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Procuring and Delivering Services- Short BUT DETAILED Responses- Covers Lectures 4 and 5

1) In your own words what should go into the decision to outsource services? Be specific (Week 4)

2) In your own words, what is the definition of a Total Facility Management Service Delivery Option? Be specific (Week 4)

3) In your own words, what is the definition of the following? (Week 4)

Managing Agent

Managing Contractor

Specifically, how are they different?

4) List and describe each step of the Procurement Process in your own words. ( Week 5)

5) In your own words, what is an SLA or Service Level Agreement? Why is it important and to whom? ( Week 5)

ES 69A- Lecture 4 Topics • Lecture: Health, Safety, and Security (Slides 2-11) • Lecture: FM Outsourcing vs Insourcing (Slides 12-21) Workplace Safety • “The workplace is, to a large extent defined by a large body of legislation designed to protect the health and safety of personnel. Today, concern extends to security and, increasingly the environment” • Where services may be outsourced, the company cannot escape the responsibility , even if it believes legislation does not apply to it- the onus is on the ORGANIZATION! • In ALL CASES, an initial review should be undertaken to provide information on the appropriateness, efficiency and effectiveness of the existing health and safety management systems. Workplace Safety • Key Issues: • The health, safety and security of all personnel should be the concern of all responsible organizations. The inability of a minority of organizations to act responsibly means the legislation is necessary to force minimum standards of behavior for all. • Legislation varies from country to country, but all share a common set of principles, the most fundamental of which is that it is unacceptable for someone to be injured in the course of their work. • Security is now coupled with health and safety. In some cases, environmental management, environmental sustainability or simply, the “environment” is included in broad concept as HSSE (Health, Safety, Security, Environment) • Compliance with health and safety regulations applies to everyone in the workplace. This includes shared parts of the facility and the grounds in which the facility is located (parking structures/ lots, employee break/recreation areas) • A point person who is deemed competent must be appointed to act as a consultant to assist in implementing and complying with health and safety legislation whether services are insourced or outsourced. • A general policy statement must be produced and communicated to ALL stakeholders. It is important that the statement “speaks to people” and is not regarded as a mere “check box” requirement Workplace Safety (cont.) • Key Issues: • The organization must not only be aware of its own responsibilities, but it must also be sure all service providers and contractors are equally aware and compliant. Usually outsourced personnel go through the organization’s employee orientation and sign the same documents. • Not all health and safety issues have a legislative dimension- Growing areas such as stress at work are now being considered. Courts have been sympathetic to people who succumb to stress related illnesses. Compliance • Organizational • Are policy, management and organization safety rules and procedures in place? • Are they available to all personnel? • Have arrangements been made for consultation with personnel and other end- user groups? • Noticeboards • • • • • Is the health and safety policy posted in accessible area? Is the health and safety legislation poster displayed where required by law? Is an employer’s liability insurance certificate displayed where required by law? Are the names and contact info of trained first aid personnel displayed? Are emergency procedures displayed? • Accident Reporting • • • • Is an accident book or register held at the facility? Are personnel aware of the location of the accident book? Are accident forms held? Is information posted regarding how inhabitants or personnel should act or deal with perceived threats to health and safety? Compliance • Training • • • • Have all personnel with health and safety responsibilities received specific training? Have all personnel attended a general health and awareness course? Are records maintained of all training taken? Are there personnel who have received specialist training (Example: Hazardous waste, defibrillator) • First Aid • • • • • • How many and where in the building are they? Is the list up to date and displayed on the noticeboard? Are the first aid kits up to date and filled? Who replenishes the supplies? Who organizes first aid training and how often? Are treatment record sheets up to date and accessible? • Fire Precautions • • • • • • • Has a fire risk assessment of the facility been made? Is there a fire certificate posted where required by law? How often are evacuation drills held, including building clearance times? How often are smoke, heat and CO2 detectors tested? How often are fixed hose reel and sprinkler systems tested? Are there an adequate amount of fire extinguishers? Is there a procedure of notifying the local fire authority of an incident? Compliance • Inspections and audits • • • • Have assessments been carried out for all display screen equipment workstations? Is there a valid risk assessment of the facility? Have all hazardous substances been assessed under relevant legislation? Are the control measures being observed? • Work Equipment • Who arranges and manages lift, elevator and escalator inspections? • Are there procedures in place for testing and maintaining all work equipment? • Is the use of potentially dangerous work equipment restricted to authorized persons and those who were properly trained? • Personal Protective Equipment • • • • • Have assessments been made to determine what personnel need to do their job safely? Have records been kept? Are records kept of equipment issued and to whom? Have personnel been trained in the use and maintenance of protective equipment? Is there adequate storage to house the equipment at the end of the shift? Compliance • Off-Site • Have risks associated with visiting other sites or working outside been assessed? • Is there a procedure for “lone” working defined and in use? • Are personnel aware of these procedures and have they been trained in them? • Service Providers • Are service workers used for activities such as window cleaning, maintenance and electrical work? • Is there an onsite policy document that all service providers must read and sign as evidence of awareness of duties or obligations? • Do service providers carrying out work in the facility complete a health and safety questionnaire before they are engaged? • Who vets these questionnaires and determines the service provider is fit and competent to carry out the work? • What information is given to service providers on emergency procedures, safety rules and access? • Who is responsible for ensuring compliance with legislation applying to construction operation Compliance • Hazard and Risk Assessment • The organization should implement a formal system of risk and opportunity management, including establishing and a risk and opportunity register to include: • Identification of health and safety hazards arising from maintenance and other workplace inspections or activities • Identification of people who might be at risk from maintenance operators, visitors, passers by and yes, trespassers! • Evaluation of the risks to which individuals and/or the organization might be exposed • Devising ways of eliminating, reducing and controlling risks ( Guarding, fencing, method statements, permits to work, training, and supervision • Monitoring and recording the effectiveness of risk control measures and systems like inspections, observations, safety tours, and checklists • Taking coordinated corrective action • Providing feedback to personnel and other stakeholders • Holding regular and consistent training sessions • Auditing and reviewing the entire system for performance to goals Compliance • Security and Well Being • Overall Employee Protection • All organizations need to take reasonable steps to safeguard individual security in the face of threats from known and unknown sources. • Stress • At best, absenteeism from stress impacts productivity • Worst case, it can result in conflict, long term sickness or litigation • The cost of absenteeism impacts productivity, potential compensation claims, and litigation costs tremendously. • • • • • Examples: Unsatisfactory working conditions Mental and Physical overload from excessive work related demands Role ambiguity and inconsistency in management style Unsatisfactory working and personal relationships Under promotion or over promotion • Reorganizations, buy outs, acquisitions, ect. exacerbate the problem. Workplace Safety Checklist • Are the organization and its service providers, where applicable, aware of legislation relating to health and safety? • Has the organization elevated individual security to the same level of importance as health and safety? • Is the organization’s health, safety and security policy statement easily accessible to all occupants and other users? • Has the principle of zero accidents been accepted and is it reflected in the health, safety and security statement? • Has a competent and well trained person been appointed for the purpose of health and safety compliance and implementation? • Has a proper assessment of the risks to health and safety for occupants and other end users been completed? • Have the means for implementing the appropriate measures been devised and tested? • Is the facility able to accommodate disabled persons and others with equalities related needs? • Is the organization aware of the factors that can lead to stress related illnesses and has it taken steps to eliminate them? The Facility Management Outsourcing Decision • The question of whether or not to outsource facility services should be determined by analysis that weighs options against a pre-defined criteria to indicate the most appropriate solution. • It is not simply a decision about outsourcing over insourcing; it is important to confirm that the organization has assembled enough data and information to determine a baseline of resources required to make an informed decision. • It is not a “once for all time decision”, bit one that should be revisited regularly. • Cost, end user (internal and external) quality of service and overall experience weigh in the decision FM Outsourcing Key Issues • Outsourcing should be the outcome of a decision that weighed the options for service delivery against pre-determined criteria, with the high probability of achieving end user satisfaction from the best value solution • Stakeholders must be involved from the beginning in specifying the types of services required and the level of acceptable performance. • Markets for service need to be understood ahead of determining options for service delivery in order to meet the determined criteria • There are several available options- each having their own strengths and weaknessesmanaging agent, managing contractor, managed budget, and total facility management. • The organization should identify the key attributes for service provision- both hard and soft measures- so that a balanced view of needs is established as the basis for evaluating the options for service delivery. The attributes should be given weighted priority. • The degree of flexibility of service delivery desired by the organization will vary. • Consideration must be given to direct and indirect costs of outsourced service delivery • The employment of a total Facility Management provider will not alleviate the organization from managing the contract, interface and the performance between the service provider and the end –user. • Since the factors affecting a decision to outsource can change based on business activity and performance, options for service delivery should be examined and analyzed regularly Available Service Delivery Options • Managing Agent • • • • External company hired to deliver services Organization does not have the skill or expertise required Needs strict performance criteria agreed to and contracted Organization acts as the employer • Managing Contractor • Typically one or two components of service delivery is contracted • In many cases subcontractors are brought on- they are employed by and paid by managing contractor • Performance issues are brought to the managed contractor who addresses them on behalf of the organization • The Managed Budget • The managing contractor takes responsibility for the payment of all services rendered and provides a single invoice at the end of the billing period to the organization • A management fee for the services of the managing contractor is agreed to- this is typically larger than a pure Managing Contractor relationship • Usually, the contractor places a portion of the management fee at risk for service level or performance failure. • Total Facility Management • The full responsibility for all Facility Management is contracted out to a third party at a fixed cost • The contractor usually has the ability to subcontract out certain services, but manages those relationships 100% • Care must be taken that the Total Facility Management partner fully understands the organizations business needs and objectives • These relationships typically grow from success over time Establishing the Organization’s Baseline • The decision to outsource or not should be base don the best available information available to the organization at the time the decision needs to be made: • The following should be taken into consideration: • • • • • The service need relationship to the business objective The risks and opportunities The end user requirements The scope of services and supplies Management Implications and indirect cost Relationship to Business Objectives • An analysis of the following should be documented: • • • • • • Business objectives and operations Planned expansion Core and non core services Targets and /or goals Milestones to assess progress toward goals Budget • An alignment between the objectives required in the delivery of FM services and the organization’s business objectives is crucial! Risks and Opportunities • Should be identified as part of the FM Strategy • Are they considered significant? • Will opportunities improve end user satisfaction? • How will it be measured? • When assessing risks, backup plans should be considered • Seriousness of the risk determines the priority- Health and safety? • Develop a questionnaire and or checklist End User Requirements • Need to establish the scope and standard of services required from all stakeholders. • Take into consideration “hard” and “soft” issues • Internal and external customers • • • • Help Desk with logbook Ticket Priority system Call Back- acknowledge issue; verify satisfied customer Develop Performance Measurement criteria- Initial response time, solution time, customer satisfaction rating and improvement criteria Scope of Services • Comprehensive list of SEPARATE services needs to documented • Summarize the expectations of the internal and external stakeholders for EACH service • Are pest control, waste disposal and janitorial services all part of the “Cleaning Contract”? • Attention to detail is critical in this step • Watch out for scope creep- adjustments to service contracts can be VERY costly! Management Implications / Indirect cost • Need to forecast and identify all costs- Fixed (Direct) and Variable (Indirect) • Did you include training, equipment, regulatory requirements, permit to work costs, technology to support? • What about the administrative costs? Contract management, payroll, training, liability insurance? • The decision to outsource needs to take into consideration the cost associated with the performance of the service provider and the value to the organization ALONG WITH the cost to manage and support the relationship FM Outsourcing Checklist • • • • • • • • • • • Has sufficient baseline information been gathered to make an informed decision? Have All Stakeholders been communicated with and brought into the decision? Has the scope of services been sufficiently scoped and discussed? Have all risks and opportunities been explored and analyzed? Is there are existing policy in regard to outsourcing in existence? Is it accurate and up-to-date? Have all attributes for acceptable service been identified and documented? Have all options for service delivery been examined including the risk exposure of the organization? Has a scoring system been developed to evaluate which method of service delivery provides the best user satisfaction? Does the collective group agree to a clear cut recommendation for delivery of services? Do you plan on running a trial on a set of services to try out the contractor you have selected? How will you measure success and establish actions for improvement or enhancement?
Procuring Services • In procuring services, the organization has made the decision to outsource. The procurement of services extends far beyond just hiring a company. • Factors to consider: • • • • • Policies, procedures and regulations End User satisfaction Ability of service provider to effectively deliver the required services Cost/performance value Ability to measure quality and performance Procurement of Services • Key Issues: • There is a logical sequence to the procurement of services which covers policy, prequalification of service providers, tender documentation, the request for proposals (RFP), and financial close. • A reasonable timescale must allow for the process to work • Accurately defining the scope of service is a critical step in successful procurement • Key stakeholders- especially the end users of services- must be part of the definition of required services and the selection process • The capability and capacity of service providers needs to be established before any are invited to submit proposals • Pre-qualification criteria should take into consideration the service providers competence, skills and experience. • Service Level Agreements ( SLAs) are tools for managing the quality, performance and value of services. They should be written in a way to motivate the service provider to effectively deliver the services required. The Procurement Process Establish Baseline Manage Performance Develop Policy & Procedures PreQualify Providers Manage Contract Mobilize & Accept Delivery Formalize Contract Obtain & Evaluate Bids Request Proposals (RFP) Centralized Vs Decentralized Procurement • A centralized procurement contract might retain control over certain service contracts for uniqueness of service, security and economies of scale • Otherwise, service contracts might be awarded and managed locally for reasons of flexibility, speed of response, or critical business timing. What Does a Service Level Agreement Include? • • • • • • • • • • Names of the Parties Roles and responsibilities of the parties Scope of services to be provided Resources supplied by the organization Prioritization of requirements Quality and performance related targets Time related targets Prices and rates Communication between end users and service providers Change Control procedures Checklist for Procurement of Services • Does a process exist for the procurement of services? • Has a policy for procurement been prepared and is it supported by the appropriate procedures? • Where there is a decision between centralized and decentralized procurement, does that affect facility-related services • Have roles, responsibilities and accountabilities in procurement been adequately defined? • Is the market for service providers and their capabilities understood at the local and regional level? • Have prospective service providers been identified for each service or multiple services? • Has the suitability of perspective service providers been discussed based on their capabilities and capacity to deliver services? • Have the scope of services, service specifications and service level agreements been prepared as part of the bid? • Is the bid process sufficiently rigorous to provide for adequate competition? • Has a pre-contract meeting been arranged with each service provider prior to contract award? • Are arrangements in place to ensure productive ongoing relationships between service providers and the organization

Tutor Answer

Missmourine
School: University of Maryland

find the attached
Attached.

Running head/Procuring and Delivering Services

1

PROCURING AND DELIVERING SERVICES
NAME
INSTIUTION
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Running head/Procuring and Delivering Services

1)

In your own words what should go into the decision to outsource services?
In order to outsource services, then there are some things that should be considered in

making or taking any decisions which include; options should be deeply looked at against a predefined criteria in order to come up with the best solution, organization should make sure that
they have put together enough data and information which normally help them in decision
making, the cost of the decision and quality of services should be considered in making the
appropriate decision. Also, stakeholders should take part in the specification of some services
which are in need so as to achieve the best decision.
2)

In your own words, what is the definition of a Total Facility Management Service

Delivery Optio...

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