Effective Use of an Asset Management System

Cath Ronan

Senior Consultant, CanadaNovember 7, 2008

Leveraging VFA.facility as a Capital Planning Solution

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Agenda

Develop a Roadmap

Implement a Solution

VFA.facility – Asset Management Solution

Collect and Maintain Data

Determine Long-term Funding Strategies

Create Prioritized Multi –year Capital Budgets

Develop Project Plans to Reduce Deferred Maintenance

Analyze Data via Reports and Database Queries

Software Demonstration

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Capital Planning Solution

Solution MethodologyAs Is Definition

Strategic Facilities

Management

To Be Vision

Tactical Facilities

Management

Gap = Roadmap

Atlantic Universities’ Vision and Strategy Aligned Capital Asset Management Goals

Identify Issues, Problems and Concerns at all levels Identify Key Performance Indicators for a Strategic Capital Management function

Information Gathering

Analytics/Reporting

Analytical Tools

Software

VFA.facility® for expert capital planning

• Capital asset strategy aligned with organizational mission• Consolidated view of asset portfolio• Transparent capital planning process• Most efficient/effective spend of capital • Proactive financial performance measurement• Spearheading green initiatives• Enhanced productivity and employee satisfaction

• Capital project prioritization• Process optimization• Portfolio scenario modeling• Team roles and skill set definition• Change management• Project management • Software implementation • Training planning and delivery

• Facility condition• Infrastructure assessment• Sustainability• Data maintenance•Functional adequacy• Inventory collection• Energy efficiency• Roles/responsibilities• Systems/ Processes

Analytics/Reporting

ROI Analysis ● Asset Reporting ● Dashboard ● Benchmarking ● Portfolio Analysis ● Quantitative Analysis ●Financial Modeling ● Executive Level Reporting ● Business Case Development

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Implementing the Solution …

Capital PlanningFunctional Planning

ProjectImplementation

Assessments Planning &Analysis

Operations

Data CollectionCondition Reporting

Discovery

BusinessRequirements

FinancialControls

Tracking & ControlIntegration

VFA.facility

Assessments

Business Processes

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Implementing the Solution …

On-goingProcess

Support & Tracking

Lessons learned

Process updates

Provide system upgrades and improvements

Identify additional system needs

CapitalPlanning & Analysis

Planning &Analysis

Identify backlog

Develop the Analyze relevant funding scenarios

Develop the capital and strategic plan

Identify users and provide training based on participation level

Assessment.

Data Collection and Condition Reporting

Determine level of audit detail

Determine quantity and frequency of audit

Determine critical data to collect

Develop the criteria & determination for priorities

Configure Identified fields

Assess Portfolio

Discovery

BusinessRequirements

Understand the University’s needs

Assess the gaps of the current vs. desired capital planning process

Determine the goals and scope to get there

Determine Users types and roles

Operations

Present scenarios with FCI implications to senior mgmt.

Fund and execute projects

Close-out completed work

ProjectImplementation

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VFA.facility - Asset Management System

Increase funding

• Demonstrate business case for capital renewal and deferred maintenance investments

Reduce costs:

• Create cost-effective capital projects

• Minimize emergency repairs

• Avoid unnecessary construction and relocation costs

Increase productivity:

• Easily prepare capital budgets

Enhance organizational effectiveness:

• Support business continuity of critical business systems

• Link facilities to the organizational mission

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The Power of the Tool....

...Is Only as Good as the Data Within

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Assessment Types – Level of Detail/Planned Use of Data

Detail/Effort

Acc

urac

y

Budgeting

Budgeting +Hot spots

Budgeting +Actionable

Budgeting +Actionable

StatisticalModeling

Questionnaire

Systems Lifecycle Assessment

Detailed Facility Condition Assessment

Assessments• Detailed facility condition assessments

• Systems lifecycle assessments

• Functional assessments

• Inventory collection

• Facility security

• Energy Improvements

• Environmental analysis

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Central Data Repository – Reduce Costs by Early Identification of Problems.

Asset - Name Requirement - Name Requirement - Prime System Requirement - PriorityRequirement - Category

Requirement - Estimated Cost

101 Foster Street Electrical: Branch Circuits Antiquated D5020-Lighting and Branch Wiring 3- Necessary - Not Yet Critical Modernization $240,900101 Foster Street Emergency Power Systems: Lack of Generator D5092-Emergency Light and Power Systems 4- Recomendation/Upgrade Capacity/Design $381,291101 Foster Street HVAC Equipment Access Inadequate G3054-Cooling Towers on Site 1- Currently Critical Life Safety $30,648101 Foster Street Compressed Gas Cylinders: Not Secure D2090-Other Plumbing Systems 1- Currently Critical Maintenance $414101 Foster Street Plumbing Fixtures: Flush Controls Aged D2011-Water Closets 3- Necessary - Not Yet Critical Integrity $52,582101 Foster Street Roof: Deteriorated B30-Roofing 2- Potentially Critical Beyond Useful Life $251,609101 Foster Street Windows: Deteriorated B2020-Exterior Windows 1- Currently Critical Beyond Useful Life $329,364101 Foster Street Flooring: Deteriorated VCT C3020-Floor Finishes 3- Necessary - Not Yet Critical Integrity $11,706101 Foster Street Janitor's Closet: Damaged Walls C1010-Partitions 2- Potentially Critical Integrity $9,826101 Foster Street HVAC: Insulation Damaged D3040-Distribution Systems 3- Necessary - Not Yet Critical Integrity $13,421101 Foster Street Electrical Distribution: Insufficient Circuits D5010-Electrical Service and Distribution 2- Potentially Critical Functionality $260,421101 Foster Street Assistive Listening System: Not Provided D5032-Intercommunication and Paging System 5- Grandfathered Code Accessibility $34,697101 Foster Street Electrical Distribution: Miscellaneous Improvements D5010-Electrical Service and Distribution 1- Currently Critical Building Code $10,533101 Foster Street Restrooms: Not Accessible C10-Interior Construction 5- Grandfathered Code Accessibility $95,048101 Foster Street HVAC Fans: VAV Controls Aged D3066-Terminal Devices 1- Currently Critical Energy $206,409101 Foster Street Flooring: Aged Carpet C3020-Floor Finishes 3- Necessary - Not Yet Critical Beyond Useful Life $360,347101 Foster Street Interior Doors: Non-Compliant Hardware C1020-Interior Doors 5- Grandfathered Code Accessibility $275,324101 Foster Street Plumbing Fixtures: Faucets Aged D2013-Lavatories 3- Necessary - Not Yet Critical Beyond Useful Life $24,380101 Foster Street Ceilings: Aged or Deteriorated C3030-Ceiling Finishes 3- Necessary - Not Yet Critical Beyond Useful Life $137,026

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Data Maintenance - Ongoing

Ensures deferred maintenance forecasts are reliable

Maintains accuracy of System Renewals

Reflects accurate FCI and SCI reporting

Closed records are archived and stored

• Filtered not to show in list view

• Essentially “filed away”

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Determine Long-term Investment Strategies

Establish Planning Targets

Create multi-year forecasts of financial necessities

Explore “what if” funding strategies

• Depict long-term renewal and backlog costs

• Analyze implications of budgetary decisions on facility condition over time

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Funding – Create “What If” Scenarios

Selection Criteria

Forecast Parameters

• Years Offset

• Inflation

• Cost Curve

• Renewal Option

• Backlog Deterioration

Funding/FCI Options

• Maintain

• Percent Funding

• Target (Funding to Reduce)

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Link Facilities to the Organizational Mission

How do we use the FCA intelligence?

How do we prioritize our needs?

• Everyone wants their needs met

How do we optimize our resources?

• Limited resources

How do we remain flexible?

• Situations will change

How do we take action to….

• Ensure capital renewal funds are allocated to the highest priority projects

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Easily Prepare Multi-Year Capital Budgets

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Develop Plan To Reduce Deferred Maintenance

Group Requirements into projects based on defined rules

• Analyze alternate approaches to address Requirements

• Incorporate project “soft costs”

• Reflect Funding Sources

Create Fiscal Plans

• Track multiple projects using a multi-year Project Calendar

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Detailed Project Records

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Analyze Data With Reports

Portfolio Analysis Reports• View statistics at portfolio level

Asset List Report• Compare facility statistics including FCI, replacement

value, use and age

Requirement Crosstab Report• Pinpoint scope, nature and urgency of needs

Requirement List Report• Drill down to identified issues based on findings of

Crosstab Report

Requirement Detail Report• Analyze detailed requirement scope and costs

System Renewal Report• Project Lifecycle Renewals

Data Browser Report• Leverage Ad Hoc Queries

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Reports – Portfolio Summary Report by Asset

Provides three views of data

• Portfolio FCI Range chart shows the FCI range for each group of assets

• Requirements and Renewals Distribution chart shows the distribution of requirement and renewal costs across groups

• Investment Summary chart shows the distribution of annual costs by group

Portfolio Summary Report

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Reports – Pinpoint Scope, Nature and Urgency of Needs

Summary of Requirement costs

• May be grouped by two of the following three criteria: Category, Priority or System Group

Requirement Crosstab Report

System/Priority P1 P2 P3 P4 P5 TOTALElectrical System $245,063 $747,512 $1,802,347 $2,727,521 $627,519 $6,149,962Plumbing System $5,910 $47,194 $1,234,799 $9,589 $73,651 $1,371,143Interior Construction and Conveyance $126,663 $73,970 $1,558,380 $1,293,118 $546,358 $3,598,489Structure $19,375 $936 $12,923 $2,808 $0 $36,042HVAC System $54,029 $5,449,768 $2,198,742 $111,521 $58,590 $7,872,650Exterior Enclosure $1,249 $1,784,833 $1,035,287 $80,571 $14,531 $2,916,471Fire Protection $17,826 $0 $0 $147,134 $2,270,924 $2,435,884Site $0 $25,656 $82,815 $0 $0 $108,471Furnishings $0 $342 $9,730 $0 $0 $10,072Total $470,115 $8,130,211 $7,935,023 $4,372,262 $3,591,573 $24,499,184

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Reports – Analyze Detailed Scope and Costs

Comprehensive view of Requirements

• Generated for any Asset set, from a single building to an entire region

• Provides overview of the facility needs with detailed cost estimate and scope

Requirement Detail Report

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Reports – Project Lifecycle Renewals

System Renewal Report Summarize Systems’ costs in next renewal year

Includes comprehensive renewal data for each System

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Reports – Leverage Ad Hoc Reporting

Creates a customized query

• Select criteria

• Select specific fields from across the database

• Add filters if desired

• Sort by up to three fields

• Generate report into Excel

Data Browser Report

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Reports – Leverage Ad Hoc Reporting

Create charts

Create pivot tables

Create subtotals

The sky is the limit!

Data Browser Results in Excel

Asset - Name Requirement - Name Requirement - Prime System Requirement - PriorityRequirement - Category

Requirement - Estimated Cost

101 Foster Street Electrical: Branch Circuits Antiquated D5020-Lighting and Branch Wiring 3- Necessary - Not Yet Critical Modernization $240,900101 Foster Street Emergency Power Systems: Lack of Generator D5092-Emergency Light and Power Systems 4- Recomendation/Upgrade Capacity/Design $381,291101 Foster Street HVAC Equipment Access Inadequate G3054-Cooling Towers on Site 1- Currently Critical Life Safety $30,648101 Foster Street Compressed Gas Cylinders: Not Secure D2090-Other Plumbing Systems 1- Currently Critical Maintenance $414101 Foster Street Plumbing Fixtures: Flush Controls Aged D2011-Water Closets 3- Necessary - Not Yet Critical Integrity $52,582101 Foster Street Roof: Deteriorated B30-Roofing 2- Potentially Critical Beyond Useful Life $251,609101 Foster Street Windows: Deteriorated B2020-Exterior Windows 1- Currently Critical Beyond Useful Life $329,364101 Foster Street Flooring: Deteriorated VCT C3020-Floor Finishes 3- Necessary - Not Yet Critical Integrity $11,706101 Foster Street Janitor's Closet: Damaged Walls C1010-Partitions 2- Potentially Critical Integrity $9,826101 Foster Street HVAC: Insulation Damaged D3040-Distribution Systems 3- Necessary - Not Yet Critical Integrity $13,421101 Foster Street Electrical Distribution: Insufficient Circuits D5010-Electrical Service and Distribution 2- Potentially Critical Functionality $260,421101 Foster Street Assistive Listening System: Not Provided D5032-Intercommunication and Paging System 5- Grandfathered Code Accessibility $34,697101 Foster Street Electrical Distribution: Miscellaneous Improvements D5010-Electrical Service and Distribution 1- Currently Critical Building Code $10,533101 Foster Street Restrooms: Not Accessible C10-Interior Construction 5- Grandfathered Code Accessibility $95,048101 Foster Street HVAC Fans: VAV Controls Aged D3066-Terminal Devices 1- Currently Critical Energy $206,409101 Foster Street Flooring: Aged Carpet C3020-Floor Finishes 3- Necessary - Not Yet Critical Beyond Useful Life $360,347101 Foster Street Interior Doors: Non-Compliant Hardware C1020-Interior Doors 5- Grandfathered Code Accessibility $275,324101 Foster Street Plumbing Fixtures: Faucets Aged D2013-Lavatories 3- Necessary - Not Yet Critical Beyond Useful Life $24,380101 Foster Street Ceilings: Aged or Deteriorated C3030-Ceiling Finishes 3- Necessary - Not Yet Critical Beyond Useful Life $137,026

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Software Demonstration

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Questions?