Kent Hudson
CEO, Co-Founder, SchoolDude.com
March 2012
The Best Run Schools Run SchoolDude!
The Increased Scope of Education Facility Management
Education Facility Managers are so over programmed that a complete program is rarely delivered
40’s,50’s & 60’s
1. Custodial operations
2. Maintenance operations
3. Grounds operations
4. Electrical / gas utility
5. Pest control (in-house)
6. Playground equipment
7. Roofs
8. Safety – general
9. School closings
10. Vandalism
Facility programs
have increased
dramatically but
many institutions
have smaller
leadership teams
Copyright © 2010 Service Management Assist, LLC
70’s,80’s,90’s,00’s & Now
1. Custodial operations
2. Maintenance operations
3. Grounds operations
4. Electrical / gas utility
5. Playground equipment
6. Pest control (in-house)
7. Roofs
8. Safety – general
9. School closings
10. Vandalism
11. Mold management
12. Asbestos (AHERA)
13. Carbon Dioxide testing
14. Lead in water
15. Natural gas volume purchasing
16. Electrical volume purchasing
17. CAD
18. CMMS with preventive maintenance
19. Electromagnetic emissions
20. Emergency / disaster plans
21. Energy management systems
22. Energy education
23. Data based custodial schedules
24. Rentals, community usage
25. ADA
26. Owners Construction Rep.
27. Indoor Air Quality
28. Lead in paint
29. Integrated Pest Management
30. Privatized custodial
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Purchased services management
Protective equipment & clothing
Radon Management
Recycle waste program
Re-locatable classrooms
Right to Know Act
Underground storage tanks
Computerization – technology support
Blood borne pathogens
Budget planning
Labor law issues
OSHA Logging & training
Custodial equipment management
Quality Assurance program
Hazardous Waste Removal
Emergency Backpacks
Building Backpack Supply
Defibrillator maintenance
Defibrillator training
Security systems
Green chemical management
Carbon footprint issues
Sustainability program
Life/Safety Planning
Playground management
Expanded athletic programs
Swimming pool maintenance
Indoor track & field
Fertilization & weed control
Artificial athletic fields
The Challenges We Face Today
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Issue #1: Stewardship is falling
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Issue #3: Severity of backlogs is increasing
Our backlogs are growing, and we fear that priorities
are becoming more acute.
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What’s the impact?
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ECON 101
If Customer Service is “Free with Unlimited
Supply”
– Demand will grow to consume all of your supply
– Limit levels will eventually be hit resulting in customer
dissatisfaction
– Nothing will be left for stewardship
“Customers unwittingly steal resources from the long-term preservation
of facilities. . . Customers must be served professionally but it
should not be at the expense of all else. Better service delivery is
key.”
APPA Maintenance Staffing Guidelines
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Balancing
Stewardship Vs. Service
Stewardship
Service
Guardian of
physical plant
Support to staff on
request
• Preventive
Maintenance
• Planned
Maintenance
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•
•
•
•
Events
Curriculum
Moves
Minor repairs
Best Practices Organization
Support
Maintenance
25%
Planned and
Unplanned
Maintenance
50%
Preventive
Maintenance
25%
APPA Maintenance Staffing Guidelines – Ch 3
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It’s a brand new
building, why do we
need to maintain it?
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We need to cut
maintenance so we
can “save” money.
BENEFITS OF A SUCCESSFUL
PM PROGRAM
“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.
• 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.
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• 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.
• 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.
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Clichés
• Pay me now or pay me later
• An ounce of prevention is worth a pound of cure
• Change the oil or change the engine – you
choose
Are they true?
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Data Dudes
• Perspective over 6,000 clients live operational
data (400+ Higher Ed Institutions)
• Partnership with SAS Institute, largest privately
held software company in world
• Terabytes of data
• Technology: Ability to mine for group gold
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Recently published . . .
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Methodology
• Data analysis across nearly 6,000 educational
clients live operational data (400+ Higher Ed
Institutions)
• Identification of “PM Masters”
– Top deciles within peer group
– Allocating high percentage of manpower to PM (>
30%)
– High completion rates (> 98%)
– Been doing so for quite a while (> 3 years)
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Key Questions
1. How does a PM program affect overall costs and
emergencies?
2. What are the financial impacts to facility capital
needs?
3. With utility costs comprising a large portion of
the M&O budget, how can PM impact your
energy use and building efficiencies?
4. How does PM affect other costs or risks, such as
insurance claims?
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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
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PM Reduces Corrective Work
• Over a 5-year period, a sampling of PM Masters
garnered a 16% reduction in corrective
maintenance work as a percent of the total work
over the time period.
• Over a 20-organization sample across the 5-year
time span, the corrective work as a percent of
the total work is reduced from approximately
87% to 71% of the total work performed.
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The Transition . . .
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Reducing Emergency Work
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PM Capital 101
• Value of roof (6%)
• Value of HVAC (11%)
Total for just two systems:
17% of replacement value
Assuming 15 year life extended to 17 years with a PM program (very
conservative)
Capital Budget Relief estimate:
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$0.25 per square foot per year
Energy Impact from PM
• Interviews with experts – performance
contracting engineers
• HVAC related load
– Often around 50% of load
– Expected improvement from PM – 10% improved
– Estimated 5% energy bill reduction
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Energy Cost Trend
17% increase from 2007. Cost is hard to
control- but consumption is something you have
some measure of control over.
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The Data says…
KWH/Sq. Foot
~25% reduction in Electric consumption for
institutions performing PM.
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The Data says…
Therms/Sq. Foot
~30% reduction in Natural Gas consumption for
institutions that are performing PM.
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The Connection with Risk
• P&C Insurance company – private study
– 18,000 schools with multiple years of claims history.
– 12,000 SchoolDude schools
– 9,000 school overlap with at least minimal PM activity
• Results:
– 70% reduction in claims
– 11% reduction in claims severity
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Summary PM Benefits
•
•
•
•
Reduce
Reduce
Reduce
Reduce
emergencies 50%
average cost per work order up to 40%
long term capital costs
disruption of the learning environment
All the data confirms
investing in PM is the right
business decision!
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Facility Management
Work Order Model
Equipment
Failure
Mean Time
Between Failure
Mean Time to
Report
Problem Identified
Action Starts
Root Cause Analysis
BPR
Mean Time to
Respond
Total Outage Time
Technician Assigned
Truck Rolls
Problem Solved
Mean Time to
Repair
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Technology Assisted Maintenance
Cloud
Data Depot(s)
SaaS Applications
- Inforich Work Orders
- PM Automation
- Critical Alarm Auto.
- Predictive Maintenance
Buildings with BAS;
Connect and move data to the Cloud
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Closing Remarks
• Master the art of selling the value of PM
• Much information exists
• Contact SchoolDude for more detailed
information on these resources
• Heather May heather@schooldude.com
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