Optimizing Your Manufacturing Assets
Optimizing Your Manufacturing Operations in a Dynamic Landscape
Need a Framework for Operating Your Manufacturing Facilities?
Need a Framework for Operating Your Manufacturing Facilities?
Industrial and manufacturing companies represent a diverse blend of industries spanning automotive, chemicals, food and beverage, consumer goods, and aerospace and defense, among many others. These enterprises must make strategic decisions in a dynamic landscape dominated by rising production costs, increasing labor costs, and an imposing skills gap. Automated technology and innovative process improvements are changing the built environment, unleashing opportunities across business lines and the real estate spectrum. Current industry trends, including automation, digitalization, and sustainability, are not only transforming the way these organizations operate but are also reshaping the face of corporate real estate. In this environment, an integrated approach to real estate is paramount for driving value across portfolios.
An Integrated Strategy Includes These Components:
- Technology-Led Facilities Operations
Globally consistent, integrated facilities management is essential for efficient portfolio operations. Applying a strategic approach to both hard and soft facilities services and leveraging specialists with manufacturing expertise will optimize operating costs, reduce risk, improve safety and maximize uptime. Technology enables the automation of processes including energy monitoring, billing and maintenance scheduling. This reduces manual intervention, streamlines operations, and minimizes the likelihood of human error.
- Project & Program Management
Project and program management is an essential component of a holistic strategy as it aligns facility plans with business objectives, optimizes operations for efficient use of space and resources, streamlined processes, promotes sustainability for cost savings and regulatory compliance, and consolidates all facility management efforts under one team. It’s also crucial aspect of capital planning, giving organizations the foresight to deploy capital most effectively. This comprehensive approach enhances the overall efficiency and profitability of warehouse operations.
- Analytics & Monitoring
Automated analytics and monitoring provide valuable insights to improve the speed and quality of critical decision making for manufacturing operations. Having a comprehensive platform will optimize costs, increase reliability and deliver intelligence throughout the entire asset lifecycle, all while safeguarding against the risks of human error and downtime.
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Explore all key strategy components, success metrics and common pitfalls.
Explore all key strategy components, success metrics and common pitfalls.
Gaining a Holistic View of Your Portfolio Requires Measuring Performance
Need a Framework for Operating Your Manufacturing Facilities?
Need a Framework for Operating Your Manufacturing Facilities?
Companies with manufacturing assets value facilities uptime and cost reduction—key drivers of their ability to quickly manufacture goods. These businesses are constantly looking to operate more efficiently, increase delivery on-time in full (OTIF), and ensure employees are kept safe in the process. We’ve identified key success metrics that allow organizations to optimize facilities operations, while reducing costs, emissions and risk.
Key Success Metrics for Your Manufacturing Facilities
- Uptime
Incidents in manufacturing facilities, such as downtime from a power failure, impact every aspect of the facility’s operations and can cause significant financial loses for businesses. Every second of lost production time can only be made up for doing unplanned production – often at a higher cost – to on time in full (OTIF) performance. Having a rigid preventative maintenance and asset management system – including N+1 back up and critical spares for equipment – in place is critical for minimizing unplanned downtime.
- Overall Equipment Effectiveness (OEE)
OEE provides a comprehensive evaluation of how efficiently and effectively machinery and processes are utilized in production. By considering factors like availability, performance, and quality, OEE offers a clear view of operational efficiency. A high OEE indicates optimal resource utilization, reduced downtime, and enhanced product quality. Prioritizing OEE allows manufacturing facilities to streamline operations, identify and rectify inefficiencies, and bolster competitiveness. Embracing OEE as a key success metric allows manufacturers to fine-tune their operational ecosystem to drive growth in the dynamic manufacturing landscape.
- Speed to Market for Project Delivery
Creating a project plan efficiently and being able to execute efficiently allows for greater cost certainty, reduces holding costs and minimizes disruptions to production. This allows companies to respond swiftly to market changes and customer demands, such as a sudden increase in demand for a particular product. Speed to market also reduces exposure to potential risks such as economic fluctuations, changes in interest rates, or shifts in the regulatory environment that can impact project costs and profitability.
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Explore all key strategy components, success metrics and common pitfalls.
Explore all key strategy components, success metrics and common pitfalls.
Common Operational Risks for Manufacturing Facilities
Need a Framework for Operating Your Manufacturing Facilities?
Need a Framework for Operating Your Manufacturing Facilities?
Market dynamics are increasing the complexities of efficient real estate operations. CRE teams are being challenged by fragmented service models, constrained by variations in delivery across geographies, incomplete data and reporting, and inconsistent service functions. Access to real-time line of sight into facility costs, conditions, space utilization, energy consumption and capital priorities has never been more important. But how can organizations achieve this? Identifying potential risks and applying their learnings at scale can drive transformational outcomes for your manufacturing facilities.
Common Risks and How To Avoid Them
- Lacking Cost Control Due to Fragmented Service Delivery
Manufacturing assets tend to be part of geographically dispersed portfolios with budgets managed at the site-level. These enterprises can face a host of procurement challenges and inadequate systems for managing onsite assets like heating, ventilation, and air conditioning (HVAC) or mechanical, electrical, and plumbing engineering (MEP). These result in inconsistent capital expenditure plans and little or no control of variable spend – all of which impact the bottom line. Moving toward an integrated sourcing model grants access to an established supply chain with vendor agreements and structured practices for both pricing and delivery. This is essential for reliable and cost-effective operations.
- Not Leveraging Technology To Increase Operational Efficiency and Maximize Uptime
Manufacturing sites can be transformed into data-rich environments with preventative and predictive maintenance programs. Advanced technology helps businesses transition from reactive to proactive maintenance, reducing overall work orders, work order resolution time and creates the ability to optimize operational performance through data-driven decisions. Condition-based maintenance and advanced preventative analytics provide FM teams with enhanced reporting and awareness of asset conditions, so on-site teams can focus on proactively resolving issues before there are failures to address.
- Not Having the Right Procurement Approach for Engaging Third Party Partners for Projects
Without a strategic procurement approach, there's a high risk of cost overruns. Uncontrolled costs can significantly impact the profitability and financial viability of a project. The wrong procurement approach can also lead to engaging with partners that do not meet the necessary quality standards, which can result in subpar work, requiring costly and time-consuming rectifications. Having a rigorous selection process and clearly defined scope of work for third party partners will help in delivering the project on time, within budget, and to the expected quality standards.
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Explore all key strategy components, success metrics and common pitfalls.
Explore all key strategy components, success metrics and common pitfalls.
Operational Excellence with CBRE
Need a Framework for Operating Your Manufacturing Facilities?
Need a Framework for Operating Your Manufacturing Facilities?
CBRE understands that each client and each portfolio is unique, and we offer solutions that flex and span based on your organizational goals. Whether supporting a global portfolio or assisting with local client needs, we have the products and services to ensure cost control, operational excellence, stakeholder satisfaction and right-sized solutions.
Realizing Value in Your Portfolio
- Integrated Facilities Management
You value facilities uptime and cost reduction—key drivers of your ability to quickly manufacture, process or ship goods. We deliver results by extending our self-performance advantage to material handling equipment. Our integrated and globally consistent approach to facilities management was developed in tandem with the growth of the world’s largest industrial and logistics companies and powers the performance of portfolios that depend on diverse and sustainable supply chains, connected footprints and efficient operations. We have a strong track record of managing down unit cost while achieving efficiencies in organizational capacity, scaling and acquiring and retaining skilled labor in new or expanded locations. Learn more.
- First-Generation Outsourcing Strategy
Outsourcing your real estate operations is a big decision. At CBRE, our clients focus on what they do best while we concentrate on optimizing their real estate to empower them. We know that just as your people and business require cross-functional collaboration and constant optimization for success, so too does your real estate portfolio – connecting your assets and your occupied spaces together into a global strategy that can deliver maximum value. CBRE’s customized solutions and white glove change management process ensure organizations outsourcing for the first time can move seamlessly from one operating model to the other, protecting your people, partners, and properties at every step. Learn more.
- Project Management and Program Management Office (PMO)
Our team uses an optimized service delivery process to manage every aspect of your project’s budget, schedule and scope and protect your interests throughout the entire real estate journey. From small projects to large, complex construction undertakings, our experts will help you deliver efficiently, offering a variety of commercial models including turnkey solutions. The Project & Program Management Office (PMO) acts as an extension of a client's organization to standardize and provide project-related governance across a defined program, geography or region. The PMO also facilitates or directly coordinates the sharing of resources, methodologies, tools, and techniques. This centralized control results in a collaborative environment with consistent project execution, supply chain management, rigorous fiscal governance, and a commitment to innovation. Learn more.
- Supply Chain
Our global supplier network ensures competitive pricing, resilience, and access to best-in-class resources. Our global scale enables strategic partnerships with industry-leading suppliers, driving innovation and creating value for our clients. We continuously evaluate marketing pricing through competitive sourcing events and benchmarking to deliver cost savings. Learn more.
- Technology
CBRE combines data at scale enterprise-grade technology to deliver smarter solutions across the entire real estate lifecycle. We integrate, build and scale with our clients to pilot real-world technologies that become industry standard. Seeing over 36 billion data points from more than 300 global sources, CBRE connects data at scale, so you can realize insight that leads to foresight for you and your organization. Learn more.
- Energy Management & Sustainability
Energy management represents a major opportunity for manufacturing assets. Our globally consistent programming in decarbonization solutions, renewable energy and electrical vehicle charging stations can help you achieve your ambitious ESG goals. We help enterprises optimize their energy performance through strategic and turnkey solutions to support carbon reduction and net zero commitments to achieve their sustainability goals. Learn more.
- EV Charging
CBRE delivers a fully integrated approach to accelerate EV charging deployment to drive down costs and create efficiencies for clients. We combine the most comprehensive access to utilities, hardware providers and contractors in the industry so you can electrify with confidence. We help you succeed, from single-location deployments to complex, multi-location, multi-year programs. Our team will integrate the right experts and solutions to address your challenges and help you realize the potential of your real estate. Learn more.
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Ready to optimize your facilities strategy? Get in touch with our experts.