The Need for a New Facility Management

Framework: Opportunities and Barriers

Rob Watson EcoTech International

Advanced Energy PerformanceReal Estate’s New Energy Asset

Management ParadigmThe Steven L. Newman Real Estate Institute

Baruch College, CUNY

Need for a New Asset Management Paradigm Buildings are undervalued

Buildings are integral to the majority of economic activity

Should be: Location, location, building

Unfortunately, most company decision makers don’t care

Most building decision makers are over their heads or over-worked

What suffers? People, Profit, Planet

Problem: Buildings are Planet, Profit and People(?) Killers Buildings are the most damaging of

human activity Little improvement since 1950 on an

energy/ft2 basis Most professional estimates are that

buildings waste 30-40% of the energy they pay for Standard buildings are 5%+ less

productive than green buildings People spend 90+% of their time

indoors

Problem: Building Management is an Orphan Buildings are a

costly hassle for most businesses Diversion from the

business of business

Lack the knowledge for world class operation

At best, real estate is an appendage

Problem:Building Operators are Overloaded

Building operators have inadequate resources Too few facility

management man- hours Low maintenance budget Low energy budget

Success is penalizedBuildings are getting

more complicated (Often) Inadequate

expertise

The Solution: Outsourced Whole-building Optimization Building operations and maintenance

is ripe for outsourcing Business can focus on business,

while building experts can focus on optimization

Optimizing energy and maintenance can save operating costs and boost the real value in buildings: people

Need to change analysis of value and incentive structure

Only 3 things optimize buildings: Qualified People Clear & Comprehensive Process Good equipment & appropriate tools

Focusing on lifecycle cost benefits both buyers and sellers

Problem prevention vs. problem solving is more cost-effective

Problem prevention can largely be automated

Faults

Machine

Learning

Functions/Rule

Based

Sensors

Automated Fault Detection & Diagnosis (FDD): How It Works

Rules work in hierarchical order (sieve)

Principal Goal(s) of FDD Prevention,

prevention, prevention

Reduce (Eliminate) Energy Drift Catastrophic Failure Wasted time

Increase Maintenance Efficiency

What’s going on? (Part 1) Old contractor saying: “you can have

it good, fast or cheap….pick two” Poor quality control (Speed ≠ quality) Low bid blues Rampant misapplication of a

principle

What’s going on? (part 2)

A Good Question…

What’s the ROI?

…misapplied

Most forms of insurance

What’s the ROI?

What’s the ROI?

What’s the ROI?

What’s the ROI?

Your legal team

Accounting department

Building optimization

Most advertising/PR

Tale of Two Analytic FrameworksCurrent 90/10 approach to buildings The law requires it

(75%) I want it (24%) ROI (1%) Minimize first cost Waste energy for 2

years, retro-Cx your building and be a hero

Building optimization

Optimize for minimized lifecycle cost (100%)

Start with FDD Prevent energy waste

and premature equipment failure

You Can’t Calculate a

Return on Something That

Did Not Happen

Automated FDD Economics 101 How do we justify

automated FDD if not energy ROI?

JIT—Just in time Doing the right

maintenance at exactly the right time

JIT in action: Solar powered garbage cans saved Philadelphia 80% on their garbage collection costs…

Pattern of faults can predict future failure

FDD Platform Can Be An Extended to: JIT Maintenance (EPRI studies

indicate 40% benefit) Fix it once and know it’s fixed right Accurate Capital Budgets

Energy Tracking More accurate depreciation schedule

(tax benefits) Focused training Inventory prediction

What we have hereIs a failure to communicate

Optimized/Green buildings are

business enablers, not cost centers.

Gazing into the Future? Building lifecycle optimization industry,

partially driven by automated FDD FDD technology advances

Real time capacity and new capabilities built into equipment (vibration analysis, meg test)

New more powerful “cloud” computing languages

Better sensor technology

Expanded AI (Artificial Intelligence) algorithms for better prediction More powerful and effective whole-building

optimization routines

Thank You!

Lessons Learned Rule #1: Garbage In, Garbage Out:

There are no “golden” sensor values Rule #2: Almost nobody knows

what’s in their building Rule #3: ROI based on energy

savings is impossible to calculate Rule #4 : Neither customers nor

vendors know their limitations

BAS Systems and SensorsThis is what we expected to see This is what we got

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NIST Calibrated ThermometerBAS Temperature

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NIST Calibrated ThermometerBAS Temperature