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Lifecycle Cost Analysis: The Key to Asset Sustainability

bigfootLifecycle Cost Analysis: The Key to Asset Sustainability
Non-profit Uses Bigfoot CMMS to Improve Facility Service, Reduce True Total Costs

Reduce, reuse and recycle are the three watch words of environmental sustainability for saving money, energy and natural resources. But what can facility managers do to ensure asset sustainability, which encompasses the cost-efficiency of buying, operating and servicing maintenance and repairs?
In other words, how do you determine which products to purchase, when they should be replaced and how to efficiently service them to maximize your return on investment?


For Adam Hungerford,facility and safety services manager at Chemung ARC, the answer was to use Bigfoot CMMS (computerized maintenance management software) for comprehensive asset management support. Bigfoot CMMSis known for helping maintenance professionals get up to speed quickly and see results, often within a matter of weeks.
By leveraging the software’s data and tools and initiating an aggressive preventive maintenance (PM) program,Chemung ARC has been able to more effectively manage and reduce the true lifecycle costs of his facilities’ assets.
“With Bigfoot CMMS, we now have a clear picture of these costs and can make data-driven decisions,” said Hungerford, whose non-profit organization provides housing and vocational services to developmentally disabled clients in upstate New York’s Chemung County. “We’re also much more efficient in managing our PM program, work orders (WOs) and inventory.”
Lifecycle Cost Analysis for Washers and Dryers
Hungerford is responsible for managing repair and preventive maintenance for Chemung ARC’s facilities, including 18 residential homes and business offices. The Agencysupportsaround 700 clients, some in need of constant care, others who participate in vocational programs, and others whoare employed.  He also oversees Chemung’s administrative offices and a staff of six full-time technicians and 15-20 contractors.
The CMMS has enabled Hungerford perform equipment lifecycle cost analyses, which have led to dramatic changes and impressive results.A case in point was Chemung’s lifecycle cost for 40 washers and dryers.
“Before we did this analysis, we were simply buying units with low front-end costs which, we thought at the time, would allow us to avoid expensive repairs and constant call-outs,”Hungerford said. “We didn’t really consider sustainability, operational costs and capacity.”
Theseinexpensive washers and dryerswere undersized and often lacked essential features. Since each machine ran 8-10 laundry loads each day, they would frequently break down and repair parts were largely out of stock because of all the different models in use.The machines also were operationally inefficient in their use of water and electricity.
On average, the organization spent about $785.00for the lifecycle of a typical washer, which included the purchase price, installation, repair and maintenance (R&M) costs, and disposal (but not utility costs). Most had to be replaced in less than 15 months.
Through a CMMS cost study, Chemung now spends almost twice as much upfront ($800 instead of $425) for each unit but the lifecycle cost benefits are significant:

 

  • Washers and dryers generally last six years instead of 15 months, reducing the recurring costs for purchase, installation and disposal.
  • R & M costs per unit per year dropped 30 percent
  • By doubling capacity of the units, Chemung cut in half the number of loads per day and reduced energy and water consumption by 25 – 30 percent per load.

“The savings and benefits have been far reaching,” Hungerford said. “We’ve reduced costs and downtime while improving the user experience.”
Aggressive PM Processes
Using the CMMS, Chemung ARCcontinues to develop and maintain aggressive PM processes. Hungerford’s maintenance team checks dryer vent ducts and lint screens each month and performs aquarterly full exhaust tear-down and cleaning on each dryer.
“We no longer have dryer R&M expenses caused by lint-related problems,” Hungerford said. “The CMMS allows us to create, manage, and complete this work. And if any repairs are needed, we can log, track, and report R&M and operating expenses.”
In addition, Chemung uses the CMMS to maintain an inventory of commonly used washer and dryer parts as well as an inventory of spare washers and dryers. Workers can view inventories and their storage locations in real time.
Other CMMS Applications and Benefits
Hungerford also has done lifecycle cost analyses to create standardized specifications for dishwashers, refrigerators, snowblowers, light fixtures, faucets, tub controls and adaptable bathing tubs. With the PM schedule now under control, Chemung rarely has to replace a failed appliance.For example, the incidence of HVAC system failures has fallen 50 - 60 percent. 
Other benefits afforded by the CMMS include:

  • Predictability for budgets, parts needs and product replacements
  • Compliance with health and safety regulations – a PM schedule is set to meet requirements for regular inspections and testing.
  • The ability to prioritize WOs -- Health and safety issues such as loss of heat, utility outages, broken doors, broken glass windows and plumbing leaks can be given “urgent priority” status
  • A 95 percent reduction in callbacks for repairs.

Big Plans
Chemung has begun tracking the lifecycle costs for every item and piece of equipmentin every facility, including roofs, painting, flooring, furniture, site and grounds work, gardens, fencing, etc. Hungerford hopes to have most of these documented in his CMMS within the next several years.
“We started small but are adding assets every few months. More importantly, PMs from the CMMS have been completely ingrained in our team’s work habits.”
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