Discovering Sustainable RESULTS

1. Discovering SustainableRESULTS Change Management “Getting from where you are, to where you want to be”

2. Project Mananagement • To Manage the challenges and exploit opportunities, successful companies continuously change themselves (ADAPT) • They create new products, develop new services, design new processes, adopt new strategies and supporting programs and establish new organizational structures • They expect changes to deliver new, improved and sustainable results.

3. Triple Contraints • Time – Schedules primary controls • Work Breakdown Structure • Outline of Tasks • Performance Milestones • Cost – Budget & Estimates control resources • Financial structures & Control Processes • Requirements – Scope of work defined • Definition of Expectations, Roles & Responsibilities • Decision making Framework

4. Management Approach • Focus on Results • Control Design & Production • Align efforts with Strategic Plan & Goals • Implement effective processes • Clearly define Roles & Responsibilities • Document Decision Process • Clarify Risks and expectations • Apply Performance Metrics • Communicate Progress & Changes

5. Focus & Communicate • Establish “url” & website on Internet (PMO) • Implement Project Management Office – PMO • Communicate through central website (PMO) • Train team – PM Fundementals (PMO) • Map the Customers & Stakeholders • Keep Customers Informed (website) • Project Progress & Historical Capabilities (website) • Communicate policies & process (website)

6. PMO • Project Management Office • The Project Management Office (PMO) currently provides processes and support in the area of Project Management for project managers in CTSC & CEC. When these processes are adhered to….they inherently provide value and increase the likelihood of project success. • Current Products available on the PMO Website • Project Management • Process • Process Guide • Tools/Templates • Training Materials • Delivery Life Cycles for Planning • Life Cycle Definitions • Life Cycle Models • Advance Planning Document (APD) • Process • Process Guide • Tools/Templates • Training Materials • Contracts • Process • Contract Tips • Tools/Template

7. Fundamental Principals VALUE & SUSTAINABILTY • Think Strategic • Establish Target Goals for Design • Focus early to produce value in Design • Adopt LEED & ENERGY STAR guidelines • Incorporate Life Cycle perspective • Design & Construction only 10% of Cost • Owning & Operating 90% of Life Cycle Costs • Make Value early as possible • Decisions made far upstream produce Value

8. Project Production & Operation • Fast Track Integrated Design saves costs, lowers risk and delivers the quickest • Utilize professional Project Management • Fully commission all Project Systems • Involve Occupiers and Operators in Design • Manage Cost & Risk through Programming • Utilize Phase gate reviews in Design development to assure alignment & valueUse them for control of triple constraints Use them during production and close-out

9. Life Cycle Cost Analysis • LCCA looks at net present value of future investments to determine true returns • Life cycle cost analysis may refer to: • Life cycle assessment, the investigation and valuation of the environmental impacts of a given product or service caused or necessitated by its existence • Whole-life cost, the total cost of ownership over the life of an asset, also commonly referred to as "cradle to grave" or "womb to tomb"

10. LCCA • Life-Cycle Cost Analysis (LCCA) • by Sieglinde FullerNational Institute of Standards and Technology (NIST) • Last updated: 06-28-2010 • Within This Page • Introduction • Description • Application • Relevant Codes and Standards • Additional Resources • Introduction • Life-cycle cost analysis (LCCA) is a method for assessing the total cost of facility ownership. It takes into account all costs of acquiring, owning, and disposing of a building or building system. LCCA is especially useful when project alternatives that fulfill the same performance requirements, but differ with respect to initial costs and operating costs, have to be compared in order to select the one that maximizes net savings. For example, LCCA will help determine whether the incorporation of a high-performance HVAC or glazing system, which may increase initial cost but result in dramatically reduced operating and maintenance costs, is cost-effective or not. LCCA is not useful for budget allocation. • Lowest life-cycle cost (LCC) is the most straightforward and easy-to-interpret measure of economic evaluation. Some other commonly used measures are Net Savings (or Net Benefits), Savings-to-Investment Ratio (or Savings Benefit-to-Cost Ratio), Internal Rate of Return, and Payback Period. They are consistent with the Lowest LCC measure of evaluation if they use the same parameters and length of study period. Building economists, certified value specialists, cost engineers, architects, quantity surveyors, operations researchers, and others might use any or several of these techniques to evaluate a project. The approach to making cost-effective choices for building-related projects can be quite similar whether it is called cost estimating, value engineering, or economic analysis.

11. Resources • http://www.barringer1.com/pdf/LifeCycleCostSummary.pdf • http://www1.eere.energy.gov/femp/information/download_blcc.html • http://www.bing.com/images/search?q=life+cycle+costs&FORM=IGRE&qpvt=life+cycle+costs# • http://world-class-manufacturing.com/LCC/lcc_calculation.html

12. Conclusion • You can’t afford not to take the long view • LCCA provides a clear result of owning an asset for its lifecycle • Sustainable design addresses over Life Cycle of an asset • Looking at Life Cycle Impacts is wise approach • LCCA lets you see ahead & control costs from concept through occupancy and ownership