FACILITY MANAGEMENT –

INDIA
2009 - 2010

By Yogesh Kende
1
 Meaning of Mall
• A large, often enclosed shopping
complex containing various stores,
businesses, and restaurants usually
accessible by common passage
ways.
• A street lined with shops and closed
to vehicles.
• A shady public walk or promenade.

2
South China Mall

Location: Dongguan,
China
Year Opened: 2005
Gross Leasable Area:
7.1 million
square feet 3
Golden Resources Shopping
Mall

Beijing, China
Year Opened:
2004
Gross Leasable
Area: 6 million
square
4
SM Mall of Asia

Location:
Pasay City,
Philippines
Year
Opened:
2006
Gross
Leasable
Area: 4.2
million
square fee

5
West Edmonton Mall

Location:
Edmonton,
Alberta, Canada
Year Opened:
1981
Gross Leasable
Area: 3.8 million
square

6
King of Prussia Mall

Location:
Philadelphia,
Pennsylvania,
USA
Year Opened: 1962
Gross Leasable
Area: 2.8 million
square feet

7
Berjaya Times Square

Location: Kuala Lumpur, Malaysia

Year Opened: 2005
Gross Leasable Area: 3.4 million

8
 Mall Management - A Growing
Phenomenon in Indian Retail Industry

9
 Executive Summary
• The Indian retail market is expected to continue
its growth trajectory into 2010.
• Mall management has been identified as a
critical factor for the success of malls and the
retail industry across the world.
• Mall management broadly includes mall
positioning, zoning, tenant mix, promotions /
marketing and facility/finance management.
• Currently, the Indian retail market lacks
designated mall management firms. Large real
estate developers and retail chains either have
their own mall management arms operating as
subsidiaries or have contractual agreements
with international property consultants.
10
 Cont…
• Till recently, mall management was
limited to facility management by a
majority of developers in India,
leading to gaps in mall management
practices.
• Given the high future supply of malls
and increasing competitiveness
within the Indian retail market

11
 What is Mall
Management?
Globally, mall management broadly includes:
1.Positioning a mall (Location, Layout and design)
2.Zoning – formulating the right tenant mix and its
placement in a mall
3.Promotions and marketing
4.Finance management
5.Facility management – Infrastructure, Traffic and
Ambience management

12
The Single Purpose of Retail
Property Development
=
Value Creation!

13
 1) Positioning a Mall
Positioning a mall refers to defining the category of
services offered based on demographics,
psychographics, income levels, competition in
neighboring areas and extensive market research of the
catchment.

For example, if the market research indicates that the

average number of households living in a particular area
belongs to the upper middle class,

An example of this practice can be seen in the

upcoming malls Select City Walk in Saket DLF’s
Emporio in Vasant Kunj.

14
 Cont…
• Positioning also refers to the location
of the shopping mall. A good location
defined in terms of factors like ease of
access via roads, good visibility, etc. is
considered as one of the prime
prerequisites for a mall. Although other
activities such as trade/tenant mix can be
revisited or redefined, the location
remains fixed, making it an imperative

15
 Positioning Includes:
a) Location
b) Layout
c) Design

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 a) Location
• The main objective of any industrial concern is to
transform raw materials into end products by utilizing
all the required resources and serving them to the
customers effectively, efficiently, economically, and
quickly.
• This is possible when the plant is of the right size,
right design, and at a place where all kinds of
production economies are available.
• Facility Location and Layout play a key role in
enhancing the plant efficiency and production
effectiveness.
• The way in which inputs are obtained and outputs are
distributed affects the location and layout decisions.

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 Factors Influencing
Location Decisions:
Many factors - can be classified into
three.
a. Market Related Factors
b. Tangible or Cost Factors
c. Intangible or Qualitative Factors

18
 Location Evaluation
Methods:
• A number of diverse factors affect the
location decisions
• Developing a formal, generic location
model is very difficult.
• A complete study of all the sites
available and identifying the optimal
one is expensive and time consuming.

19
People generally go for
satisfying decisions
instead of optimum
decisions.

20
Entrepreneurs may choose
to exercise their choice

• One choice is to have a single central

plant that produces all the products
of the company.

21
 Central Plant
Advantages: Disadvantages:
• Economies of Scale • Highly Dispersed
Suppliers
• Reduced unit cost • Highly Dispersed
by better utilization Customers
of equipment • Transportation Costs
• Dispersion of fixed • Strike
costs over more • Disaster - Fire / Flood
units

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 b) Layout:
• Physical Disposition of a Facility and its Various
Parts.
• Layout Decisions also have a Long-term
Consequence on Costs and Ability of the Firm to
Serve the Market.
• A Layout is a Physical Configuration of
Departments, Workstations, and Equipment in the
Conversion Process.
• It is the Spatial Arrangement of Physical Resources
used to Create the Product

Objective: To provide a smooth workflow of

material through the workplace.

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 Criteria for a Good
Layout:
1. Maximum Flexibility
2. Maximum Coordination
3. Maximum Visibility
4. Maximum Accessibility
5. Minimum Distance
6. Minimum Handling
7. Minimum Discomfort
8. Inherent Safety
9. Efficient Process Flow
10. Easy Identification

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 Types of Layouts:
Broadly, there are 3 Types of Layouts:
1.Process Oriented Layout
2.Product Oriented Layout
3.Fixed Position Layout

25
 Developing Layouts:
1. Mathematical Models – to Analyze
and Conceptualize
2. Computer Models – to Arrive at a
Quick Approximation
3. Physical Models – to Visualize

26
Japanese Approaches to
Layout:
• Japanese Culture Encourages Teamwork.
• When an equipment breaks down, they do not
wait for management or maintenance people.
• Main idea is work simplification and continuous
improvement Japanese changed both the physical
layout and managerial system.
• They use U – shaped assembly lines

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 c) Design:
OBJECTIVES:
• To get the inputs (material, supplies, etc) into through and
out of each facility in the shortest time practicable, at
acceptable cost.

• Design deals with the design and arrangement of physical elements

of an activity/s related to the manufacturing industry, whose
drawing represents a plant layout.

• Design analyzes, conceptualizes, designs and implements systems

for the production of goods or services.

• Design is represented as a floor plan, or an arrangement of physical

facilities (equipment, land, buildings, utilities, etc.)

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Enterprise Design
Process

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 2) Zoning:
• Formulating the Right Tenant Mix and
Its Placement in a Mall.
• Tenant mix refers to the combination
of retail shops occupying space in a
mall. A right tenant mix would form
an assemblage that produces
optimum sales, rents, service to the
community and financial ability of the
shopping mall venture.
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 Zoning refers to the
division of mall – Forum
Mall

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 Forum Mall

• The Forum Mall is designed in a ‘dog bone’ fashion, an anchor

tenant at each end and vanilla retailers in the middle.

• Landmark and Westside are the anchor tenants of this mall,

and the food court is positioned on the top floor to attract
consumers vertically up.

• Forum Mall was built in 2003 and was the first mall in
Bangalore City. Since then, six new malls have been
constructed in the city and yet the Forum Mall

• Continues to command the highest foot traffic, continuing to

32
 3) Promotions and
Marketing:
• Promotional activities and events in a mall form an
integral part of mall management.
• Activities like food festivals, handicraft exhibitions
and celebrity visits increase foot traffic and in turn
sales volumes.
• Organizing cultural events has time and again
proved vital in attracting consumers to a mall.
• Such activities may also act as a differentiator for a
mall.
• Developers can work on drafting marketing
• strategies
• for individual malls to meet the needs of the local
• consumer base and the challenges of local.

33
Promotion and Marketing at
Ansal Plaza

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 Cont…
• Regular promotional activities at Ansal
Plaza, including cultural events have
ensured a steady foot traffic in the mall
since its inception in 1999.
• The mall also has an amphitheatre
dedicated to these promotional activities.
• This has been one of the driving factors
behind the success of the mall, despite
having a less optimal mall design and
tenant mix compared with some recent
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4) Finance Management:
• Professional financial management of a mall as a
business venture is a must.
• Mall Management also covers financial management,
which involves monitoring and controlling of various
issues such as:
• Cash receipts and collection of income including
rentals, service charges, car park receipts,
• Electricity and other utility income
• Developing accounting systems to track the ageing
of debts, payment delay patterns, bad debts.

36
5) Facility Management:
• Facility management refers to the
integration of people, place, process
and technology in a building 5 Vanilla
retailers refer to single-brand shops.
• It also means optimal utilization of
resources to meet organizational
needs.
• It broadly includes Infrastructure,
Ambience and Traffic management.
37
 a) Infrastructure
Management:
• Infrastructure management refers to
the management of facilities provided
to the tenants within the mall.
• This includes provision of adequate
power supply, safety issues in case of
emergency and miscellaneous issues
related to signage, water supply,
sanitation, etc.

38
Make sure that every bit of the
mall has enough infrastructure

39
 Cont…
• Infrastructure management refers to the
management of facilities provided to the
tenants within the mall.
• This includes provision of adequate
power supply, safety issues in case of
emergency and miscellaneous issues
related to signage, water supply,
sanitation, etc. Infrastructure
management also includes risk
management issues such as essential
safety measure asset liability and
40
 Cont…
INFRASTRUCUTRE REQUIRED: OCCUPANT MANAGEMENT:

• Uninterrupted Power Supply with 100% • Help desk

power backup
• HVAC with adequate redundancy • Periodic feedback
• Fire Fighting & Detection System
• Dedicated Security System • Coordinate construction of
• ETP Plant shops
• Proper Sewage System
• Water Softening & Purification System
• Billing
• P. A. System with Channeled Music • Collections
• Emergency Lighting in all areas
• Toilets - separate for customers & staff • Attending to grievances &
• Building & Floor Directories complaints
• Signages directing customers towards
elevators, toilets, fire exits, etc. • Ensure observance of rules &
regulations of the mall

41
 B) Traffic Management:
• Traffic management includes
managing foot traffic into the mall
and parking facilities.
• Foot traffic management involves
crowd management inside the
operational area of a mall.
• The flow of people is related to the
design of the mall and the spatial

42
A shopping mall underground
parking

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 C) Ambience
Management:
• The overall shopping experience provided for consumers
becomes an important factor for the success of any mall.
• Ambience management includes management of parks,
fountains and overall look of the mall.

In favorable, lush green landscaping with seating

facilities and the presence of food and beverage
inside or outside the mall can increase foot.

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Facility Management In
The Indian Context

45
 Understand FM …….
Facilities Management’s … helping Clients attract
Effectiveness is and retain good employees
Measured Through by providing an excellent
working environment
Value
‘FM
‘FM Is
Is About
About Organization
For Needs
Managing
Managing
People
Money
People and
and

ENVIRONMENT
Places
Places to
to
Infrastructure

WORKING
Achieve
Achieve Best
Best
Value Occupant
Value for
for Perceptions
Micro- Productivity
Money
Money byby environ
Balancing
Balancing C
Between
Between User
User
Needs
Needs and
and
Cost
Business
Business
Needs
Needs to
to
Achieve
Achieve
Optimum
Optimum 46
Organizational
Organizational
Sector Overview in India:

New
Delhi &
NCR
( 20%)

Mumb
ai
(10%) Pune Others
(10%) (10%)
Hyderabad
(5%) Others include
Bangalore Chandigarh, BBSR,
(35%) Chennai Indore, Jaipur,
(10%) Vizag, TVM, Calcutta
etc
Total FM Market : Rs.1225 Crores
47
Future Growth
Prospects:
FY 2007-2008

FY 2008-2009

FY 2009-2010

48
 Foreign systems in Indian
Context- do they work??-
•
Issues
FM companies are brought in at a late stage of the
project. Cost of fixing an error rises dramatically,
with highest cost during the operations phase.
• Large organization should focus on Strategic Asset
Management-Property performance, planning tools,
delivery methods etc.
• Capacity to pay to service providers is limited. Only
rich projects make use of technology /hi-tech
equipments.
• Environment, health and safety issues given less
importance.

49
 Facility Management -
Indian Context
• Growing Market, limited trained manpower hence prone to poaching.
• No training institute with a focus to FM.
• Acute manpower shortage foreseen in future.
• Vendors as business partners.
• Most facilities are over manned.
• Performance based Management fee with a fair fixed fee.
• Develop applicability of FM to all types of infrastructure like township,
factory, hospitals, airports, STPI parks, Govt. establishments etc.

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 TOWNSHIP - FM
COMPONENTS
• MUNCIPAL SERVICES
• ZONAL SEVICES

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 MUNICIPAL SEVICES
• Landscaping / Turf Management
• Lake Maintenance
• Maintenance of Utilities
• Street lighting / signage
• Street repair
• Street cleaning
• Potholes
• Sidewalk repairs
• Traffic Management and Parking Mgt
• Refuse collections
• Sanitary enforcements
• Illegal dumping
• Dead animal pickups

52
 ZONAL SERVICES
• Grass Mowing
• Housekeeping
• Pest and Rodent Control
• Security
• Electrical and Mechanical Services

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 STRATEGIC MANAGEMENT
STRUCTURE
Delivery Systems Maintenance Mgt
• Performance Plan • Preventive maintenance
• Develop process improvement • Condition monitoring
plan • Corrective maintenance
• Restructuring delivery
relationships

Service Quality Call Center/Help Desk

Measures
• Management Systems
• Health and Safety
• Staff Professional development
• Forward
complaints/reports/orders to
appropriate person
• Monitor performance
• Maintain database of all calls
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Activity

Grass & weed

Mowing
Trash Collection

Rodent Abatement

Abandoned Vehicles
AGENCY TOP
PERFORMANCE
ZONE

SY
PERFORMANCE

`
OBSERVATION

Sanitation
Enforcement
Parking Enforcement
Street/ Sidewalk
Repair
Street Cleaning
Landscaping
Dead Animal Pick Up
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 Strategic
ModernAsset
Techniques
& Facilities Audit

S.no Servi ce Item Functions Benefits Remarks

1. Prope rty Co mputer Provides Call Cent er can be
Ma nagem ent Aid ed Facitlities Centralised established
Ma nagem ent expertise for a ll
matter
2. Financial Financial 7 Levels of Single Seat
Ma nagem ent So ftware Hierarchy Interface
integrated with
CAFM
3. Utilities Building I ntero perability Energy
Ma nagem ent Autom ation Viz HVAC, Ma nagem ent
Syst em Lighting, Building Efficiency of
Access, Security, system, Cost
Fire Fighting, Red uctio n, Better
W ork inform ation
Ma nagem ent M anage ment, Cost
Red uctio n, Better
Co ntrol Actions
4. Trash Large Super Colle ction on a Systematic meth od Recycling
Collection & cans (96 pe riodic basis. All of Tra sh collection colle ction-
recycling gallons) trash is bagg ed newspaper,
Collection and p ut in a super corruga ted
can. cupboa rds, foo d &
Bags out side the bevera ges, cans,
can a re allowed glass b ottle,
only for grass meta ls, p la stic etc.
clipper & leaves. 56
S.no Service Item Functions Benefits Remarks
5. Street Cleaning Mechanical Cleaning Street Regularise
Street Cleaning for mud and litter cleaning on a
periodic basis

6. Open Area Pressure Sweeping & Efficient and

Cleaning Cleaner, Floor cleaning of large modern methods
Scrubbers, open areas of cleaning
Driers
7. Security Electronic & A centralised
access control security system
system, Digital
video
Technology
8. Turf Mowing Commonly used High Productivity &
Management Equipment; for mowing large Quality
Blade Type, open areas performance.
Reel Type, Flail
& Rotary type

Sprayers Chemical Environmental

Sprayers and Concern,
Spreader Advanced
Technology,
Computerised
Sprayers.

Seeders Large coverage

area.
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home back next
 FOR A SUCCESSFUL MALL
……
A Carefully Conceived Design and A Good Management
Team, managing the functioning of the Mall.

Modern, Convenient, Technologically Well-Equipped, Well

- Maintained / Managed and Promoted – Today’s Malls…..

Efficient Management requires: Integration of the Owner

and The Mall Management Team

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 Mall management :
planning and strategy
PROPER PLANNING
INCLUDES :

• VISITORS
MANAGEMENT
• OCCUPANTS
MANAGEMENT
• SOUND
INFRASTRUCTURE
• CREATION OF AN
AMBIENCE

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 Scope of Services
Utilities Service Management Minor Repairs
Management Management Functions
• Fire Detection and fire • Security • Quality Control • Equipments
fighting system • Electrical & Mechanical • Health and Fire Safety • Civil works
• HVAC • DG & HVAC Operations • Preventive Management • Carpentry
• Lifts & Elevator • House Keeping • Energy Management • Masonry work
• Water and Fire Pumps • Sanitary & Plumbing • Help Desk • Furniture
• Closed Circuit • Pest Control • Vendor Management & • Painting
Television System • Landscaping Procurements • Trouble shooting
• Access Control System • Office Support Staff • Tender Processing • Project Work
• Vertical Elevation • Water Effluent • Inventory Control
Systems Treatment Plant • Budgeting
• Water & Fire Fighting Maintenance
Pumps • Parking Area
• Backup Power Supply Management

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MALL MANAGEMENT : Typical
Organization Structure

61
 MALL MANAGEMENT : TYPICAL MALL
OPERATION SCHEDULE OPERATIONSCHEDULE
Descriptionof Timings Duration Remarks

Mall Timings 9AM- 9PM 12Hrs.

Major cleaningcarriedout beforeopening

of Mall for customers, inpresenceof
CleaningTime 6AM- 9AM 3Hrs. securitystaff.

Diesel Delivery 7AM- 9AM 2Hrs.

Escalators generallyrequire5-6hrs time

for maintenancework, inthepresenceof
Escalator / Lift Repairs 11PM- 7AM 8Hrs. securitystaff.

Tobecarriedout inthepresenceof
GarbageDisposal 7AM- 8AM 1Hr. securitystaff.

RequiredbyInverters and/or emergency

EmergencyLighting - - lights inall commonareas andshops.

Typical minor electrical faults inshops

Electrical Breakdown 24Hrs. 24Hrs. require10mins to40mins torepair.
Recommendation- Haveamplenumber
of electricians at all times.

Normal maintenanceof AHU's etc.

installedinshops andcommonareas.
Cleaningof filters etc. of AHU's, inthe
presenceof securitystaff for common
Air Conditioning areas andinthepresenceof shop
MaintenanceWorks 7AM- 10AM 2-3Hrs. owners for theshop.

All plumbingworktobedoneat night in

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PlumbingWork 11PM- 7AM 8Hrs. thepresenceof thesecuritystaff.
 INORBIT MALL Mumbai is an
example of a successful mall led by
good facility management

63
 Inorbit Mall in Mumbai
By K Raheja Corp is a good example of
facility management in a mall. It has
two anchor stores placed at the two
corners of the mall. There are three
entry points, one each from the two
anchor stores and another entry
directly to the mall atrium. With three
entry points, traffic management
within the mall is better organized.
64
 Cont…
• The mall also provides ample parking space
and superior infrastructure management. The
Inorbit Mall commands higher rental values of
INR 175 per sq ft per month compared with
other malls in the north-western suburbs of
Mumbai with average rental values of INR 135
per sq ft per month in 4Q06, indicating it’s
success story. The low vacancy rates at
Inorbit Mall.

65
 Indian Scenario for Mall
Management
• large Indian conglomerates such as Reliance Industries
and Aditya Birla Group are commencing their foray into
retailing across India.
• Currently, there are very few designated mall
management companies in India.
• However, big retail chains such as Future Group and some
large developers have set up their own mall management
divisions that operate as their subsidiary companies.
• Some developers such as DLF have also recently entered
into contractual arrangements with retailers.

66
 Future trends…
• The building industry is recognizing the benefits of an integrated Facility
Management Services and the trends are:
– the increased availability of industry specific software packages that can
provide for a wide range of FM requirements;
– data on assets such as buildings and equipment is being viewed as
corporate information that is best managed by the FM department
– increasing interest in web based access to the FM services for improved
access to information by the FM staff and others in the organization;
– more emphasis on business process re-engineering and staff training in
order to maximize the use and benefits of the system;
– future interfaces with building automation systems in order to achieve
further operating efficiencies.

67
In India, retail is an
emerging market having
immense potential in
terms of opportunities.

68