The Role of Effective Maintenance Practices on a Facility’s Total Cost of Ownership (TC) Monday, June 9, 2014 ▪ 8:30 am – 9:45 am, Hidalgo Presented by: Bert Jones, Associate Vice-Chancellor, Virginia Community College System Dexter Stanphill, President, Facility Management Division, CGL Today more than ever, decision makers are looking at the Total Cost of Ownership (TCO) when making choices on facility construction and operations. In addition, with the advancement of sustainability and “green” initiatives, it is important to understand the impact of effective maintenance planning and practices. TCO considers not only the construction, maintenance, and energy consumption components, but also the cost of operations. Each of these components is signi cantly impacted by the maintenance planning and practices established and performed. Moreover, poor and deferred maintenance will quickly increase cost drivers in operations and energy consumption. By utilizing a Reliability Center Maintenance plan with structured approaches to skilled labor productivity, the maintenance department becomes a strategic value in operations productivity and sustainability, lowering the TCO.

ABOUT THE SPEAKERS BERT JONES is the Associate Vice-Chancellor for Facilities Management Services for the VCCS. Facilities Management Services is directly responsible for all capital outlay construction within the Community College System. He and his staff support the 23 colleges with 40 campuses in all matters related to facilities and construction. He began his professional career in 1985 after graduation from the University of Tennessee with a Bachelor of Architecture, working for the private architectural firm of Ben R. Johns, Jr. Architect. From 1988 through 2006, he worked for the Virginia Department of Corrections where he served as project manager, Chief Architect, and finally as Chief of Architectural & Engineering Services. From 2006 through 2012, he served as the Director of Engineering and Building for the Virginia Department of General Services where he was the State Building Official and was responsible for the construction, maintenance and operations of over 6.5 million square feet of buildings and parking facilities at the seat of government in Richmond, Virginia. Bert is licensed to practice Architecture in Virginia and is an ICC Certified Building Official and is a Virginia Construction Contracting Officer.

DEXTER STANPHILL has over 30 years of public and private experience in facility management. Having served as Director of Engineering and Design for the Georgia Department of Corrections for 10 years and as President of CGL's facility management company for the last 15 years. At the GDOC Mr. Stanphill established a preventative maintenance program at 28 State correctional facilities (approx. 13,000,000 sq. ft.) and provided administrative and technical oversight for all maintenance related activities. At CGL FM Mr. Stanphill is responsible for management of comprehensive maintenance activities at correctional and higher education facilities totaling over 10,000,000 square feet. Virginia. Bert is licensed to practice Architecture in Virginia and is an ICC Certified Building Official and is a Virginia Construction Contracting Officer.

The Role of Effective Maint. Practices on a  Facility’s TCO

Monday, June 9, 2014 ▪ 8:30 am – 9:45 am

The Role of Effective Maintenance Practices on a Facility’s Total Cost of Ownership

Presenters: Bert Jones | Associate Vice Chancellor | Virginia Community College System Dexter Stanphill | President | CGL Facility Management Division

Total Cost of Ownership

•

Construction Cost •

Financing

•

Land

•

Permitting

•

Testing

•

Planning ,Design, Engineering

•

Project Management

•

Capital Cost

•

FF&E

Impact on Construction • Maintenance Practices  Involvement • Design decisions • Product specifications • Equipment locations and  access • Installation evaluation • Commissioning  involvement • Training

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The Role of Effective Maint. Practices on a  Facility’s TCO

Monday, June 9, 2014 ▪ 8:30 am – 9:45 am

Total Cost of Ownership

• Maintenance Cost • Preventive/Predictive  Maintenance • Repairs • Life Cycle  Replacement • General Upkeep

Total Cost of Ownership

• Energy/Utilities Cost • Gas • Diesel • Electric • Coal • Solar • Combined Heat & Power • Water/Sewer

Total Cost of Ownership

•

Operations Cost •

Staff

•

IT

•

Security

•

FF&E

•

Re‐purposing/Renovations

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The Role of Effective Maint. Practices on a  Facility’s TCO

Monday, June 9, 2014 ▪ 8:30 am – 9:45 am

Total Cost Of Ownership

Goals • Understand how maintenance impacts various  components of TCO • The value of maintenance in TCO • Maintenance Practices are integral to  Sustainability • Key tools to improve maintenance practices • Why it is important to “tell your story”

Impact of Maintenance Cost on TCO starts in planning/design/engineering phase: Systems Equipment Location Continues through construction/installation and commissioning

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The Role of Effective Maint. Practices on a  Facility’s TCO

Monday, June 9, 2014 ▪ 8:30 am – 9:45 am

Impact of On-going Maintenance Cost on TCO: Planned: Preventative and Routine Maintenance: Labor, Tools, Vehicles, Equipment Sub-Contractors Extended Warranties Supplies, Materials, Parts BMS, Controls, Instrumentation, Sensors CMMS Software/Hardware Unplanned: Repairs or Replacements Vandalism New Technology (Ozone)

Life Cycle Cost Impact on TCO

“Effective O&M is 

ONE OF THE MOST COST  EFFECTIVE METHODS for ensuring reliability, safety,  and energy efficiency.”

U.S. Department of Energy 2010 Federal Energy Management Program

Monday, June 9, 2014 ▪ 8:30  am – 9:45 am

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The Role of Effective Maint. Practices on a  Facility’s TCO

Monday, June 9, 2014 ▪ 8:30 am – 9:45 am

Poorly maintained equipment increases Energy Costs

Deferred Maintenance prevents buildings from operating at peak efficiency

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The Role of Effective Maint. Practices on a  Facility’s TCO

Monday, June 9, 2014 ▪ 8:30 am – 9:45 am

Deferred Maintenance prevents buildings from operating at peak efficiency

Deferred Maintenance prevents buildings from operating at peak efficiency

Lack of ongoing roof inspections does not allow for problems to be  identified in a timely manner

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The Role of Effective Maint. Practices on a  Facility’s TCO

Monday, June 9, 2014 ▪ 8:30 am – 9:45 am

EFFECTIVE MAINTENANCE PRACTICES go hand in hand with

REDUCING TCO

Monday, June 9, 2014 ▪ 8:30  am – 9:45 am

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Tools to Improve Effectiveness of Practices

EFFECTIVE MAINTENANCE MANAGEMENT goes hand in hand with

REDUCING TCO

Monday, June 9, 2014 ▪ 8:30  am – 9:45 am

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The Role of Effective Maint. Practices on a  Facility’s TCO

Monday, June 9, 2014 ▪ 8:30 am – 9:45 am

Properly Planned and Executed  Maintenance Drives Productivity and  Lowers Cost

Monday, June 9, 2014 ▪ 8:30  am – 9:45 am

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PM reduces CM

CMMS Implementation • Decide on Software • Decide on technology  (barcode scanners,  handhelds, etc.)

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The Role of Effective Maint. Practices on a  Facility’s TCO

Monday, June 9, 2014 ▪ 8:30 am – 9:45 am

Preventive  Maintenance Work Flow

• RCM based • Improved performance • Reduces Corrective Maintenance

Monday, June 9, 2014 ▪ 8:30  am – 9:45 am

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Corrective  Maintenance Work Flow

• Responsiveness • Root Cause Analysis – fix it right the first time • Communication • Critical Spares

Monday, June 9, 2014 ▪ 8:30  am – 9:45 am

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Preventive  Maintenance  Optimization • Preventive Maintenance Plans can become  stagnate and lose effectiveness • Generic plans often adopted (OEM, RSMeans) • Knee jerk reactions to failures overburden  staff Monday, June 9, 2014 ▪ 8:30  am – 9:45 am

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The Role of Effective Maint. Practices on a  Facility’s TCO

Monday, June 9, 2014 ▪ 8:30 am – 9:45 am

CMMS Implementation • System setup and administration • Detailed asset inventory • Unique identification • Proper asset trees and nomenclature • Job tasks specific to each asset • Frequencies established based on RCM

• Establish procedures to support and train  all staff

CMMS Implementation

• Decide on desired output (KPIs, reporting, cost  capture, etc.)

Demonstrate your  effective maintenance  practices lower  Total Cost of Ownership  for better budget

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The Role of Effective Maint. Practices on a  Facility’s TCO

Monday, June 9, 2014 ▪ 8:30 am – 9:45 am

Questions?

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