Robert s tthomas_v2

© 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.


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.


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


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


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


77








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


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


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


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


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


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


1414








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


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


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


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


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:


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


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.


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.


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


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


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!


2626








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.


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


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%


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


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%


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)


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


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%


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


3636








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?


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!


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


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


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





TOTALTOTAL $XXX$XXX $XXX$XXX

Sequence initiatives to “self-fund” as much as possible with savings from previous projects

start


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


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


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.

Robert s tthomas_v2

Technology

building efficiency

building systems

efficient nasa building

smarter planetproposed

smarter planetcontinuously

smarter planetcost reduction

cost problem

smarter planetsecond