Asset Management It s Not Just for Maintenance Anymore
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1 Asset Management It s Not Just for Maintenance Anymore Spring 2013 Operations & Technical Affairs Conference St. Petersburg, Florida March 5, 2013
2 Panelists Moderator: Pat Neville, Toronto Pearson International Airport Panelists: Todd McIntosh, Toronto Pearson International Airport Michael Feldman, Los Angeles World Airports Sam Sleiman, Boston Logan International Airport Joe Mahaz, EDI, Inc. 2
3 Facilities Management at LAWA Michael Feldman ACI Operational and Technical Affairs Conference March 5, 2013
4 Overview - LAWA Structure Board of Airport Commissioners CEO COO Legal Commercial Development Police Operations Facilities Management Airport Development External Affairs Information Technology Admin/HR Finance Capital Planning Programming 4
5 FMG Organization Deputy Executive Director I Michael Feldman Shutdown Control Center Deputy Executive Director II FM@LAWA Maximo Work Control Center Maintenance Services Division Engineering and Facilities Management Division Environmental Services Division - Custodial - Painting - Landscape - Recycling - Airfield - Fleet - Systems Ownership & Engineering - Building/Systems Maintenance - CAD/GIS - Utilities - Job Order Contracting - Planning & Scheduling - Asset Management - Facility System Optimization - Building/Asset Renewal - FMS Data Analysis/Reporting - Reg Compliance - Noise Programs - Commitment Management - Site Assessment - Sustainability 5
6 LAX Facilities Portfolio Structures and Buildings 3,425 Acres of Land 5.8 Million Sq Ft of Buildings 8.3 Miles Runway 29 Miles Roadway 30,083 Parking Spaces 915 Miles Sub-Surface Utilities 2012 Annual Activity Levels 63.7 Million Passengers 605,480 Aircraft Operations 77.1 Million Annual Visitors 41,000 Incident Responses Critical Infrastructure 40,000+ Fire Alarms & 21 Fire Panels 10,500 Tons Refrigeration & 95 Million BTU/Hour Heating Capacity at the CUP 1,300+ HVAC & Cooling Units 396 Escalators/Elevators/Moving Walkways 800+ Controlled Access Doorways 215 Miles Electrical Distribution 127 Miles Water Pipe 6
7 Business Scan of Organization Confused asset ownership Highly reactive environment with strong capabilities to respond No comprehensive work or material management - Paper or PC records - Emergency purchases - Procurement Division manages and dispenses inventory Reliant upon tribal knowledge in the shops Planning and scheduling not universal Age and condition of facilities and systems with many assets at or approaching end of useful life Lack of metrics and systems to measure and manage performance Major terminal renewal and modernization underway without a strong focus on total costs 7
8 Why Change? Implement best business management practices to manage ongoing operating costs - Lower operating costs thru targeted capital investment - Build capacity to absorb additional work Increase accountability and transparency - Establish KPI s to measure and manage - Ability to answer FM questions Need to focus on sustaining new capital improvements Maintenance efficiency will help manage operating costs and Cost Per Enplanement (CPE) growth CPE at LAX $ CPE is expected to double once bond re-payment begins - Ability to control O&M costs as assets are commissioned 8
9 Lifecycle Cost 25% Initial, 75% On-Going 100% Life Cycle Cost 75% 50% 25% Occupancy End of Life 0% Design & Construction Operation & Maintenance Building Life Cycle 9
10 Cost Per Enplanement (CPE) - Will Steadily Increase $25.00 $20.00 $15.00 $10.00 Debt Service O & M $5.00 $0.00 FY 2008 Actual FY 2010 Projected FY 2012 Projected FY 2014 Projected FY 2016 Projected 10
11 FMG s Operating Principles Facilities management requires teamwork and seamless coordination across the FMG to ensure facilities are safe, reliable and clean. Areas of focus: PEOPLE FMG s most valuable resource is our people. We will be prepared, equipped and dedicated to efficiently and effectively managing and maintaining LAWA facilities. STRUCTURE FMG proactively manages each dollar of budget authority to achieve desired levels of customer satisfaction, operational efficiency and regulatory compliance. CULTURE FMG is accountable and innovative. We embrace the concepts of continuous improvement and total cost of ownership (TCoO) in supporting our stakeholders and performing our work. 11
12 Fundamental FM Requirements Know what we OWN and WHERE it is located Know the CONDITION of what we own Maintain Asset Inventory Know the RESOURCES AVAILABLE for their maintenance Manage the Gap Determine Asset Condition Know the RESOURCES REQUIRED for their maintenance Determine Resources Required MANAGE THE GAP between resources required and resources available 12
13 Components of Facility Management FMS Maximo Inventory of Assets Training & Development Equipment Standards Design & Construction Handbook FM Handbook 13
14 Equipment & Construction Standards Through standards, business processes and tools, we are holding ourselves, our contractors and our tenants accountable for meeting levels of service driven by customer satisfaction, operational efficiency and regulatory compliance needs. Developed Equipment Standards for our systems and critical assets Re-engineered and Streamlined the Project Approval Process Created a Design and Construction Handbook 14
15 FM Handbook Topics Facility Registry Management Facility Naming Convention Facility Fixed Asset Capitalization Guidelines Building Space Naming Convention Work Management Condition Assessment Total Cost of Ownership Information Technology Change Project Closeout 15
16 Inventory and Tagging Equipment 16
17 IFMA Training and Development Competencies 1. Planning and Project Management 2. Operations and Maintenance 3. Leadership and Management 4. Finance & Business Essentials 5. Real Estate 6. Quality Assessment and Innovation 7. Human and Environmental Factors 8. Communication 9. Technology Strategy & Alignment for Sustainable Facility Management Managing Sustainable Facilities Operating Sustainable Facilities Credential CFM SFP FMP 17
18 Single Platform for Business Processes Integrated Platform An Integrated set of solutions represent the full management of data, processes, tooling and people Processes that Work Together A core solution that shares an automated process workflow MAXIMO Shared Data Model Share a common data subsystem for simple data sharing Lower Cost of Ownership Lower infrastructure and training costs with single system Phase 1A Go Live - 01/22/13 18
19 2012 FMG Incident Summary 40,128 Incidents by Location Incidents by Shop 19
20 Maximo Dashboard 20
21 MAXIMO Next Steps Advanced Work Management June 2013 Work planning, scheduling, escalations and accountability Online service request tool for improved customer service & feedback Performance Metrics/Reporting TBIT Asset Management (Assets, Services Contracts, Warranties, Inspections, Critical Spares, O&M, etc.) System Integration End of 2013 Integration with other systems such as egis and SAP 21
22 New International Terminal 22
23 Facilities Perspective New TBIT 1.25 million new square feet in building 26 new restrooms New vertical circulation 41 Escalators 37 Elevators 10 Moving walkways 170,000 sq feet of curtain wall and clerestory 9 net additional gates 42 Passenger boarding bridges What is the cost to operate and maintain this new facility? 23
24 Old vs. New Central Utility Plant 24
25 Elevator/Escalator Program 25
26 Capital Investment & Tenant Improvements Refresh/Renewal by Airlines and Tenants Upper Roadway Improvements Perimeter Fencing Electrification of Ground Service Equipment (GSE) & Ramps 26
27 Thank You! Questions? 27
28 Asset Management Consequence of Failure Programs Joe Mahaz President & CEO, EDI Inc. Spring 2013 Operations & Technical Affairs Conference St. Petersburg, Florida March 5, 2013
29 Consequence of Failure/Asset Criticality Programs are an Integral Aspect of Asset Management The benefits of performing an Asset Consequence of Failure Program associated with Asset Criticality will produce: Reduced Maintenance Costs Higher Visibility to Life & Safety Risks Improved Customer Experience 29
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