US Army Corps of EngineersBUILDING STRONG®

Predicting M&R Investments and Outcomes with the BUILDER™Sustainment Management SystemLance MarranoProgram Manager

ERDC-CERL

20 MAR 2012

BUILDING STRONG®

Agenda/OutlineBackgroundInventoryAssessmentPredictionWork PlanningForecastingVisualization & IntegrationSummary & Discussion

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Facility Managers’ Needs

Provide objective facility investment guidance for:Systematic assessment to identify maintenance requirements for increased reliabilityAnalyze gap between current state and requirements; plan investments to close this gap and optimize return on investmentPrioritize scarce resources according to economic and mission prioritiesPredict the effects/consequences of decisions to ensure mission readiness

EngineeredEngineered Asset Lifecycle Management ToolsAsset Lifecycle Management Tools

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The GoalInvestment Planning driven by meaningful metrics:► Asset Lifecycle► Return on Investment (ROI)► Mission Assuredness

Supports Installation, Regional, and HQ processes► Tactical Facility Requirements

(Short Term) ► Strategic Facility Requirements

(Long Term)► Objective, Repeatable, & Affordable

Practice proactive rather than reactive maintenance planning at all levels of the organization.

Practice proactive rather than reactive maintenance planning at all levels of the organization.

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Approach – A New Way of Looking At Assets

Distress Type(s): Deteriorated and CrackedSeverity Level(s): Low and MedQuantity/Density: 200 SF and 12 LFCondition Index (calc.): 72

Distress Type(s): Deteriorated and CrackedSeverity Level(s): Low and MedQuantity/Density: 200 SF and 12 LFCondition Index (calc.): 72

Deficiency: Re-point brick retaining wallWork Quantity: 200 SFScoping Estimate: $4400Urgency/Priority: 3

Deficiency: Re-point brick retaining wallWork Quantity: 200 SFScoping Estimate: $4400Urgency/Priority: 3

Traditional vs. SMS

Work is the inputWork is the input

Work is the outputWork is the output

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Process

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InventoryIdentify “building blocks” of facilities that will be independently maintained► Identify components (doors, walls,

windows, roof, etc.), as well as equipment.

► Like equipment may be grouped when managed as one lifecycle group (i.e. set of exhaust fans, overhead doors)

Capture appropriate detail to accurately reflect replacement values and service lives

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Inventory ResultsInventory models aligned with RPI requirements► RP Site ID► RP UID► (Future) RP Equipment ID

Detailed inventory can be derived from maintenance records*► Quantity► Equipment Type► Age► Etc.

* Need to also include facility assemblies, such as walls, roofs,

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Process

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Condition AssessmentStandardized, objective process uses technician-level experience, rather than architects/engineers► Inspector is “human sensor”, doesn’t insert their

opinion/interpretation► Models the rating that would be given by a group of experts.► Increases consistency and quality of information across

organization (apples-to-apples)

Distress Type(s): Deteriorated and CrackedSeverity Level(s): Low and MedQuantity/Density: 200 SF and 12 LFCondition Index (comp.): 72

Distress Type(s): Deteriorated and CrackedSeverity Level(s): Low and MedQuantity/Density: 200 SF and 12 LFCondition Index (comp.): 72

Deficiency: Re-point brick retaining wallWork Quantity: 200 sfScoping Estimate: $4400Urgency/Priority: 3

Deficiency: Re-point brick retaining wallWork Quantity: 200 sfScoping Estimate: $4400Urgency/Priority: 3

Traditional vs. SMS

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Utilize objective, rules-based inspection to capture consistent information setModels the rating that would be given by a panel of expertsExpresses the ability of the component to continue to reliably provide the as-designed function

Good

Failed

Serious

Very Poor

Poor

Fair

Satisfactory

0

10

25

40

55

70

85

100

Standard Rating Scale

Condition Index Metric

Ex. Distresses• Animal Dmg• Blisters• Cracking• Displacement• Inoperable• Vibration• Etc.

Distress

xCI(PCI, CSCI, etc.)

Severity (H/M/L)

Quantity

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Condition Assessment

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Knowledge Based InspectionAn asset does not require the same level of scrutiny at all points in its lifecycle.All assets do not degrade at the same rate.Focus inspection attention and resources on what’s important, considering risk.Tailor the frequency and level of detail to the purpose and lifecycle condition.

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Knowledge Based Inspection

Inspection costs are ~25% of traditional, deficiency-based inspectionsInspection costs are ~25% of traditional, deficiency-based inspections

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Functionality AssessmentModernization inspection addresses issues of:► Capacity (too little or too much)► Configuration► Change in user requirements► Technical obsolescence► Regulatory/code compliance► Etc.

Available at building, space, and component levelsCan simulate mission change to determine investment requirements for future occupants

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Functionality Assessment

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Assessment ResultsReadiness Reporting (Condition, or Quality)Condition for complete inventory, not just problems Up-to-date scorecard that doesn’t require constant data maintenance

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Process

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Condition Prediction

1990 1995 2000 2005 2010 20202015Year

60

20

80

40

100

CI

Expected SL = 20

Condition @ Failure

SL = 17 years

Inspection 1Inspection 2

Inspection 3

Weibull distribution used to model risk of component failureWeibull distribution used to model risk of component failure

Construction/Installation

“Economic Sweet Spot”

0

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Process

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Work GenerationWork is automatically created based upon rules► Standards define acceptable levels of risk as thresholds to trigger work► Policies apply these differing risk levels to different assets► Mission critical assets require higher condition levels

Cost estimates are automatically calculated based on replacementcosts► Repair vs. Replace calculations automatically performed to maximize

ROIWork is tied to specific assets; establishes traceability and accountability.

Defensible rules enforce consistent investment policies across the enterprise.

Defensible rules enforce consistent investment policies across the enterprise.

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Investment Triggers

1990 1995 2000 2005 2010 20202015Year

60

20

80

40

100

CI

Work requirements are automatically generated when condition falls below enterprise policy levels.

Work requirements are automatically generated when condition falls below enterprise policy levels.

SL Gain

CI Gain

0

HVAC (70)

Interior Construction (55)

Repair

Repair

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Work PrioritizationFunding resources are always constrained► Need prioritization to rank work requirements

Use various parameters including economic, criticality, and geographic factorsFocus work efforts on items most critical to mission accomplishment while reducing lifecycle costs.

Enterprise-defined prioritization allows organization to optimize multiple competing requirements for scarce funding.EnterpriseEnterprise--defineddefined prioritization allows organization to optimizeoptimize multiple competing requirements competing requirements for scarce funding.

2

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FCI Calculation

BUILDER-derived value is more consistent and repeatable than deficiency-based methods

►Work is now generated using objective ratings AND an defensible set of enterprise policies, rather than subjective judgment

FCI computation is based upon objective assessment methods and consistent work rules.

FCI computation is based upon objective assessment methods and consistent work rules.

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Work Planning ResultsAnnual work planning attached to specific assets (accountability and traceability)Work planning prioritized by mission requirements to direct scarce dollars against mission-critical needs (Mission-Focused Facility Investments)

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Process

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ForecastingSame process as annual work planning, but repeated for

multiple years over known inventory, behavior, policies, and funding.Simulate the long-term impact on condition, performance, and estimated backlogEvaluate different scenarios (budgets, policies, prioritization schemes, etc.)

$

$400

$800

$1,200

$1,600

$2,000

2009 2010 2011 2012 2013 2014 2015

Total Expenditures and Backlog By YearFor Camp Example (EXMPL) (in $M)

Budget Less 10% ‐ Backlog

Budge Less 10% ‐ Exp.

Budget ‐ Backlog

Budget ‐ Expense

0

20

40

60

80

100

2009 2010 2011 2012 2013 2014 2015 2016

CI

Year

CI Trend – 1102 Legal Office

Budget

Budget Less 10%

3

Gain consequence awareness by magnifying the effects of policy decisions over multiple years.

Gain consequence awareness by magnifying the effects of policy decisions over multiple years.

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Forecasting Results

Budget CreationCOA AnalysisBudget DefenseOut-year strategic condition trends►Will levels meet current or future mission

requirements?

Actionable intelligence built from the installation upActionable intelligence built from the installation up

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GISContains integrated or connected GIS solutions to query and display a variety of facility inventory, condition, and work planning information► CI,► RSL,► Work Costs,► and many more

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SMS CMMSInventory

PM/SC Performed

PM Schedule

Annual Work Plan

RSL

• Consolidated inventory• Plan inspections (KBI)• Inspection results• Determine condition• Analyze condition• Update RSL• SRM and budget

planning, including project development

• Consequence analysis

Inspection

• Specialized inventory• Plan, schedule, and

execute PM• Inspection needs

analysis• Schedule inspections• Service call history• RCM analysis• Plan, schedule, and

execute specific projects

E/S Call

CMMS IntegrationWork Planning and Work Execution have complementary roles

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SMS Applications

Programs are also available to private sector users through multiple licensing partners•Increases availability of services to Federal Users•Lowers support costs through increased availability and broader user base

Programs are also available to private sector users through multiple licensing partners•Increases availability of services to Federal Users•Lowers support costs through increased availability and broader user base

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DoD Users

* Denotes trial or pilot use, but not yet an enterprise standard

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THE RESULTSDefensible, engineering-based investment plan

Traceable and executable to the facility component level

• Component-based performance models work with any size portfolio

Aligned with mission requirementsBalances mission and economic prioritiesProvides course of action analysis

• Avoidance of long-term penalties• Awareness of the consequences of today’s decisions

Manage by leading instead of lagging indicatorsManage by leading instead of lagging indicators

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Summary Discussion

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More InformationSMS Program ManagerMr. Lance Marrano(217) 373-4465lance.marrano@us.army.mil

http://sms.cecer.army.milSMS Resources

http://www.erdc.usace.army.milInstallation Operations (more

products and expertise from the Engineer Research & Development Center)

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BACKUP SLIDES

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Good

Failed

Serious

Very Poor

Poor

Fair

Satisfactory

0

10

25

40

55

70

85

100

Standard Rating Scale

Condition Assessment Input

Ex. Distresses• Animal Dam.• Cracking• Effluores.• Vibration• Inoperable• Etc.

Distress

xCI(PCI, BCI, etc.)

Severity (H/M/L)

Quantity