Cost Management Improvement at Gov Facility Services Ltd

100% Cost Capture to support budget management

Data analysis & benchmarking to identify areas for cost efficiency

Translated raw data into actionable insights

Increased process adherence

The work Olivia (CI Projects) completed was a key contributor to budget management in the financial year. The work also provided insightful data to enable us to make data-driven decisions and was an enabler towards a longer-term cost recovery solution.

Stephanie Hill, Finance Director

Define it

Gov Facility Services Ltd (GFSL), a newly formed, taxpayer-funded Facilities Management GovCo (Government Company) faced limited visibility into its operational performance. Without a clear understanding of service delivery costs, continuous improvement efforts were hindered and budget management was a struggle. While they had a general understanding of their operations, there were likely hidden inefficiencies or data gaps hindering their ability to fully optimise performance but there was limited visibility of the gaps. We conducted a comprehensive analysis to uncover these previously unknown challenges and establish a clear picture of the “as-is” state.

Improve it

CI Projects partnered with GFSL to implement a comprehensive job costing process across all services, including both chargeable and non-chargeable work. We established a system for capturing financial data related to operational performance using their CAFM system.

Once implemented, the job costing system facilitated the extraction of raw data that was then transformed into a user-friendly financial dashboard that supported budget management. This dashboard provided valuable insights through various visualisations:

  • Process Adherence: Monitored the completion rate of job costing data entry.
  • Cost Breakdown: Visually represented the breakdown between material and labour costs.
  • Cost Per Unit: Analysed costs based on region, service type, establishment category, square meter, and establishment age.
  • Cost Variability: Utilised standard deviation to identify outliers in total costs, material costs, and labour costs.

Sustain it

Due to Covid-19 restrictions, the project was delivered virtually. CI Projects conducted remote communication sessions to explain the “how” and “why” of the job costing process. This information was reinforced through ongoing system training. Additionally, supporting documents were provided to ensure a smooth and efficient process for all teams.

CI Projects ensured a seamless handover to the organisation’s finance team. Through a detailed knowledge transfer process, the team was empowered to sustain and further develop the cost management and budget management process.

The implemented job costing system facilitates continuous improvement, cost reduction, budget management, and ultimately, a better value proposition for taxpayers.

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