Project Management

From Concept to Execution:
How to Make IWMS a Reality
Frank Kayden
Director, Global Portfolio Planning
and Real Estate
Dow Chemical Company
Dhruv Jain
Senior Program Manager
Computerized Facility Integration
Wednesday, October 19, 2011
The information contained herein is provided for informational purposes only, does not contain contractual obligations,does not constitute a warranty, and is subject to change without notice. Information contained in this document is
proprietary to TRIRIGA, Inc. an IBM Company (“TRIRIGA”) and may not be used or disclosed without the prior written consent of TRIRIGA. This document, or any part thereof, may not be reproduced without the prior written consent of TRIRIGA.
Transfer of Business for TRIRIGA is planned by IBM on November 1, 2011.
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Today’s Agenda
• Company Overviews
• Business Drivers and Criteria
• Business Case Development
• Expected Benefits
• Lessons Learned
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Dow Overview
• Dow Chemical
– $60 Billion in Sales
– Approximately 50,000 employees in
300+ locations & 50+ companies
• Lab and Office Facilities
Management (LOFM)
Global Organization – 200+ employees
supporting 20 million sq. ft. of lab and
administrative office space
• Mission:
LOFM is a recognized, globally
competitive partner delivering world-class
facilities management services and
solutions that enable Dow businesses to
run better, faster and safer.
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Dow Overview (Continued)
Value Creation:
Implement processes that anticipate changes
in Dow’s workforce and move toward 90%
capacity utilization, lowering the cost per
occupant
•Enable Dow’s business and work
processes by effectively managing office
and lab buildings
•Enable employee productivity and
growth through transition to an open,
flexible work environment
•Define and implement standards to
assure quality and consistency
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CFI Overview
• Servicing clients since 1990
• Over 1.5 billion sq. ft. client portfolio
• Exclusive focus is RE / FM
• 4 primary service Offerings:
1. Strategic Consulting
2. Implementation / Integration
3. Support Services
4. Bundled Services
• 18 TRIRIGA-certified resources
• 100+ IWMS professionals
• Dow business partner since 2005
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Business Drivers and Criteria
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Business Drivers and Criteria
• Centralize and standardize FM and CRE functions for
Dow’s laboratory and office facilities
– Global Solution – Regional Implementations
• Assess IWMS solutions to support the strategy
– Improve services and efficiencies
through a common platform
– Scalable
– User acceptance / usability
– Benchmarking (internally
and externally)
• Build on successes
– TRIRIGA implemented in 2006
to support space cost recovery
– Recover $200MM annually
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Business Drivers and Criteria
• LOFM Integrated Workplace Management Solution
(IWMS) Objectives:
– Operational Performance - Improves the efficiency of real estate and
facility management functions
•
•
•
•
•
Productivity improvement in existing building portfolio & utilization
Improves the effectiveness of facilities planning & investments
Technologies transform facilities into enablers supporting workforce mobility
Productivity gains in building projects
Time to market integration/divesture of Dow MA&D activities
– Financial Performance - Increases financial return on real estate and
facility assets
• Cost effective account management and service provisioning
– Environmental Performance - Reduces energy consumption and green
house gas emissions of buildings and facilities
- Strategic Philosophy: Leverage outsourcing partners such as CBRE to
manage facilities and the TRIRIGA IWMS to manage money
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Business Drivers and Criteria
• Technology-related activities in 2010:
– Operations Maintenance – RFP to assess tools to support organization
as it centralizes and standardizes
– Real Estate – need for centralized source of market / evaluation
activities
– Strategic Planning – evaluation of SFP to support planning activities
– Project Management – need to standardize forecast and spend
– Executive Reporting and Dashboards – need for centralized reporting
and reduced manual process
– TRIRIGA Upgrade evaluation – significant increase in functionality for
portfolio and space management
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Business Drivers and Criteria: Integrated Solution
Email
Notifications
& Alerts
Approvals
Reports
Portals
Security
Offline
Business
Connect
TRIRIGA Real Estate Environmental Sustainability (TREES)
Workplace Performance Management– Real Estate, Projects, Facilities, Operations
Real Estate Management
Project Management
Strategic Facility Planning
Project Management
Portfolio Management
Facilities Management
Transaction Management
Asset Management
Lease Administration
Momentum Platform
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Operations Management
Operations Management
Inventory Management
Condition Assessment
Business Case Development
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Business Case Development
Elements of the business case:
– ROI analysis - >$9MM over three years
– Program plan:
• Implementation
• Support
– Enterprise software purchase
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Business Case: ROI Analysis
• Real-time dashboard metrics
– Cost per occupant & square foot
– Utilization rates of facility asset & inventories
• Offices & Labs - high thru put, High Bay, Heavy,
Pilot Plants, Constant Temperature Labs, etc.
– Facility condition classifications
– Improved service revenues – chargebacks
– Improved decision making
– Improved planning & forecasting
• Operations & projects
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Business Case: ROI Analysis (Continued)
Analysis of
system
options
- Prioritized
implementation
schedule
Best-value
selection
-
Cost
reduction
- Cost
avoidance
- Improved
productivity
- Scalable
portfolio
planning
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Business Case: ROI analysis (Continued)
Data Driven Decisions Modeled From:
• Performance management
• Data aggregation
• The right information at the time of decision
• Individual applications
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Business Case: Program Plan
Multi-year program plan to encompass all services:
• Cost estimates, timeline, priority for each module:
• Implementation of modules:
- Planning and
Design
- Prototype,
Build,
Transition to
Operations
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4,016,317
$6,526,516
$3,000,000
Costs
$2,000,000 Program Plan
Business
Case:
4,408,084
$6,526,516
391,767
$1,000,000
Multi-year program plan
to encompass all services:
$-
maintenance
planning:
Year•4 Post-implementation
Year 5
Year 1and
Year
2 Year 3
$488,585
$513,585
- Application
support
r4
Year 5
- Drawing
&
3,919,499
$6,012,931
data
6,385,513
$12,398,444
management
r4
Year and
5
- Hosting
$387,005
$383,780
infrastructure
3,491,615
$4,876,992
- Improvement
3,104,610
$4,493,212
projects
5,173,846
$9,667,058
Year 4
Year 5
$7,000,000
$6,000,000
$5,000,000
$4,000,000
Benefits
$3,000,000
Costs
$2,000,000
$1,000,000
$-
153%
257%
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Year 1
Year 2
Year 3
Year 4
Year 5
Business Case: Software Procurement
• TRIRIGA Application and Platform
• TRIRIGA Space Management
• TRIRIGA Operations &
Maintenance
• TRIRIGA Projects (Enterprise
Project Management)
• TRIRIGA Real Estate
• TRIRIGA Facilities
• TRIRIGA Move Management
• TRIRIGA Offline
• TRIRIGA SFP
• TRIRIGA WPM – Operations,
Projects, Real Estate, Facilities
• TRIRIGA Facility Condition
Assessment
• TRIRIGA TREES
• Connectors : RSMeans, ESRI
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Benefits and Lessons Learned
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Current Status
• Software purchase
complete
• Program in place
• V3.1.1 and v10.0 upgrade
complete
• Data exchanges with SAP
• Enterprise Project
Management started in Q2
• Real Estate planned in Q4
• OM implementation started
in Q1, delay until 2012
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Expected Benefits
Reduced Costs:
•
•
•
•
•
•
•
•
•
•
Real Estate Transactions and Portfolio Strategies
Lease Administration
Capital Budgets and Project Management
Enterprise Asset Management
Space Management (Occupancy, Moves)
Operations & Maintenance
Facility Condition Assessment
Energy Modeling, Sustainability
Central source of reporting
Standardized processes and data structure
– Basis for future improvements
– Ability to benchmark – internal and external
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Lessons Learned
• Have a plan
– Define all the plan components
– Have the business process defined
– Be flexible to allow improvement to process
• Steering Committee
– Need executive level oversight on status, issue
resolution, direction
• Understand organizational
requirements
– Resources
– Roles / responsibilities are understood
– Integration points with external systems
• Select a great business partner like CFI!
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Questions and Answers
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