Value Chain for Facilities Management

Title of abstract: Value Chain for Asset Maintenance – A New Dimension of “Porter’s Value Chain”.


Objectives and context

For the past decade Asset Maintenance has been considering as an expenses or cost burden in order to put and keep the building asset in an acceptable condition. However, according to value chain approach, asset management activities can act as a factor of production lieu of just a cost burden which only to minimize as usual. A new value chain which in concerning the asset maintenance is proposed. Also, characteristics of asset maintenance, value management, co-creator effect of sustainability will be considered thereto. A case of Class A Commercial Building in New Kowloon will be used as an illustrative example in establishing a value chain for asset maintenance.


For this empirical research, we are based on a literature review and empirically collected data. The literature review is focused on value chain model, asset maintenance and sustainability. The literature review has been accomplished based on different sources, through specific searches in the university library e-resources database with also government documents, e-resources, audiotapes, videodiscs and photographs.

The empirical part is by an illustrative case study of value chain model from an asset management organization. The empirical data was obtained via semi-structured interviews with top management people in such asset management organization.


Proposed Value Chain Model for Asset Maintenance:

  • Planning and Scheduling - Determine scope and resources allocation requirement Schedule specific time to facilitate job 
  • Execution - Carry out maintenance work Provide supervisionŸ Feedback on progress and completion
  • Improve or Enhancement of Operational Capacity of Real Estate Portfolio, Compliance, maintenance and renewal, Sustainability considerations
  • Measurement and Feedback - Collect data for process evaluation, Sustainability Audit, Feedback to customer or client
  • Work Request, Ÿ Identify, evaluate, document and quantify job 


A new value chain which in concerning the asset maintenance is proposed New opportunities arise that integrate both capacity and sustainability ideas. Such co-created effect is feasible to deliver benefits greater than the sum of the individual components. A intelligently well-planned sustainability could improve not only the environmental performance of building but also resulted in cost benefits accordingly.

Posted by: Kwok Wai Ho Darrell, Chief Technical Manager, ISS Facility Limited, Hong Kong (15-Aug-2016)
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