Operations and MaintenanceMaximizing ROI

Chris Hodges, P.E., CFM, LEED AP, IFMA Fellow, FRICS

g

Principal, Facility Engineering Associates

Evaluting your current O&M needsDefining your O&M programU d di li bili dUnderstanding reliability centered maintenance (RCM)Transforming and optimizing your currentTransforming and optimizing your current program

Optimizing your O&M programp g y p gIntegration of RCMSuccess Stories

Optimizing your O&M programp g y p gIntegration of RCMSuccess Stories

WorldWorld--Class Facilities MaintenanceClass Facilities Maintenance

• What Does it Mean?• How Do You Get There?• How Do You Prove It?How Do You Prove It?

History of MaintenanceHistory of MaintenanceHistory of MaintenanceHistory of Maintenance

1940’ B kd M i t• 1940’s Breakdown Maintenance

- Fix it after it was brokenFix it after it was broken

• 1960 Preventive Maintenance

- Fix it even if it wasn’t broken

1990 P di ti M i t• 1990 Predictive Maintenance

- Fix it when it really needs to be fixedFix it when it really needs to be fixed

The pressure to performThe pressure to perform

External C titiEconomy

Internal Pressures Competitiony

ChangingStrategic Missions

TechnologyStrategic Missions

FacilityO&M

Funding Cultureand Decision Making Internal Competition

O&MFunding

Strategies

External Pressures

Regulatory andLife Safety

IndustryTrends

The Maintenance ProcessThe Maintenance ProcessCustomerCustomer--Centered Facility MaintenanceCentered Facility Maintenance

Evaluate Customer Goals & Establish Desired Level of Service

Complete Equipment InventoryMeasure Customer Satisfaction & Maintenance Performance 1

28

Perform Impact AnalysisImprove Automation

& Align with Processes 37

Perform Labor Needs AnalysisEvaluate & Optimize FM Business Processes

45

6FM Business Processes

PM/PdM Program Optimization

Establishing ParametersEstablishing Parameters1

2

3

46

7

8

gg4

56

Understanding What Your Customers Want?Understanding What Your Customers Want?

1. Define who your customers are . . .

2. What are their expectations

E t i Mi iE t i Mi i St t i PlSt t i Pl•• Enterprise Mission Enterprise Mission –– Strategic PlanStrategic Plan

•• Facilities Strategic PlanFacilities Strategic PlanFacilities Strategic PlanFacilities Strategic Plan

The Financial Case for O&MThe Financial Case for O&M

Typical design and construction costs account for only about 2% of an organization’s total cost to existabout 2% of an organization s total cost to exist.

Life-Cycle Costs of a Facility

The Cost of ProductivityAverage annual cost for Personnel: $300 600/sf

92%

6% 2% Personnel: $300-600/sf

Ownership Cost: $20-25/sf

O&M: $5 00-7 00/sf92%

Salaries ofOccupantsCost of Operatingand Maintaining

O&M: $5.00 7.00/sf

and MaintainingOriginal Designand Construction

The Financial Case for O&MThe Financial Case for O&M

Corporate Headquarters Model

This represents the growth in total cost of $120,000,000

$140,000,000

Total Cost of Ownership

ownership over 50 years

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$-

$20,000,000

0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48

Year

Item Value SourceGSF 145,025 IFMA Report #32

Construction $/SF $ 165.43 CostWorks 2011Capital Renewal 1.55% IFMA Report #32Capital Renewal 1.55% IFMA Report #32

O&M $/SF $ 6.37 IFMA Report #32Inflation 1.5% Inflation Calculator

The Financial Case for O&MThe Financial Case for O&M

In Terms of Total Dollars …

Total Cost of Ownership

20%Design & Construction

23%57%

Design & Construction

Capital Renewal

O&M

Total Cost

Design & Construction 20% $ 23,991,486

Capital Renewal 23% $ 27,400,288

O&M 57% $ 68,068,878

$Total Cost of Ownership 100% $ 119,460,652

At the building level

Life Cycle Cost... Life Cycle Cost... Impact of Strategic Impact of Strategic O&MO&Myy p gp g

Opportune Time to Invest

100

75$

Less Dollars to Fix

75

50

$

50

25

More Dollars to FixReplacement Threshold

25

0

$ Benefit $

230 5 10 15 20 25 18

At the component level

Facility Maintenance and RepairFacility Maintenance and Repair

DefinitionsDefinitionsDefinitionsDefinitions

Facility Maintenance

Un-planned PlannedCorrective Maintenance Preventive MaintenanceBreakdown MaintenanceReactive Maintenance

Equipment FailureService Requests

Predictive MaintenanceRoutine Maintenance

Planned EventsInspectionsq

Deferred MaintenancePassive Monitoring

pRoutes/Tours/WatchesCondition Monitoring

Facility Condition Index (FCI)Facility Condition Index (FCI)

FCI = DM ($)/ RPV ($)FCI = DM ($)/ RPV ($)FCI = DM ($)/ RPV ($)FCI = DM ($)/ RPV ($)Notes:

DM = Deferred MaintenanceDM = Deferred Maintenance

RPV = Replacement Plant Value also Current Replacement Value (CRV)

Poor

G d

Poor

Fair

Good

Establishing ParametersEstablishing Parameters1

2

3

46

7

8

Maintenance Staffing GuidelinesMaintenance Staffing Guidelines4

56

Benchmarking O&MBenchmarking O&M

Percentile $/RSF99 $24.8595 $17.5390 $12.4175 $7.6575 $7.6550 $5.5925 $3.7910 $2 6410 $2.645 $1.981 $1.42

Mean $6.16

Optimizing your O&M programp g y p gIntegration of RCMSuccess Stories

Maintenance Philosophy & MissionMaintenance Philosophy & Mission

How does “Reliability” fit in?

R li bilit t d i t i hil hReliability-centered maintenance is a philosophy to develop the most effective maintenance program to ensure that our facilities both operateprogram to ensure that our facilities both operate and appear at their best while pursuing the driving goal of caring for the organization’s people, g g g p p ,workplace, and budget.

ReliabilityReliability--Centered Centered Maintenance Maintenance (RCM)(RCM)

High $

(RCM)(RCM)

Optimal Maintenance

Lost Productivity

*

Downtime CostsDowntime Costs

nanc

e st

s

Repair CostsRepair CostsMai

nten

Cos

Excessive PM*

Cost of PMCost of PM

Low $0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Low $Low HighLevel of Maintenance

ReliabilityReliability--Centered Centered Maintenance Maintenance (RCM)(RCM)

PREVENTIVE PREDICTIVEPREVENTIVE PREDICTIVE

PROACTIVE DEMAND

Implementation of RCM: Implementation of RCM:

1. ID Systems and Equipment to Maintain2 Determine Criticality and Performance2. Determine Criticality and Performance3. Evaluate Probability of Failure4 D t i F il M d d Eff t4. Determine Failure Modes and Effects5. Select Best Maintenance Plans6. Implement Maintenance7. Optimize Program7. Optimize Program

Reality and Value of RCMReality and Value of RCMReality and Value of RCMReality and Value of RCM

• Labor Intensive PM Programs

• Problems with Human Interaction

• R d F il M d• Random Failure Modes

• Proactive / Cost-Effective – RCM

• Diagnostic-based

Improve Effectiveness and ReliabilityImprove Effectiveness and Reliabilityp yp y

• Identifying hidden defects before failure or damage occursdamage occurs

• Using real time data for comparison and trendingtrending

• Non-destructive means of monitoring equipment condition without invasive time based O&M

Optimizing your O&M programp g y p gIntegration of RCMSuccess Stories

RCM Successes at SmithsonianRCM Successes at SmithsonianRCM Successes at Smithsonian RCM Successes at Smithsonian InstitutionInstitution

SI Maintenance PhilosophySI Maintenance Philosophy

WorldWorld--Class FM InnovationClass FM Innovation

Courtesy of Smithsonian Institution, OFMR (2010)

SI Maintenance PhilosophySI Maintenance Philosophy

“Th i ht i t th i ht“Th i ht i t th i ht“The right maintenance on the right “The right maintenance on the right equipment at the right timeequipment at the right time””

Predictive Testing and Inspection (PT&I)Predictive Testing and Inspection (PT&I)

OFMR Zone PT&I Toolkits

Predictive Testing and Inspection (PT&I)Predictive Testing and Inspection (PT&I)

PT&I Type What is it? Why use it? What equipment?

Vibration Monitoring & Analysis Measures vibration

ID rotor imbalance, misalignment, and bearing

wear

Motors, pumps, fans (rotating equipment)

Infrared f /ID hot/cold spots caused by Electrical equipment,Infrared

Thermography (IRT) Photo of heat/temp. loose or dirty connections or leaks

Electrical equipment, roofs, facades

Oil Analyses Sampling and analyzing lubricating oil

Evaluate lubricant degradation, contamination

and ID machine wear

Generators, chillers, elevatorsand ID machine wear

Airborne Ultrasonics Detects sounds beyond human hearing Detect leaks

Compressed air, gas, steam, and vacuum

systems

Motor Circuit Analysis (MCA)

Tests electrical attributes of motors

Determine condition of motors New and rebuilt motors

Laser Alignment Measure alignment of ID misalignment Pumps, motors, fans, Laser Alignment shafts and pulleys ID misalignment shafts and pulleys

Ult iUltrasonics

How it is used at SI…How it is used at SI…How it is used at SI…How it is used at SI…Mechanical and electrical inspections.Airborne leak surveys ofAirborne leak surveys of…• Compressed air systems.• Gas and steam systemsGas and steam systems.• Negative pressure (vacuum) systems.• Non-pressurized systems (tone generators).p y ( g )

Airborne Ultrasound

Vibration Screening & AnalysisHow it is used at SI…How it is used at SI…How it is used at SI…How it is used at SI…

Critical rotating equipment.Screening & TrendingScreening & Trending.ID deteriorating conditions.

Infrared Thermography (IRT)How it is used at SIHow it is used at SIHow it is used at SI…How it is used at SI…

Electrical & Mechanical Equipment.Facades / Exterior ElementsFacades / Exterior Elements.

Lubricating Oil AnalysisHow it is used at SIHow it is used at SIHow it is used at SI…How it is used at SI…

Emergency generators.H d li lHydraulic elevators.Chillers.

Laser Sheave AlignmentQuickly ascertain and correct angular andQuickly ascertain and correct angular and offset misalignment between the pulleys.

Laser Sheave AlignmentHo it is sed at SIHo it is sed at SIHow it is used at SI…How it is used at SI…

Sheave alignment.Belt-driven equipment.

Motor Circuit Analysis (MCA)Ho it is sed at SIHo it is sed at SIHow it is used at SI…How it is used at SI…

Motors.Other power circuits. Predisposition for infant mortality.

Laser Shaft AlignmentAlignment of pump and motor shaftsAlignment of pump and motor shafts.Correct offset and angularity.

RCM and PT&I Success StoriesRCM and PT&I Success StoriesRCM and PT&I Success StoriesRCM and PT&I Success Stories

• Cost Avoidance• Documented Processes• Documented Processes• Increased Uptime• Improved Safety

RCM Successes at SI

RCM Successes at SI

S T P fSteam Trap Performance Testing

Condition-Based Lubrication Program

RCM S SIRCM Successes at SI

Star-Spangled Banner Exhibit (NMAH)

Optimizing your O&M programp g y p gIntegration of RCMSuccess Stories

Use the tools of the trade

Don‘t ignore the finance piece

Th i ht i t t th i ht ti• The right maintenance at the right time:• Saves Labor

Prolongs service life• Prolongs service life • Saves energy• Reduces downtime• Reduces downtime• Maintains business continuity

Measure, measure, measure, ,

• The right KPIs:g• PM, CM, DM• Integration of RCMIntegration of RCM• Work management• Downtime

Chris Hodges, P.E., CFM, LEED APPrincipalFacility Engineering AssociatesFacility Engineering Associateshodges@feapc.com