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Facility Needs Index (FNI)
One of several key performance indicators used by facility managers to ascertain health conditions and make resource allocation decision.

The FNI is an extension of the Facility Condition Index (FCI) and EFCI in that it also includes projected costs associated with future renewal, modernization and regulatory compliance.




Purpose
The principal value of an EFCI rating, particularly for the owners and operators of a single facility or a portfolio of facilities, can be identified as:


FNI Formula
The formula contains a numerator that is divided into a denominator to return a percentage KPI.

The numerator contemplates three reinvestment categories, as follows:
  • Catch-up Costs (such as deferred maintenance )
  • Keep-up Costs (such as normal lifecycle renewals
  • Get-ahead Costs (such as upgrades and adaptations)
A measure of the physical health and functional health of a Facility, derived from the cost of the Concerns, Projected Concerns and Functional Obsolescence multipliers compared to the total reproduction value of the Facility.
The figure on the right includes the FNI formula.

The numerator of the formula contemplates the following dynamics:
The denominator of the formula is based on the current reproduction cost of the facility.



Evaluation
Listed below are some of the merits and advantages of the FNI metric:
  • It is the broadest of the three facility evaluation metrics.
  • It provides the most comprehensive view of facility reinvestment requirements by factoring the different forms of obsolescence.
Listed below are some of the limitations of the FNI metric:
  • While the facility needs index is considered to be a more thorough assessment of the overall state of a facility or portfolio, it has not been widely adopted.
  • The FNI also does not yet have a standard condition spectrum that is universally recognized.
  • Unsophisticated owners may experience some difficulties in separating the three reinvestment categories and making defender-challenger decisions when selecting amongst alternatives.

Management Principles
Included below are some asset management concepts to be considered relative to the FNI:
  • Determine the mission criticality of the different facilities. [see: Mission Dependency Index].
  • Determine wether and FNI is necessary for all or some of the facilities. Where FNI may be considered unnecessary, determine if EFCI or FCI will suffice.
Management of the data from the FCI can be administered through the following mechanisms and techniques.
  • Assessment Cycle  - That is, how often should the FCI be updated. Some facility managers may deem a 5-year assessment cycle to be adequate, whereas others may consider a 3-year cycle more appropriate.
  • Assessment Match - That is, what level of assessment should be used to generate the FCI. For example, some facilities may be adequately evaluated with a top-down methodology whereas other facilities cannot be fully evaluated without a more rigorous bottom-up methodology.
  • Assessment Mix - That is, should  facilities be assessed at the different levels of detail than other facilities. (see: mixed scanning)
Extended Facility Condition Index EFCI
Fig. Three alternative formulas for determining key performance indicators (KPIs) for a single facility or a portfolio of facilities.


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Fig. Examples of deferred maintenance items that are included in the numerator of the EFCI formula. These are considered reinvestment category #1: catch-up costs.


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Fig. Examples of some of the types of capital projects that may be captured in the EFCI formula
. Left is roof renewal and right: domestic repiping project. These are considered reinvestment category #2: pending lifecycle renewal costs.


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Fig. Modernization costs, such as elevator relay controls replaced with elevator solid state controls, are included in the FNI formula. These are considered facility reinvestment category #3: get-ahead costs.


VFD retrofit
Fig. Economic obsolescence, such as a triplex booster pump package replaced with package that includes VFDs, is contemplated in the FNI.



See also:
Compare with:


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