This document discusses how building operations can benefit from integrating building control technology and cloud-based management tools. It begins by outlining the current economic challenges facing facilities management, including aging infrastructure, limited capital budgets, and rising operational costs. It then examines how technology trends like cloud computing and connectivity are changing expectations. The rest of the document provides recommendations on how facilities can leverage existing building automation systems and computerized maintenance management software to improve operations, such as generating automated work orders from smart equipment, implementing condition-based preventative maintenance, and reducing energy and labor costs through automated facility scheduling. The overall message is that integrating building controls and cloud tools can help facilities maximize efficiency and return on investment despite economic constraints.

1. Closing The Gap
Technology Impact on Building Operations
Cliff Ward
Manager of Strategic Programs

3. 3
Dude Facts:
8,600+ Organizations
5.5B sq ft Facilities Managed
$3B/yr Energy Spend Tracked
2M Users in Active Accounts
1M Work Orders/mo Processed

4. 4
A Closer Look:
200+ US-Based Employees
Award-Winning Support
Industry Leading Reliability
Pure Cloud Since Day 1
Leadership in Cloud + BMS

5. www.facilitydude.com
“The Good Dude”
Each year, we give:
– 1% of employee working time
– 1% of sales via monetary donations
– 1% of product services to under-served rural
schools and non-profit organizations
– Technology hardware donations to non-profit
organizations

6. Today’s Topics
1. Update on the Operating Environment
– Economic Trends
– Technology Trends
– Capital Project Realities
2. Integration of Building Control Technology
& Cloud-based Management Tools
3. How do we move the needle?
We need real ROI!!!

7. 8
Let’s Look at the Current Operating Environment

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Economic Environment:
“The Perfect Storm”

10. Economic Environment:
“The Perfect Storm”
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History of Cutting
Asset Maintenance

11. Economic Environment:
“The Perfect Storm”
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Aging Equipment
Near/Past Design Life

12. Economic Environment:
“The Perfect Storm”
13
CapEx Funding Limited
Current & Projected

13. Economic Environment:
“The Perfect Storm”
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Operational Costs
Continue to Spiral
(Energy, Water, Wages, etc.)

14. Economic Environment:
“The Perfect Storm”
15
Lean Maintenance
Staff Behind in
Technology Adoption

15. Results in
Run-To-Fail
Environment

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17. “The state and local government
sector continues to face near-term
and long-term fiscal challenges that
grow over time.”
US Government Accountability Office
State and Local Government’s Fiscal Outlook
April 2012 Update
18

18. “The model’s base case simulations
show that the fiscal position of the
sector will steadily decline through
2060 absent any policy changes.”
US Government Accountability Office
State and Local Government’s Fiscal Outlook
April 2012 Update
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20. 21
2060

21. How Are Cities Dealing with
Recent Budget Shortfalls?
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Source: National League of Cities; Research Brief

22. Ratio of Retiring vs. New
Skilled Maintenance Technicians
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23. Linus may have
the right idea!

25. A Brief History of Computing…
40+ Years Ago – Mainframe w. Screen;
Apps on Server Only
30 Years Ago – PC Revolution;
Apps on Desktop; Data/Processing @ Server
20 Years Ago – PC Connected to Internet;
“Read Only” web; Apps on Desktop
10 Years Ago – PC Specs Not As Important;
Apps Start Moving Back to Servers
Modern web, a.k.a. “The Cloud” emerges

26. CONNECTIVITY.

27. Adoption of High-Speed Internet, 2000-2013

28. $2000+
2000
$38
2013
US AVERAGE MONTHLY COST FOR HIGH SPEED

29. 25% of IT Budget
to the Cloud
($20B)
Why?
• Efficiency
• Agility
• Innovation

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What is This?

31. 35
And now?

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34. 38

35. 39

36. 40

38. What Expectations Do Your
Customers Have?
Do You Think This is a Trend?
How Do You Respond?
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39. Internal Customers
(Your Team, Admin & Colleagues)
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40. 44
Online Bill Payment

41. 45
Online Work Management

42. External Customers
(Community, Partners & Citizens)
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43. 47
Simple Search

44. 48
Simple Request

45. Key Takeaway:
As Technology Advances Around
Us…
…Expectations Increase, too.
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46. Is this an IT Lecture?
No, but the world is changing,
and it affects YOU.

47. The Role of
Information
Technology
Professionals is
Changing.

49. The Changing Role of IT Dept
• Understand that the world of technology is
changing – and your IT department may be
working overtime to keep up.
• Trend: More governance, less hands-on
• If you are bringing a new solution to the table
(e.g. Cloud-Based Software) be prepared for
“lukewarm reception”
• Policies and Procedures for Cloud?
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50. Building Controls and IT
• BAS Controls are increasingly piggybacking IT
infrastructure
• Introduces new security requirements
and potential threat vectors
• Education & training requirements for field
technicians is changing
• Opening big doors of opportunity for what
you can do with the data OUTSIDE the
building
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51. What Have We Learned So Far?
• Bleak budget outlook; no quick relief
• Capital dollars very limited
• Skilled labor is leaving; not replaced
• Customer expectations increasing
• Role of IT has evolved; Prepare yourself!
• BAS+IT is opening new doors; but be careful
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53. Please Raise Your Hand
If All Your Buildings
Look Like This…
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54. 58
Gorecki Alumni Center
University of North Dakota
LEED Platinum – Built 2012

55. 59
Ohlone College
Newark Center for Health
Sciences and Technology

56. Do Some, If Not a Majority
of Your Buildings Look
More Like This?
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59. 63

60. Our Reality is…
Can’t Tear Down and Rebuild
Every Facility in our Portfolio.

61. So we must…
Find new ways of doing things to
maintain safe and functional
buildings for occupants & citizens.

62. What Does the Dude
Have to Say About That?
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The next-generation of management
tools are moving to the web.
Buildings are getting smarter and
generating critical performance data.

65. What is CMMS?
Computerized Maintenance
Management Software

66. Software used to track the
business processes around
facility maintenance and
energy operations.

67. Why Should We Use It?
Documentation, Accountability,
Efficiency and more…

68. What Other Systems Exist?
Do you recognize any of these?

69. Some Alternatives to CMMS…

70. FOEFFMS

71. FOEFFMS
“Folder of Excel Files Facility
Management System”

72. HNETWFMS

73. HNETWFMS
“Hope Nobody Erases the
Whiteboard Facility
Management System”

74. FPNFMS

75. FPNFMS
“Fish Post-it Note Facility
Management System”

76. FPNFMS

77. Core Features

78. Core Features
Create Work Items
(Manual or Automated)

79. Core Features
Prioritize & Assign Work

80. Core Features
Record Transactions
(Labor & Materials)

81. Core Features
Manage Assets
(Equipment & Vehicles)

82. Core Features
Track Inventory

83. Core Features
Report and Analyze

86. Impact of Preventive
Maintenance on Operations

87. BENEFITS OF A SUCCESSFUL PM PROGRAM
• Fewer Failures - A timely PM program usually uncovers problems before they
become serious enough to cause equipment failures. Breakdowns can be reduced
by 50 percent.
• More Planned Work - The timeliness of preventive maintenance inspections
usually uncovers those major jobs that require planning. Sufficient lead time
allows planning to be done.
• Fewer Emergencies - An effective PM program has every maintenance employee
on the alert for things that cause problems. As a result, fewer problems that would
cause an emergency situation escape detection. Emergency work can be reduced
by half.
• Reduced Overtime - One of the largest contributing factors to overtime is the
need to perform emergency work. A reduction in emergency work usually
produces a corresponding decrease in overtime.

88. • Extended Equipment Life - PM invariably rewards its users by extending
equipment life by as much as 20 percent and increasing dependability.
Better Use of Maintenance Personnel - A job done under emergency
conditions is 15 percent more costly in labor than a similar, well planned job.
A maintenance department with a good PM program commits more staff to
planned work. The result is more effective, productive use of this manpower.
Improved Equipment Operation - Well-cared-for equipment is its own
reward - it runs better.
Less Downtime - Because the PM program can reduce emergency work, it
follows that downtime can also be reduced.
“Benefits of a Successful PM Program” is taken from Complete Building Equipment Maintenance Desk Book Second Edition, Edited by
Sheldon J. Fuchs, P.E. Page 19 in the chapter by Paul D. Tomlingson.
BENEFITS OF A SUCCESSFUL PM PROGRAM
Continued…

89. A National Study on
Preventive Maintenance
• 6,000 clients live operational data analyzed
• Identification of “PM Masters”
– Top deciles within peer group
– Allocating high percentage of manpower
to PM work orders (> 30%)
– High PM work order completion rates (> 98%)
– Sustained over a significant period
of time (> 3 years)

90. PM Reduces Corrective Work
• Over a 5-year period, a sampling of PM
Masters garnered a 16% reduction in
corrective maintenance.
• Corrective work as a percent of the total
work is reduced from 87% to 71% of the total
work performed.

91. Rate of Emergency Work
Rate of Emergencies
Average for Group
Rate of Emergencies
for PM Masters
Reduction in
Emergencies
PM Master Group
1.89%
1 out of 53 work
orders
0.67%
1 out of 147 work
orders
64.5%
In emergency work
orders

92. Cost Impact
• 50% - 65% reduction in the rate of emergency work
• Lower cost per work order
with the average cost per work order being 28.6% to 39.3% less

93. Jones Lang LaSalle PM ROI Study
Developed a Financial Model
-14 Million square feet mixed property type…
-Question to be answered…Is devoting 30-50% of
maintenance budget to PM activity justified?

94. Establish $ per sq/ft for PM Work
Jones Lang LaSalle PM ROI Study

95. 545% ROI in a PM Program
Jones Lang LaSalle PM ROI Study

96. One Example
• 10- year old, 7 HP Air Compressor
• Replace- $32,900 – 25 Year Outlook
• $472 per year PM Work Order. $944 per repair
• With PM Program ($50,600)- 20 year lifespan. 1 of
every 4 years at $944 per repair ($472/yr PM, $236 a
year Repair) Replaced in year 10-
• Without PM ($73,675)- 16 year lifespan. 1 of every 3
years repaired. ($315/year repairs) Replaced at year 6 and
year 20.
Jones Lang LaSalle PM ROI Study

97. Major impact of PM on one large
piece of equipment
• Average building chiller is 350 tons.
• Replacement cost @ $1000/ton = $350,000.
• Maintenance cost with PM costs only
$5,500/year, yet adds 5-7 years of life to
chiller.
Jones Lang LaSalle PM ROI Study

98. BAS (Building Automation Systems)
Impact on Facility Management
Business Processes
Respond to & Document
Critical Conditions
Transition to
Condition-Based PM
Monitor & Measure
Long-Term Building Health
Reduce Labor & Energy
Costs of Event Schedule
Management

99. Time-Based Metrics of Work Flow
• Mean Time to Report
• Meant Time to Respond
• Mean Time to Repair
• Total Outage Time
• Mean Time Between Failures
Cloud-enabled work management drives
step change in metrics; not incremental changes
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100. 1. Leverage Your Investment in
Building Controls to Generate
Timely, Accurate Work Orders
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101. Smart Equipment
Generating Work Orders
• Intelligent Filtering & Duplicates Prevention
• Step Change Reduction in Mean Time to Report
• Immediate Documentation in System of Record
• Real-Time Data Included in Work Order
• Automate Routing to Internal/External Resources

102. 2. Use control points and runtime
values to reduce dependency on
calendar-based preventive
maintenance.
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103. Proactive PM with
Automated PM Work Orders
• Move from Calendar-Based to Condition-Based
• Utilize Runtime Values & Other Sensor Data
• Combine the Intelligence of BMS w/ CMMS Suite
• Goal to Reduce Life-Cycle TCO & Increase Agility
• Full Integration to Core Work Order Application

104. 3. Monitor key performance
indicators of system health to
watch for negative trends.
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105. Automated Continued Commissioning
• Monitor key systems & health index
• Breach of threshold creates a work order
• More accurate equipment life cycle analysis
• Real-time data included in work order
• Automated routing to appropriate resources

106. 4. Reduce admin labor and energy
expenses of facility rental & event
usage by connecting schedules to
controls.
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107. Automated Facility Event Scheduling
• Creates efficient process to handle community requests for
public spaces
• Improves productivity and coordination among everyone
involved in the process.
• Increases energy savings by conditioning the spaces only
when needed
• Tracks the facility usage, costs recovered and other relevant
information
• Reduces liability by managing the necessary documentation

108. Take Home Money Makers!
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109. Take Home Money Makers!
Regarding IT Departments…
• Build a bridge to IT staff sooner than later!
• Leverage existing IT infrastructure for BAS
deployments.
– Reduce duplication
– Take advantage of existing security
• Bring IT into discussion early in process; reduce snags
downstream
• Do some fact finding on policies, if they exist
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110. Take Home Money Makers!
Regarding BAS Controls…
• If you have BAS in place already –
what is available?
• Check for underutilized features in your existing
system? (e.g. Did you turn off most alarms?)
• How can you maximize that investment?
• Determine which external technologies can you
connect to and take advantage
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111. Take Home Money Makers!
Regarding Work Management…
• Condition-based PM can help free-up man-power for other tasks
• PM Masters garnered a 16% reduction in corrective maintenance
work
• 50+% reduction in Emergency work orders; 28-39% lower $/wo
With top performing PM program – supported by technology
can you reallocate resources?
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112. Take Home Money Makers!
Regarding Work Management… (cont’d)
• Automated work orders from equipment help to reduce
impact of catastrophic failures.
Don’t let a boiler flame failure turn into a frozen pipe issue!!!
• Know before they do and allow equipment self-request
• Author your dispatching/routing policy to match
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113. Take Home Money Makers!
Regarding Facility Scheduling…
• Are you conditioning your spaces to optimize energy &
maintenance costs?
• Do customers have visibility into process & ability for self-
service of requests? (Save $$)
• Check for space / zone alignment to see if you can improve
granularity of your conditioning requests
• Can you automate some of your building zones based on
event schedules?
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114. Discussion & Questions
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Cliff Ward
Manager, Strategic Programs
cliff@facilitydude.com