What are 'Facility Operations'

Facilities operations refers to the management of all of the processes, people and assets required for facility to do what it is designed to do. Facility operations typically includes the day to day operations of the facility, as well as consideration and execution of future maintenance and improvement needs. Depending on the industry, each facility will have different operational procedures and requirements. Facility operations may also be referred to as "facility management" or "facilities management." Individuals whose main job function is facility operations may be referred to as an "operations manager," "general manager," or "facilities manager."

Breaking Down 'Facility Operations'

Facility operations is a management discipline that focuses on the efficient operations of a variety of enterprises, from retail stores, factories, offices, storage facilities, campuses, hospitals, warehouses or other commercial spaces and facilities. The main concern in facility operations is operational in nature, such as ensuring that day-to-day management meets the objectives of the organization. There are also strategic concerns, as well, such as an imperative to follow best practices, meet productivity and efficiency standards, and satisfy legal and safety requirements.

An example would be a manufacturing facility. It could be broken down into process, production and maintenance departments with each department having teams to oversee. The facility operations are the way each department and the teams work and help the manufacturing facility attain its goals.

Facility Operations: Key Responsibility Areas

Facility operations includes a number of key duties and disciplines, such as:

  • Maintaining an inventory of physical assets and the management of those assets.
  • Tracking the maintenance of facilities and physical assets, from preventative maintenance to scheduled maintenance to emergency repairs.
  • Knowledge and use of computer systems for utilizing and managing facilities.
  • The creation, maintenance and use of facility-specific manuals to assist with the processes, methods, equipment and tools, as well as the maintenance schedules that must be adhered to manage a facility. 
  • Management of maintenance staff, as well as consideration of how they can operate most efficiently.
  • Project management: given that the requirements of facility operations spans so many disciplines, facility operators must be able to effectively define and prioritize needs, manage costs and procedures, and execute various management and maintenance projects simultaneously.
  • Consideration and implementation of sustainable practices.
  • Conducting risk management assessments and proposing and executing on corrective measures.

Some additional areas that may fall under the aegis of facility operations include: fire safety, security, cleaning, business continuity planning, space allocation, and equipment inspections.

  1. Credit Facility

    A credit facility is a type of loan made in a business or corporate ...
  2. Block Trading Facility - BTF

    A wholesale trading facility that allows traders to buy or sell ...
  3. Prime Underwriting Facility

    A kind of revolving underwriting facility. Prime underwriting ...
  4. Facility

    A facility is formal financial assistance program offered by ...
  5. Uncommitted Facility

    An uncommitted facility is an agreement where the lender agrees ...
  6. SEC Form U-7D

    A certificate that summarizes the leasing arrangements of any ...
Related Articles
  1. Retirement

    Pros and Cons of "Small-Home" Care Facilities

    Intimate alternatives to traditional large nursing homes are gaining popularity. Could one of them be right for you or a member of your family?
  2. Insurance

    Investing In Healthcare Facilities

    Read on to learn about how to value heathcare sector stocks.
  3. Investing

    UPS to Expand Columbus Distribution Facility (UPS)

    UPS received an economic incentive to expand its facility in Columbus, Ohio.
  4. Retirement

    How to Find the Right Retirement Community

    You're going to be spending a lot of time there, so invest time and thought into which retirement community you pick – before you invest your money.
  5. Insights

    Private Prison Stocks Hammered by DoJ Phase-Out (CXW, GEO)

    The Department of Justice is taking steps to end its use of private prison contractors, which sent their stocks down nearly 40% Thursday.
  6. Investing

    Welltower Buys 19 VSL Properties for $1.15 Billion

    Specialty real estate investment trust Welltower (NYSE: HCN) has acquired an expansive set of assets. The REIT, which focuses on senior care facilities, announced it has agreed to purchase a ...
  7. Investing

    Why Do Hedge Funds Love Cheniere Energy? (LNG)

    On the surface, Cheniere Energy (NYSEMKT: LNG) looks like the prototype for an overvalued stock. It doesn't generate any operational profits and its price-to-sales ratio of 106 times is high ...
  8. Retirement

    Don't Pick The Wrong Type Of Retirement Community

    The names sound similar – continuing care, assisted living – but retirement communities differ widely. How to tell them apart and what you'll need to pay.
  9. Investing

    A Senior Play In Senior Housing

    With millions of Baby boomers retiring, that leaves opportunities for investors to profit. One way is through senior living real estate.
  10. Investing

    Sears Borrowing More Money

    Say what you want about Sears (NASDAQ: SHLD), but the once-proud retailer has been putting up a mighty fight as it struggles to survive. The department store chain, which faced vendor problems ...
  1. What are examples of key operating activities in a company?

    Discover the things that make up a company's operating activities, including examples of some the key operating activities ... Read Answer >>
Hot Definitions
  1. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
  2. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
  3. Financial Risk

    Financial risk is the possibility that shareholders will lose money when investing in a company if its cash flow fails to ...
  4. Enterprise Value (EV)

    Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market ...
  5. Relative Strength Index - RSI

    Relative Strength Indicator (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent ...
  6. Dividend

    A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
Trading Center