CFM cheat sheet
CFM · Keep the key ideas within reach.
Operations and Maintenance
Planned maintenance ratio = planned maintenance hours ÷ total maintenance hours; a target above 80% indicates a predominantly proactive program.
Overall Equipment Effectiveness (OEE) = Availability × Performance × Quality; world-class benchmark is 85%.
Mean Time Between Failures (MTBF) = total operating time ÷ number of failures; Mean Time To Repair (MTTR) = total repair time ÷ number of repairs.
Preventive maintenance frequency is set by the manufacturer's interval, failure history, or condition-monitoring thresholds, whichever is more restrictive.
Condition-based maintenance triggers work when a measured parameter (vibration, temperature, oil particle count) crosses a defined alarm limit, not on a calendar.
A work order is not closed until labor hours, parts consumed, and failure codes are recorded; incomplete closure corrupts MTBF and cost-per-maintenance metrics.
Criticality ranking uses consequence of failure (safety, environment, production, cost) multiplied by likelihood; assets in the top tier receive formal failure-mode analysis.
Spare-parts min/max levels are set from lead time demand plus safety stock; a part with no movement in 24 months is a candidate for obsolescence review.
Project Management
Critical path is the longest duration path through the network; its total float is zero, so any delay on it delays project completion by the same amount.
Total float = late start − early start = late finish − early finish; free float is the amount an activity can slip without delaying its successor's early start.
Earned Value: CV = EV − AC; SV = EV − PV; CPI = EV ÷ AC; SPI = EV ÷ PV; a CPI below 1.0 means cost overrun per unit of work performed.
Estimate at Completion (EAC) = BAC ÷ CPI when current cost performance is expected to continue; EAC = AC + (BAC − EV) when remaining work is expected at budget rate.
A change order requires documented scope, schedule, and cost impact plus formal approval before work proceeds; undocumented changes are the leading cause of scope creep.
Risk register entries carry probability, impact, response strategy (avoid, transfer, mitigate, accept), owner, and trigger; review at every status cycle.
A project charter authorizes the project and names the project manager; without it the manager lacks authority to commit organizational resources.
Lessons-learned capture occurs at milestones, not only at closeout, so corrective actions can still influence the current project.
Finance and Business
Net Present Value = sum of cash flows ÷ (1 + r)^t minus initial investment; accept projects with NPV greater than zero.
Return on Investment = (gain from investment − cost of investment) ÷ cost of investment, expressed as a percentage.
Payback period = initial investment ÷ annual net cash inflow; it ignores cash flows after payback and the time value of money.
Life-cycle cost includes acquisition, operating, maintenance, and disposal costs; lowest first cost is not lowest life-cycle cost.
Straight-line depreciation = (asset cost − salvage value) ÷ useful life; it produces equal annual expense regardless of usage.
Operating budget covers recurring expenses within one fiscal year; capital budget covers assets capitalized and depreciated over multiple years.
A variance is favorable when actual revenue exceeds budget or actual expense is below budget; unfavorable is the reverse.
Break-even volume = fixed costs ÷ (unit price − unit variable cost); below that volume the operation loses money on a contribution basis.
Leadership and Strategy
SWOT analysis pairs internal strengths and weaknesses with external opportunities and threats; strategies are built by matching internal capability to external condition.
SMART goals are Specific, Measurable, Achievable, Relevant, and Time-bound; an objective lacking a measure or a date is not SMART.
Situational leadership matches style to follower readiness: directing for low competence/high commitment, coaching, supporting, and delegating for high competence/high commitment.
A mission statement defines current purpose; a vision statement describes the desired future state; strategy is the chosen path between them.
Stakeholder analysis maps interest against influence; high-influence/high-interest stakeholders require active engagement and regular communication.
Strategic planning horizons typically run three to five years, with annual operating plans translating strategy into measurable departmental targets.
Transformational leadership influences through idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration.
A balanced scorecard tracks four perspectives: financial, customer, internal process, and learning and growth.
Human Factors
Human error is best treated as a symptom of system design; the hierarchy of controls is eliminate, substitute, engineer, administrate, then PPE.
The Swiss-cheese model holds that accidents occur when holes in multiple defensive layers align; single-layer defenses are insufficient for high-consequence tasks.
Fatigue degrades vigilance and reaction time; shifts exceeding 12 hours or cumulative weekly hours above threshold raise error rates measurably.
Ergonomic risk factors are force, repetition, posture, vibration, and contact stress; reducing any one lowers musculoskeletal injury probability.
A just culture distinguishes human error (console), at-risk behavior (coach), and reckless behavior (sanction), encouraging reporting without punishing honest mistakes.
Workload follows an inverted-U curve; both underload and overload reduce performance, so task allocation must target the middle range.
Checklists are effective for sequential, stable, high-consequence tasks; they fail when steps are ambiguous or the checklist becomes too long to complete.
Behavior-based safety observation records safe and at-risk acts, then delivers feedback; it measures behavior, not outcome, so it predicts injuries earlier.
Communication
Communication process: sender encodes, channel carries, receiver decodes, feedback confirms; noise at any stage distorts the message.
Active listening requires paraphrasing and confirming understanding; it reduces misinterpretation more than repeating the original message louder.
The 7 Cs of communication are clear, concise, concrete, correct, coherent, complete, and courteous.
Written communication is preferred for contractual, safety, and regulatory matters because it creates an auditable record.
Upward communication carries status and risk to decision-makers; filtering at each layer is the main cause of late bad news reaching leadership.
Nonverbal cues (tone, posture, eye contact) carry a large share of interpersonal meaning; incongruence between words and body language erodes trust.
A communication plan specifies audience, message, channel, frequency, and owner; without an owner, messages lapse.
Cross-cultural communication risk rises with idiom, humor, and indirect phrasing; plain language and explicit confirmation reduce it.
Quality
Deming's PDCA cycle is Plan, Do, Check, Act; it drives iterative improvement and is the backbone of ISO management-system standards.
Common-cause variation is inherent to the process and requires management action; special-cause variation is attributable to a specific event and is investigated immediately.
A control chart signals special cause when a point falls outside control limits, or when seven consecutive points fall on one side of the centerline.
Cp = (USL − LSL) ÷ 6σ measures potential capability; Cpk = min[(USL − μ), (μ − LSL)] ÷ 3σ measures actual capability and penalizes off-center processes.
Six Sigma targets 3.4 defects per million opportunities; the DMAIC sequence is Define, Measure, Analyze, Improve, Control.
Pareto analysis applies the 80/20 rule: a small number of causes produce most defects, so effort is prioritized by frequency or cost.
A root-cause analysis continues until the cause is actionable and systemic; stopping at human error is generally premature.
Quality assurance focuses on process (prevention); quality control focuses on product inspection (detection).
Real Estate and Property Management
Net Operating Income = effective gross income − operating expenses; it excludes debt service, capital expenditures, and income tax.
Capitalization rate = NOI ÷ property value; a lower cap rate implies a higher price per dollar of income and typically lower perceived risk.
Gross rent multiplier = property price ÷ gross annual rent; it is a quick screening tool that ignores operating expenses.
A lease abstract records term, rent escalations, renewal options, expense pass-throughs, and termination rights; it is the property manager's operating reference.
Triple-net (NNN) leases shift taxes, insurance, and maintenance to the tenant; gross leases keep them with the landlord.
Deferred maintenance raises near-term capital need and reduces achievable rent; a property condition assessment quantifies it before acquisition.
Occupancy rate = occupied rentable square feet ÷ total rentable square feet; economic occupancy accounts for concessions and delinquency.
ADA and local code compliance obligations attach to the property owner and are not transferred by lease language alone.
Technology
A CMMS stores assets, work orders, and maintenance history; the value depends on complete, consistent data entry at work-order closure.
A building automation system (BAS) controls HVAC, lighting, and energy setpoints; trend logs are the primary diagnostic data source.
IoT condition sensors stream vibration, temperature, and current data; alarm thresholds convert raw readings into actionable work requests.
Preventive maintenance schedules generated automatically from the CMMS reduce missed intervals versus manual calendars.
Mean time to recovery for critical systems depends on documented backup, failover, and tested restoration procedures, not on backup existence alone.
Cybersecurity baseline for operational technology: network segmentation, patched firmware, least-privilege accounts, and logged remote access.
BIM models support space and asset management after handover when the as-built model is maintained; unmaintained models decay quickly.
KPIs from technology systems (OEE, energy use intensity, work-order backlog) are only comparable when definitions and data sources are standardized.
Sustainability
Energy Use Intensity = annual energy consumption ÷ floor area; it normalizes consumption across buildings of different size.
Scope 1 emissions are direct (on-site fuel combustion, fleet); Scope 2 are purchased electricity and heat; Scope 3 are value-chain emissions.
A greenhouse gas inventory is reported in CO2-equivalent, converting each gas by its global warming potential.
ENERGY STAR Portfolio Manager benchmarks a building against similar buildings and produces a 1–100 score; 75 or above qualifies for certification.
LEED certification awards points across categories including energy, water, materials, and indoor environmental quality; certification level rises with point total.
Water efficiency measures include low-flow fixtures, leak detection, and cooling-tower conductivity control for blowdown.
Waste diversion rate = mass diverted from landfill ÷ total waste generated; it is the standard circular-economy metric.
Renewable energy procurement options include on-site generation, power purchase agreements, and renewable energy credits; each has different accounting treatment.
Emergency Preparedness and Business Continuity
Business impact analysis identifies critical functions, their maximum tolerable downtime, and the resources they depend on; it precedes recovery strategy selection.
Recovery time objective (RTO) is the target time to restore a function; recovery point objective (RPO) is the acceptable data loss measured in time.
The emergency response sequence is mitigate, prepare, respond, recover; each phase has distinct plans and exercises.
A tabletop exercise tests plans and decision-making without operational disruption; a functional exercise tests actual response actions.
The incident command system uses a common structure: incident commander, operations, planning, logistics, and finance/administration.
Evacuation plans require primary and alternate routes, assembly points, accountability methods, and assigned floor wardens.
Continuity strategies include redundant suppliers, alternate sites, cross-trained staff, and manual workarounds for critical systems.
Plans must be reviewed after every exercise, actual event, and significant organizational change; an unreviewed plan is presumed stale.