Application of physical asses management performance measures in the property management environment of South Africa

Dicks, Peter (2008-12)

Thesis (MBA (Business Management))--Stellenbosch University, 2008.

Thesis

Physical asset management has been given very little consideration in the commercial property industry in South Africa and abroad. In the production environment, especially where fast moving consumer goods are concerned, slight improvements in production equipment performance can bring about large savings and increased profits. In the commercial property environment however, a physical asset management strategy and all the components which constitute such a system, are not yet very well developed and are usually seen to be an unnecessary financial expenditure. A change of thinking has been confirmed by this study and can be seen in the way in which physical asset management and methodologies have already largely been accepted in the international municipal infrastructure environment, including buildings and structures. A desire to remain competitive and reduce unnecessary losses, together with a new focus on environmental concerns and legislative factors, appears to be the catalyst for such a shift in thinking. Punitive legislation, such as the electrical consumption controls for buildings in South Africa, likely to be introduced soon, will also help to steer commercial property owners and managers towards a more strategic view on how they manage their physical assets. An important component of this research report was to determine whether performance measures are being used to measure the effectiveness of the physical assets and strategy in terms of the commercial property industry. In the context of this study however, very few such measures could be found, besides some financial measures. As a more strategic physical asset management approach is adopted, performance measures for all aspects of facility and asset performance will become necessary and therefore more common place. "When you measure what you are speaking about, and express it in numbers, you know something about it ... otherwise your knowledge is of a meagre and unsatisfactory kind; it may be the beginning of knowledge, but you have scarcely in thought advanced to the stage of science." - Lord Kelvin (1824- 1907).

AFRIKAANSE OPSOMMING: Dit wil voorkom asof fisiese batebestuur in Suid Afrika en oorsee min aandag geniet in die kommersiele eiendoms bestuursmark. In die produksie omgewing, veral waar vinnig bewegende gebruiksgoedere betrokke is, kan klein verheteringe in die werking van produksie toerusting daartoe lei dat groot besparings en gevolglik verbeterde winsopbrengs behaal kan word. In die eiendoms bestuursmark is fisiese batebestuur strategie en die gepaardgaande komponente nag nie volledig ontwikkel nie en word dit gewoonlik beskou as 'n onnodige finansiele koste. Daar is egter alreeds 'n verandering in denke, $005 gesien kan word deur die baie fisiese batebestuur made lie wat alreeds aanvaar is deur die internasionale munisipaliteit en infrastruktuur marke, wat geboue en structure insluit. 'n Strewe om voortdurend kompeterend te bly en om onnodige vermorsing uit te sny, tesame met 'n nuwe fokus op omgewingsake asook om aan wetlike vereistes te voldoen, blyk om die katalisator te wees vir hierdie verandering in denkswyse en dit sal gevolglik oak veroorsaak dat kommersieHe eiendomseienaars 'n meer strategiese benadering gaan toe pas in terme van die bestuur van hulle fisiese bates. 'n Belangrike deel van die verslag was om te bepaal watter aanwysers en maatstawwe om die doeltreffendheid van die fisiese bates en strategie in terme van kommersieHe eiendom te meet, gebruik word. In die konteks van hierdie verslag kon daar min bewyse van maatstawwe gevind word, behalwe vir finansiele maatstawwe. As 'n meer strategiese benadering tot fisiese batebestuur aanvaar word, sal aanwysers en maatstawwe vir al die komponente van fasiliteit en fiesiese batebestuur belangrik wees en daarvolgens oak meer algemeen word in die industrie. "When you measure what you are speaking about, and express it in numbers, you know something about it ... otherwise your knowledge is of a meagre and unsatisfactory kind; it may be the beginning of knowledge, but you have scarcely in thought advanced to the stage of science." - Lord Kelvin (1824-1907).

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/6402
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