Technology Enabled Strategic Facilities Management

Transcription

1 Technology Enabled Strategic Facilities Management Thomas Davies and Eric Teicholz Introduction - The TDMHMR Challenge With 23 campuses across the state, the Texas Department of Mental Health and Mental Retardation, TDMHMR, had serious issues managing and maintaining its facilities and planning for capital projects across the state Almost 1,500 buildings located in urban, rural and isolated areas make up the TDMHMR system, including hospitals, schools and state centers The age of these buildings ranges from 5 to 142 years, presenting a facilities challenge in terms of capital needs assessment, planning and management TDMHMR s challenge included the following: Increased Efficiency of Maintenance and Construction Practices; Better Usage of Vacant or Underutilized Buildings and Land Holdings; Compliance with Regulations; Adaptation to Buildings for Changes in Functions TDMHMR was faced with decreased resources and an existing portfolio of buildings in unsatisfactory condition Because of the size and scope of the TDMHMR system, very little accurate information existed about its buildings Varying funding levels had been channeled to the TDMHMR campuses, however, the department had no capabilities for strategically planning and prioritizing expenditures and buildings remained in a state of disrepair In addition, the department had no justifiable and valid data for approaching the Texas State legislature for funding for improvement, modernization, program-driven renovations, etc The challenges above were faced in an environment that included: Major structural changes in Medicaid and Medicare programs; Health systems are moving rapidly to managed care; Demographic changes in Texas; Reduced funding for mental health services Copyright June 1999, VFA; All Rights Reserved Page 1 of 14

2 The concept of automating TDMHMR's facility infrastructure support services had been discussed for several years, however the initiative was supported in the Texas Performance Review (TPR) February 1996 report entitled Special Delivery: New Models of Care Proposal 25, of the TPR highlighted the need for a longterm technology plan and even more specifically the implementation of an integrated computer-based management system facility TDMHMR embarked on an ambitious program to resolve its facilities infrastructure issues by employing the use of innovative facilities technology and management systems Web-based technology was implemented as an enabler to create a dynamic, collaborative environment to gather input from all management layers and constituencies This technology deployment effort, combined with fundamental facilities business process changes, was used to achieve programmatic and financial benefits, and a global awareness (TDMHMR system and Texas Legislature) of the strategic value of facilities The first phase of the program was to conduct a department-wide computer-aided facilities needs assessment The second phase was the selection and deployment of a web-based facilities capital planning and management solutions (CPMS) platform and computerized maintenance management system (CMMS) Systems integrator, Graphic Systems, Inc was selected as the Project Management Specialist for the Phase 1 "Needs Assessment" project VFA was selected as the CPMS vendor, and Peregrine was selected as the CMMS vendor This paper focuses on the CPMS aspects Copyright June 1999, VFA; All Rights Reserved Page 2 of 14

3 TDMHMR Solution - FM technology Needs Assessment Study The objectives of the computer-aided facilities management study were to: identify and define existing conditions: (enumerate existing facility management practices, resources, and needs); prioritize needs: (establish and educate all TDMHMR management layers and users as to potential improvements available through FM technologies); develop a functional description of a suitable facility information system; recommend technical systems, services, and vendors; provide a projection of potential costs, performance, and financial benefits GSI performed several research tasks in order to create a foundation of information, from which a definition of needs could be generated These tasks included: focus interviews with TDMHMR facilities staff and functional groups; technology demonstrations and seminars; peer analyses and benchmark research; (look for parallel efforts in other state agencies or industry groups); (determine if other groups were benchmarking data); fact-finding site visits to TDMHMR facilities to gather operation and benchmark data; identification of well established, "enterprise" focused vendors providing; CMMS (computerized maintenance management systems), CPMS (capital planning and management systems), FAS (facility assessment systems) and CAD (computer-assisted drafting) products For CPMS/FAS systems, VFA was selected and for CMMS, Peregrine was selected based upon a comparative matrix evaluation of need vs capabilities Costs/Benefits The financial impact to the organization in terms of a cost-benefit analysis was developed by GSI Estimated costs of $10 to $13 million dollars for the CMMS, CPMS, FAS, etc systems with annual operation costs between $300,000 and $400,000 were calculated Yearly Copyright June 1999, VFA; All Rights Reserved Page 3 of 14

4 financial benefits of $4 to $65 million were also detailed however functional needs surfaced as a primary driver in the case of TDMHMR Implementation Phase 1 - The Foundation of the Program GSI's findings, as derived from the needs assessment stage, determined that high-quality timely information descriptive of each building / facility by program and for comparison with industry norms, was required in order to establish and meet TDMHMR's programmatic and financial targets and functions Specifically, a decision-support system was needed to address the following business issues: Assessing the current and future physical condition of all TDMHMR properties and structures; Programming infrastructure needs reflective of provision-of-care strategies; Creating and delivering strategic and tactical infrastructure maintenance and construction programs; Monitoring performance against planned goals for all properties; Proposing and managing capital and operations budgets; Standardized maintenance and construction functions, operational procedures; and information resources throughout the department, consistent with the industry's best; practices; Integration of legacy information with new web-based facility information systems Copyright June 1999, VFA; All Rights Reserved Page 4 of 14

5 The CPMS diagram illustrates an integrated approach to providing an ongoing decisionsupport capability to the above business issues relative to long-term strategic facilities capital planning and management The various stages provide, the ability to quantify physical and functional facilities needs, incorporating existing as well as new information; the blending quantitative and qualitative information and creating quantitative metrics; computer-based "what-if" financial analysis to determine budgetary needs and alternatives; methods to efficiently create and track capital projects; horizontal and vertical procurement capabilities to assure system-wide establishment and attainment of suitability objectives Creating a Baseline - Condition Assessment Information TDMHMR had summary information maintained in several independent databases, such as roofs, asbestos, accessibility assessments, etc However, the lack of "big picture" facilities conditions was interfering with critical decisions such as whether to repair or replace a Copyright June 1999, VFA; All Rights Reserved Page 5 of 14

6 building Furthermore, as healthcare, environmental, and programmatic requirements change the Department must be able provide a comprehensive, current view of its facilities in order to evaluate total infrastructure issues and impacts Detail information was obtained for the entire TDMHMR portfolio through a comprehensive facility assessment This comprehensive baseline assessment is the key component in providing well-developed, well-managed reinvestment programs for renewable capital assets The compilation of physical condition data and functional needs establishes a requisite baseline from which future analysis, planning and implementation originate Baseline facilities information includes detailed physical and functional facilities data across components, subsystems, systems, facilities and site levels An outline of typical information collected in a facilities audit includes the following: Full architectural, mechanical electrical and site descriptions for each building, with building names, addresses, region, gross area, number of stories, construction date, replacement value and other proprietary building information Full lists of deficiencies (deferred maintenance, code issues, functional deficiencies, etc) with individual detail describing the problem, multiple sorting categories, prioritization, and additional user defined fields Each deficiency linked to one or more corrections, describing the method of repair of the deficiency, associated line item costs, difficulty factors and additional user defined fields Central Knowledge Base Relational database technology and proper cost models are critical to providing accurate "apples to apples" information in an active data repository By using standard browser technology, supported by robust databases and established business models, TDMHMR gained: Data input models and associated active databases to categorize and document deferred maintenance, code compliance and functional needs; Detailed cost estimating using standard cost databases and accurate cost models; Integral related documentation: CAD interface and linked digital photos Copyright June 1999, VFA; All Rights Reserved Page 6 of 14

7 Targeting - Benchmarks and Metrics Extensive interactive discussions and focus group sessions were held with TDMHMR personnel to assist in establishing quantitative and qualitative metrics This information, when combined with the data received from the baseline conditions audit provides a framework for the creation of quantitative values for determining the ability of facilities to meet both the physical and functional needs of the Department The facility condition index (FCI) is one measure of the physical condition of a building, or system (SCI) The FCI can be linked to functional and/or programmatic needs and a combined quality index established The following graphics demonstrate how this process can be applied CONDITION INFRASTRUCTURE & CODE ASSESSMENT NEEDS Deferred Maint Renewal Life-Safety Code Performance Standards Internal Standards ADA Other codes Needs Cost Deficiency Estimates Replacement Backlog Values FACILITY FACILITY CONDITION CONDITION INDEX (FCI) EDUCATIONAL PROGRAMMATIC ADEQUACY NEEDS STUDY Space Utilization Quantity of Space Deficiency Under/Over Technology Density Plan Temporary Bldgs Capacity Backlog Metrics Numerical Security Safety Security Metric Rating Marketability Adjacencies Numerical Look and Feel Soft Rating Metrics PROGRAM EDUCATIONAL ADEQUACY ADEQUACY INDEX (PAI) (EAI) EVALUATION WEIGHTINGREPORT Rankings for Modernization & Recommendations ANALYSIS EVALUATION PRIORITIZATION Other Adjacencies factors Other Adjacencies factors Other Adjacencies factors Other Numerical Numerical Metrics Other Rating Numerical Metrics Other Rating Metrics Rating Copyright June 1999, VFA; All Rights Reserved Page 7 of 14

8 Multi-year Capital Planning Completion of the baseline audit populated the financial planning portion of CPMS software allowing TDMHMR to accomplish capital renewal forecasting The Department could now build detailed multi-year capital scenarios to establish budgetary requirements for both deferred maintenance backlogs and capital renewal strategies The general condition of each major system within the buildings is identified in terms of the percentage of remaining useful life, so as to determine where the systems are in relation to their anticipated lifecycle Computerized scenario analyses, using predictive models built upon industry-standard lifecycles and visual inspection data balanced variables such as prioritization schemes, timelines, and condition indices TDMHMR created detailed multi-year capital requirements both on a building-by-building and department-wide basis Drawing upon the database information, rates of degradation of each facility are analyzed and modeled and reports are generated based upon the required reinvestment rate required on an annual basis to replace components as they become dysfunctional Elements of the analysis include rates of standard degradation of each component, the cost to replace/refurbish that component, and the ability to analyze multiple year outlooks and various combinations of building type reinvestment rates Through the relational database, TDMHMR can sort and query all possible combinations of classification for analysis Parameters for analytical sorting include type of deficiency, Copyright June 1999, VFA; All Rights Reserved Page 8 of 14

9 location of deficiency, cost, trades involved in correction, programmatic use of space, age of building, etc Major repairs, capital projects or replacements are integrated, and costs associated, for capital planning scenario modeling Short-term and long-term capital funding are accurately projected and the implications of alternative funding scenarios are modeled Deferred maintenance and capital projects can be systematically and logically prioritized Trade-offs between competing funding requirements can be analyzed based on criteria and logic specific to user requirements This analytical capability is critical to the effective allocation of capital renewal funding Related or dependent renewal projects are associated with each other and with other functional requirements to assure an appropriate integrated perspective to capital planning The most obvious example of this need is the repair or replace analysis for severely deficient facilities Similar analysis must be conducted for component renewal vs gut renovation analysis of moderately deficient facilities In addition quantitative, defensible information in support of funding requests for renovation, capital renewal, deferred maintenance, and new construction can be quickly provided Funding $ - Option 1 - Funding for New Building Funding $ - Option 3 - Renovate and reduce FCI to 05 FCI - Option 1 FCI - Option 3 3,000, ,500, Annual Funding 2,000,000 1,500,000 1,000,000 Total for New Building: $3,046,970 for 15 yrs Total for Renovated Building: $3,084,416 for 15 yrs Facility Condition Index 500, Year 000 Copyright June 1999, VFA; All Rights Reserved Page 9 of 14

10 Capital Project Creation TDMHMR can dynamically link the repository of baseline facilities conditions and needs with a computer-based what-if environment to create projects and allocate funding relative to short and long-term execution Aggregating capital plans across its large building portfolio allows TDMHMR to optimize capital outlay by taking advantage of economies of scale and improved supply management This is accomplished by grouping projects in a logical manner to level staffing requirements, avoid re-work, and engage in horizontal and vertical purchasing practices Iterative analysis of various project bundling approaches helps define the most cost-effective approach for the work New capital program initiatives/projects, such as changing functional requirements, may be created/combined with deferred maintenance reduction plans All underlying cost line items from the individual deficiencies are grouped, allowing for analysis of these line items for refinement For example, staging may be included in the correction of failing windows as well as failing masonry mortar This type of redundancy is quickly identified, and additional project-specific costs are added Then the project soft costs are added as percentages or lump sum figures, including a penalty cost for delaying the project Less obvious but more typical is the analysis requirement for typical renewal and repair capital projects For example, a facility may require roof renewal, roof-top mounted air-handling unit replacement, and the classrooms served by that air-handler may have too few air changes per hour (through antiquated design standards) and the windows may be single-pane with no thermal break Copyright June 1999, VFA; All Rights Reserved Page 10 of 14

11 In this simple example, the capital renewal strategy integrates these related issues The AHU would be upsized to adequately service the required air-changes, not simply be replaced in kind The cooling capacity would respond to the increased efficiency of the replaced windows The roof would not be renewed until after the AHU is replaced, etc From a more general perspective, annual capital programs are developed against fixed budgets Consideration to prioritization, category of project, etc may be considered against such budgets The ramifications of delaying execution of projects or the inadequacy of a proposed annual budget as it affects the functional use of a facility may be identified and compared against what-if scenarios Furthermore, this approach provides project management capabilities including tracking of costs, schedule and resources Modification of annual capital plans based upon experience and updating of underlying unit construction costs to modify future budgets is a system capability, as well as reporting of predicted cost versus actual costs across multiple entities Copyright June 1999, VFA; All Rights Reserved Page 11 of 14

12 Reporting - Communication Across Administrative Layers and Department TDMHMR has developed a suite of standard reports, as well as custom reporting capability Controlled Web publication within a graphical environment is used to communicate initiatives and program status across widely distributed sites, and varying target audiences, including the Texas Legislature, facilities staff, and TDMHMR functional management Example Reports Copyright June 1999, VFA; All Rights Reserved Page 12 of 14

13 Results to Date - and the Future TDMHMR has adopted a true facilities lifecycle approach in its business methods and implementation of technology In the words of TDMHMR - We needed to get a handle on the status of our buildings because the legislature was putting pressure on us to come up with valid data to support our facilities capital requirements We have information on our facilities that we never possessed or were able to access before, and a comprehensive statement for attaining and allocating funds, planning and prioritizing projects, and effectively dealing with questionable health and safety situations Our facilities management deployment generates the information we need to quantify our day to day issues, determine programmatic goals and justify our capital needs requests As a result, we have saved a great deal of time, effort and dollars We can now make critical facilities and financial decisions based on a total understanding of each buildings condition, compliance and cost of current deficiency correction, a foundation for the next century of strategic facilities capital planning and management Sam Richards, Director of CAFM Project From a broader perspective leveraging both fundamental process change and technology provides organizations with several benefits related to facilities lifecycle management: Standardized "apples to apples" benchmarking of facilities; Accurate overview of past-due current and upcoming capital needs; Defensible budgetary data that dramatically improves the likelihood of both; mission success and obtaining associated required funding levels; Tools to mitigate facility risk, such as life-safety and "business" interruptions; Cost savings via enhanced planning and procurement practices; Communication across all layers of the strategic importance of facilities Facilities lifecycle issues are by nature continuous and dynamic, and require ongoing efforts yielding solutions to issues such as extensive deferred maintenance, aging facilities; renewal Copyright June 1999, VFA; All Rights Reserved Page 13 of 14

14 planning, ongoing, program changes, standard facility documentation, long term focus for budgeting, and active strategic planning and asset management About the Authors Eric Teicholz is president of Graphic Systems, Inc (wwwgraphsyscom), an independent technology consulting company He is an author, currently working on his tenth book entitled Facility Design and Management Handbook, to be published by McGraw-Hill, lecturer, and would-be entrepreneur of a couple of com companies He can be reached at (617) x106 or teicholz@graphsyscom Thomas Davies works for VFA and can be reached by mail: 266 Summer St, Boston, MA ; by phone: (617) , (800) ; or through their web site: Copyright June 1999, VFA; All Rights Reserved Page 14 of 14