Can facility managers impact the expected budgetary outcomes of robust asset management programs?

Abstract

Purpose

The purpose of this paper is to present a conceptual risk assessment technique to aid facility managers with developing robust asset management programs. It proposes to evaluate three discrete risk sensitivity levels relative to the recognition of stochastic costs on expected budgetary outcomes. The paper expands the domain of available risk assessment techniques toward estimating impacts from uncertainty on desired levels of service.

Design/methodology/approach

The paper explores the concept that facility managers can cost‐effectively manage robust asset management programs. This is accomplished by evaluating simple relationships between risk‐sensitive decision‐response alternatives and systems degradation characteristics. The resulting parameters are aggregated to estimate expected budgetary outcomes for robust asset management programs.

Findings

The paper reveals that if facility managers assume risk‐avoidance positions, they can positively affect expected budgetary outcomes for robust asset management programs. Facility managers can manage the magnitude of these adverse impacts by mitigating stochastic costs associated with the completion of unscheduled asset management activities.

Research limitations/implications

The expected implications are enhancements to the abilities of facility managers to cost‐effectively manage stochastic costs relative to risk sensitivity and desired levels of service. However, because of the chosen research approach, the research results may lack general usability. Therefore, researchers are encouraged to test the proposed propositions further.

Practical implications

The practical implications allow facility managers to cost‐effectively manage adverse impacts on expected budgetary outcomes for robust asset management programs.

Social implications

The expected contribution is a tool for facility managers to manage uncertainty when allocating limited financial resources among the competing corrective, maintenance, and rehabilitation activities within robust asset management programs.

Originality/value

The paper fulfills an identified need to study how facility managers can do more with less. This need to be cost‐effective requires facility managers to recognize stochastic costs on the expected budgetary outcomes for robust asset management programs.

Citation

Rogers, J.W. (2013), "Can facility managers impact the expected budgetary outcomes of robust asset management programs?", Facilities, Vol. 31 No. 1/2, pp. 56-67. https://doi.org/10.1108/02632771311292518