Challenge
Irwin Union operates 27 facilities throughout Indiana, Missouri, Michigan and Nevada. In 1997, they were experiencing a tremendous growth spurt and realized that their internal focus needed to be concentrated on business strategies versus facility maintenance.
Concerns include:
- 42% higher janitorial costs than industry average
- 220% higher full-time equivalent staffing than industry average
- No critical facility maintenance performance measures
- Hundreds of monthly vendor invoices
- No preventive maintenance program
Solution
- Implement Preventive Maintenance (PM) process, which improved scheduling, increased equipment life cycles, and reduced safety risks and downtime.
- Implement computer-aided facility maintenance process, which increased productivity, reduced material costs and increased value management.
- Implement primary vendor selection process, which increased vendor leverage and significantly reduced rates.
- Implement material leveraging process, which consolidated material purchases.
- Reduced number of invoices through one monthly-consolidated invoice.
Result
- 11% annual facility cost savings
- 11% reduction in corrective work orders
- 12 invoices annually versus over 1,600 annually
- 5% of contract value guaranteed cost saving recommendations
IUB upper management was now protected from costly facility maintenance issues.
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