Facility Life Cycle Costing Process
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Transcript of Facility Life Cycle Costing Process
FJ Strategic Solutions Inc. A North-American Facilities Service Provider Website: www.fjstrategic.com
(Main Office: Montreal Area, QC, Canada) Contact us: [email protected]
FACILITY LIFE CYCLE
How Do You Prioritize Projects to Address Risks, Given Limited Capital Dollars?
FJ Strategic Solutions Inc.
Facilities Management Services: Risk Management — Cash Flow Management — Life Cycle Costing — Reserve Study
OPTIMIZATION OF BUILDING POTENTIAL AND CASH FLOW MANAGEMENT
The Facility Life Cycle Costing approach applies advanced an-
alytics to existing facility data to provide a rich view of one or
multiple facilities conditions. Results are detailed and actiona-
ble, including prioritized risk scoring of repair and replace-
ment activities based on the likelihood and consequences of
component failures. Risk scores are assigned at the individu-
al component level, and results are summarized in visual Risk
Dashboards. Finally, a funding plan is created to ensure that
cash flows are adequate.
The prioritization process can be difficult when handling costs
and cash flows with very limited budgets. The Facility Life Cycle
Costing fosters strategic decisions by providing Managers and
Owners with different scenarios which evaluate life-cycle risks
and impacts affecting both immediate and predictable needs.
FJ Strategic Solutions Inc. A North-American Facilities Service Provider Website: www.fjstrategic.com
(Main Office: Montreal Area, QC, Canada) Contact us: [email protected]
The Facility Life Cycle Costing Process
Data Collection: A careful inventory is carried out and in-
cludes relevant items needed in the building Life Cycle
Costing and Reserve Study analyses. This information can
be obtained from building plans and facilities management
records (component lists, unit prices, service life, replace-
ment, data from trusted sources such as RS Means etc.).
Analysis, Part 1: During this phase, each component is inde-
pendently assessed through survivor curves, powered by
Monte Carlo simulations, that relate to its age, geography
and utilization. These operations result to the calculation of
the probability of failure for each component.
Analysis, Part 2: Once replacement or repair
costs are identified for all components, direct
and indirect impacts to the building operabil-
ity, security and overall safety can be deter-
mined.
Financial Planning: The last step consists of
establishing the most accurate methods to
fund repairs, replacements and additions via
optimization procedures applicable to targets
strategically selected or percent funded tar-
gets supplemented with What-if scenarios.
FJ Strategic Solutions Inc. A North-American Facilities Service Provider Website: www.fjstrategic.com
(Main Office: Montreal Area, QC, Canada) Contact us: [email protected]
Projected Annual Expenses ($)
$0.00
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
$300,000.00
$350,000.00
$400,000.00
$450,000.00
2014
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Ye
arly
Co
st
Projected Cash flow ($)
-$200,000.00
-$100,000.00
$0.00
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
2014
2015
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Building models that rate the repair and replacement costs, probable useful life and criticality of all systems and components.
Budget scenarios: Suited for specific budget constraints or percent funded targets; therefore, en-hancing the strategic decision-making process for Owners and facilities management professionals.
Funding plans that meet short-term and long-term goals.
Risk analysis report: Monte Carlo simulations are used to obtain reliable assessment of the unpre-dictability associated with every system and component.
Professional expertise in risk management and development of risk response strategies.
Advanced failure analyses designed to address specific urgent needs.
Assistance in the establishment of sustainable and eco-friendly solutions in compliance with applicable local standards and codes.
Follow Up Reserve Studies (Contingency Reserve Fund Studies): With or without Site Visits.
The recommended cash flow
curve is optimized to conform
with each company’s financial
situation or reserve study
goals (graphical and tabular
results).
Recommended
Specific benchmarks can be incor-
porated for more accurate studies,
and also to better visualize and
compare scenarios (graphical and
tabular results).
Reserve studies do not incorporate
operation and minor replacement/
repair costs (included in non-
reserve budgets).
DELIVERABLES
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