CFM study materials
CFM study resources

CFM cheat sheet

CFM · Keep the key ideas within reach.

Quick reference

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.

Quick reference

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.

Quick reference

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.

Quick reference

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.

Quick reference

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.

Quick reference

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.

Quick reference

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).

Quick reference

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.

Quick reference

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.

Quick reference

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.

Quick reference

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.