pomec and building analytics€¦ · 29/10/2019 · use across your buildings and business. 160...

POMEC AND BUILDING ANALYTICS

David Chokolich,General Technical Services

HFM Asset Management29 October 2019

9th Local Government & Public SectorBuilding Maintenance & Facility Management Conference


HFM Asset Management © 2019

9th Local Government & Public SectorBuilding Maintenance & Facility Management

POMEC (Property Operation Maintenance & Energy Cost)

Its not a new thing…

Circa 1998…

POMEC




• Engineering Review

• 58 Hotels (Australia-wide)

Group 1 Group 2

• 48 Hotels (Australia-wide)

• HVAC Services Tender / Cost Benchmarks

RECENT PROJECTS




Building efficiency requires continual assessment and strategies for improvement.REVIEW There is no way of knowing where to go, if you don’t know where you are.VERIFYAre you sure your data is accurate?COMPLYUnderstand your performance and receive industry recognisedacknowledgement of your performance.PROCUREWhy pay more than you should?PERFORMIf we do not change our direction, we are likely to end up where we are headed.IMPROVERetrofit to compete

Building Efficiency

BUILDING EFFICIENCY




The first step towards reaching the full potential of any asset is gaining a detailed understanding of the current statusand condition of that asset. Pick a starting point, establish the baseline and then find the opportunities.

• Benchmark Property Operations Maintenance and Energy Costs (POMEC);• Site visit;• Document all major assets and review the condition and status of all infrastructure assets;• Review all infrastructure service contracts;• Benchmark the Essential Services Compliance Status of each hotel;• Review compliance related to electrical (RCD testing, Testing and Tagging) / hydraulic requirements (water

temperatures, tempering valve testing, backflow protection testing);• Provided a condition report and Capital Works Plan - 10 year

Asset Management Review

Engineering Review – Group 1




• Reviewed all current HVAC Costs Preventative and Reactive (Breakdown & repairs)• Established some KPI’s including

- Total Expenditure $ / Room- Contract Expenditure $ / Room- Reactive Expenditure $ / Room- Reactive Vs Preventative Ratio- Insourcing Vs Outsourcing Ratio- HVAC Costs / Fire Costs / Elevator Costs

HVAC Service Review

HVAC Services Tender – Group 2




Stage 1 – Outcomes, Results and Evidence

Documentation

A formal “Request for Information” (RFI) was issued to all sites, see sample below. On average approximately 36% ofthe requested information was provided. This is considered poor and demonstrates a lack of knowledge of themanagement requirements of these assets.

Staff had Limited knowledge of there role





COST CENTRE EXPENDITURE

R&M 33.4%

R&M Payroll 14.2%

Electricity 29.8%

Gas 9.5%

Water 13.1%

TOTAL 100%


Property Operations Maintenance and Energy Costs (POMEC) - Controllable Costs






Property Operations Maintenance and Energy Costs (POMEC) - Controllable Costs

Normal Mix R&M – 55% Utilities 45%

Alarm Bells!!

R&M48%

Utilities52%

R&M VS UTILITY EXPENDITURE 2017 - 2018






POMEC Cost / Room $6,616

R&M Cost / Room $2,272

Maintenance Wages / Room $899

Insourcing Vs Sourcing Ratio 1 : 2.9 (1 : 11)

1 Maintenance employee 89 rooms






Benchmarking

HVAC $ / Room $237

**HVAC Breakdown Vs Contract 2.5 : 1 (0.3 – 5.3)

Fire $ / Room $236

Fire / Breakdown Vs Contract 2.2 : 1 (0.5 – 4.4)

** Note all sites that had a high HVAC ratio had very high energy costs!!






Elevator Contracts

Annual Expenditure / elevator / p.a. $8,333 ($6,050 to $16,450)

Annual Expenditure / door opening $1,101

Contracts in rollover 45%






Insourced Vs Outsourced Staff

Ratio 1 : 2.9 (Range 1 : 11)

Maintenance personnel with formal qualifications (trade, diploma, certificate or degree)

Australia 6%






Essential Services Compliance

• Significant inconsistencies across the properties• Limited Contracts and service reports in place• Significant risk if not addressed

Compliance status 67% (range 12% - 95%)






NABERS RATING – 0-6 star

The average “Indicative” NABERS Ratings were

Energy 2.9 star Range 1.0 star – 4 star (Below average)Water 3.0 star Range 1.0 Star – 5 star (Average)

Major concern – all new 5 star hotels were not great performers 2.5 - 3.5 star





Stage 1 – Outcomes and Recommendations

Outcomes

- Limited Service contracts in place across all services- No formal management system in place to manage the buildings- Very high POMEC costs- Sites with high maintenance costs had high energy costs (9 : 1)- Poor compliance (Risk)- Limited management of contractors induction etc.- Unskilled workforce, limited knowledge of the Eng. role- Significant capex required to get sites back to the basics- Significant client complaints






Recommendations

- Articulate the issues and recommendations to the hotel GM and the board- Set minimum skills requirements for staff depending on the size of the asset- Deployment of a Asset Management and Maintenance System- Formally tender all services- Engage an energy consultant to have a closer look at utilities issues- Enforce minimum requirements for the Essential services maintenance- Training program for hotel maintenance staff and hotel managers- Deployment of ongoing Analytics (Health Check)- Ongoing financial Benchmarking reviews and site audits- Review capital works requirements ongoing





Stage 1 – Review HVAC Services

Reviewed and Benchmarked all the current costs covering

- Contract Maintenance

- Reactive Maintenance

Contract Expenditure $82 / Room / p.a.

Reactive Maintenance $88 / Room / p.a.

Total Expenditure $170 / Room / p.a.

HVAC Ratio 1.07

“On the surface this outcome looks OK”

Review HVAC Services – Group 2





• Benchmarked their current maintenance hours

- Maintenance hours (contracted)

- Maintenance Forecast hours

Current hours p.a. - 4051 Vs Forecast hours (8,000 – 10,000)

Alarm Bells !!






Developed a formal specification and tendered the HVAC services covering

- AC infrastructure maintenance- Room AC maintenance- Hot Water / Boiler Systems- BMS- Water Treatment- Electrical- Statutory Essential Services

Outcomes (based on 3 shortlisted suppliers)Mean average hours of maintenance 8,655 p.a.

** Noting the incumbent contractor had increased his hours from 4051 to 8720

Alarm Bells Confirmed !!!






- Confirm new contracts as per tendered outcomes- Articulate the lack of maintenance / management to the Hotel GM’s and the board- Deployment of a Asset Management and Maintenance System- Employ a Senior Technical Manager to the group (currently no one in place)- Deployment of ongoing Analytics (Health Check)- Ongoing financial Benchmarking reviews and site audits- Review capital works requirements ongoing





- The data highlighted the management issues in both organisations.- The review forced a change in management thinking and processes- It was accepted internally that the current maintenance structure was not working- Need to re-educate and reskill and provide training to maintenance staff- Ensure that level playing field is in place when looking at service contracts and system management- Data is critical in better managing assets

Key Learnings




There is a clearly a role for industry bodies such as the FMA, Australian Institute of HotelEngineering, Institute of Healthcare Engineering, AIRAH etc. to collect and provide this type ofinformation to members, industry and owners of assets to help them better operate and managethere assets.

Key Learnings




Engineering Review – Happy Snaps




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Local and State Governments Have Committed to Efficiency and Renewables

56% of Australian Councils have an

emissions reduction target1

7 Australian states have net zero or

emission reduction targets.

1. Australian Local Government Climate Review report, 2018




Where Have Councils Committed to Meet Targets?




% of councils who are doing or planning to do this

Which of These Have The Best Payback?




Analytics Can Uncover Savings – At Every Stage of The Data Journey

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Utility Meter

Sub-Metering

IOT Sensors

Equipment Control

Hardware Investment

Utility Meter | Submetering IOT Devices

Utility Bill

Utility Billing Data




Time-of-Use Variations by Season

Poor performing sites –

energy intensity

Analytics Uncovers Insights In Billing Data…




Analytics on Building Data Goes Beyond Energy Savings…

OPERATIONAL IMPROVEMENTPeople| Process| Technology

OPTIMISEEQUIPMENT PERFORMANCE+ Reduce

maintenance costs

+ Extend asset useful life

+ Minimize risk of downtime

REDUCE ENERGYUSAGE+ Identify and

eliminate energy waste

+ Minimize peak demand

MAINTAIN COMFORT CONDITIONS+ Maintain SLA’s and

reduce complaints

+ Improve occupant productivity

IMPROVELABOUREFFICIENCY+ Make FM teams

more productive

+ Optimize contractor resources




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✓ Large public buildings

✓ Office buildings

✓ Hospitals

✓ Universities

✓ Major HVAC central plant

✓ Site energy spend of $500k+ per annum

Large Buildings Mid-Size Buildings Small Buildings

✓ Retail

✓ Bank branches

✓ Schools

✓ Local police & fire stations

✓ Packaged HVAC, Refrigeration, Operating

Equipment


✓ Large schools

✓ Supermarkets

✓ TAFEs

✓ HVAC plant, Refrigeration (Compressors),

Lighting


Cooling Towers

AHU Systems

Boilers

Chillers FansPumps

Compressors Condensers

HVAC Units

Computers

Hot Water

Cost-effective Analytics Varies by Building Type




The Technology Varies By Building Type… but the Approach Is The Same

Triage, Action, Resolution




Building Performance Analytics




Managing the Outputs…




David Chokolich,

General Manager, Technical Services

+61407734260

[email protected]
mailto:[email protected]

pomec and building analytics€¦ · 29/10/2019 · use across your buildings and business. 160...

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