Introduction to Capital Planning Management Systems

Transcription

1 Introduction to Capital Planning Management Systems Scottish Healthcare Conference 2013 Michael Kwok, P.Eng. MBA Senior Vice President, Professional Services Ray Dufresne, AIA Vice President, Consulting Friday 8 th November 2013

2 About VFA Provider of software and services for endto-end capital planning and management Established 1998; privately held Headquartered in Boston, MA, USA Canadian subsidiary HQ in Burnaby United Kingdom subsidiary HQ in Reading 600 clients in corporate, education, government & healthcare markets VFA software used to manage over 4 billion square feet of facilities CAMS Facility Assessments + Capital Planning & Management Software (CPMS) + Business Process Consulting 2

3 Facilities Capital Planning Basics PLANNING ANALYSIS DATA COLLECTION 3

4 Capital Asset Management Systems (CAMS) Capital Planning Management Solutions (CPMS) / CAMS integrates services, best-practice business processes, methodology, and technology to deliver mission-critical information, enabling true lifecycle-based facilities management. Targeting Metrics Benchmarking REASSESS AUDIT Financial Modeling Capital Planning Scenario Analyses MONITOR SUCCESS Facility Condition Assessment SET GOALS Software Application Baseline Deferred Maintenance Capital Renewal Functional Needs PROCURE- MENT PLAN Consulting Services PROJECT PLANNIING CAPITAL PLANNING Implementation Aggregated Projects Accountability Strategic Procurement 4

5 Capital Asset Management Systems (CAMS) MANAGE Projects Create & manage work orders Real-time project reporting Communicate results COLLECT & MAINTAIN Facility Information Condition Functional Adequacy Capacity / Utilization Renewal DEFINE Capital Projects & Plans Annual and Long-term Renewal, Maintenance, Construction, etc. Communication to stake holders Budget level approval ANALYZE Facility Data Priorities Benchmarks Funding scenarios Budget impact Portfolio realignment 5

6 Sources of Asset Information Data Conditions Space Operations Leases Forecasts Location / Type ASSETS Equipment Inventory People Internal FM Outsourced FM Business Managers Building Occupants 6

7 Collect & Maintain Facility Information Asset Inventory and Condition Evaluation Compile facility data Include photographs and CAD drawings Create detailed descriptions of assessment findings Develop detailed cost estimates Estimate replacement values, deferred maintenance and lifecycle costs Industry standard data (e.g., R.S. Means) Accuracy Budgeting + Actionable Budgeting + Actionable Budgeting + Hot spots Budgeting VFA.auditor Systems Lifecycle Assessment Detailed Facility Condition Assessment Classify data for decision support analysis Statistical Modeling Price 7

8 Green Building Assessments Employ Integrated Design Optimize Energy Performance Protect and Conserve Water Indoor Environmental Quality Environmental Impact of Materials 8

9 Facility Condition Index and HEFCE Code Facility Condition Index (FCI) An industry-standard parametric tool used to compare relative building conditions. FCI = cost of existing requirements current building replacement value HEFCE Condition Code HEFCE A B C D FCI Index 0% 5% 11% 30% 50% 100% 9

10 NHS Ranking Protocol Ranking Protocol FCI can be linked to the NHS Ranking Protocol for Physical Condition CONDITION DEFINITION CLASSIFICATION FCI Excellent/as new condition (generally less than 2 years old). Expected to perform as intended over its expected useful service life. A 5% Satisfactory condition with evidence of only minor deterioration. Element/Sub-Element is operational and performing as intended. B 6-11% Poor condition with evidence of major defects. Elements/Sub-Element remains operational but is currently in need of major repair or replacement. Unacceptable condition. Non-operational or about to fail. Has reached the end of its useful life. C 12 30% D 31 59% Supplementary rating added to D only to indicate that it is impossible to improve without replacement. X >60% 10

11 A Centralized Repository of Asset Data Centralized asset database provides holistic view of the portfolio Common terminology and platform Data hierarchy based on organizational hierarchy Common database prevents silos of information, and allows the organization to use the same data for both strategic and tactical requirements 11

12 Building System Data Plan the information you want to collect prior to assessing sites Consider all required assets - both vertical & utilities 12

13 Use of digital photographs Photo Browser Thumbnails Zoom in Download Upload Caption Attach to buildings, systems, requirements, etc 13

14 Creation of additional ad-hoc reports Drag and drop Customize titles, notes, instructions Create calculation fields Pro tool available 14

15 Establish Priorities Crosstabs of Requirements By Category and Priority/Asset Name Region: 13 Campus: West Campus Asset Name: Timberlake Building Priority Description 1 Currently Critical 2 Potentially Critical 3 Necessary - Not Yet Critical 4 Recommended 5 Does Not Meet Current Standards Category-Priority Total Air/Water Quality , ,836 Building Code Accessibility , , ,895 Building Code Compliance 46, , , ,060 Building Integrity 802,691 1,219,480 1,699,412 4, ,726,213 Energy , ,637 Functionality 0 112, , ,308 1, ,920 Hazardous Materials , ,626 Life Safety 33, ,364 3,716 43,661 Total 882,300 1,725,882 2,306, , ,272 5,635,848 15

16 Funding Scenario Analysis Compare options based on the parameters you specify years, funding level, inflation rate, etc Funding ($Millions) FCI Green: Impact on Facilities Condition Index with level funding over 20 years Blue: Funding requirement to maintain a constant FCI Red: Funding needed to reduce FCI to 10% and then maintaining it 16

17 Applications Now That You Have It What Can You Do With Your Data? 17

18 Asset Information Management Dashboards provide critical overview of Portfolio value and conditions Funding needs Key indicators such as FCI 18

19 Scorecards: Analyze Against Evaluation System Asset Asset Size (SF) Rank By Building Energy Use Reduction Rank By Carbon Emissions Reduction Rank By Cost Green Upgrades Per SF Average of Rankings School F 108, School B 44, School A 24, School G 49, Arena 30, School C 19, School D 83, School H 90, Category of Sustainability School J 6, School K 5, Garage School E 5, School L 5, School M 3, Final Rank Point Levels for: LEED-EB O&M Certification Certified Silver Gold Platinum Existing Potential Yes No Yes Maybe Unlikely Cost Sustainable Sites ,501 Water Efficiency ,902 Energy and Atmosphere ,558 Materials and Resources ,446 Indoor Environmental Quality ,586 Innovation and Upgrade Existing/Potential Points Score Potential Level for Certification 36 Certified 348,993 19

20 Portfolio FCI Comparisons 2009 Estates Portfolio by Facility Type Portfolio Average = 11.8% FCI = cost of existing requirements current systems replacement value 60% 50% 40% FCI Range 30% 20% 10% 0% 2.6% Data Centre / Trading Floor 21.7M 8.7% Metro City Office 18.1M 11.2% Front of House (Retail) 31.3M 14.8% Secondary / Back Offices 17.6M 3-Year Backlog Shown Portfolio Size: 84 (8, 14, 32, 18, 12) 18.5% Business Continuity Site 26.5M Quickly understand condition ranges Compare building types across regions/portfolios Review asset or system condition variations by location 20

21 Capital Budgets Ranking Prioritize all needs based on organizational objectives Produce multi-year budgets 21

22 Interface with Facility Management systems 22

23 Case Study: Pilot

24 The Six Facet Approach Standard Functionality of VFA.facility Backlog Maintenance Physical Condition Statutory Compliance Environmental Management Future Functionality / Integration with NHS Scotland Property Appraisal Guidance NHS Scotland Property Appraisal Guidance Space Utilisation Functional Suitability Quality 24

25 Data Imported Statistics Initially 2 Boards NHS Lanarkshire and NHS Dumfries & Galloway (2 sites in NHS Tayside added later) 582 Sites Owned, Leased, PFI and Third Party Ownership 1,184 Blocks (Total) 401 (Owned, Leased and PFI) 569K square meters 9,839 Maintenance Backlog Items 148M in Current Maintenance Backlog (All Blocks) 45M in Maintenance over next 5 years Gaps System Lifecycle Data Asset Replacement Costs 25

26 Maintenance Backlog Detail 26

27 Cost Estimating Access to external databases: BCIS, or Own Cost Information 27

28 System Lifecycle Added Modeled system lifecycle data added for 221 Blocks Owned, occupied buildings EXAMPLE System Detail View: System level record BCIS coding Location Quantity Estimated replacement value Associated requirements Documents Photos 28

29 Adjusting Lifecycle based on Observed Conditions Tailor normal data to Be contract specific Reflect maintenance strategies EXAMPLE: System Detail View Tailor observed years remaining Tailor % Renew 29

30 Prioritization Budget Ranking Prioritize all needs based on organizational objectives Produce multi-year budgets Time Criticality Building Condition Category of Issue Building System Building Use 30

31 Sample Report Using NHS Ranking Protocol Replace 31

32 Sample Report Using NHS Ranking Protocol 180% Portfolio by Facility Type Portfolio Average = 11% (Aggregate 14.5%) 160% 140% 120% FCI Range 100% 80% 60% 40% 30% 20% 0% 13% 12% Clinic Elderly Health Centre 6% 9% Hospital 3% Mental Hospital 13% Offices Residential 32

33 Credible project lifecycle profile (Lifts) 33

34 Sample Board Level Analyses

35 Impact of Replacing Royal Infirmary Modelled new 55,000 sm hospital to open in 2018 Retired 14 facilities between 2013 and 2022 Results Elimination of 36.1M in current Backlog Elimination of 64.3M in lifecycle costs in the next 20 years Increase in total value of the Estate of 45.7M Analysis does not include any proceeds of sales of disposed properties 35

36 Funding Levels Required to Maintain FCI Comparison of funding required to maintain FCI with and without replacement hospital Funding (in GBP) 90,000,000 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000, FCI Funding to maintain current CI w/o replacement hospital FCI w/o replacement hospital Funding to maintain current FCI with replacement hospital FCI with replacement hospital Total Funding ( ): 177M Total Funding ( ): 64M 36

37 Funding Levels Required to Maintain FCI Comparison of funding required to maintain FCI with and without replacement hospital Funding (in GBP) 90,000,000 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000, FCI Funding to maintain current CI CI w/o replacement hospital FCI w/o replacement hospital Funding to maintain current FCI with replacement hospital FCI with replacement hospital Total Funding ( ): 177M Total Funding ( ): 111M 37

38 Modelling Functional Suitability, Quality & Utilisation Modelled cost to remedy functional suitability, quality and space utilization deficiencies Used ratings in Property and Asset Management Strategy Created modelled cost per sm value based on rating Improve C to B Improve D to B Improve O to F Functional Suitability Quality Space Utilization 300 Created requirements in database Categorized separately form Maintenance Backlog and Statutory Compliance 38

39 Total Liability across Categories 39

40 Requirements Index vs. Facility Condition Index Requirements Index (RI) is similar to FCI, except in includes all categories of requirements FCI = Total of Maintenance Backlog & Statutory Compliance costs Current Replacement Cost RI = Total of all categories of facility improvement costs Current Replacement Cost 40

41 FCI vs RI for Lanarkshire Facilities 41

42 Use of Data for Refurbishment Strategies Insert Graphic 42

43 Sample Project 43

44 Results Successfully demonstrated the ability to: Work in partnership with 3i Import data from two Boards as stored in 3i EstateManager Further detailed work performed on data for three Boards Use VFA.facility to generate: Capital scenario plans Detailed lifecycle profile Budgeting prioritisation Benchmark reports Reports using NHS ranking protocol Details on maintenance backlog 44

45 VFA Contacts Mike Kwok SVP VFA, Inc direct mobile Ray Dufresne VP VFA, Inc direct mobile 45