Methods of Cost Cutting in Facilities Management
Cost reduction is one of major elements of facilities management services. There are different ways to
perform cost cutting in a company. Few of the methods have been listed as below:
Limiting the building’s working/operational hours is the best and convenient method for reducing
operational cost-cutting. Employee overtime would have a direct impact on cost cutting in the fields of
electricity and other resources. In companies, all the employees must be able to work smart rather than
working for long/prolonged working hours. Time is money and value of money is completely dependent
on time, hence all the employees must make effective utilization of time in order to reduce cost. One of
the most important method of reducing significant cost is by making Saturdays as official holiday. This will
reduce cost, and add advantage for facility management team and for the employees of the firm.
Energy Consumption Costs
Utilization of energy must be in its most effective manner. For smooth running of any building, the
installation of effective energy equipment must be installed. However, it is equally important to take
further steps to ensure that these equipments are not increasing the energy cost. The most basic things
such as utilization of air conditioners, fans, lights etc in unnecessary places should be discouraged.
Coffee makers and vending machines should be utilized efficiently. Motion-detecting technology can also
be installed to automatically turn off fans, air conditioners, lights and vending machines at night.
Inspections play a very vital role, and it has to be carried out on regular basis. Surprise inspections and
regular scheduled inspection of equipment would help to remove/replace equipments which are having
issues or are not in much use. Maintenance and inspection is an important part of property maintenance
in India in Facility Management Services. This helps in identifying the areas that might be of a potential
danger to the premises. Identifying and replacing the equipments which are damaged during or after the
installation. Software up-gradation, repairing equipment, re-installation of equipment, eliminating possible
machinery defects, etc. comes under timely inspection.
Planning is the most crucial and one of the most important element, which helps in reduction of cost. In
any organization or in any activity, planning plays a very important role. Facility management team should
be experts in planning and implementing to increase the investments in the areas with high cost. After a
thorough research and study, the facility management team would know where they should implement
their strategies for cost efficiency.