The flooring industry s most comprehensive research project. Dr. Jeffrey Campbell Jonathan Stanley
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1 The flooring industry s most comprehensive research project Dr. Jeffrey Campbell Jonathan Stanley
2 Speakers J o n a t h a n S t a n l e y V i c e P r e s i d e n t E d u c a t i o n, Ta r ke t t J e f fe r y C a m p b e l l, P h. D. B r i g h a m Yo u n g U n i v e r s i t y
3 L e a r n i n g O b j e c t i v e s A r e v i e w o n h o w f l o o r i n g c a n i m p a c t t h e s t u d e n t h e a l t h a n d a c h i e v e m e n t A r e v i e w o f t h e c a t e g o r i e s o f r e s e a r c h a n d v a l u e e a c h p r o j e c t w a s g i v e n A f o c u s o n l i f e c y c l e c o s t i n g o f f l o o r i n g F e e d b a c k f r o m t h e i n d u s t r y o n t h e m o s t i m p o r t a n t i n f o r m a t i o n s u p p l i e d b y t h e A P PA s u r v e y
4
5 Community Learn Create
6 Where do you go to find what flooring is the best for student outcomes What are the drivers for selecting one of fifty building components
7 2014 CEU Students perspective of their learning and living environments 1. Cleanliness and Learning in Higher Education 2. The impact of facilities on recruitment and retention
8 Cleanliness and Learning in Outcome Higher Drivers Education from student feedback: Noise Air Temperature Cleanliness Lighting
9 What s Next? Create a comprehensive research executive summary of all flooring research and drivers to deliver to the decision makers in education.
10 3 phased project I Executive Summary on all flooring research and its impact on people II Survey human experience decision makers III Final executive summary on what s next
11 Purpose of the Research Create the largest and most comprehensive research database for flooring. Share APPA survey results of the Total Cost of Ownership (TCO) and Life-Cycle Costing Analysis (LCCA) and how it is being perceived and used in the purchasing of flooring and other facilities products.
12 Variables that effect flooring life cycle and cost (over 200 searchable reports) 1. Acoustics 2. Cleanliness and health 3. Color 4. Environments and Learning 5. Environmental Wellness 6. Ergonomics and Cushion 7. Indoor Air Quality 8. Maintenance 9. Slip and Fall 10. Strategic Procurement Sourcing 11. Thermal and Energy Savings 12. Total Cost and Ownership (TCO) and Life Cycle Cost Analysis (LCCA)
13 TCO and LCCA terminology The broad scope of managing the cradle-to-grave life of physical assets is called Total Cost of Ownership (TCO). There are specific tasks for managing assets, including of performing asset current replacement values (CRV), condition assessments (CA), and understanding asset existing useful life (EUL). These specific tasks aid, in and then preparing a plan to maximize resources by investing in the assets at the right time, and with the best methods and technologies. The long-term planning tool for managing assets is called the Life-Cycle Cost Analysis (LCCA). The act of understanding and use of TCO and LCCA tasks are called principles.
14 List A: BYU 2001 Carpet Research Acoustics and energy savings Appearance standards Business interruption Carpet cushion Carpet type Ecology and recyclability Ergonomics Fiber and brand Installation methods Maintenance Moisture Safety Style/color obsolescence Surface preparation Usage List B: Tandus Literature Review Acoustics Cleanliness and health Color Environments and Learning Environmental Wellness Ergonomics and Cushion Indoor Air Quality Maintenance Slip and Fall Strategic Procurement Sourcing Thermal and Energy Savings Total Cost and Ownership (TCO) and Life Cycle Cost Analysis (LCCA)
15 Chapter 12 Total Cost of Ownership (TCO/LCCA) Key Words from Literature Review: (OS1), accident, analysis, Antron, budget reduction, budget, business interruption, BYU, carpet cushion, carpet, case study, cleaning, cost, custodial, Dow technology, ecology, employee retention, energy, facilities management, fiber, financial impact, flooring alternatives, flooring replacement, flooring, green, hard floors, hospital, Hybrid Resilient, inflation, initial cost, injury, installation, janitorial services, processes, janitors, life-cycle costs, maintenance, operations, overall costs, polyurethane attached cushion, Powerbond, preventative maintenance, quality, recyclability, repairs, research, value, restoration, savings, schedule, schools, soiling, spills, sustainable, total cost of ownership, training safety, VCT, wax stripping alternatives. Main Points: A life-cycle cost analysis includes initial purchasing costs, installation charges, maintenance costs, and cleaning costs. A Total Cost of Ownership takes into account costs of operations and maintenance, maintenance and repairs, and inflation. Higher quality (usually more expensive) floors are more cost effective over time than floors with cheaper initial costs. Cleaning and maintenance processes should be implemented to increase efficiency and decrease costs. TCO and LCCA should be considered very early on in any construction or renovation projects, including in educational facilities, where typically only initial costs are taken into account. I think you should add in the Katy Wolf study figures that 92% are maintenance and operations vs. 8% is material cost and initial installation...it s in her conclusion. Add that there are variables like fiber, backing, product engineering, and backing that contribute to some product life. Summary: Total Cost of Ownership (TCO) combines the daily costs of operations and maintenance, maintenance and repairs, and inflation. In educational facilities, interior materials are selected solely based on initial cost; however, they should take into account initial costs, operational and maintenance costs, and replacement costs. TCO helps accurately forecast budgets, proactively schedule preventative maintenance, and save money. When costs are measured, it is easier to see where there are opportunities to save. Most cleaning systems have no standards or ways to measure effectiveness and performance. In 2008, the University of Massachusetts worked with a cleaning industry consultant and saved $360,000 in the first year alone, as well as improved their overall cleanliness. Comprehensive carpet care programs consist of soil containment, vacuuming, spot and spill removal, interim cleaning, and restorative cleaning. Different flooring types require different cleaning procedures and time. There have been many studies pertaining to the cost effectiveness of different flooring types, with varying results: Some showed carpet has the most cost effective, while others showed VCT, Cushion Sheet Vinyl, or Hybrid Resilient Powerbond. For example, according to the Carpet and Rug Institute, carpet is 65% less expensive to maintain than hard floors. Another study showed that adding polyurethane attached cushion from Dow technology to carpet increased the life span by 3-5 years. Different departments often want different flooring types. Medium colored floors fare better than other colors. Visually active patterns hide dirt better than solid colored floors. Stimulated wood is cheaper than real wood and it is easier to maintain, install, and replace. Carpet squares are easier to replace, modify, and install than sheet carpet. Because janitors and custodians have the ranked fifth highest in occupational injuries and illnesses, Operating System One (OS1) was designed to increase custodial efficiency and safety. The process groups teams of custodians to work together to improve morale, productivity, safety awareness, and procedures and successfully decreasing the number of incidents and injury.
16 TCO_LLCA Appendix: [A] Cutting Costs and Improving Outcomes for Janitorial Services [A] Case Study: Understanding the Total Cost of Ownership (TCO) and Effective Budget Forecasting [A] General Cost Evaluation: VCT vs. Carpet (Flicker) [A] Safer Alternatives to Current Floor Wax Strippers for Schools and Public Buildings (Wolf 2015) [B] Carpet Maintenance Guidelines (Carpet and Rug Institute 2012) [B] Flooring materials life-cycle costing for educational facilities (Moussatche 2001) [B] The Facts about Carpet Cleaning and Maintenance (Carpet and Rug Institute) [B] Saving Millions on a Shoestring: Do-it-yourself Calculations for Total Cost of Ownership (TCO) (Campbell 2015) [B] A Life-Cycle Cost Analysis for Floor Coverings in School Facilities (Bishop 2002) [B] Building Services Department: Carpet Analysis (Simpler 2005) [B] Comparison of Invested cleaning time for Vinyl Composite Tile (hard-surfaced) and Hybrid Resilient (textile) Flooring in Occupied Schools (Shaughnessy 2013) [B] Care and Maintenance of Commercial Pile Carpet Conventional Technology (Lu 2007) [B] A Baseline Study of the Effects of (OS1) on Custodial Safety (Campbell 2003) [B] BYU Research Shows Polyurethane Technology Adds Life to Carpet (Campbell 2002) [B] Life-Cycle Benefits of Flooring Surfaces in Health Care Our Methodology Was All Wrong? (Barnes 1998) [C] Schools Carpet Maintenance Program (Carpet and Rug Institute) [C] Carpet vs. VCT in Classrooms (2004) [C] PASCO revised cost study for carpet vs. VCT [C] Commercial Flooring Life Cycle Cost [C] Trinity University Students Treated to First-Rate Facilities (Antron 2008)
17 Survey Demographics: Surveys 335 Country: 92% USA 46 states Position: Supervisor/Manager 25% Director 43% Senior 21% 16% PDC, (Planning Design Construction) 74% FM/Physical Plant Size: 5 School Sizes by # students: from <2,500 to >33,000Experience Departments:
18 68% - age 45 to 64
19
20 Q13: How well does finance and purchasing understand LCCA principles? (scale 1 to 5) 2.64 mean,.36 less than average Low Average High
21 Q14: Believed knowledge level of LCCA for decision makers for flooring (1 to 5) 2.94 mean, less than average
22 Q15: Who has the greatest influence in making flooring decisions? PDC 43% FM 44%
23 Q16 Which group performs flooring LCCA? 28% No LCCA performed 25% PDC 33% FM
24 Q17: How often have you seen your department prepare LCCA docs for flooring? (scale 1 to 5) 1.85 mean, bell curve score
25 Q18 Have you personally been involved in the life-cycle budget analysis of flooring? 1.51 mean, similar to Q17 of Q
26 Q20: Rank of decision makers action for purchasing flooring. 1. Best long-term value 2. Safety, prevent slip and fall 3. Color, look, style 4. Least upfront cost 5. Least maintenance cost 6. IAQ 7. Acoustics
27 Q21: Actual use of LCCA at institution 2.31 mean
28 Q22: Actual use of LCCA at in department (1 to 5) 2.78 mean for department vs for institution
29 Q23: Why LCCA is not practiced 1. Don t have knowledge and commitment 2. Too busy 3. Not flexible, resistance to change 4. Lack of staff and resources 5. Too costly to implement
30 Q24: Main reason your department accepts LCCA 1. Expectation for buildings to last longer 2. Senior managers understand value 3. Keep up with technology and reduce energy costs (commissioning) 4. Improve safety and security 5. Buildings are falling apart 6. A major crisis
31 Q25. Money saved using LCCA %, there are savings, don t know amount %, 50K %, no savings %, 500K to 1000K %, 1000K to 5000K %, >5000K
32 LCCA Life Cycle Costing Inflation 92% 8% Material O&M Flooring Repairs Wolf, 2015 Campbell, 2016
33 conclusion We need better data to make better decisions You now have a resource (Research Executive Summary) to extract needed data for flooring decisions LCCA gives us verified proof Flooring LCCA is an underutilized resource LCCA is #1 driver for FM and DC on flooring selections FM is doing most of the LCCA but ODC is driving larger capital projects Do not make a decision on flooring based on 8% (initial cost)
34 Questions?
35 Thank You Please don t forget to complete your evaluation in guidebook.
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