Developing a process model for inspection management of building facilities using financial analysis

What the paper says

Purpose The purpose of this study is to develop a process model for inspection management of building facilities based on a financial analysis process using a facilities assessment index (FAI). Design/methodology/approach A piping system is surveyed using financial analysis to implement optimal inspection time and cost based on limited costs. Inspection technical sheets were sent to 30 installation consultant companies in Iran. Financial sheets were sent to hotel financial managers. There are three main stages in the development of the building facilities inspection management process: Stage I: gathering data, Stage II: developing a draft process model, Stage III: testing the process model and Stage IV: verification of process model. The research applies decision-making techniques to resolve various issues using cost data. Findings By analyzing historical data and using a process model, the author determined that the most cost-effective approach is to inspect and repair pipes when the FAI (condition index [CI]) reaches 70. At this point, the saving to investment ratio (SIR) is 1.69, indicating substantial economic benefits. For pipes with a CI below 55, replacement is recommended due to lower economic benefits from repair. When the CI reaches 40, the pipes are considered to be at the end of their useful life, and replacement is the optimal course of action. The process model was rigorously tested to ensure its accuracy in predicting future scenarios. By comparing model predictions with historical data and established solutions, the author found a strong correlation between the highest SIR and a CI of 70 in both historical and predictive data analyses. This consistency suggests that the model can effectively predict optimal inspection timing for the wastewater system. Originality/value Any decision-making is based on the existing cost and resource allocation of the buildings in inspection activities. This issue is very important: how to allocate the limited costs available for facilities inspection to achieve the best return on spending. This method helps building managers and engineers make better decisions to reduce inspection costs and increase facilities’ service life.