Facility Management: Include things such as land or buildings, plants, mines or management of an area which is used in the operations of a business. Maintaining the facility register enables the organization to manage its land, buildings, plants and mines across the entire organization. This implies that control is gained over the inventory items between measuring points in a particular path, expressed in quantitative and/or financial terms.

The discipline of facility management and the role of facility managers in particular are evolving to the extent that many managers have to operate at two levels: strategic-tactical and operational. In the former case, clients, customers and end-users need to be informed about the potential impact of their decisions on the provision of space, services, cost and business risk. In the latter, it is the role of a facility manager to ensure corporate and regulatory compliance plus the proper operation of all aspects of a building to create an optimal, safe and cost effective environment for the occupants to function. This is accomplished by managing the following activities:

Health and safety: (Occupational safety) - The Facilities Management department in an organisation is required to control and manage many safety related issues. Failure to do so may lead to injury, loss of business, prosecution and insurance claims from those that may have been injured in the work place; the confidence of customers and investors in the business may also be shaken by adverse publicity.

Strategic Asset Management

Fire safety: The threat from fire carries one of the highest risk to loss of life, and the potential to damage or shut down a business. The facilities management department will have in place maintenance, inspection and testing for all of the fire safety equipment and systems, keeping records and certificates of compliance.

Security: (Physical security) - Security to any organisation is necessary to protect the employees and the business and this often comes under the control of the facilities management department, in particular the maintenance of the hardware. Manned guarding may be under the control of a separate department.

Maintenance, testing and inspection: Maintenance, testing and inspection schedules are required to ensure that equipment in the facility is operating safely and efficiently, to maximize the life of equipment and reduce the risk of failure. There are also statutory obligations to be met. The work is planned, often using a Computer-aided facility management system.

Cleaning: Cleaning operations are often undertaken out of business hours, but provision may be made during times of occupations for the cleaning of toilets, replenishing consumables (toilet rolls, soap, etc.) plus litter picking and reactive response. Cleaning is scheduled as a series of "periodic" tasks: daily, weekly, monthly, etc.

Operational: The Facilities Management department has responsibilities for the day to day running of the building, these tasks may be outsourced or carried out by directly employed staff. This is a policy issue, but due to the immediacy of the response required in many of the activities involved the Facilities Manager will need to keep tight control, often requiring daily reports or an escalation procedure. Some issues require more than just periodic maintenance, for example those that can stop or hamper the productivity of the business or that have safety implications. Many of these are managed by the facilities management "help desk" that staff are able to be contacted either by telephone or email. The response to help desk calls are prioritized but may be as simple as too hot or too cold, lights not working, photocopier jammed, coffee spills, vending machine problems, etc. Help desks may be used to book meeting rooms, car parking spaces and many other services, but this often depends on how the facilities department is organised. It may be split into two sections often referred to as "soft" and "hard" services. Soft would include reception, post room, cleaning, etc. and hard the mechanical an electrical services.

Tendering: Procurement - The facilities management team will seek to periodically re-tender their contracts, or at the very least bench mark them to ensure they are getting value for money. For this to happen it is necessary to have an up to date list of equipment or assets to send out with the tenders. This information is often retained on the same computer as the maintenance schedule and updating may be overlooked as equipment gets changed, replaced or new items are installed. The asset register is also an important tool for budgeting, used to for life cycle costings and for capital expenditure forecasting.

Commercial property management: Leasing - Building may be owned by the occupier or leased. Leased properties will be subject to periodic rent reviews.

Business continuity planning: Business continuity planning - All organisations should have in place a continuity plan so that in the event of a fire or major failure the business can recover quickly. In large organisations it may be that the staff move to another site that has been set up to model the existing operation. The Facilities Management Department would be one of the key players should it be necessary to move the business to a recovery site.

Definition of Facility Management

Facility Management: "What is Facility Management (FM)?" is a question that is often asked by building owners and occupiers as well as professionals in the property industry. Here are some definitions taken from various resources:

"All services required for the management of buildings and real estate to maintain and increase their value."

"The means of providing maintenance support, project management and user management during the building life cycle."

"The integration of multi-disciplinary activities within the built environment and the management of their impact upon people and the workplace."

All of these definitions are correct; essentially Facility Management or Facilities Management as it is commonly called is quite simply the management of buildings and services. This is similar to Property Management (PM) and of course so it should as Facility Management developed from Property Management and the two are fundamentally linked. However, Facility Management has a much wider definition than traditional Property Management services.

The International Facility Management Association (IFMA), the World's leading Facility Management professional body, defines FM as, "A profession that encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place, process and technology." That sounds a bit long winded but it accurately identifies the management of multi-disciplines through people, process and technology.

Areas of Facility management

Typically FM might be split into two areas of "hard" and "soft" services. The hard services relate to the actual fabric and building systems and might also be considered as the more traditional Property Management services. These include:

"Hard" Services could include:

  • Building fabric maintenance
  • Decoration and refurbishment
  • Maintenance and Engineering plant maintenance
  • Plumbing and drainage
  • Air conditioning maintenance
  • Lift and escalator maintenance
  • Fire safety system maintenance
  • Minor project management

"Soft" Services could include:

  • Cleaning
  • Security
  • Handyman services
  • Waste disposal
  • Recycling
  • Pest control
  • Grounds maintenance
  • Internal plants

"Additional" services might also include:

  • Move management (churn)
  • Business risk assessment
  • Business continuity planning
  • Benchmarking
  • Space management
  • Contract procurement
  • Performance management
  • Information/Telephony systems
  • Utility management
  • Meeting room services
  • Catering services
  • Vehicle fleet management
  • Printing/Postal services
  • Concierge services
  • Reception services
  • Health and Safety Services
  • Environmental management

The basic steps of Facility Management

  1. Create and setup of Contracts
  2. Lifecycle works - scheduled renewal or repairs of components during the whole life of the building
  3. Planned preventative maintenance – periodic servicing or works
  4. Reactive maintenance – on the spot repairs, works or events
  5. Grounds maintenance – all external works and maintenance
  6. Statutory compliance inspections and works – all building related legal obligations
  7. Caretaking services – contributes to the delivery of the above items

Step 1 - Organisation Base Setup

Organisation structure covers many of the default integration parameters used downstream in 360° strategic Asset Management. By definition the organisation structure define all the rules how one organisation interfaces with another organisation within 360° strategic Asset Management, as well as how the stock reservation, billing, financial accounting, etc. will be done for a certain organisation or organisation unit.

It is also important to setup physical locations in which an organisation is located. In principle it is possible for an organisation to be distributed across various physical locations. If AX Integration is on the Locations will be setup in Stock and Warehouse Management Module of standard AX.

Within the organisation structure functionality, the focus is on maintenance, service requests, equipment/operations management, contract management and the organisation allocation is driven by the organisational responsibility. All maintenance, operational and contract events within 360° strategic Asset Management are related to an 360° strategic Asset Management Organisation. These events must be allocated to an organisation and the organisation “supply” a vast amount of the defaults used in the creation of a new event.


The following base setup functionalities should be identified and done as pre-requisites for the major processes as part of the optimal use of 360° strategic Asset Management product.

  • Create, define and setup status codes and sequences of each
  • Create and define the Generic setup:
    • Setup of number sequence (Part of Organisation Administration)
    • Setup of general use information (Working Calendar, ERP integration, default service item)
    • Setup infrastructure (Report Server and SMS Service)
    • Setup integration (Integration properties for person, facility and support equipment)
    • Setup of account information (General ledger accounts)
    • Setup of journal names (Journal names in general ledger)
    • Setup of project integration (Valid project groups in Project Management and Accounting)
    • Setup of default accounting organisation (Valid organisation in Objects)
  • Create and define base characteristics and characteristic groups
  • Automatic process of application base data integration from standard AX:
    • UOM Codes
    • Currency
    • Resources (Product Master)
    • Warehouses

Definition of Base Setup

The 360° strategic Asset Management general base setup will be used as base configuration throughout the application and assist in determining whether or not the configuration will be necessary for your particular implementation. Ensure that you create a contract/rental organisation in the base setup.

For more detail definition of base setup process, refer back to About Base Setup

Step 2 - Facility Object

Create and Setup of a Facility Object

For more detail definition and setup of objects for contracts, refer back to About Facility Object Definition

Click here for the step by step - Create a Facility Object Structure


The steps for the creation of objects are the same, but objects must be ticked to be available on contracts in order to create the specifics.

Step 3 - Setup Event Template for Contract

Event templates play a critical role in the Organisation and scheduling of services, materials, equipment and resources.

This function is used to define a generic Event Template in terms of identification, duration, costs, status, frequency, etc.

Events or standard contract lines must be defined for all tasks that are performed repetitively, for example a service that occurs on a monthly basis on the contract or that is standard on a contract cycle.

Defined Event Templates are used as a library of tasks, which facilitate uniform tasks for budgeting and task history analysis. It is also a means to do life cycle planning.


The Objectives are:

  • To define and setup event definitions which will be used within an organisation
  • To define and setup event types
  • To understand why and how to define the create of event templates for an organisation

Definition Event Templates

An event template determines the basic composition for a contract task to be used on an object or service type and contains information about required resources, activities and organisations that can perform the task. Once established, the template can be called and recalled from the library of event templates) instead of the registration of every single task as and when required.

These defined tasks are used as standard templates to facilitate uniform tasks execution and task history analysis. It is also a means to do life cycle planning.

Setup of Event Definition

Event definition is used to define the setup of default event templates regarding any instance or occurrence of tasks. Contract events can be a specified condition/action and the commencement of default proceedings. A contract event can in principle be all the standard tasks that occur on the contract during the cycle period of the contract.

Every event can consist of a number of activities (procedure step). An event activity is an action to be performed by a person or the contract. Example of event activities for facility rental on a standard contract:

  • Insurance Service (Billing as agreed in contract)
  • Lease Service (Billing as agreed in contract)
  • Levies Service (Billing as agreed in contract)
  • Monthly Municipal Electricity Usage (Monthly billing)
  • Monthly Municipal Rates (Monthly billing)
  • Monthly Municipal Water Usage (Monthly billing)

When defining the event definition for contract planning, the contract type can be defined as one of following types or selected "Not Applicable":

  • Long term rental
  • Short term rental
  • Full maintenance contract
  • Preventative maintenance agreement
  • Long term rental with full maintenance
  • Long term rental with preventative maintenance agreement
  • Used rental

The setup indicators, forced and fixed indicators are not applicable to contract event templates.

Setup of Event Object

After object assets are identified and the hierarchy or structure of each have been defined, it is essential that pre-determined events are then defined in order to maintain, optimise and fully utilise their facility.

Industries will also need the capability not only to create and fulfill predetermined events but will also need the ability to create additional events pertaining to their physical assets which are of an Ad-Hoc nature. (Ad-Hoc is a Latin phrase which means "for this purpose", unscheduled.)

No matter the event, key information is required to ensure the events can happen successfully and in the most efficient manner as possible.

Event Object Tasks should be defined for all tasks that are performed repetitively. The latter can include service tasks (for example: insurance, monthly rental, monthly usage, delivery, collection) which occurs frequently.

For the explanation of the setup of event objects that are link to an event definition we will use the renting of a facility to a customer:

In the event definition task for a rental contract the setup is for example the creation of the rental of a facility event. This event has a number of actions against it that will define the standard service item lines.

With the creation of event objects more than one object (facility, etc.) can be linked to an event template (definition). Example of event object linked to a template:

The event object has the following setup tasks:

  • Event Budget reflects the resource requirements/standard service items to be used to execute the event and is influenced by the requirements of the object (availability, serviceability). If the owner has insufficient capacity to support the facility or equipment, certain selected support elements can be routed to other organisations or work can be performed by contractors and sub-contractors.
  • Event characteristics are used to define event activities or to define characteristics for feedback by type contract. This form is used to define the characteristics for a specific event object. Specific characteristics will be allocated to a specific item in an event.
  • Event Permits is specific permits or certificates of event resources/items. If permits are specified for an event, the system will validate that the required permits are issued and linked to a task before a job may be executed.

For more detail information of Event Object, refer back to Setup of Event Object

Example of a facility event object:


Step 4 - Setup Specific for Facility Contract

The specific object register is crucial in defining how a specific instance of this object will be managed throughout its life cycle.

Facility Register: Include things such as land or buildings, plants, mines etc. which is used in the operations of a business. Maintaining the facility register enables the organization to manage its land, buildings, plants and mines across the entire organisation. This implies that control is gained over the inventory items between measuring points in a particular path, expressed in quantitative and/or financial terms.

Objectives of Specific Register:

The Objectives are:

  • To define and setup specifics for equipment, facility registers, vehicles, etc. (Assets)
  • To classify specifics into groups
  • To link the physical asset to an specific type, organisation and events
  • To understand why and how to manage the activities and details pertaining to the registered physical assets
  • Maintain specific structures

Definition of Specific

Management requires information at strategic level to plan object utilisation. Every object is registered and their statuses are monitored. The specific, rental and operational statuses of an object must be known to make informed decisions with respect to its rental and/or operational utilisation while taking cognisance of the current status and historical performance. Various functionalities on 360° strategic Asset Management allow the owner to gain access to the necessary information.

Use this process to create and maintain a list of specifics for an object. Specifics can be specific detail to a part, item, person, etc. This function will open a form displaying the selected object and its lower level structure in a tree view format. This function is also used to update the specific structure in accordance with the generic structure. It should only be necessary to use this function if the generic configuration structure template of the object type has been changed.

Setup of Specific Register

The process is initiated when an instruction is received to register a new, or maintain a current specific object. Firstly, it must be classified into a group. An object group is made up from similar object types e.g. aircraft, vessels, motor vehicles, manufacturing equipment, etc. The current status of all the registered objects needs to be maintained as this can influence the intended utilisation of your specific objects.

Before you can release specific equipment for a job or rent it on contract it is important to take cognisance of its current status with respect to the following:

  • Is the specific object available for rental period?
  • Are there any open work orders against the equipment? If so, will the work order influence the intended application of the equipment?
  • Will any warranties be violated when the equipment is utilised to perform the intended job?
  • Are all the required equipment accessories available to perform the intended job?
  • Are the necessary permits still valid and current to perform the intended job with the equipment?
  • Have all the scheduled maintenance tasks been performed on the equipment, or will one become due during the contract period?
  • Will the equipment be capable of performing the intended job according to the registered parameters?

Setup of a new specific structure

Use this form to create and maintain a list of specifics for an object. Specifics can be specific detail to a part, item, person, etc. This function will open a form displaying the selected object and its lower level structure in a tree view format. This function is also used to update the specific structure in accordance with the generic structure. It should only be necessary to use this function if the generic configuration structure template of the object type has been changed.

For more detail information to create Specific Structure for an Facility Specific, refer back to Setup and Maintain of Specific Register

Example of a facility specific structure:


Setup of Characteristics

With the setup of characteristics to a specific object, you will allocate characteristics that will define the object uniquely. For more detail information to create Specific Characteristic, refer back to Setup and Maintain of Specific Characteristic

Setup of Ageing

Facility specifics will not have an ageing record, because the building itself don't have any meter readings and feedback. This function displays the current ageing status of the specific. The data displayed is the current meter reading, cumulative meter reading, the reading when installed in the current position and the reading of the parent when it was installed. The mentioned data is displayed for each UOM applicable to the specific. Ageing parameters are used to measure and record the age of specific meters and current values, for scheduling of maintenance or administration. Object structure ageing data is setup for a certain position in the structure. If a source structure is defined the item installed in the selected position will inherit ageing data from the source position. If a source is not defined the item is seen as having its own meter data against which usage feedback is done.

For more detail information to create Specific Ageing, refer back to Setup and Maintain of Specific Ageing

Setup of Plan Usage

The facility will not have specific plan usage record, but if any of the equipment for example air conditioners, etc needs to be scheduled for future planned usage or utilisation, it can be added. It is important that the servicing and maintenance of the equipment (air conditioner) is scheduled on the intervals that is required. For the forecast scheduling to work, the future planned usage or utilisation of the specific object has to be defined. The records entered for this specific may never overlap and no gaps may exist between the entries.

For more detail information to create Specific Plan Usage, refer back to Setup and Maintain of Specific Plan Usage

Setup of Resources

Specific resources can be allocated to a specific, for example a person (trades) and assets. With AX integration ON, this table will be updated on regular intervals from the following AX standard tables and 360° strategic Asset Management tables:

  • Customers (Customer table – Sales Ledger)
  • Facilities (Specific Structure table – 360° strategic Asset Management)
  • Fixed assets (Assets table – Fixed Assets)
  • Items (Items table, released only – Product Information Management)
  • Service Items (Items table, released only – Product Information Management)
  • Suppliers (Vendor table – Purchase Ledger)
  • Support Equipment (Specific Structure table – 360° strategic Asset Management)

For more detail information to create Specific Resources, refer back to Setup and Maintain of Specific Resources

Setup of Permit

If a valid permit is needed for this specific, create the permit type and allocate to the specific. This is applicable to all types of licenses, certificates.

For more detail information to create Specific Permit, refer back to Setup and Maintain of Specific Permit

Create options from Specific

From a specific you can create one of the following:

  • Contract
  • Execution/Operation
  • Failure
  • Incident
  • Warranty

Functions for a Specific

The following functions can be done on a specific:

  • Change Parameters
  • Exchange Process

Summary function on Specific

This function will allow the user to VIEW the all records created for the selected specific in:

  • Contract
  • Execution/Operation
  • Failure
  • Incident
  • Warranty
  • Permits

Enquiries on Specifics

From the enquiries function the user will be allowed to view certain graphs, reports and history for the selected specific.

Step 5 - Contract Planning

The following process is the workflow for creating a new contract with an external organisation or an internal organisation/department. Use this form to create and maintain Contracts. Contract Planning is used to create, maintain, and enquire about contracts.

There are many different possible flows and processes in the major process of Contract Planning. The following diagram reviews the processes of Contract Management and the detailed Contract Planning Process Flow:


Create a New Contract:

For more detail information to create a Contract, refer back to Create a NEW Facility Contract

Step 6 - Feedback Process

The main purpose of this function is to provide feedback on contracts in progress. Feedback can be done on all resources (contract specific lines) linked to the contract. This includes:

  • Hours used per individual person (for example: Contractor, Tradesman/Technician)
  • Hours used per individual Special Tools/Equipment
  • Monthly revenue per item/resource as quoted
  • Monthly usage per item/resource

·         For more detail information to do Contract Feedback, refer back to Contract Feedback Process

Contract Feedback:

  1. Click Area Page node: Strategic asset management > Common > Contract planning
  2. Click the Contract -> Maintain -> Edit button when the contract is selected for the feedback.


  1. Click the Lines button.
  2. Click the Grid View toolbar button.


  1. Enter the Feedback values in for each of the resources for the past period/month.
  2. Once all the feedback values are completed, click the Contract lines -> Feedback -> Commit feedback button. Feedback has to be done for all the contracts for a specific period, before the contract postings are run for the billing process.
  3. Close the contract form, once the feedback process is completed.

Contract Postings:

Contract Posting is the process to create the financial transactions for a sales order or project management, if project integration is used. Contract postings can be run for a batch of contracts or a single contract.

For more detail information to do Contract Postings, refer back to Contract Postings Process

Step 7 - Process Invoice (Billing) and Generate Invoice

Generate Invoices from Sales Orders:

If the contract posting is completed for the billing period, the Invoice/s has to be generated from the sales orders. The posted journals will be in Sales Orders. The accounting department can now make the decision to generate the “Invoice” for the customer. The following is the process for generating an invoice in Sales Ledger.

For more detail information to do Generate Invoices from Sales Orders, refer back to Generate Invoices from Sales Orders

Generate Invoices from Projects:

Still to be done

For more detail information to do Generate Invoices from Projects, refer back to Generate Invoices from Projects

Step 8 - Finalise the Contract

The Feedback and Invoice processes will be repeated for the duration of the contract. The following status changes will happen in order to finalise the contract:

  • Complete Status - Once the contract reaches the end date of the contract the contract customer status can be updated to be completed.
  • Financial Complete Status - Accounting department has run the final billing process and then once completed the status can be updated to financial complete.
  • Finished – The contract status can be updated to finish when there is NO OPEN Sales Orders, Purchase Orders or Projects (If project integration is ON). The system will check if there are any open sales orders, purchase orders or projects, the CUSTOMER CONTRACT STATUS will not be allowed to be UPDATED.

Step 9 - Extended Billing

Extended billing indicator on Contracts:

When the contract reaches the END DATE, and the Customer wants to extend the contract for a longer period and more billing has to run on the contract, the Extended Billing indicator has to be ticked on contract.

1.      Strategic Asset Management > Common > Contract Planning

Click the Contract -> Maintain -> Edit button when the contract is selected.

2.      Click on the Line View button, Line Details, General Tab to update the indicator. This update has to be done for ALL the contract specific lines.

3.      Tick Extended Billing Indicator. This will allow for further billing on this contract.


  1. Click the Close button.

Extended billing indicator on Object Structure

The Extended Billing Indicator can also be switched on Organisation/Company level in the Object Structure Form and this will allow that ALL contracts that are created for this organisation/company can have extended billing. When any new contracts are created and the indicator is ticked at this level, it will filter through to the contract level on header and specific lines.

See also

The following is the link to the standard generic setup of the different functions:

Setup of Object

About Specific Register

About Contract Planning

About Feedback