APPA Library

"Optimize Your Facility Investment"
Author: Watson, Russ
Published In: Facilities Manager
Date: September/October 2007

Facility Asset Management column. Emphasizes that applying sound financial planning methodologies is not only crucial for your personal portfolio but is also essential in facility asset management. Discusses establishing an annual cost of ownership and adopting commercially available technology tools that provide the same financial planning services for buildings as they do for personal retirement plans.  Describes five key formulas that support decision support technology for facility assets: identifying the design life curve, calculating a numeric condition index rating on auditable objective data, forecasting asset service life based on current condition, applying life-cycle cost analysis and benefit-to-cost ratio analysis, and calculating return on investment and aligning investment strategy with business objectives. Includes figures.

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