analytics and KPIs that can returned once the FCI has been established for one or more facilities in a portfolio.
Financial Modeling with FCI
Reinvestment is a reconciliation of the expenditure forecasts ("How much money will we need?) and the funding level ("How much money will we have?"). Sensitivity analysis asks the following two questions:
A. Linear Funding Models
This method asks the question: “If the owners fund at level x, what will be the resultant FCI each year?”
B. Lumpy Funding Models
This method of funding asks the question: "What should our funding be each year to ensure that the FCI remains at a certain level."
Some of the primary limitations of the Facility Condition Index are:
It is not an absolute measure and is often used as a snapshot in time as a comparator to similar assets or as an index which quantifies the adequacy of a funding level over a longer period of time.
Numerator Issues - Numerator Plasticity
Management of the data from the FCI can be administered through the following mechanisms and techniques.
Fig. The three formulas and key performance indicators (KPI) used to measure and evaluate the physical health of a facility.
Fig. Illustration of how the facility condition index is generated for facilities to develop comparative analysis.
Fig. FCI compared across multiple facilities within a single portfolio.
Fig. Average FCIs for different departments within a single portfolio.
Fig. A Portfolio Condition-Priority Matrix (PCPM) with scatter plot distribution of a portfolio of facilities indicating the current state of affairs.
Fig. A backlog reduction strategy for some facilities presented on the Condition-Priority matrix
Fig. 3D matrix to cross reference the Facility Condition Index (FCI) with the Mission-Dependency Index (MDI) and backlog quantum.
Fig. Workflow to illustrate how the FCI is used to generate linear funding models and lumpy models as part of a sensitivity analysis.
Fig. Sensitivity analysis testing the Projected FCI levels on two linear funding models.
Fig. The composition of the deferred maintenance (catch-up costs) can be analyzed in a variety of ways, including distribution by system and distribution by priority.
Fig. Example of a five-year backlog reduction strategy across a portfolio of buildings.
Fig. Three alternative backlog reduction scenarios (FCI), phased over a 5-year period.
Fig. Relationship between FCI and funding levels across five facility operating standards.
Fig. The FCI spectrum and the five operating standards.
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