Keynote slides from Advance Energy Performance conference

1. The Need for a New
Facility Management
Framework:
Opportunities and Barriers
Rob Watson
EcoTech International
Advanced Energy Performance
Real Estate’s New Energy Asset
Management Paradigm
The Steven L. Newman Real Estate Institute
Baruch College, CUNY

2. Need for a New Asset
Management Paradigm
 Buildings are undervalued
 Buildings are integral to the majority of
economic activity
 Should be:
Location, location, building
 Unfortunately, most company
decision makers don’t care
 Most building decision makers are
over their heads or over-worked
 What suffers? People, Profit, Planet

3. Problem: Buildings are
Planet, Profit and People(?) Killers
 Buildings
are the most damaging of
human activity
 Little improvement since 1950 on an
energy/ft2 basis
 Most professional estimates are that
buildings waste 30-40% of the
energy they pay for
 Standard buildings are 5%+ less
productive than green buildings
 Peoplespend 90+% of their time
indoors

4. Problem:
Building Management is an Orphan
 Buildings are a
costly hassle for
most businesses
 Diversion from the
business of
business
 Lack the knowledge
for world class
operation
 At best, real estate
is an appendage

5. Problem:
Building Operators are Overloaded
 Building operators have
inadequate resources
 Too few facility
management man- hours
 Low maintenance budget
 Low energy budget
 Success is penalized
 Buildings are getting
more complicated
 (Often) Inadequate
expertise

7. The Solution: Outsourced
Whole-building Optimization
 Building operations and maintenance
is ripe for outsourcing
 Business can focus on
business, while building experts can
focus on optimization
 Optimizing energy and maintenance
can save operating costs and boost
the real value in buildings: people
 Need to change analysis of value and
incentive structure

8. Only 3 things optimize buildings:
 QualifiedPeople
 Clear & Comprehensive Process
 Good equipment & appropriate tools
 Focusing on lifecycle cost benefits both
buyers and sellers
 Problem prevention vs. problem solving
is more cost-effective
 Problem prevention can largely be
automated

9. Automated Fault Detection &
Diagnosis (FDD): How It Works
 Rules work in hierarchical order (sieve)
Sensors
Functions/
Rule Based
Machine
Learning
Faults

10. Principal Goal(s) of FDD
 Prevention, preven
tion, prevention
 Reduce (Eliminate)
 Energy Drift
 Catastrophic Failure
 Wasted time
 Increase
Maintenance
Efficiency

11. What’s going on? (Part 1)
 Old contractor saying: “you can have
it good, fast or cheap….pick two”
 Poor quality control (Speed ≠
quality)
 Low bid blues
 Rampant misapplication of a principle

12. What’s going on? (part 2)
A Good Question… …misapplied
 What’s the ROI?  Your legal team
 What’s the ROI?  Accounting department
 What’s the ROI?  Most forms of insurance
 What’s the ROI?  Most advertising/PR
 What’s the ROI?  Building optimization

13. Tale of Two Analytic Frameworks
Current 90/10
approach to buildings Building optimization
 The law requires it  Optimize for
(75%) minimized lifecycle
 I want it (24%) cost (100%)
 ROI (1%)
 Minimize first cost
 Waste energy for 2  Start with FDD
years, retro-Cx your  Prevent energy waste
building and be a hero and premature
equipment failure

14. Automated FDD Economics 101
 How do we justify
automated FDD if not
energy ROI?
 JIT—Just in time
 Doing the right
maintenance at exactly
the right time
 JIT in action: Solar
powered garbage cans
saved Philadelphia 80%
on their garbage
collection costs…
 Pattern of faults can
predict future failure

15. FDD Platform Can Be An Extended
to:
 JIT Maintenance (EPRI studies
indicate 40% benefit)
 Fix it once and know it’s fixed right
 Accurate Capital Budgets
 Energy Tracking
 More accurate depreciation schedule
(tax benefits)
 Focused training
 Inventory prediction

17. Optimized/Green
buildings are
business
enablers, not cost
centers.

18. Gazing into the Future?
 Building lifecycle optimization
industry, partially driven by automated
FDD
 FDD technology advances
 Real time capacity and new capabilities built
into equipment (vibration analysis, meg test)
 New more powerful “cloud” computing
languages
 Better sensor technology
 Expanded AI (Artificial Intelligence)
algorithms for better prediction
 More powerful and effective whole-building

19. Thank You!

20. Lessons Learned
 Rule #1: Garbage In, Garbage Out:
There are no “golden” sensor values
 Rule #2: Almost nobody knows
what’s in their building
 Rule #3: ROI based on energy
savings is impossible to calculate
 Rule #4 : Neither customers nor
vendors know their limitations

21. BAS Systems and Sensors
This is what we
expected to see This is what we got
80 78
79
77
78
76
77
76 75
75 74
74
73
73
72
72
71 71
12:00 AM 2:24 AM 4:48 AM 7:12 AM 9:36 AM 12:00 AM 2:24 AM 4:48 AM 7:12 AM 9:36 AM
NIST Calibrated Thermometer BAS Temperature NIST Calibrated Thermometer BAS Temperature