Gary Fitzjarrell AIA, CHFM Brent Rutherford CEM, CHFM, CBCP Using Data Analytics to Develop a Comprehensive, Reliable Capital Infrastructure Program Gary Fitzjarrell AIA, CHFM Brent Rutherford CEM, CHFM, CBCP

What are Data Analytics Align Strategies Internal Comparisons External Comparisons Establishing a Capital Plan Forecasting Future Needs Optimize Capital Investments Empower Sustainability Stewardship For Facilities Improve Effectiveness of O&M Identify Energy Opportunities

Facilities Benchmarking & Analysis Establishes a common vocabulary and uses a methodology that makes it easy to communicate the impact of your investments to your facilities and helps communicate your challenges, needs, and successes Establishes parameters to quantify, verify and qualify your capital and operations data to provide a strategic assessment of your facilities Provides life cycle projections to show a cash flow model and budgetary model of when infrastructure needs in your facilities are coming due over the next 5-10 years along with the future risk of system needs within your facilities

Who uses some form of Data Analytics, either internal or 3rd party? Are they proving to be beneficial?

Capital Infrastructure Program for your Healthcare Facility Funding of Equipment Replacements And Improvements to Increase the Reliability and Efficiency of Facility Infrastructure to Best Serve and Support our Patients, Visitors, Caregivers, and Communities.

How many of you have a documented capital infrastructure program? How many years into the future are you planning? A – 1–3 B – 3–5 C – 5–10 D – 10+

All equipment will eventually fail at some point in time, predicting and preparing for that replacement is key Key indicators – unforeseen equipment failures / high maintenance costs / high utility consumption Leveraging the replacement of capital infrastructure to include efficiency and improved energy performance becomes an added benefit and a selling point of a successful program Improved EUI & kBTU/sf – Energy savings/avoidance – Procurement methods

Background Increasing requests for “emergency “ contingency capital to replace failed equipment – run to fail to hold down expenses THR developed initial response plan in 2006 – assessments and capital for immediate need “Emergency” requests for contingency capital rose again – plan not working because entities were not budgeting for infrastructure capital The answer was a comprehensive system-wide program which included a set aside a budget to systematically replace capital infrastructure and provide energy savings projects – administered by internal 3rd party oversight Projects analyzed and prioritized system-wide including input from entities Update plans on 5-6 year cycle Measurement and validation

From the Beginning . . . Begin with the End in Mind Flexibility Using the Right Info to Build & Make the Case “Selling the Plan” - Getting Support / Buy-in Include Energy Savings Perspective - ROI

Implementation Start Slow, Build Momentum Understand Complexity, Manpower Required Include Individual Entity Support Put Steps in Place for Measurement Support of Other Capital Projects - Integration This Photo by Unknown Author is licensed under CC BY-SA-NC

Selling the Plan Examples of failures that have resulted in loss of service / business Avoid cost of “emergency” and routine replacements – from historical data Reliability of infrastructure under plan Comparison to others that have implemented plan Ability to improve efficiency & lower utility consumption This Photo by Unknown Author is licensed under CC BY-NC-ND

Assessments should also include estimated replacement costs Assessment / Need Immense value in having an in-depth, comprehensive assessment of your individual equipment and systems Assessment should include age, physical appearance and condition, accessibility, maintenance records, operational specifications, major components/parts list, and life expectancy under routine maintenance and normal utilization Assessments should also include estimated replacement costs

Assessment Development Establish a standardized equipment assessment criterion and format – include narrative and data Determine Scope Mechanical Plumbing Electrical Vertical Transportation Envelope Tube Systems Kitchen Equipment This Photo by Unknown Author is licensed under CC BY-SA

Assessment Development Assessment Team Selection Competency Experience Include Individual Knowledge 5 - 6 year cycle Prioritization Factors Imminent failure Regulatory issues Efficiency Life cycle Maintenance issues Capacity shortfall This Photo by Unknown Author is licensed under CC BY-SA

Leverage the Plan to Lower Utility Consumption When replacing equipment, evaluate the whole system not just the single device. If replacement of a chiller is needed, analysis of all connected equipment, ie. pumps, controls, or even the cooling towers. As part of assessing your capital plan, review major systems for functional efficiency. Does each system operate at optimum performance criteria? If not, can you plan equipment replacement or augmentation to improve efficiency? Plant Optimization and Boiler Evaluations Chiller Plant efficiency goals of 0.6 kW/ton Evaluate Steam System for losses and suitability (separate Critical Loads, if possible)

Measurement of the Improved Performance Equipment failure avoidance Unexpected equipment failure is unavoidable, however you can minimize it. The THR Infrastructure Capital Program has reduced emergency replacements by 50% Utility/Energy Cost Reduction Utility Bills will decrease due to more efficient operations THR has reduced utilities by over 5% while expanding facilities by over 12% in the past 6 years Improved Reliability While difficult to Quantify, systems are more reliable and therefore resources are more focused on patient comfort and satisfaction.

Wrapping it Up . . . Need for the Plan Sell the Plan #1 (Design Fees) Business Justification Loss of Use Excess Maintenance Costs Energy Performance Sell the Plan #1 (Design Fees) Define Scope / Timeline / Process Build Baseline This Photo by Unknown Author is licensed under CC BY

Wrapping it Up . . . Design and Formulate the Plan Scope / Team / Timeline Assessments Sell the Plan #2 (Project Budget) Business Justification Reliability Measurements This Photo by Unknown Author is licensed under CC BY This Photo by Unknown Author is licensed under CC BY-SA

Wrapping it Up . . . Implement the Plan Projects Performance Measurements Sell the Plan #3 (Renewal) Proven Business Justification Proven Reliability Improved Measurements This Photo by Unknown Author is licensed under CC BY-ND This Photo by Unknown Author is licensed under CC BY-SA

This Photo by Unknown Author is licensed under CC BY This Photo by Unknown Author is lensed under CC BY-NC