Chapter 1 1. Introduction This chapter describes the research context of the thesis, identifies the research problems, lists the research purpose, objectives, and questions, and explains the research’s scope, limitations, and structure. 1.1 Background This section’s description includes both theoretical and practical background, as shown in figure 1.1, followed by a summary of the problem statement in the following sections. Traditional maintenance, 1st, 2nd , 3rd Generation of Maintenance eMaintenance, Smart Maintenance, IoT, 4th Generation of Maintenance Research Motivation: Case Study Organisation Facilities Management, Building Maintenance Theoretical Background Problem Statement Practical Background Figure 1: Theoretical and practical background. 1.1.1 Traditional Maintenance & Generations of Maintenance To be competitive, organisations must perform at levels above the average and their competitors. As a result of a rapidly changing customer-demanding environment, there is the need for organisation requirements to improve and increase service quality, reduced throughput time, and enhance operating effectiveness for a high maintenance performance. Most organisations require maintenance activities in various forms to ensure a safe, reliable, and efficient operations of their facilities. Maintenance is required to increase an organisation’s operational effectiveness, revenues, and customer satisfaction, whilst reducing its overheads, and operating expenditure. This is the biggest challenge facing most facilities management (FM) organisations today during the recent Covid-19 pandemic, and for this, it is critical to ensure that the maintenance strategies or techniques implemented are aligned with the current maintenance best practices. 1 Maintenance has evolved over the years, through the 1st, 2nd, 3rd, and 4th generations (Moubray, 1995). Dunn (2003), highlights the focal points of the four major ‘generations’ of maintenance. The first focuses on run-to-failure and repair activities, the second on improving maintenance planning and scheduling, and the third on predicting, preventing, and avoiding equipment breakdowns. Instead of prediction or prevention, the ‘fourth’ generation of maintenance will focus on elimination. Figure 2: Maintenance Generation. Source: Marshment (2018). Marshment (2018) also mentions that the prevalent maintenance technique of the first generation was to fix equipment when it broke down, whilst in the second generation, both scheduled preventative maintenance and mechanisms for planning and scheduling work were then introduced. The third generation was marked by the broad implementation of condition monitoring and decision-supporting technologies. These generational shifts were brought about by technological advances, research, a great understanding of how equipment fails, and the many approaches necessary to manage these failures. According to Moubray (1995), there is a new paradigm shift when it comes to how maintenance function and physical asset management have evolved over the last 40 years. The old maxim indicates that the main objective of the maintenance function is to optimise the assets availability at minimum cost, whilst the new maxim indicates that the maintenance function affects all aspects of a business effectiveness, safety, environmental integrity, utility efficiency, service quality and customer service and not just the assets availability and cost. An inefficient maintenance operation will affect the operational capability of a building’s physical assets by reducing customer satisfaction, service levels and quality, while increasing the operating cost. Maintenance cost has been rising steadily over the past decades, in absolute terms and as a proportion of the total expenditure. In the building services industry, maintenance cost is the highest cost element of an organisation total overheads and have 2 transitioned from nowhere to the top of the control priority over the last 40 plus years. Moubray (1995) further also mentions that as the dependence of man on physical assets continue to grow so too does the cost to operate and to own them, and to extract the maximum return value on investment from the assets, they must be in a working condition for as long as they are needed. This further means that, maintenance now plays a pivotal role in the preservation of all aspects of the physical, financial, and competitive nature of an organisation, necessitating the need for maintenance professionals, their organisations to equipment them with the tools needs to address maintenance issues continuously and proactively. 1.1.2 Facilities Management & 4th Generation of Maintenance One of the key deliverables of the facilities management department of a real estate organisation is to improve the quality and delivery of real estate services to its customers through better utilisation and management of the organisation’s assets. This is achieved through the application of suitable maintenance strategies to maintain the organisations building assets made up of mechanical, electrical, plumbing, fire components through either an inhouse dedicated maintenance team or an outsourced maintenance service provider. A major challenge is, what is the best maintenance strategy to implement, and how these maintenance activities can be successfully managed and implemented in a cost-effective manner. Facilities management (FM) is the strategic coordination and integration of an organisation’s people, premises, processes, and information technology. Facility management, sometimes referred to as FM, is a specialised field that focuses on providing support to humans. It ensures the functionality, comfort, safety, sustainability, and efficiency of the built environment, which consists of the buildings in which humans work and live as well as the building components and infrastructure that are within and surrounds those buildings (IFMA, 2022). According to (ISO 41911:2017(EN), 2017), the terms facility management and facilities management can be used interchangeably and defines FM as an organisational function that combines people, place and process within the built environment for the objective of improving the quality of life of people and the efficiency of the core business productivity. This cross functional team works to ensure that all aspects of an organisation, from the front desk to the boardroom, operate smoothly due to facilities managers, who are responsible for ensuring the organisation; health and safety by directing efforts towards the optimal operational of the building infrastructure (IFMA, 2022). 3 Maintenance management, one of the activities undertaken by facilities managers in facilities management organisations (FMO) face several challenges such as poor standard of maintenance works by contractors, lack of qualified inhouse maintenance technicians, inadequate maintenance budgets, limited or no use of information technology (IT) in the monitoring, control, and implementation of maintenance techniques (Hassanain et al., 2013: Al-Turki, 2011). The management of maintenance operations of the built facilities is no longer a standalone activity and has assumed a strategic position in facilities management organisations (FMO), where the primary concern is the provision of safe operating environments for its occupants be it staff, visitors, and tenants and a key aspect of effective maintenance management of the facilities assets and equipment (Adamu & Shakantu, 2016). White (2013) mentions operations and maintenance as one of the core competencies that every facilities management practitioner should have, stating that it is that hard and soft FM operation, which include the planned and managed preventive maintenance of the real estate portfolio, the maintenance building services and systems. According to Amaratunga & Baldry (1995), the establishment and maintenance of a facility assets’ life cycle to meet the FMO is a critical area whilst Adamu & Shakantu (2016) also maintains that facilities maintenance management is very importance to most organisations in today’s highly industrialised world and cannot be over-emphasised. Maintenance concept has moved from been a purely technical and reactive nature to one of an operational yet strategic function. Maintenance management in modern facilities requires strategic management skills that go beyond the capabilities of conventional maintenance (Lee & Scott, 2009). According to Marshment (2018), we are currently experiencing the fourth generation of maintenance evolution. One that is causing a dramatic shift in the skills and competencies required for reliability and maintenance engineering and another that is undermining maintenance failure management strategy. The adoption of predictive analytics marks the beginning of the fourth generation. So why has this trend suddenly become so popular? The ‘Cloud’ contains the key to finding the answer. Equipment used in modern manufacturing plants are heavily instrumented, and these instruments can generate enormous amount of data. However, these data are frequently unavailable to the maintenance teams and also the computing power of older computer systems to process and present these data posed a challenge. With the advent of cloud computing platforms, most maintenance teams can now access high performance computing that is capable of quickly processing any quantity of data. 4 The subject of predictive analytics has been fully transformed because of the almost universal availability of the cloud. These methods are increasingly being used to forecast failures for even the most complicated and difficult to comprehend failure scenarios. Because of this, decision-making process for maintenance methodologies are drastically altered because it is now potentially technically feasible to forecast practically any equipment failure, however this does not mean that it is worth doing (Marshment, 2018). Dunn (2003) argues that the fourth-generation strategy will focus more on failure elimination than failure prediction or prevention. It puts more emphasis on being proactive than reactive. 1.1.3 E-Maintenance (Smart maintenance) Information technology (IT) has altered the manner in which businesses are conducted, similarly to other industries, maintenance has benefited from the emergence of IT (Saari, 2019). Since the early 2000s, the term E-maintenance has since become ubiquitous in the field of maintenance studies. Researchers have variously referred to e-maintenance as a strategy, plan, a type of, or a support system (Iung et al., 2009). There is an abundance of digital information available to us today. These range from everyday tasks such as flying drones, self-driving cars, traffic navigation etc. All these are possible due to numerous digital and information technologies, which have become adept at computing, storing and communicating information (Hilbert & Lopez, 2011). Digitalised manufacturing has long been used to transform manufacturing production lines, leading to significant improvements in productivity (Dalenogare et al., 2018; Monostori et al., 2016). Digitalised manufacturing is also characterised by advanced manufacturing technology, availability of big data, the Internet of things (IoT), 3D printing cloud computing, Cyberphysical systems etc (Lundgren, 2021), also known as the industry 4.0 technologies, see Figure 3 (Saturno et al., 2017). High levels of automation between production personnel and equipment with constant information exchange are possible with industry 4.0 methodologies, allowing for the decentralisation of production decisions (Hermann et al., 2016) and control into an autonomous system (Lundgren, 2021). Since the introduction of industry 4.0 methodologies, more and more manufacturing firms are applying the technologies to enhance their business values and performance. And as with all production or manufacturing systems, the issue of maintenance needs to advance from being a 5 low priority enabler to becoming a lead enabler of high performance in the digitalised environments. It is this advancement of maintenance that is referred to as Smart maintenance and without the maintenance of critical equipment, these manufacturing industries will all halt operations (HSO, 2022). “Smart maintenance” is maintenance in digitalised manufacturing according to Bokrantz et al., (2020) and research regarding maintenance technologies for digitalised manufacturing is increasing. Figure 3: Industry 4.0 Technologies. Source . Figure 3 shows the utilising of cutting-edge technologies like big data analytics, IoT, RFID technologies, cloud computing, mobile technologies etc, in Industry 4.0 or Smart maintenance technology (Saturno et al., 2017), making sure that all equipment and machinery needed for production are always operating at 100% efficiency (Delware, 2022). Organisations must quickly and efficiently deliver high-quality products in today’s highly competitive market. Both downtime and faulty equipment or machinery that lowers production quality are disasters and consequently, superior maintenance is important. Maintenance activities are becoming increasing intelligent thanks to advancement like big data applications, IoT, machine learning, augmented reality etc (Delware, 2022). The COVID-19 pandemic during the last plus 12 months, has exposed several vulnerabilities in various sectors from the manufacturing, supply chain, and many things that was once thought of as impossible become possible due to the need to keep production lines and operations moving, remote working become the new normal. This was possible due to the digitalisation of the manufacturing industry, through Smart maintenance solutions, which not only allowed these organisations to improve their services but to even create new business models during 6 the pandemic. A suitable option to carry out maintenance activities during this period, could have been the to leverage on the capabilities of Smart maintenance to ensure that maintenance activities are continued to be carried in a more successfully and cost-effective manner. The following questions can also be addressed – what are the key issues of Smart maintenance? How do they impact maintenance activities? How best can the concept be implemented and what are its quantifiable cost benefits. One of the key scopes of facilities management is the management of the built asset within the facilities through maintenance strategies. The FM industry was one of the hard hits during the pandemic when lockdowns were imposed, most facilities had to be closed down, equipment not maintained etc all because the FM industry was not prepared. FM plays a key role in the sustainability of organisations but has lagged in the application of technology, such Smart maintenance, use of the internet of things, big data etc in modernising how assets are to be maintained into the future. 1.1.4 Research Motivation The motivation for the research was to explore the key components of a Smart maintenance concept, its application in FM and to develop a comprehensive framework which can be used by Asset operations department (AOD) of Saif Al Ghurair Real Estate (SAGRE), which is the case study organisation in the management of their built assets. (Aleger Global, 2022) defines Smart maintenance simply as the use of digital tools to improve the efficiency of maintenance activities with contribution to increased value creation and revenue for the organisation. Smart maintenance allows the maintenance team to detect equipment/machine problems and faults, identify the location of the problems or faults, and repair it before it actually breaks down, shutdown the plant and potentially the organisation (HSO, 2022). The collection of equipment/machine data and linking of these data from the plant, buildings or facilities is the heart of Smart maintenance (Aleger Global, 2022). Sensors are installed in the infrastructure network, on the equipment/machines, to continuously record their functionality and performance data, then relay the data to digital applications, usually a centralised application platform (Aleger Global, 2022). I believe that if the facilities management industry is to thrive, and not to be seen as a cost centre, it needs to radically develop and modernise, to adopt the concept of digitalised manufacturing (Smart maintenance) to significantly improve the FM services delivery and 7 quality, reducing resources and maintenance costs, continuous improvement and value adding whilst ensuring end-user satisfaction are always maintained. This view is also supported by (Adamu & Shakantu, 2016), who stated that senior management have been compelled to acknowledge maintenance as a crucial management function due to factors like technological advancements, the lean production concept, competition, and sustainability concerns whether in manufacturing or facilities management. Fiix (2021), argues that regardless of the industry, it is now essential to constantly develop and modernise, and this applies to maintenance, whether in manufacturing or facilities management. Motivation for the research The research project “Smart maintenance within a Facilities Management Environment: A UA Case Study” served as the inspiration for the research study. The main goal of this research is to suggest how an integrated smart maintenance system, including development, implementation, assessment and optimisation can be used to reduce maintenance cost, reduce energy cost for HVAC system, whilst improve the case study maintenance process through digitalised maintenance. Dubai-based Al Ghurair is a family-owned conglomerate founded over six decades ago. The Al Ghurair Group was established in 1960 by Saif Ahmed Al Ghurair in order to unite the diverse and growing business interest of the family. Under his direction, the Group expanded into a number of industries, including manufacturing, real estate and retail. Each venture was evaluated according to how well it could advance the Group’s and Dubai’s economies, a strategy that was very beneficial to all stakeholders involved (AGRE, 2022). Saif Al Ghurair Real Estate (SAGRE), which owns a sizable portfolio of land and buildings in the United Arab Emirates, making its living primarily from the real estate industry. The BurJuman centre in Bur Dubai, one of the most well-known and prestigious mixed used developments in the Emirate, is the flagship property of the company(AGRE, 2022). SAGRE has a real estate portfolio made up of retail, commercial (offices & warehouses) and residential buildings. The retail portfolio consists of two (2) malls: BurJuman centre and Reef mall, whilst the commercial portfolio is made up of three (3) high-rise office blocks and fourteen (14) warehouses and the residential portfolio has forty-two (42) low to mid-rise apartments and various compounds of residential villas. The Asset operations department (AOD) is the business unit tasked with the overall asset management of all SAGRE portfolio. This includes the provision of facilities management 8 services for all occupants of these portfolios as well as the maintenance of all building services and equipment. The equipment under the AOD maintenance regimes includes all mechanical, electrical and plumbing (MEP) equipment, specialised systems such as fire alarm and fighting systems, elevators and escalator, chillers etc amongst others. The researcher worked at SAGRE within the Asset operations department, with one of the main roles being the overall management of SAGRE real estate assets. Along with a maintenance team, the researcher is responsible for the optimal operational of all retail, residential, commercial buildings and its associated building services components of mechanical, electrical and plumbing (MEP) assets. The department is management by an asset operations director, two FM (hard and soft) managers and three engineers (2-mechanical & electrical), Operations team (9-off), QHSE team (3-off), a security manager, and a computer aided facilities management (CAFM) administrator, see figure 4. The asset operations department uses a combination of inhouse and outsource models in the FM services delivery. Outsource services such as technical, housekeeping and cleaning etc are provided by third party FM service providers. There are numerous challenges that were observed that span over management, technical and financial. Of particular interest to the researcher, are the ever-rising cost of maintenance, lack of skilled maintenance resources, limited use of technology, frequent break down of equipment and the reactive nature of the maintenance activities performed. Figure 4: AGRE Asset Operations Organisational Structure. AGRE Maintenance Asset management (AM) or the management of an organisation’s physical infrastructure is all about putting an asset management strategy into action and as defined by (DiConnex, 2021) as taking targeted steps to raise the value of an asset or a portfolio of real estate and involves 9 active management, planning, maintaining, execution and control of the asset. Maintenance is a critical component of that AM strategy. This involves the decisions that are made to implement the strategy and manage the people, processes and physical assets of the organisation (Campbell & Reyes-Picknell, 2016). In maintenance management, strategy frequently refers to the tactical decisions regarding how to manage specific physical assets. Decisions to employ preventive or predictive maintenance techniques are typically referred to as maintenance strategies for the equipment to which they are applied. Either way, the maintenance strategy should support the asset management strategy (DiConnex, 2021). The maintenance management framework (MMF) used at AGRE is very similar to (Grubb & Takang, 2003) maintenance management framework, see figure 4. The AGRE MMF has four (4) main areas: business requirements, maintenance strategy, maintenance execution and lastly the deliverables. The MMF primary goals are to ensure that AGRE buildings and assets are adequately maintained, risks are well-managed, the maintenance department takes a more strategic role in the maintenance of AGRE asset of buildings, and the company has access to relevant information for the monitoring of its building’s maintenance, condition and performance. The management-in-use phase, which is when the actual maintenance of the building asset takes place, is the primary focus of the maintenance management framework. 10 Figure 4: AGRE Maintenance Management Framework. Source: (Grubb & Takang, 2003) However, on close inspection of the maintenance practices and available documentation, it was observed that there are lots of inefficiencies in the maintenance activities as well as numerous signs of bad maintenance culture within the organisation. The inefficiencies ranges from high equipment breakdowns, as close to 82% of equipment failures over the last 2 years could not be prevented by the use of traditional preventive maintenance strategies, the lack of detail preventive maintenance plans or if the preventive maintenance plans are available, they do not cover all the organisation equipment found in its asset registers, high maintenance cost arising from the frequent failures with operational consequences directly impacting customer satisfaction resulting in high tenants turnover in the retail and residential portfolios and nonoperational consequences that affect the organisations expenses in the form of high and urgent repairs and replacement of equipment parts, refunds and early termination penalties, high energy cost from obsolete inefficient energy machines and equipment such as chillers and other air condition components, non-availability of maintenance data for the maintenance teams, hence no planning or capital replacement plans for ageing equipment or life cycle analysis could or were carried out, which means the team are always in a fire fighting (reactive) mode, 11 no maintenance technology were employed in the execution of maintenance activities as the team relied heavily service provider technicians to physically record equipment operation data traditional measuring tools and using Microsoft excel to record and store the data, thus the data is decentralised and often not available when need. In addition, the following are traits of a bad maintenance culture; apathy, blame, tension between the operations and maintenance, frustration or anger, mistrust, high staff turnover, time and resources waste, excessive personnel errors, an ageing work order backlog and frequent unscheduled maintenance activities (Fitch, 2020). 1.2 Problem Statement As discussed in the previous section, SAGRE is facing new and complex challenges that necessitate the development of a digitalised and modernised maintenance management of its built assets in the facilities management environment. The following problems have been identified in an exploratory study based on discussions in Chapter 1 and follow on in Chapter 2: Problem 1: Lack of an optimal maintenance strategies are selected and implemented in the asset management. Problem 2: Lack of digital assessment and readiness of AGRE for digitalised maintenance. Problem 3: Lack of a specified approach for the design and implementation of a digitalised maintenance. 1.3 Purpose and Objectives The purpose of this research thesis is to address these problems, with the primary goal to enable maintenance in a digitalised facilities management environment using Smart maintenance concept. To achieve this, one would first need to understand what Smart maintenance is, how it can be used in digitalising maintenance in a facilities management and reduce costs in the case study organisation. The aim based on the research problems and questions is: To develop a Smart Maintenance Framework that a UAE FM Organisation can use to modernise and enhance its Asset Management. The research seeks to understand the current knowledge of Smart Maintenance concept by the FM organisations in the UAE, exploring the extent to which Smart maintenance is understood, develop a Smart maintenance framework that can be used by FM organisations in the UAE, to modernise, reduce maintenance costs and enhance the delivery of its FM services. Following on from the purpose, the following objectives are derived: 12 Research Objective 1: To understand what maintenance strategies and how they are selected for implementation by the case study organisation; Research Objective 2: To develop Smart Maintenance framework which can be implemented; Research Objective 3: To evaluate the value add of Smart maintenance to the case study organisation through a pilot study on HVAC system of a building. 1.4 Research Questions In order to achieve the purpose and objectives mentioned above, the following research questions have been formulated: Research question 1: What maintenance strategies are used by AGRE maintenance teams? Research question 2: How can Industry 4.0 (Smart maintenance) be designed and implemented in AGRE? Research question 3: How can Smart maintenance be operationalised? Research question 4: What are the tangible benefits of Smart maintenance to AGRE from the pilot test carried out? 1.5 Relevance and Limitations The importance of maintenance in improving AGRE’s asset management practices and profitability can be related to studies by (Waeyenbergh & Pintelon, 2002; Al-Najjar, 2007; Sandberg, 2013; Cachada et al., 2018), who all indicated the importance of maintenance in assisting manufacturing industries in enhancing their productivity and profitability. It is evident that new maintenance strategies will have positive impact on the effective management of assets. (Algabroun, 2020) also mentions that advancement technology within manufacturing meant maintenance strategies and methods had to be developed to suit the new demands. With the ever-increasing demand by real estate customer means that new maintenance paradigms have to be developed to meet this demand. The findings of this research investigation aim therefore to provide knowledge that can be used AGRE asset operations department and can be also utilised by other facilities management organisations in the UAE. The limitations of this thesis are as follows: The research investigates into the maintenance practices at AGRE, with asset management related to the real estate in the UAE. Investigate into the development of digitalise maintenance in AGRE asset management. For determine the tangible benefit of Smart maintenance, only one element HVAC was used in the target study. 13 Since digitalised maintenance in facilities management is a new concept and not fully realised, the study relies heavily on what has been done in the manufacturing industry through relevant literature and exploratory investigations. Future additional research work is required to minimise the limitations list above. 1.6 Organisation of the research report Figure 3: Research Methodology. The outline of the research thesis report is made up of 7 chapters, see Figure 3. The contents of each chapter are summarised below: Chapter 1: This chapter presents the background information for the research relevance, highlights the statement of problem leading to the research question, motivation for the research, potential gaps, aims and objectives, introduces the research questions, including the scope, limitations and the organisation of the research thesis. Chapter 2: provides an overview of maintenance management strategies, evolution of maintenance, maintenance management in the context of facilities management and smart maintenance as well review of previous research studies related to maintenance management, procedures and practices, methodologies, and smart maintenance. Chapter 3: details the current FM services provision in the UAE and discusses how maintenance plays a critical role in the management of the build assets of organisation in the case of the case study organisation. SAGRE is chosen as the case study organisation due to it 14 size and strategic representation of a typical facilities management organisation that employs maintenance strategies to manage its portfolio of assets. An overview of SAGRE organisational structure, vision, mission and strategy is also presented here. Chapter 4: details the research methodology used for the collection of data: survey questionnaires, interviews and observations, while the researcher was part of the case data analysis of the data collected. Chapter 5: presents the results of the initial research survey, investigations, observations including the identification of prevailing maintenance related issues at the case study organisation, patterns and trends observed, knowledge and understanding of Smart maintenance concept and practices as well as any other parameters which could affect the effective operation of maintenance activities at the case study and the discussion of the results. Chapter 6: examines the current maintenance strategies in term of time and cost when a complaint needs to be attended. This allows duplications and unproductive time to be identified and quantified. By incorporating the concept of a smart maintenance management framework, substantial changes to the current maintenance practices would be proposed. The validity of the proposed Smart maintenance framework will have to be assessed in a limited way through field trials and from the pilot test conducted on site. Chapter 7: provides conclusions on the key findings from the research study with some recommendations for implementing Smart maintenance concept in a UAE facilities management organisation and research gaps suggestions for future work. 15 1.7 References 1. Adamu, A.D. & Shakantu, W.M.W. 2016. 'Strategic Maintenance Management of Built Facilities in an Organisation'. International Journal of Economics and Management Engineering., 10(4), pp. 1091–1094. 2. AGRE. 2022. Welcome to Al Ghurair Group. Available at: https://www.alghurair.com/ (Accessed: 30 October 2022). 3. Al-Najjar, B. 2007. 'The lack of maintenance and not maintenance which costs: A model to describe and quantify the impact of vibration-based maintenance on company’s business'. International Journal of Production Economics., 107(1), pp. 260–273. Available at: https://doi.org/10.1016/j.ijpe.2006.09.005. 4. Al-Turki, U. 2011. 'A framework for strategic planning in maintenance'. 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