robert s tthomas_v2
DESCRIPTION
TRANSCRIPT
© 2012 IBM Corporation
Cost Take Out for NASA’sInfrastructure Portfolio
22 February 2012
Bob St. ThomasIBM Global Business Services
Controlling Costs of Inner Space to Increase Funds Available for Outer Space
Building a Smarter Planet
22
Cost Reduction is a Complex Mission
Cost reduction is a mission with no shrink wrap solution. Cost reduction is a mission with no shrink wrap solution.
It’s people, processes, technology, physics, and It’s people, processes, technology, physics, and
analytics that require close attention to detail analytics that require close attention to detail
continuously throughout the life of the cost reduction continuously throughout the life of the cost reduction
mission to ensure success.mission to ensure success.
Building a Smarter Planet
33
At Home, Would You…
Leave your car running all night in case you might need to run to Leave your car running all night in case you might need to run to the store for milk/bread?the store for milk/bread?
Keep your oven at 350F night and day in case one of your kids Keep your oven at 350F night and day in case one of your kids wanted to cook pizza?wanted to cook pizza?
Run your air conditioner and heater at the same time all year?Run your air conditioner and heater at the same time all year?
Operate 3 chillers when two are sufficient for your building?Operate 3 chillers when two are sufficient for your building?
Tolerate an electrical load every night of 70% of your daytime Tolerate an electrical load every night of 70% of your daytime peak? 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.
Building a Smarter Planet
44
Possible Causes of Excess Infrastructure Costs
Multiple contracts and or conflicting procurement termsMultiple contracts and or conflicting procurement terms
Excess facility space due to mission changesExcess facility space due to mission changes
Duplication of effort or lack of shared services between programsDuplication of effort or lack of shared services between programs
Managing facility operations and energy reductions Managing facility operations and energy reductions independentlyindependently
Maintaining a culture of consumption vs. one of conservationMaintaining a culture of consumption vs. one of conservation
Lack of information from available data to drive changeLack of information from available data to drive change
Addressing the problem tactically vs. strategicallyAddressing the problem tactically vs. strategically
Building a Smarter Planet
55
Proposed Mission: Reducing NASA’s Infrastructure Costs
Challenges Faced by Real Estate ExecutivesChallenges Faced by Real Estate Executives
Step 1. Right Size Your Internal SpaceStep 1. Right Size Your Internal Space
Step 2. Energize Your WorkforceStep 2. Energize Your Workforce
Step 3. Listen to Your BuildingsStep 3. Listen to Your Buildings
Step 4. Apply Analytics to Support Your Decision ProcessesStep 4. Apply Analytics to Support Your Decision Processes
Building a Smarter Planet
66
Real Estate Executive Challenges
Key Responsibilities:Key Responsibilities:
1.1. A Safe and Reliable WorkplaceA Safe and Reliable Workplace
ManufacturingManufacturingOfficesOffices Data CentersData Centers
2.2. Provided at the Lowest Possible CostProvided at the Lowest Possible Cost
SpaceSpace EnergyEnergy Facilities Facilities OperationsOperations
Building a Smarter Planet
77
Proposed Mission: Reducing NASA’s Infrastructure Costs
Challenges Faced by Real Estate ExecutivesChallenges Faced by Real Estate Executives
Step 1. Right Size Your Internal SpaceStep 1. Right Size Your Internal Space
Step 2. Energize Your WorkforceStep 2. Energize Your Workforce
Step 3. Listen to Your BuildingsStep 3. Listen to Your Buildings
Step 4. Apply Analytics to Support Your Decision ProcessesStep 4. Apply Analytics to Support Your Decision Processes
Building a Smarter Planet
88
Typical Real Estate Portfolio Cost Profile
Space (Rent, Depreciation, Taxes and Insurance)
Facilities Operations (Grounds, Housekeeping, Equipment)
Energy (Electricity, Natural Gas, Fuel Oil)
~20%
~55%
~20%
~5% Other
Energy and Fac. Ops covers 40% of total cost
Building a Smarter Planet
99
Typical Real Estate Portfolio Cost Profile
Space (Rent, Depreciation, Taxes and Insurance)
Facilities Operations (Grounds, Housekeeping, Equipment)
Energy (Electricity, Natural Gas, Fuel Oil)
~20%
~55%
~20%
~5% Other
However, 95% of cost is space-driven.
The Most Efficient NASA Building is the One You No Longer Have
Building a Smarter Planet
1010
First Challenge: Organizational Alignment
Can They DoCan They Do:: Space/Lease Management?Space/Lease Management? Facilities Operations?Facilities Operations? Energy Management?Energy Management? Environmental Compliance?Environmental Compliance? Design and Construction?Design and Construction?
Key ChallengesKey Challenges:: Changing Mission and BudgetsChanging Mission and Budgets Legacy-Owned AssetsLegacy-Owned Assets Rising Energy RatesRising Energy Rates Aggressive Environmental AgendaAggressive Environmental Agenda Enterprise Integration Across NASAEnterprise Integration Across NASA
Energy / IT Leasing Space Asset Management
Workplace Standards
Global
VP Global Real Estate Operations
LA/CanadaU.S./Japan Asia Pacific Construction/ Engineering
Europe/Research
Chairman, President & CEO
Sr. VP, CFO
VP Controller
Building a Smarter Planet
1111
Centralized Global
Data Warehouse
SecurityBadge In Data
SecurityBadge In Data
Lease DataLease Data
Population andWorkplace Indicators
Population andWorkplace Indicators
BMSEquipment
Performance
BMSEquipment
Performance
TrackData CenterReliability
TrackData CenterReliability
TrackConstruction
Spend
TrackConstruction
Spend
FacilitiesMaintenance
Cost
FacilitiesMaintenance
Cost
Work OrdersWork Orders
ConservationTracking
ConservationTracking
EnergyAnomaly
Data
EnergyAnomaly
Data
Energy Usage/Cost
Energy Usage/Cost
Second Challenge: Disparate Data Sources
Visualize opportunities
Prioritize
Assign resources
Invest for best return
Building a Smarter Planet
1212
Continuously Attack the Cost Problem in Two Dimensions
Strategic Optimization – Global Portfolio AnalysisStrategic Optimization – Global Portfolio Analysis• Aggregation of Key Global Indicators:Aggregation of Key Global Indicators:
• Lease InformationLease Information• Space UtilizationSpace Utilization• Energy Usage and ConservationEnergy Usage and Conservation• Work Order HistoryWork Order History• Supplier PerformanceSupplier Performance
• Drives resource and investment prioritization: Higher efficiency and effectivenessDrives resource and investment prioritization: Higher efficiency and effectiveness
• Focus on building efficiency through visibility to operating anomaliesFocus on building efficiency through visibility to operating anomalies• Software integrated with building systems to report:Software integrated with building systems to report:• Ambient conditionsAmbient conditions• Equipment malfunctionsEquipment malfunctions• Set point deviationsSet point deviations• Real-time demand for water, HVAC and lightingReal-time demand for water, HVAC and lighting
• Automated response to improve building efficiency, reduce Co2 emissions, and Automated response to improve building efficiency, reduce Co2 emissions, and improve reliabilityimprove reliability
Building Optimization – Individual Building PerformanceBuilding Optimization – Individual Building Performance
Building a Smarter Planet
1313
Tool Set for Rightsizing Space and Infrastructure
Space and Facilities
Management
Real Estate Portfolio
Management
Energy and Environment Sustainability
Capital Project
Management
Integrated Workplace Management Systems
Infrastructure Cost Reduction Portfolio
Many tools are available for spot improvements, but for reducing Infrastructure costs, the following portfolio of specific capabilities is helpful
Enterprise Asset
Management
• Preventive maintenance• Work mgmt• Inventory
mgmt
• Real time operations and energy monitoring
• Real-time analytics
• Event correlation
Real-Time Building
Commissioning
Building a Smarter Planet
1414
Proposed Mission: Reducing NASA’s Infrastructure Costs
Challenges Faced by Real Estate ExecutivesChallenges Faced by Real Estate Executives
Step 1. Right Size Your Internal SpaceStep 1. Right Size Your Internal Space
Step 2. Energize Your WorkforceStep 2. Energize Your Workforce
Step 3. Listen to Your BuildingsStep 3. Listen to Your Buildings
Step 4. Apply Analytics to Support Your Decision ProcessesStep 4. Apply Analytics to Support Your Decision Processes
Building a Smarter Planet
1515
PLC Controllers
Sensors, Actuators, and Equipment
Communication Drivers
System Dashboards – SCADA – Nodes – – – Real-Time Monitoring
Admin Server
PagingServer
PLC Management
Server
Historian ServerSystem Integration and Data Aggregation
Communication NetworksPower
Monitoring Server
Alarms
EnterpriseAsset Management
Building SystemsOptimization Models
Statistical ProcessControl
Peak PowerManagement
Energy EfficiencyProgram
Level 0Physical
Level 1Control
Level 2Data
Level 3Information
Level 4IntelligencePerformanceAnalyticsDashboards
EmployeeInvolvement
ContinuousImprovement
DataMining
Level 5CulturalAwareness
SystemCorrelation
Sample Architecture Supporting Workforce Energy Management
Building a Smarter Planet
1616
Electricity Usage vs. Electricity Rates
400
450
500
550
600
2001200220032004200520062007200820092010
Kilo
Wat
t-hou
r (x
1,0
00,0
00)
0.050
0.060
0.070
0.080
0.090
$ / k
Wh
Electricity Usage Electricity Rate
Fuel Usage vs. Fuel Rates
700
800
900
1000
1100
1200
2001 2002 20032004 2005 2006 2007 20082009 2010
MM
BTU
(x 1
,000
)
2
4
6
8
10
12
$ / M
MB
TU
Fuel Usage Fuel Rate
2010 Fuel Cost:$5,000,000
2010 Electricity Cost: $35,000,000
Fuel Usage
Rates: +30% since 2001
Usage: -21% since 2001
Electricity Usage
Rates: +19% since 2001
Usage: -21% since 2001
Plant Capability
Up >30% Since 2001
Center of Excellence for Enterprise Operations Energy Management Results
Quality: Conform to SEMI F47 Standard and strive for zero impact due to Power Quality Issues to Manufacturing Process
Reliability: Zero manufacturing down time/Continuous Operations
Cost: Sustained 4% Reduction per year: Overall $10M Saved
Building a Smarter Planet
1717
Enterprise and Site Energy Programs
Leadership CommitmentLeadership Commitment
• Agency Standards (Green House Gas and Energy)Agency Standards (Green House Gas and Energy)• Site Commitment and Site Location Executive (SLE) Site Commitment and Site Location Executive (SLE)
Expectation Expectation • Site-to-Site sharing, Industry CommunicationSite-to-Site sharing, Industry Communication
Manufacturing ProgramsManufacturing Programs
• Lean Manufacturing Lean Manufacturing • Technology AdvancementsTechnology Advancements
Employee ParticipationEmployee Participation
• Continuous Improvement CultureContinuous Improvement Culture• Brainstorm with everyone Brainstorm with everyone • Continuous Communication Continuous Communication
‘‘Straight Talk’ About Energy ImpactsStraight Talk’ About Energy Impacts
• Recognition and FunRecognition and Fun Operational ImprovementsOperational Improvements
• Continuous Review of How we workContinuous Review of How we work• Manufacturing Process ChangesManufacturing Process Changes
Regulatory AffairsRegulatory Affairs
• Strong Communication NetworkStrong Communication Network• Workshop ParticipationWorkshop Participation• Leverage utility programs Leverage utility programs
Operational
Improvements
Leader Commitment
ComprehensiveEnergy Program
Reg
ulat
ory
Aff
airs
Manufacturing
Program
s
Employee
Participatio
n
Building a Smarter Planet
1818
One Methodology Has Six Main Steps and Draws Heavily from a Typical Six Sigma Methodology
To capture the continuous stream of opportunities that can be accessed, Agencies need a consistent, repeatable methodology
Process Initialization
Brainstorming and Solution Ideation
Feasibility and Economics Review
Solution Deployment
Performance Monitoring
Reporting and Feedback
Monitoring Monitoring TechnologyTechnology
Process Automation
Leadership Organization
Consistent Process
Appropriate Support
Building a Smarter Planet
1919
Step 1: Establish and Deploy Goals
Share of Energy and Water ConsumptionShare of Energy and Water Consumption
Investment Budget for ConservationInvestment Budget for Conservation
Economic and Regulatory ReviewEconomic and Regulatory Review
Look at consumption of functions by shareLook at consumption of functions by share Assign targets based on share and historical ability to Assign targets based on share and historical ability to
meet goalsmeet goals Usage and financial targets Usage and financial targets
Assuming 12- to 18-month returns, how much money is Assuming 12- to 18-month returns, how much money is the enterprise allocating for conservationthe enterprise allocating for conservation
Review initiatives, special offers, and other incentives Review initiatives, special offers, and other incentives from local utilities and regulators that may shape from local utilities and regulators that may shape decisions and ROI analysesdecisions and ROI analyses
• Goals set team objectives and should be realistic with a stretch
• Budgets assure participants that good ideas will get funded and executed – key to maintaining employee support
Initializing the process by setting goals and a budget is important:
Building a Smarter Planet
2020
Step 2: Idea Generation
45
92
55
3515 34 56
10 4522
15 8 13 29 37 13 9 29 5$0
$1
$2
$3
$4
Millio
ns
NITROGEN DI WATER EXHAUST ELECTRIC
Facilities Annual Operating Costs By Tool Type
Number of tools/type
Annual Operating Cost by Tool Type
Brainstorming runs across team boundaries and include the most senior and junior staff…
…it is also very data-rich, with lots of materials prepared in advance to help users focus on best opportunity areas.
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
Building a Smarter Planet
2121
Step 3: Idea Evaluation and Prioritization
‘Productivity Opportunities System
Ideas from brainstorming sessions and users are logged in the productivity system
Ideas are routed to appropriate SMEs for review and analysis
Review and validate the opportunity
Review regulatory and utility programs for opportunities for subsidies or additional benefits
Ideas that are viable are reviewed together against the
budget and prioritized
Idea prioritization and selection is based on “Big Picture” reviews.This includes assessing business benefit, client value, risk, energy conservation and ROI.
Building a Smarter Planet
2222
Step 4: Implement
IBM has a core and extended team that manages implementation of successful ideas
Prior to deployment, benchmarks are taken of baseline state
Environment Manager
WasteTreatment
EnergyManagement
WaterManagement
HVACTeam
ChemicalEngineering
ConstructionHigh
VoltageExtended Team
Core team
External to IBM, Contracted as needed
Baseline energy consumption
Baseline water consumption
Look at both the micro level (per machine, for example) as well as the macro level – such as total consumption in the building.
WasteTreatment
EnergyManagement
WaterManagement
HVACTeam
ChemicalEngineering
WasteTreatment
EnergyManagement
WaterManagement
HVACTeam
Process andTooling
ChemicalEngineering
WasteTreatment
EnergyManagement
WaterManagement
HVACTeam
HighVoltage
ChemicalEngineering
WasteTreatment
EnergyManagement
WaterManagement
HVACTeam
Can implement over 100 ideas a year; 75% cost very little to implement.
Building a Smarter Planet
2323
Step 5: Monitor – Meters Matter!
Equipment Metering
Building Metering
• Look at equipment before and after, and check energy consumption and process performance
• Look at total building consumption to make sure that decreases in one area are not being offset by increases in another area
Customer Feedback
• Validate that impact of changes does not disrupt usability or output to an unacceptable level
Smart Grid in Action
• Meters Matter! Validate results with meter readings
• Allows comparison of actual results to analysis calculations
Building a Smarter Planet
2424
Step 6: Report Results and Provide Feedback to Management
88%93%
89%95%
0
100,000
200,000
300,000
400,000
Dai
ly E
lect
ric
Con
sum
ptio
n in
KW
H
50%
100%
150%
200%
Year
To
Year
Cha
nge
in %
2005 2006 2007 2007/2006
Building 963 CUP To assess success or failure, track detailed measurements and compare year-on-year performance across major equipment, buildings and other high consumers
Also look at performance that is seasonally adjusted and also compare times of peak demand
Building a Smarter Planet
2525
Sample Workforce Feedback: B963/B971 Central Utility PlantAverage Daily Electricity Usage (Kwh)
0
50000
100000
150000
200000
250000
300000
350000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2009 2008
Ele
ctri
city
Con
sum
pti
on
(kW
h /
day)
CONGRATULATIONS!YOU MADE A DIFFERENCE!
October Savings: 550,300 kWh / $45,000.00
Electricity: 4,866,440 kWhElectricity: 4,866,440 kWh
2009Winter Free-Cooling
Results
Savings: $390,000.00Savings: $390,000.00
November Savings: 787,500 kWh / $63,000.00
December Savings: 1,373,300 kWh / $109,865.00
Our efforts saved enough energy to power 650 homes for one year!
Building a Smarter Planet
2626
Proposed Mission: Reducing NASA’s Infrastructure Costs
Challenges Faced by Real Estate ExecutivesChallenges Faced by Real Estate Executives
Step 1. Right Size Your Internal SpaceStep 1. Right Size Your Internal Space
Step 2. Energize Your WorkforceStep 2. Energize Your Workforce
Step 3. Listen to Your BuildingsStep 3. Listen to Your Buildings
Step 4. Apply Analytics to Support Your Decision ProcessesStep 4. Apply Analytics to Support Your Decision Processes
Building a Smarter Planet
2727
Buildings That Recommission Themselves Continuously –
Real Time
Interconnected building management systems with Interconnected building management systems with advanced analytic capabilities allow them to act advanced analytic capabilities allow them to act intelligently, and continuously report on their operating intelligently, and continuously report on their operating conditions to building managers, Site and Agency conditions to building managers, Site and Agency Directors. Directors.
Adding configurable dashboards and use of mash-up Adding configurable dashboards and use of mash-up technologies allow tailoring to specific missions and technologies allow tailoring to specific missions and building use cases, and enable maintenance and building use cases, and enable maintenance and tenant workers to take action and modify behaviors.tenant workers to take action and modify behaviors.
Building a Smarter Planet
28282828
FireFunctionality
Checks,Detector Service
WaterSmart Meters,
Use/Flow Sensing
HVACFans, Variable Air Volume, Air
Quality
ElevatorsMaintenance, Performance
Access/SecurityBadge in, Cameras, Integration
Perimeter, Doors, Floors, Occupancy
LightingOccupancy
Sensing
24/7 MonitoringCondition Monitoring, Parking Lot Utilization
EnergySmart Meters,
Demand Response
Voice/Video/Data
Community Services
Transportation,
Traffic, Events
Community Services
Transportation,
Traffic, Events
UtilitiesDemand Mgmt,
Cost Control
UtilitiesDemand Mgmt,
Cost Control
WeatherCurrent
Predictions
WeatherCurrent
Predictions
Emergency Services
Alerts, Actions
Emergency Services
Alerts, Actions
Commercial Potential
Advertisement
Commercial Potential
Advertisement
Integrated Building and Communications Services
An
alytics and
O
ptim
ization
Ext
ern
al
Inte
gra
tio
n
PortfolioEstates MgmtPortfolio
Estates Mgmt
OccupancySpace Mgmt
OccupancySpace Mgmt
Waste MgmtTrash/Water/Recycle
Waste MgmtTrash/Water/Recycle
ComplianceEnvironmental Reports
ComplianceEnvironmental Reports
Tenant ServicesHelp Desk
Tenant ServicesHelp Desk
Asset MgmtLife Cycle
Asset MgmtLife Cycle
Building Services
Maintenance
Building Services
Maintenance
Industry Specific Hospital, Hotel, etc.
Industry Specific Hospital, Hotel, etc.
Energy UsePassive/ActiveEnergy UsePassive/Active
Navy Feeder Systems
• Weather from C2 Suite
• Metering with AMI
• HVAC Control/ Monitoring from ICS
• Fire Alarm Data from NERMS
• Lighting Control from ICS
• Local Utility Control with SCADA
• Security System Interface with Enabler and NERMS
• Digital Video with VPMS
• Intrusion Detection with PACs and VPMS
• Energy Information Management with Circuits
• Work Management with Single Platform MAXIMO
• GIS Display/Control with OGC and RSIMS
• Mass Notification Ad Hoc
Smarter Buildings are well managed integrated physical and digital infrastructures that provide optimal occupancy services in a reliable, cost-effective, and energy-efficient manner
A Navy View of Smarter Buildings
Building a Smarter Planet
2929
Baseline Energy Maint. Activity
Smarter Building Benefits: A “Well Managed” Savings Profile*
New Information Drives Energy
Savings and More Work Orders
Areas of Maintenance Savings• Root Cause Identification• Fewer Total Customer Calls• Reduced PMs
*At less tightly managed sites, Ops and Energy savings can exceed 30%
Building a Smarter Planet
3030
Key Data Required
Assess data availability of maintenance costs. Can you measure:Assess data availability of maintenance costs. Can you measure:
• Labor/Materials/Subcontracted?Labor/Materials/Subcontracted?
• Percentage of each element of the total?Percentage of each element of the total?
Does your Agency use a Work Order logistic system?Does your Agency use a Work Order logistic system?
Is a standardized Preventive Maintenance program in place?Is a standardized Preventive Maintenance program in place?
Do the maintenance techs record hours/cost against Work Orders?Do the maintenance techs record hours/cost against Work Orders?
What level of data is tracked?What level of data is tracked?
• How is it categorized? How is it categorized?
• How much history is sufficient?How much history is sufficient?
Build credibility across your site using data from an initial pilotBuild credibility across your site using data from an initial pilot
Building a Smarter Planet
3131
Where to Start? Typical Energy Drivers By Cluster (Based on IBM Data)
ClustersClusters
Energy DriversEnergy Drivers ManufacturingManufacturing Data Data CentersCenters
Office Office SpacesSpaces
Labs and Labs and ResearchResearch Total SpendTotal Spend
HVACHVAC 20 % 20 % 10 % 10 % 50 % 50 % 30 % 30 % 27 % 27 %
Data Center EquipmentData Center Equipment - - -- - - 65 % 65 % - - -- - - 25 % 25 % 22 % 22 %
Central Utility Plant (CUP)Central Utility Plant (CUP) 25 % 25 % 20 % 20 % - - -- - - 20 % 20 % 16 % 16 %
Manufacturing Processes Manufacturing Processes
and Toolsand Tools45 % 45 % - - -- - - - - -- - - - - -- - - 14 %14 %
LightingLighting 10 %10 % 5 %5 % 25 %25 % 10 %10 % 13 %13 %
Plug LoadPlug Load - - -- - - - - -- - - 25 %25 % 15 %15 % 8 %8 %
Total Spend Total Spend 30 %30 % 28 %28 % 28 %28 % 13 %13 % 100%100%
Building a Smarter Planet
3232
AHU
Lighting
Architectual
Rest Room
Condensate Rec.
Chiller
Comp. Air
Pump
Electric LV
Kitchen
Manual Door
Fire Prot. Alarm
CRAC
Fans
Plumbing
Shop Equip
All Other Classes
WO Hours
Work Order Hours Analysis by Equipment Class
Initial Analytic Opportunity
Determine Number of Hours Covered
(IBM Relative Data)
Building a Smarter Planet
3333
IBM Cost Reduction Results at One Site: 8% Energy Savings
1:00
3:00
5:00
7:00
9:00
11:00
13:00
15:00
17:00
19:00
21:00
23:00
Unit Performance Operational Schedule Unit Performance Operational Baseline
-35
-25
-15
-5
5
15
1:00
2:00
3:00
4:00
5:00
6:00
7:00
8:00
9:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00A
HU
Air
Flo
w T
emp
. D
elta
Actual Normal Operation
Energy Consumption Exceeds Spec 2.5% Savings
Equipment Not on Automatic Schedule 2% Savings
Steam LeakIdentified by Analytics
KW
H U
sag
e
KW
H U
sag
e
Dual Energy Savings OpportunityChilled Water and Steam
3.5% Savings
Building a Smarter Planet
34343434
Sample Smarter Building Equipment Work Order Savings
-100%
-50%
0%
50%
100%
150%
200%
Prior Yr Qtrlyave
Q410 Q111 Q211 Q311 Q411
# of WO WO Hours
Compounding Productivity Impact
1) 16% Reduction in # of Work Orders
2) 34% Productivity in Remaining WO
Pre IIBM Post IIBM
Ave Hr/WO
- 34%
Work Order # and Hours Average Hours Per WO
Baseline
- 16%
Building a Smarter Planet
3535
Expanded Smart Building Analytic Opportunity / 30% of Total Work Order Hours
AHU
Lighting
Architectual
Rest Room
Condensate Rec.
Chiller
Comp. Air
Pump
Electric LV
Kitchen
Manual Door
Fire Prot. Alarm
CRAC
Fans
Plumbing
Shop Equip
All Other Classes
WO Hours
Future Savings Opportunities driven by:
• New Rules • Wireless Sensors
Other Areas of Opportunity to Consider
Building a Smarter Planet
3636
Proposed Mission: Reducing NASA’s Infrastructure Costs
Challenges Faced by Real Estate ExecutivesChallenges Faced by Real Estate Executives
Step 1. Right Size Your Internal SpaceStep 1. Right Size Your Internal Space
Step 2. Energize Your WorkforceStep 2. Energize Your Workforce
Step 3. Listen to Your BuildingsStep 3. Listen to Your Buildings
Step 4. Apply Analytics to Support Your Decision ProcessesStep 4. Apply Analytics to Support Your Decision Processes
Building a Smarter Planet
3737
Analytics Landscape for Decision Support of Cost Take Out
Degree of Complexity
Deg
ree
of
Cap
abili
ty
Standard Reporting
Ad hoc reporting
Query/drill down
Alerts
Simulation
Forecasting
Predictive modeling
Optimization
What exactly is the problem?
What will happen next if?
What if these trends continue?
What could happen…?
What actions are needed?
How many, how often, where?
What happened?
Stochastic Optimization
Based on: Competing on Analytics, Davenport and Harris, 2007
Descriptive
Prescriptive
Predictive
How can we achieve the best outcome?
How can we achieve the best outcome including the effects of variability?
Building a Smarter Planet
3838
Co
st
of
Ide
as
Procedures(change what you do)
Controls(control how you do it)
Technology(change the resource)
Belzona Pump Coating
Ultrapure H20 Membrane
Solid-State Chillers
Upgrade Lights T12 to T8 to LED
Motion Sensors
Automated Lights On/Off
Vending-Misers
Variable Frequency Drives
RF Generator Controls
Digital Control Conversions
Equipment On/Off Schedule
Utilize Inbound Water Pressure
Tester Idle Program
Exhaust Balancing Reviews
Load Reductions
Prototype(new generation)
Free Cooling System
High-Efficiency Chiller
Idea Advancement
Energy Program Idea Evolution – Crawl, Walk, Run!
Building a Smarter Planet
3939
Decision Trees for Proven Energy Initiatives
Partnering with Internal UsersPartnering with Internal Users Change Set PointsChange Set Points Efficient LightingEfficient Lighting Motion sensors, Lighting ControlsMotion sensors, Lighting Controls Outside Air Rebalance Outside Air Rebalance Compressed Air Leak SurveysCompressed Air Leak Surveys Controls UpgradesControls Upgrades DC Air Flow ManagementDC Air Flow Management HVAC RecommissioningHVAC Recommissioning Variable Speed DrivesVariable Speed Drives DC Server VirtualizationDC Server Virtualization Schedule ChangesSchedule Changes Boiler RebuildsBoiler Rebuilds Energy Efficient MotorsEnergy Efficient Motors Free CoolingFree Cooling Chiller ReplacementsChiller Replacements
Demand Side Supply Side Supplier RelationsSupplier Relations Risk Management Risk Management Centralized PurchasingCentralized Purchasing Daily Market AnalysisDaily Market Analysis Financial DerivativesFinancial Derivatives Physical CollarsPhysical Collars Demand ResponseDemand Response Rate Case InterventionsRate Case Interventions Utility NegotiationsUtility Negotiations Comprehensive Purchasing StrategyComprehensive Purchasing Strategy Renewable EnergyRenewable Energy Regional Policy IssuesRegional Policy Issues
Easier
But how do these stack up in ROI for Base Ops?Harder
Building a Smarter Planet
4040
Manual Decision Support Matrix
Start(savings generated may be used to fund
other high ROI projects)
last Cost
Impact
RD7: Change Set Points (ROI %)
RD10: Efficient Lighting (ROI %)
RD11: Motion sensors, Lighting Controls (ROI %)
RD1: Partnering with Internal Users (ROI %)
RD8: Outside Air Re-balance (ROI %)
RD9: Compressed Air Leak Surveys (ROI %)
RD2: Controls Upgrades (ROI %)
RD13: DC Air Flow Management (ROI %)RD6: HVAC Re-commissioning (ROI %)
RD3: Variable Speed Drives (ROI %)
RD5: DC Server Virtualization (ROI %)
RD4: Boiler Rebuilds (ROI %)
RD12: Energy Efficient Motors (ROI %)
RS7: Regional Policy Issues (ROI %)
RS1: Supplier Relations
RS6: Risk Management (ROI %)
RS8: Daily Market Analysis (ROI %) RS2: Centralized Purchasing (ROI %)
RS10: Financial Derivatives (ROI %)
RS4: Physical Collars (ROI %)
RS9: Rate Case Interventions (ROI %)
RS3: Comprehensive Purchasing Strategy (ROI %)
RS5: Renewable Energy (ROI %)
Supply Initiative Demand Initiative
Building a Smarter Planet
4141
Calculating a “Minimum Investment” Sequence
last Cost
Impact
R4 : XXX (ROI 5%)
R2 : XXX (ROI 5%)
R3 : XXX (ROI 5%)
R1 : XXX (ROI 5%)
R5 : XXX (ROI 5%)
R7 : XXX (ROI 5%)
R8 : XXX (ROI 5%)
R6 : XXX (ROI 5%)
R13 : XXX (ROI 2%)
R15 : XXX (ROI 2%)
R14 : XXX (ROI 2%)
R16 : XXX (ROI 2%)
R12 : XXX (ROI 2%)
R10 : XXX (ROI 2%)
R9 : XXX (ROI 2%)
R11 : XXX (ROI 2%)
COSTCOST SAVINGSSAVINGS
RR11 $XXX$XXX $XXX$XXX
RR33 $XXX$XXX $XXX$XXX
RR55 $XXX$XXX $XXX$XXX
RR1515 $XXX$XXX $XXX$XXX
RR1313 $XXX$XXX $XXX$XXX
TOTALTOTAL $XXX$XXX $XXX$XXX
Sequence initiatives to “self-fund” as much as possible with savings from previous projects
start
Building a Smarter Planet
4242
Manual Method of Decision Support for Energy Savings Initiatives(Using historical library of Agency Initiatives)
Only possible with small number of competing projects, no dependencies
Building a Smarter Planet
4343
Prescriptive Model Use in Energy Cost Take Out Optimized Model of Decision Support for Energy Savings Initiatives
Possible with any number of competing projects and dependencies
Building a Smarter Planet
4444
Mission Summary: Reducing NASA’s Infrastructure Costs
Each NASA Site will be uniqueEach NASA Site will be unique• Mission priorities, number of tenants, contracts in placeMission priorities, number of tenants, contracts in place• Driven by equipment status/maintenance history/type of useDriven by equipment status/maintenance history/type of use• Maturity level of facility instrumentation, range of technology tools usedMaturity level of facility instrumentation, range of technology tools used
Step 1. Need to gather key data from your sitesStep 1. Need to gather key data from your sites• Helps transformation teams understand how to leverage capabilitiesHelps transformation teams understand how to leverage capabilities• Potential cost take out opportunities identified by workforce for decision supportPotential cost take out opportunities identified by workforce for decision support
Step 2. Jointly develop savings opportunity with stakeholdersStep 2. Jointly develop savings opportunity with stakeholders• Includes the value proposition for any vendors providing site services to NASAIncludes the value proposition for any vendors providing site services to NASA• Long-term value prop trumps short-term impacts to “Cost Plus” contractsLong-term value prop trumps short-term impacts to “Cost Plus” contracts
Step 3. Use energy savings from pilot location as primary value proposition Step 3. Use energy savings from pilot location as primary value proposition for Energy Cost Take Out solutions throughout your organizationfor Energy Cost Take Out solutions throughout your organization• Use operational savings as additional benefitUse operational savings as additional benefit
• Reduced Facility CostsReduced Facility Costs• Reduced Asset CostsReduced Asset Costs• Reduced Low Value assets and activities to Protect High Value ResourcesReduced Low Value assets and activities to Protect High Value Resources
Greater range of cost take out from Global Portfolio OptimizationGreater range of cost take out from Global Portfolio Optimization• Facility right sizing, optimized space utilization, etc.Facility right sizing, optimized space utilization, etc.