Closing the Gap - Technology Impact on Building Operations
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Closing The GapTechnology Impact on Building Operations
Cliff WardManager of Strategic Programs
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Dude Facts:8,600+ Organizations
5.5B sq ft Facilities Managed
$3B/yr Energy Spend Tracked
2M Users in Active Accounts
1M Work Orders/mo Processed
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A Closer Look:200+ US-Based Employees
Award-Winning Support
Industry Leading Reliability
Pure Cloud Since Day 1
Leadership in Cloud + BMS
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www.facilitydude.com
“The Good Dude”Each year, we give:– 1% of employee working time– 1% of sales via monetary donations– 1% of product services to under-served rural
schools and non-profit organizations– Technology hardware donations to non-profit
organizations
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Today’s Topics
1. Update on the Operating Environment– Economic Trends– Technology Trends– Capital Project Realities
2. Integration of Building Control Technology & Cloud-based Management Tools
3. How do we move the needle?We need real ROI!!!
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Let’s Look at the Current Operating Environment
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Economic Environment:“The Perfect Storm”
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Economic Environment:“The Perfect Storm”
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History of CuttingAsset Maintenance
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Economic Environment:“The Perfect Storm”
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Aging EquipmentNear/Past Design Life
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Economic Environment:“The Perfect Storm”
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CapEx Funding LimitedCurrent & Projected
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Economic Environment:“The Perfect Storm”
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Operational Costs Continue to Spiral(Energy, Water, Wages, etc.)
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Economic Environment:“The Perfect Storm”
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Lean Maintenance Staff Behind in Technology Adoption
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Results in Run-To-FailEnvironment
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“The state and local government sector continues to face near-term and long-term fiscal challenges that grow over time.”
US Government Accountability OfficeState and Local Government’s Fiscal Outlook
April 2012 Update
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“The model’s base case simulations show that the fiscal position of the sector will steadily decline through 2060 absent any policy changes.”
US Government Accountability OfficeState and Local Government’s Fiscal Outlook
April 2012 Update
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2060
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How Are Cities Dealing with Recent Budget Shortfalls?
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Source: National League of Cities; Research Brief
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7:3Ratio of Retiring vs. New
Skilled Maintenance Technicians
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Linus may have the right idea!
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A Brief History of Computing…
40+ Years Ago – Mainframe w. Screen; Apps on Server Only
30 Years Ago – PC Revolution; Apps on Desktop; Data/Processing @ Server
20 Years Ago – PC Connected to Internet;“Read Only” web; Apps on Desktop
10 Years Ago – PC Specs Not As Important; Apps Start Moving Back to Servers
Modern web, a.k.a. “The Cloud” emerges
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CONNECTIVITY.
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Adoption of High-Speed Internet, 2000-2013
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$2000+2000
$382013
US AVERAGE MONTHLY COST FOR HIGH SPEED
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25% of IT Budget
to the Cloud($20B)Why?
• Efficiency• Agility• Innovation
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What is This?
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And now?
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What Expectations Do Your Customers Have?
Do You Think This is a Trend?
How Do You Respond?
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Internal Customers(Your Team, Admin & Colleagues)
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Online Bill Payment
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Online Work Management
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External Customers(Community, Partners & Citizens)
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Simple Search
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Simple Request
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Key Takeaway:
As Technology Advances Around Us…
…Expectations Increase, too.
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Is this an IT Lecture?No, but the world is changing,
and it affects YOU.
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The Role of Information Technology Professionals is Changing.
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The Changing Role of IT Dept
• Understand that the world of technology is changing – and your IT department may be working overtime to keep up.
• Trend: More governance, less hands-on• If you are bringing a new solution to the table
(e.g. Cloud-Based Software) be prepared for “lukewarm reception”
• Policies and Procedures for Cloud?
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Building Controls and IT
• BAS Controls are increasingly piggybacking IT infrastructure
• Introduces new security requirements and potential threat vectors
• Education & training requirements for field technicians is changing
• Opening big doors of opportunity for what you can do with the data OUTSIDE the building
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What Have We Learned So Far?
• Bleak budget outlook; no quick relief• Capital dollars very limited• Skilled labor is leaving; not replaced• Customer expectations increasing• Role of IT has evolved; Prepare yourself!• BAS+IT is opening new doors; but be careful
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Please Raise Your Hand If All Your Buildings
Look Like This…
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Gorecki Alumni CenterUniversity of North DakotaLEED Platinum – Built 2012
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Ohlone CollegeNewark Center for Health Sciences and Technology
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Do Some, If Not a Majorityof Your Buildings Look
More Like This?
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Our Reality is…
Can’t Tear Down and RebuildEvery Facility in our Portfolio.
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So we must…
Find new ways of doing things to maintain safe and functional
buildings for occupants & citizens.
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What Does the Dude Have to Say About That?
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The next-generation of management tools are moving to the web.
Buildings are getting smarter and generating critical performance data.
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What is CMMS?
Computerized Maintenance Management Software
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Software used to track the business processes around facility maintenance and energy
operations.
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Why Should We Use It?
Documentation, Accountability, Efficiency and more…
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What Other Systems Exist?
Do you recognize any of these?
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Some Alternatives to CMMS…
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FOEFFMS
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FOEFFMS
“Folder of Excel Files Facility Management System”
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HNETWFMS
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HNETWFMS
“Hope Nobody Erases the Whiteboard Facility
Management System”
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FPNFMS
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FPNFMS
“Fish Post-it Note Facility Management System”
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FPNFMS
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Core Features
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Core Features
Create Work Items(Manual or Automated)
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Core Features
Prioritize & Assign Work
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Core Features
Record Transactions(Labor & Materials)
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Core Features
Manage Assets(Equipment & Vehicles)
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Core Features
Track Inventory
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Core Features
Report and Analyze
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Impact of Preventive Maintenance on Operations
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BENEFITS OF A SUCCESSFUL PM PROGRAM
• Fewer Failures - A timely PM program usually uncovers problems before they become serious enough to cause equipment failures. Breakdowns can be reduced by 50 percent.
• More Planned Work - The timeliness of preventive maintenance inspections usually uncovers those major jobs that require planning. Sufficient lead time allows planning to be done.
• Fewer Emergencies - An effective PM program has every maintenance employee on the alert for things that cause problems. As a result, fewer problems that would cause an emergency situation escape detection. Emergency work can be reduced by half.
• Reduced Overtime - One of the largest contributing factors to overtime is the need to perform emergency work. A reduction in emergency work usually produces a corresponding decrease in overtime.
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• Extended Equipment Life - PM invariably rewards its users by extending equipment life by as much as 20 percent and increasing dependability.
Better Use of Maintenance Personnel - A job done under emergency conditions is 15 percent more costly in labor than a similar, well planned job. A maintenance department with a good PM program commits more staff to planned work. The result is more effective, productive use of this manpower.
Improved Equipment Operation - Well-cared-for equipment is its own reward - it runs better.
Less Downtime - Because the PM program can reduce emergency work, it follows that downtime can also be reduced.
“Benefits of a Successful PM Program” is taken from Complete Building Equipment Maintenance Desk Book Second Edition, Edited by Sheldon J. Fuchs, P.E. Page 19 in the chapter by Paul D. Tomlingson.
BENEFITS OF A SUCCESSFUL PM PROGRAMContinued…
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A National Study on Preventive Maintenance
• 6,000 clients live operational data analyzed • Identification of “PM Masters”– Top deciles within peer group– Allocating high percentage of manpower
to PM work orders (> 30%)– High PM work order completion rates (> 98%)– Sustained over a significant period
of time (> 3 years)
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PM Reduces Corrective Work
• Over a 5-year period, a sampling of PM Masters garnered a 16% reduction in corrective maintenance.
• Corrective work as a percent of the total work is reduced from 87% to 71% of the total work performed.
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Rate of Emergency Work
Rate of Emergencies Average for Group
Rate of Emergenciesfor PM Masters
Reduction in EmergenciesPM Master Group
1.89% 1 out of 53 work
orders
0.67%1 out of 147 work
orders
64.5%In emergency work
orders
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Cost Impact
• 50% - 65% reduction in the rate of emergency work
• Lower cost per work order with the average cost per work order being 28.6% to 39.3% less
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Jones Lang LaSalle PM ROI Study
Developed a Financial Model
-14 Million square feet mixed property type…-Question to be answered…Is devoting 30-50% of maintenance budget to PM activity justified?
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Establish $ per sq/ft for PM Work
Jones Lang LaSalle PM ROI Study
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545% ROI in a PM ProgramJones Lang LaSalle PM ROI Study
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One Example• 10- year old, 7 HP Air Compressor• Replace- $32,900 – 25 Year Outlook• $472 per year PM Work Order. $944 per repair• With PM Program ($50,600)- 20 year lifespan. 1 of
every 4 years at $944 per repair ($472/yr PM, $236 a year Repair) Replaced in year 10-
• Without PM ($73,675)- 16 year lifespan. 1 of every 3 years repaired. ($315/year repairs) Replaced at year 6 and year 20.
Jones Lang LaSalle PM ROI Study
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Major impact of PM on one large piece of equipment
• Average building chiller is 350 tons.• Replacement cost @ $1000/ton = $350,000.• Maintenance cost with PM costs only
$5,500/year, yet adds 5-7 years of life to chiller.
Jones Lang LaSalle PM ROI Study
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BAS (Building Automation Systems) Impact on Facility Management
Business Processes
Respond to & Document Critical Conditions
Transition to Condition-Based PM
Monitor & Measure Long-Term Building Health
Reduce Labor & Energy Costs of Event Schedule
Management
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Time-Based Metrics of Work Flow• Mean Time to Report• Meant Time to Respond• Mean Time to Repair• Total Outage Time• Mean Time Between Failures
Cloud-enabled work management drivesstep change in metrics; not incremental changes
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1. Leverage Your Investment in Building Controls to Generate
Timely, Accurate Work Orders
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Smart Equipment Generating Work Orders
• Intelligent Filtering & Duplicates Prevention
• Step Change Reduction in Mean Time to Report
• Immediate Documentation in System of Record
• Real-Time Data Included in Work Order
• Automate Routing to Internal/External Resources
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2. Use control points and runtime values to reduce dependency on calendar-based
preventive maintenance.
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Proactive PM with Automated PM Work Orders
• Move from Calendar-Based to Condition-Based
• Utilize Runtime Values & Other Sensor Data
• Combine the Intelligence of BMS w/ CMMS Suite
• Goal to Reduce Life-Cycle TCO & Increase Agility
• Full Integration to Core Work Order Application
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3. Monitor key performance indicators of system health to watch for negative trends.
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Automated Continued Commissioning
• Monitor key systems & health index
• Breach of threshold creates a work order
• More accurate equipment life cycle analysis
• Real-time data included in work order
• Automated routing to appropriate resources
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4. Reduce admin labor and energy expenses of facility rental & event usage by connecting
schedules to controls.
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Automated Facility Event Scheduling
• Creates efficient process to handle community requests for public spaces
• Improves productivity and coordination among everyone involved in the process.
• Increases energy savings by conditioning the spaces only when needed
• Tracks the facility usage, costs recovered and other relevant information
• Reduces liability by managing the necessary documentation
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Take Home Money Makers!
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Take Home Money Makers!Regarding IT Departments…
• Build a bridge to IT staff sooner than later!
• Leverage existing IT infrastructure for BAS deployments.– Reduce duplication– Take advantage of existing security
• Bring IT into discussion early in process; reduce snags downstream
• Do some fact finding on policies, if they exist
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Take Home Money Makers!Regarding BAS Controls…
• If you have BAS in place already – what is available?
• Check for underutilized features in your existing system? (e.g. Did you turn off most alarms?)
• How can you maximize that investment?
• Determine which external technologies can you connect to and take advantage
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Take Home Money Makers!Regarding Work Management…
• Condition-based PM can help free-up man-power for other tasks
• PM Masters garnered a 16% reduction in corrective maintenance work
• 50+% reduction in Emergency work orders; 28-39% lower $/wo
With top performing PM program – supported by technology can you reallocate resources?
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Take Home Money Makers!Regarding Work Management… (cont’d)
• Automated work orders from equipment help to reduce impact of catastrophic failures.Don’t let a boiler flame failure turn into a frozen pipe issue!!!
• Know before they do and allow equipment self-request
• Author your dispatching/routing policy to match
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Take Home Money Makers!Regarding Facility Scheduling…
• Are you conditioning your spaces to optimize energy & maintenance costs?
• Do customers have visibility into process & ability for self-service of requests? (Save $$)
• Check for space / zone alignment to see if you can improve granularity of your conditioning requests
• Can you automate some of your building zones based on event schedules?
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