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  • IBM Confidential
  • IBM Confidential
  • IBM Confidential
  • IBM Confidential
  • We analyzed the spend of the 4 clusters by 6 energy drivers. For example, we determined through benchmark studies and expert analysis, the percentage of usage by energy drivers. For example, the Office space column, 50 % of the usage is HVAC, 30 % is lighting, and 20 % is plug load. While the spend by clusters is interesting, the spend by energy drivers allows us to appreciate what generates our costs and their relative magnitude. This allows the geographies, regions and sites to focus our efforts the these cost elements, and prioritize our efforts. Through this analysis we have identified HVAC and data center equipment as the largest drivers of electrical usage. Estimated spend dollars is for Top 100 sites only except $4M for “Other” cluster
  • Use of wireless sensors is increasing – sensors will be measuring things not measured before PRO: This would provide a lot more data Would be easier to implement (no wires…) Possibly easier to deploy a new IIBM rule CON: A lot more data requires a lot more analysis (sorting useful from not) Would need to add hubs and IT system infrastructure Smarter building requirements for wireless sensors – Open protocol Reliable Calibration is infrequent
  • Transcript

    • 1. 22 February 2012 Cost Take Out for NASA’s Infrastructure Portfolio Controlling Costs of Inner Space to Increase Funds Available for Outer Space Bob St. Thomas IBM Global Business Services © 2012 IBM Corporation
    • 2. Building a Smarter PlanetCost Reduction is a Complex MissionCost reduction is a mission with no shrink wrap solution.It’s people, processes, technology, physics, andanalytics that require close attention to detailcontinuously throughout the life of the cost reductionmission to ensure success. 2
    • 3. Building a Smarter PlanetAt Home, Would You… Leave your car running all night in case you might need to run to the store for milk/bread? Keep your oven at 350F night and day in case one of your kids wanted to cook pizza? Run your air conditioner and heater at the same time all year? Operate 3 chillers when two are sufficient for your building? Tolerate an electrical load every night of 70% of your daytime peak? All too often, Companies and Agencies do these things either deliberately or unconsciously. Either way, they waste money that could be put to use in other mission areas. 3
    • 4. Building a Smarter PlanetPossible Causes of Excess Infrastructure Costs Multiple contracts and or conflicting procurement terms Excess facility space due to mission changes Duplication of effort or lack of shared services between programs Managing facility operations and energy reductions independently Maintaining a culture of consumption vs. one of conservation Lack of information from available data to drive change Addressing the problem tactically vs. strategically 4
    • 5. Building a Smarter PlanetProposed Mission: Reducing NASA’s Infrastructure CostsChallenges Faced by Real Estate ExecutivesStep 1. Right Size Your Internal SpaceStep 2. Energize Your WorkforceStep 3. Listen to Your BuildingsStep 4. Apply Analytics to Support Your Decision Processes 5
    • 6. Building a Smarter PlanetReal Estate Executive ChallengesKey Responsibilities:3. A Safe and Reliable Workplace Manufacturing Offices Data Centers1. Provided at the Lowest Possible Cost Space Energy Facilities Operations 6
    • 7. Building a Smarter PlanetProposed Mission: Reducing NASA’s Infrastructure CostsChallenges Faced by Real Estate ExecutivesStep 1. Right Size Your Internal SpaceStep 2. Energize Your WorkforceStep 3. Listen to Your BuildingsStep 4. Apply Analytics to Support Your Decision Processes 7
    • 8. Building a Smarter PlanetTypical Real Estate Portfolio Cost Profile Space (Rent, Depreciation, Taxes and Insurance) ~55% Energy and Fac. Ops covers 40% of total cost ~20% Facilities Operations (Grounds, Housekeeping, Equipment) ~20% Energy (Electricity, Natural Gas, Fuel Oil) ~5% Other 8
    • 9. Building a Smarter PlanetTypical Real Estate Portfolio Cost Profile Space (Rent, Depreciation, Taxes and Insurance) ~55% However, 95% of cost is space-driven. ~20% Facilities Operations (Grounds, Housekeeping, Equipment) ~20% Energy (Electricity, Natural Gas, Fuel Oil) ~5% Other The Most Efficient NASA Building is the One You No Longer Have 9
    • 10. Building a Smarter PlanetFirst Challenge: Organizational Alignment Chairman, President & CEO Sr. VP, CFO VP Controller VP Global Real Estate Operations U.S./Japan Europe/Research LA/Canada Asia Pacific Construction/ EngineeringGlobal Energy / IT Leasing Space Asset Workplace Management Standards  Can They Do:  Key Challenges:  Space/Lease Management?  Changing Mission and Budgets  Facilities Operations?  Legacy-Owned Assets  Energy Management?  Rising Energy Rates  Environmental Compliance?  Aggressive Environmental Agenda  Design and Construction?  Enterprise Integration Across NASA 10
    • 11. Building a Smarter PlanetSecond Challenge: Disparate Data Sources Security Badge In Data Population and Energy Workplace Usage/ Indicators Cost Centralized  Visualize opportunities Energy Lease Data Global Anomaly Data Warehouse Data BMS  Prioritize Conservation Equipment Tracking Performance Track  Assign resources Orders Work Data Center Reliability Track Construction  Invest for best return Facilities Maintenance Spend Cost 11
    • 12. Building a Smarter PlanetContinuously Attack the Cost Problem in Two Dimensions Strategic Optimization – Global Portfolio Analysis • Aggregation of Key Global Indicators: • Lease Information • Space Utilization • Energy Usage and Conservation • Work Order History • Supplier Performance • Drives resource and investment prioritization: Higher efficiency and effectiveness Building Optimization – Individual Building Performance • Focus on building efficiency through visibility to operating anomalies • Software integrated with building systems to report: • Ambient conditions • Equipment malfunctions • Set point deviations • Real-time demand for water, HVAC and lighting • Automated response to improve building efficiency, reduce Co2 emissions, and improve reliability 12
    • 13. Building a Smarter PlanetTool Set for Rightsizing Space and Infrastructure Many tools are available for spot improvements, but for reducing Infrastructure costs, the following portfolio of specific capabilities is helpful Infrastructure Cost Reduction Portfolio Enterprise Integrated Workplace Real-Time Asset BuildingManagement Management Systems Commissioning • Real time• Preventive operations maintenance and energy Space and Energy and Real Estate monitoring• Work mgmt Capital Project Facilities Environment Portfolio • Real-time Sustainability Management• Inventory Management Management analytics mgmt • Event correlation 13
    • 14. Building a Smarter PlanetProposed Mission: Reducing NASA’s Infrastructure CostsChallenges Faced by Real Estate ExecutivesStep 1. Right Size Your Internal SpaceStep 2. Energize Your WorkforceStep 3. Listen to Your BuildingsStep 4. Apply Analytics to Support Your Decision Processes 14
    • 15. Building a Smarter PlanetSample Architecture Supporting Workforce Energy Management Employee Continuous Level 5 Involvement Improvement Cultural Awareness Building Systems Level 4 Energy Efficiency Peak Power Intelligence Optimization Models Program Performance Management Analytics Enterprise Statistical Dashboards Asset Management Process Control Historian Server Data System Integration and Data Aggregation System Level 3 Mining Information Correlation Power Paging Monitoring Communication Networks Server Server Alarms System Dashboards – SCADA – Nodes – – – Real-Time Monitoring Level 2 Data Communication Drivers Admin PLC Server Level Management PLC Controllers Server 1 Control Sensors, Actuators, and Equipment Level 0 15 Physical
    • 16. Building a Smarter Planet Center of Excellence for Enterprise Operations Energy Management ResultsQuality: Conform to SEMI F47 Standard and strive for zeroimpact due to Power Quality Issues to Manufacturing Process Fuel UsageReliability: Zero manufacturing down time/Continuous Rates: +30% since 2001Operations Usage: -21% since 2001Cost: Sustained 4% Reduction per year: Overall $10M Saved Fuel Usage vs. Fuel Rates Electricity Usage vs. Electricity Rates Electricity Usage 1200 12 600 0.090 2010 Fuel Cost: Rates: +19% since 2001 2010 Electricity Cost: $5,000,000 $35,000,000 1100 10 Usage: -21% since 2001 550 0.080 KiloWatt-hour (x 1,000,000) 1000 8 Plant Capability MMBTU (x 1,000) $ / MMBTU $ / kWh 500 0.070 900 6 Up >30% Since 2001 450 0.060 800 4 700 2 400 0.050 2001 2002 20032004 2005 2006 2007 20082009 2010 2001200220032004200520062007200820092010 Electricity Usage Electricity Rate Fuel Usage Fuel Rate 16
    • 17. Building a Smarter Planet Enterprise and Site Energy Programs Leadership Commitment • Agency Standards (Green House Gas and Energy) • Site Commitment and Site Location Executive (SLE) Expectation • Site-to-Site sharing, Industry Communication Leader Commitment Manufacturing Programs • Lean Manufacturing • Technology Advancements Ma rogra Aff atory nuf Employee Participation P airs gul act s • Continuous Improvement Culture Re urin m • Brainstorm with everyone Comprehensive g • Continuous Communication Energy Program  ‘Straight Talk’ About Energy Impacts • Recognition and Fun Operational Improvements • Continuous Review of How we work O Im per e pr at ye ion • Manufacturing Process Changes ov ion em al plo at Regulatory Affairs en Em ticip r • Strong Communication Network ts Pa • Workshop Participation 17
    • 18. Building a Smarter Planet One Methodology Has Six Main Steps and Draws Heavily from a Typical Six Sigma Methodology Brainstorming Feasibility andConsistent Process Solution Performance Reporting and and Solution Economics Process Initialization Deployment Monitoring Feedback Ideation Review Monitoring Process LeadershipAppropriate Support  Technology  Automation  Organization To capture the continuous stream of opportunities that can be accessed, Agencies need a consistent, repeatable methodology 18
    • 19. Building a Smarter PlanetStep 1: Establish and Deploy Goals Share of Energy and Water Consumption  Look at consumption of functions by share  Assign targets based on share and historical ability to Initializing the process meet goals by setting goals and a  Usage and financial targets budget is important: • Goals set team Investment Budget for Conservation objectives and should  Assuming 12- to 18-month returns, how much money is the enterprise allocating for conservation be realistic with a stretch • Budgets assure participants that good Economic and Regulatory Review ideas will get funded  Review initiatives, special offers, and other incentives and executed – key to from local utilities and regulators that may shape maintaining employee decisions and ROI analyses support 19
    • 20. Building a Smarter Planet Step 2: Idea GenerationBrainstorming runs across team …it is also very data-rich, with lots of materialsboundaries and include the most prepared in advance to help users focus on bestsenior and junior staff… opportunity areas. Operating Costs By Tool Type Facilities Annual $4 Annual Operating Cost by Tool Type NITROGEN DI WATER EXHAUST ELECTRIC 45 $3 Millions 92 Number of tools/type $2 55 35 $1 15 34 56 10 45 22 15 8 13 29 37 13 9 29 5 $0 2 G A N 00 00 N Y IS E V S N N N 08 28 35 T 37 O R R A A U C U O O N A 50 53 R 96 45 21 IL U LL TU D A LE TE LA IK IK H LE LA C S N E E M M C N LA E N N N C S M P O C M R P R IO TE LA LA V E IM V V H E E A FU K A IP FM O C S IM U U S S M N N U FS M 00 C D U E LE S IO IF FS W R 52 A C B IN TI E M S R M S E E A G S V N G D V S A “library” of idea generation methods for energy continues to grow and is a key element of the long-term success of an energy conservation program 20
    • 21. Building a Smarter Planet Step 3: Idea Evaluation and Prioritization Ideas from brainstorming sessions and Review regulatory and utility programs for users are logged in the productivity opportunities for subsidies or additional system benefits Productivity Opportunities System     ‘ Review and validate the opportunity Ideas that are viable are reviewed together against the Ideas are routed to appropriate SMEs for budget and prioritized review and analysis Idea prioritization and selection is based on “Big Picture” reviews.This includes assessing business benefit, client value, risk, energy conservation and ROI. 21
    • 22. Building a Smarter Planet Step 4: ImplementPrior to deployment, benchmarks IBM has a core and extended team that managesare taken of baseline state implementation of successful ideas Core team Environment Baseline energy Manager consumption Waste Energy Water Treatment Management Management Baseline water consumption High Construction Extended Team External to IBM, Voltage Contracted as neededLook at both the micro level (permachine, for example) as well as HVAC Chemical Process andthe macro level – such as total Team Engineering Toolingconsumption in the building. Can implement over 100 ideas a year; 75% cost very little to implement. 22
    • 23. Building a Smarter PlanetStep 5: Monitor – Meters Matter! Equipment Metering • Look at equipment before and after, and check Smart Grid in Action energy consumption and process performance • Meters Matter! Validate results Building Metering with meter readings • Look at total building consumption to make sure • Allows comparison that decreases in one area are not being offset by increases in another area of actual results to analysis calculations Customer Feedback • Validate that impact of changes does not disrupt usability or output to an unacceptable level 23
    • 24. Building a Smarter Planet Step 6: Report Results and Provide Feedback to Management Building 963 CUP  To assess success or failure, track detailed 400,000 200% 2005 2006 2007 2007/2006 measurements and 300,000 compare year-on-year 150% performance acrossDaily Electr ic Consum ption in KWH major equipment, Year To Year Change in % 200,000 buildings and other high consumers 93% 95% 100% 100,000 88% 89%  Also look at performance that is seasonally adjusted 0 50% and also compare ne r il er y ly h y r st r r times of peak demand ry Ma be be rc Ju Ju be tob ar Ap gu ua nu Ma m m m Au Oc ve ce br Ja pte Fe No De Se 24
    • 25. Building a Smarter Planet Sample Workforce Feedback: B963/B971 Central Utility Plant Average Daily Electricity Usage (Kwh) 350000 Electricity Consumption (kWh / day) 300000 Our efforts saved enough energy to power 650 homes for one year! 250000 2009 200000 Winter Free-Cooling Results 150000 100000 50000 Electricity: 4,866,440 kWh Savings: $390,000.00 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecOctober Savings: 550,300 kWh / $45,000.00 2009 2008November Savings: 787,500 kWh / $63,000.00December Savings: 1,373,300 kWh / $109,865.00 CONGRATULATIONS! YOU MADE A DIFFERENCE! 25
    • 26. Building a Smarter PlanetProposed Mission: Reducing NASA’s Infrastructure CostsChallenges Faced by Real Estate ExecutivesStep 1. Right Size Your Internal SpaceStep 2. Energize Your WorkforceStep 3. Listen to Your BuildingsStep 4. Apply Analytics to Support Your Decision Processes 26
    • 27. Building a Smarter PlanetBuildings That Recommission Themselves Continuously –Real Time Interconnected building management systems with advanced analytic capabilities allow them to act intelligently, and continuously report on their operating conditions to building managers, Site and Agency Directors. Adding configurable dashboards and use of mash-up technologies allow tailoring to specific missions and building use cases, and enable maintenance and tenant workers to take action and modify behaviors. 27
    • 28. Building a Smarter Planet A Navy View of Smarter Buildings Smarter Buildings are well managed integrated physical and digital infrastructures that provide optimal Navy Feeder occupancy services in a reliable, cost-effective, and energy-efficient manner Systems • Weather from C2 Suite Portfolio Water Energy Elevators • Metering with AMI Estates Mgmt Smart Meters, Smart Meters, Maintenance, Use/Flow Demand Performance Weather • HVAC Control/ Sensing Response Current Monitoring from ICS Asset Mgmt Fire Predictions • Fire Alarm Data from Life Cycle Functionality NERMS Checks, HVAC Detector Service Fans, Variable • Lighting Control from ICS Energy Use Air Volume, Air • Local Utility Control with Passive/Active Emergency Quality Services SCADA Alerts, Actions • Security System Building Analytics and Optimization Services Interface with Enabler and NERMS External Integration Maintenance Utilities • Digital Video with VPMS Occupancy Demand Mgmt, Space Mgmt • Intrusion Detection with Cost Control PACs and VPMS Tenant • Energy Information Services Management with Help Desk Lighting Community Circuits Occupancy Sensing Services • Work Management with Waste Mgmt Access/Security Transportation,Trash/Water/Recycle Badge in, Single Platform MAXIMO Cameras, Traffic, Events • GIS Display/Control with 24/7 Monitoring Integration Compliance Perimeter, Doors, OGC and RSIMS Condition Monitoring,Environmental Reports Parking Lot Utilization Floors, Occupancy Commercial • Mass Notification Ad Hoc Potential Industry Specific Voice/Video/Data Advertisement Hospital, Hotel, etc. Integrated Building and Communications Services 28 28
    • 29. Building a Smarter Planet Smarter Building Benefits: A “Well Managed” Savings Profile* Areas of Maintenance Savings • Root Cause Identification New Information • Fewer Total Customer Calls Drives Energy • Reduced PMs Savings and More Work Orders *At less tightly managed sites, Ops and Energy savings can exceed 30% n 1 2 3 4 5 6 7 8 9 tio d d d d d d d d d nt a rio rio rio rio rio rio rio rio rio e Pe Pe Pe Pe Pe Pe Pe Pe Pe em plIm Baseline Energy Maint. Activity 29
    • 30. Building a Smarter PlanetKey Data Required Assess data availability of maintenance costs. Can you measure: • Labor/Materials/Subcontracted? • Percentage of each element of the total? Does your Agency use a Work Order logistic system? Is a standardized Preventive Maintenance program in place? Do the maintenance techs record hours/cost against Work Orders? What level of data is tracked? • How is it categorized? • How much history is sufficient? Build credibility across your site using data from an initial pilot 30
    • 31. Building a Smarter PlanetWhere to Start? Typical Energy Drivers By Cluster (Based on IBM Data) Clusters Data Office Labs andEnergy Drivers Manufacturing Centers Spaces Research Total Spend HVAC 20 % 10 % 50 % 30 % 27 % Data Center Equipment --- 65 % --- 25 % 22 %Central Utility Plant (CUP) 25 % 20 % --- 20 % 16 %Manufacturing Processes 45 % --- --- --- 14 % and Tools Lighting 10 % 5% 25 % 10 % 13 % Plug Load --- --- 25 % 15 % 8% Total Spend 30 % 28 % 28 % 13 % 100% 31
    • 32. Building a Smarter Planet Work Order Hours Analysis by Equipment ClassAll Other Classes Shop Equip Plum bing Fans CRAC Fire Prot. Alarm Manual Door Kitchen Electric LV Pum p Determine Number of Hours Com p. Air Covered ChillerCondensate Rec. Rest Room Architectual Lighting AHU WO Hours Initial Analytic Opportunity (IBM Relative Data) 32
    • 33. Building a Smarter Planet IBM Cost Reduction Results at One Site: 8% Energy Savings Energy Consumption Exceeds Spec Equipment Not on Automatic Schedule 2.5% Savings 2% SavingsKWH Usage KWH Usage 00 00 00 00 00 :00 :00 :00 :00 :00 :00 :00 00 00 00 00 00 0 0 0 0 0 0 0 :0 :0 :0 :0 :0 :0 :0 1: 3: 5: 7: 9: 11 13 15 17 19 21 23 9: 1: 3: 5: 7:17192111131523 Unit Performance Operational Schedule Unit Performance Operational Baseline Steam Leak Dual Energy Savings Opportunity Identified by Analytics Chilled Water and Steam AHU Air Flow Temp. Delta 15 3.5% Savings 5 -5 -15 -25 -35 00 00 00 00 00 00 00 00 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 :0 2: 3: 4: 5: 8: 9: 1: 6: 7: 11 12 13 14 17 18 19 20 23 10 15 16 21 22 Actual Normal Operation 33
    • 34. Building a Smarter Planet Sample Smarter Building Equipment Work Order Savings Work Order # and Hours Average Hours Per WO 200% - 34% 150% 100% Ave Hr/WO 50%Baseline 0% - 16% Pre IIBM Post IIBM Prior Yr Qtrly Q410 Q111 Q211 Q311 Q411 ave -50% Compounding Productivity Impact -100% 2) 16% Reduction in # of Work Orders # of WO WO Hours 3) 34% Productivity in Remaining WO 34 34
    • 35. Building a Smarter Planet Other Areas of Opportunity to ConsiderAll Other Classes Shop Equip Plum bing Fans CRAC Future Savings Opportunities Fire Prot. Alarm driven by: Manual Door • New Rules Kitchen • Wireless Sensors Electric LV Pum p Com p. Air ChillerCondensate Rec. Rest Room Architectual Lighting AHU WO Hours Expanded Smart Building Analytic Opportunity / 30% of Total Work Order Hours 35
    • 36. Building a Smarter PlanetProposed Mission: Reducing NASA’s Infrastructure CostsChallenges Faced by Real Estate ExecutivesStep 1. Right Size Your Internal SpaceStep 2. Energize Your WorkforceStep 3. Listen to Your BuildingsStep 4. Apply Analytics to Support Your Decision Processes 36
    • 37. Building a Smarter Planet Analytics Landscape for Decision Support of Cost Take Out Stochastic Optimization How can we achieve the best outcome including the effects of variability? Prescriptive Optimization How can we achieve the best outcome? Predictive modeling What will happen next if?Degree of Capability Forecasting What if these trends continue? Predictive Simulation What could happen…? Alerts What actions are needed? Query/drill down What exactly is the problem? Ad hoc reporting How many, how often, where? Descriptive Standard Reporting What happened? Degree of Complexity Based on: Competing on Analytics, Davenport and Harris, 2007 37
    • 38. Building a Smarter PlanetEnergy Program Idea Evolution – Crawl, Walk, Run! Procedures Controls Technology Prototype (change what you do) (control how you do it) (change the resource) (new generation) Equipment On/Off Motion Sensors Belzona Pump Free Cooling Schedule Coating System Automated Lights On/ Utilize Inbound Water Off Ultrapure H20 High-Efficiency Pressure Membrane Chiller Vending-Misers Tester Idle Program Solid-State Chillers Variable Frequency Exhaust Balancing Drives Upgrade Lights T12 toCost of Ideas Reviews T8 to LED RF Generator Controls Load Reductions Digital Control Conversions Idea Advancement 38
    • 39. Building a Smarter PlanetDecision Trees for Proven Energy Initiatives Demand Side Easier Supply Side Partnering with Internal Users  Supplier Relations Change Set Points  Risk Management Efficient Lighting Motion sensors, Lighting Controls  Centralized Purchasing Outside Air Rebalance  Daily Market Analysis Compressed Air Leak Surveys  Financial Derivatives Controls Upgrades  Physical Collars DC Air Flow Management  Demand Response HVAC Recommissioning Variable Speed Drives  Rate Case Interventions DC Server Virtualization  Utility Negotiations Schedule Changes  Comprehensive Purchasing Strategy Boiler Rebuilds  Renewable Energy Energy Efficient Motors  Regional Policy Issues Free Cooling Chiller Replacements But how do these stack up Harder in ROI for Base Ops? 39
    • 40. Building a Smarter Planet Manual Decision Support Matrix Cost RS5: Renewable Energy (ROI %) last RD13: DC Air Flow Management (ROI %) RD6: HVAC Re-commissioning (ROI %) RS10: Financial Derivatives (ROI %) RD5: DC Server Virtualization (ROI %) RD12: Energy Efficient Motors (ROI %) RS4: Physical Collars (ROI %) RD4: Boiler Rebuilds (ROI %) Impact RS6: Risk Management (ROI %) RD11: Motion sensors, Lighting Controls (ROI %) RD10: Efficient Lighting (ROI %) RD3: Variable Speed Drives (ROI %)RS7: Regional Policy Issues (ROI %) RD2: Controls Upgrades (ROI %) RD9: Compressed Air Leak Surveys (ROI %) RS3: Comprehensive Purchasing Strategy (ROI %) RD8: Outside Air Re-balance (ROI %) RS8: Daily Market Analysis (ROI %) RS2: Centralized Purchasing (ROI %) RS9: Rate Case Interventions (ROI %) RS1: Supplier Relations RD1: Partnering with Internal Users (ROI %) RD7: Change Set Points (ROI %) Start Supply Initiative Demand Initiative (savings generated may be used to fund other high ROI projects) 40
    • 41. Building a Smarter Planet Calculating a “Minimum Investment” Sequence COST SAVINGS Costlast R9 : XXX (ROI 2%) R1 R3 $XXX $XXX $XXX $XXX R8 : XXX (ROI 5%) R5 $XXX $XXX R10 : XXX (ROI 2%) R6 : XXX (ROI 5%) R12 : XXX (ROI 2%) R7 : XXX (ROI 5%) R15 $XXX $XXX R11 : XXX (ROI 2%) R5 : XXX (ROI 5%) R13 $XXX $XXX Impact TOTAL $XXX $XXX R4 : XXX (ROI 5%) R14 : XXX (ROI 2%) R13 : XXX (ROI 2%) R3 : XXX (ROI 5%) Sequence initiatives R15 : XXX (ROI 2%) to “self-fund” as R2 : XXX (ROI 5%) much as possible R1 : XXX (ROI 5%) with savings from R16 : XXX (ROI 2%) previous projects start 41
    • 42. Building a Smarter PlanetManual Method of Decision Support for Energy Savings Initiatives(Using historical library of Agency Initiatives) Only possible with small number of competing projects, no dependencies 42
    • 43. Building a Smarter PlanetPrescriptive Model Use in Energy Cost Take OutOptimized Model of Decision Support for Energy Savings Initiatives Possible with any number of competing projects and dependencies 43
    • 44. Building a Smarter Planet Mission Summary: Reducing NASA’s Infrastructure Costs Each NASA Site will be unique • Mission priorities, number of tenants, contracts in place • Driven by equipment status/maintenance history/type of use • Maturity level of facility instrumentation, range of technology tools used Step 1. Need to gather key data from your sites • Helps transformation teams understand how to leverage capabilities • Potential cost take out opportunities identified by workforce for decision support Step 2. Jointly develop savings opportunity with stakeholders • Includes the value proposition for any vendors providing site services to NASA • Long-term value prop trumps short-term impacts to “Cost Plus” contracts Step 3. Use energy savings from pilot location as primary value proposition for Energy Cost Take Out solutions throughout your organization • Use operational savings as additional benefit • Reduced Facility Costs • Reduced Asset Costs • Reduced Low Value assets and activities to Protect High Value Resources Greater range of cost take out from Global Portfolio Optimization • Facility right sizing, optimized space utilization, etc. 44