Leveraging Facilities Intelligence & Lean to Create an Effective Preventive Maintenance Program PAUL ARMAS BROWN UNIVERSITY JIM KADAMUS SIGHTLINES LISA TURTURRO HALEY & ALDRICH
Brown University Facilities 233 Buildings 6.7M Maintainable gross sq ft. 104 Trades staff Engineering, Maintenance & Operations management Academic Research Academic Non-Research Biology & Medicine Residence Halls Athletics Student Life Admin / Support Auxiliary Housing 2
In 10 we learned Campus NAV 81.65% Deferred maintenance needs = $462M Infrastructure renewal needs = $60M annually to keep backlog from growing Brown needed to increase funding for recurring capital and focus on Preventive Maintenance within its operating budget. 3
Te chn ical C om ple xity Technical complexity of campus increasing over time Tech Rating 5 4 Tech Rating Impacts: 3 2 Repair & Replacement Costs Te ch n ical C o m p le xity 1 0 A B Brown C D E F G H I J K L Tech Rating 5 9% increase 4 Energy Consumption Levels Operational and PM Demands 3 2 1 0 03 04 05 06 07 08 09 10 11 12 13 14 4
Campus getting younger with new construction and renovation, but high percentage of space over 50 years old Campus Age by Category 100% 90% % of Total Campus GSF 80% 41% 70% 49% 50% 50% 49% 46% 46% 48% 49% 50% 51% 51% 51% 55% 52% 60% 50% 40% 45% 30% % 10% 0% 36% 35% 35% 35% 35% 36% 34% 32% 32% 29% 27% 25% 23% 23% 6% 11% 8% 11% 13% 11% 9% 10% 10% 10% 19% 10% 13% 13% 13% 13% 13% 13% 11% 9% 9% 8% 8% 4% 1% 2% 3% 3% 7% 7% 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 Over 50 25 to 50 10 to 25 Under 10 6
Significant needs in building systems occur over next ten years Projected Identified Needs FY15-FY24 Historical Project Investments FY03-FY14 9.26% 12.32% 16.40% 8.35% 26.33% 37.68% Building Envelope Building Systems Infrastructure Space Improvement Safety/Code 16.52% 13.21% 44.61% 15.32% 8
Operating expenses below peers Total Operating Expenses $12.00 $/GSF $10.00 $2.94 $8.00 $4.24 $3.26 $6.00 $2.40 $2.81 $2.00 $3.69 $3.52 $0.56 $4.34 $0.35 $0.97 $6.75 $6.46 $5.47 $0.45 $0.28 $4.10 $0.28 $4.42 F G $0.00 A B n w o Br C D Utilities $2.67 $0.78 $1.59 $0.49 $6.57 $5.72 $4.41 E PM $4.24 $3.24 $0.35 $2.64 $4.00 $4.97 $0.59 $0.25 $0.39 $0.18 $2.64 H Daily Service $4.47 $4.30 I J K $5.76 L Peer Average 9
Brown performing more work with in-house staff than peers $3.00 $2.50 $/GSF $2.00 $1.50 $1.00 $0.50 $0.00 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Brown People Costs BrownExpenses* Peer Average Expenses *Expenses include materials, service contracts & office expenses Peer Average People Costs 10
Brown increasing PM investment; keeping daily service costs stable $8 Peer Avg. 14% Brown 12% % of Budget $7 $6 $/GSF $5 $4 10% Historical PM as % of Operating Budget Best Practice Range: 10-12% of Operating Costs 8% 6% 4% $3 2% $2 0% 7% Historical Daily Service FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 $1 $0 04 06 08 10 12 14 05 07 09 11 13 11
Lean is not... L.E.A. N.
Lean is... Increases Value Reduces Respects Waste People The Lean system relies on people who think and act in a Lean way. Lean is BY people not TO people. A supporting culture is paramount. 13
Commitment on the part of many senior managers, middle managers, staff, trades, customers 14
Always begin with Customers & Value If we address these values up front Customer Satisfaction! We will generate these values! Better Planning & Organization Balanced Workflow and Prioritization Improved Communication & Transparency Identified by Customers and Stakeholders 15
PM & CM: What actually happens? What can we do about it? Value Stream Mapping of Preventive & Corrective Maintenance Work Order Processes 70 60 50 40 30 Axis Title 10 0 s y fo In ed nc t e e g N n in en qu M re nn gn & ctio ipm a P F Pl esi stru qu & an E D on Pl sk & a C ta T a M P rd e in he f t a De G op el O v De M W C Sc e ul d he & s As n ig W k or at M n ai bt ts O ar P ls ia er / Do W k or n t C Q t io en / a A m s iz Q cu mi an t o & a g D F r O gm ng in si M o Cl 16
What Lean Provided Identified waste in maintenance execution process to help fund the desired PM program Identified 57,000 hours of recoverable labor costs through operational efficiency improvement in these areas: Improvement Area Estimated Hours Gained Asset & Equipment Information 12,528 Standard Work Execution 12,161 Preventive Maintenance strategic 9,305 & responsive scheduling Tools/parts/materials/inventory management 14,568 Management & Communication 8,439 17
Pre-Strategy Implementation Road Map Destination (Stay Focused) 11 No. PM+CM completed No. RM completed % PM+CM labor % RM labor In house PM+CM labor Supplies PM+CM Contract services Dedicated PM staff No. of equipment 14,000 38,000 25% 75% $1.5M $580K $1.6M 0 5,000 The Beginning 12 18
PM Strategy Goals: Prolong the useful life of equipment Lower operating costs associated with maintaining equipment Reduce utility costs and energy Reduce unplanned system interruptions 5
What We Did: The Strategy Process Co-created a strategy with 133 FM staff and customers using 3 lean principles Focus on increasing value, reducing waste, and respecting people Assessed current PM situation including work practices & systems Assessed data systems & sample buildings Created building and asset prioritization method Generated ideas, assess cost vs. value Designed a new PM Program Created an implementation approach, including phasing plan, staffing, and budget
PM Strategy Development 8
PM Strategy Implementation 11 13 15 Seed Money for PM PM Strategy Development Lean Process New Space Funding FAMIS Redesign Phase 2 In-House Equipment Data Collection Pilot PM Management Team Created PM Staff & Supervisor Additions 12 14 PM Strategy Finalized Staffing Plan Defined Training Program Established FAMIS Redesign Phase 1 Visual Aids Pilot Mobile Application Pilot Master Scheduling Implementation Campus Wide Equipment Data Collection 3rd Party Equipment Data Collection Pilot PM Metrics Visual Aids Established Mobile Application Design 16
Current & Future State 11 (Target) 14,000 29,000 45,000 38,000 25% 75% $1.5M 29,000 55% 45% $3.96,000 > 70% < 30% $4.85M $580K $1.6M 0 5,000 $740K $1.8M 30 9,000 $1.15M $1.8M 40 >,000 (PreStrategy) No. PM+CM completed No. RM completed % PM+CM labor % RM labor In house PM+CM labor Supplies PM+CM Contract services Dedicated PM staff No. of equipment < 19 14 (Year 2)
PM vs. PM Costs $7,000 $8,000 $5,000 Reactive Maintenance vs. Planned Maintenance Costs in in $1,000s $1,000s Costs in $1,000s Planned Maintenance Costs $4,500 $7,000 $6,000 $4,000 $6,000 $5,000 $3,500 $5,000 $3,000 $4,000 $4,000 $2,500 $3,000 $2,000 $3,000 $1,500 $2,000 $2,000 $1,000 $1,000 $1,000 $500 $11 RM RM PM+CM PM+CM 12 13 14 Linear (RM) Linear(PM+CM) (RM) Linear Linear (PM+CM) 15 16 23
Value of Growth of a PM Program 25
Thank You Paul Armas, CHFM, CHSP, CEM Director of Maintenance Operations Brown University Paul_Armas@Brown.Edu T: 401.863.7860 James Kadamus Vice President sightlines jkadamus@sightlines.com T: 3.682.4955 C: 518.956.3989 Lisa Turturro Vice President Senior Lean Practitioner Facilities Management & Operations Planning Design & Construction Haley & Aldrich, Inc. lturturro@haleyaldrich.com T: 585.321.4237 C: 585.370.3087