Capital Planning ModuleGary R. Schaecher

Founder, TMA Systems, LLC

Capital Planning ModuleProviding Answers to Important Questions

• What is the current condition of your facility?• How much money do you need?• Is your level of funding appropriate?• Given a capital budget, what will happen to

the condition of your assets over time?• What needs to be worked on first?• What is the baseline of your facility?

Capital Planning Module• Provides current replacement value of each

asset.• Determines if current funding levels are

adequate.• Helps forecast the impact of various funding

levels.• Helps prioritize what should be funded first

based on your needs.• Aligns your capital improvement plan with a

facilities mission and fiscal goals.

Capital Planning TimelinePhase I (2014 target for completion)

Release Capital Planning Module• BMAR database w/Estimating & Condition Assessment• Facility Improvements database w/Estimating• Life Cycle Renewal database w/Estimating• FCI Calculations & Analysis• Push Analysis data to Excel Worksheets

What-if-scenarios possible10-Year PlanBacklog Reduction PlanReports & Graphs

Phase II TimelinePhase II (Timeline Undermined)

• Mobile solution for collecting assessment data (iPad)• Integrate Capital Planning Data to Projects

Provides:Moving of CP Projects to Projects moduleProject ComponentsMeeting MinutesFinance Forms IntegrationTime ManagementContract Management Integration

Change Orders, Punch Lists, Change Directives, etc.Invoicing & Payments

Consultants and Contractors

Basic Assumptions• It’s always easier to fund a problem that is specific &

current. (Example: Roof leaks – past tense)• Data in Backlog of Maintenance & Repairs

• Planned needs (future) are harder to fund.• Data in Cyclic Renewal Items (Boilers, chillers, etc.)

• You will never reduce your backlog unless you keep it from getting worse.

• The solution is to fund your Backlog (Your Problems) with input from Cyclic Renewal (Your Plan).

Basic Assumptions (cont’d)

• If Backlog data is not separated from your improvement items, the clarity of problems becomes clouded.

• By separating the Backlog items from improvements, you have better control of your funding requests.

• When necessary, you can still combine the two. Improvements are program driven.

National Standards for Estimates

• Our Elements table is Uniformat II.• This provides unique sorting capabilities.• The estimating breakdown format is a format

familiar to budgeting managers.• You can analyze your building conditions

down to major component levels. (Rollups)• Estimates of costs can be inflated over time.

Facility Condition Index• Facilities Condition Index (FCI) = Backlog of Maintenance &

Repair / Current Replacement Values (CRV)

• The recognized FCI rating from this calculation is:

0 - 5% = Good Condition rating 5% - 10% = Fair Condition rating > 10% = Poor Condition rating > 20% = Red Flag Condition rating

CP Schema (Simplified)

BMAR

Improvements Cyclic Renewal

Uniformat

Groups

Capital $’s

Work Areas

Work Reason

Markups

Work Impact

Funding Grps

Graphs 6 Worksheets Reports

10 Year PlanFCI

Classify By:

Building Condition Browse

Building Condition

(FCI) Browse

Five Software Components

1. Backlog of Maintenance & Repair Form/Browse2. Cyclic Renewal Items Form/Browse3. Facility Improvements Form/Browse4. Conclusions: Excel worksheets & graphs• Interactive : What-if scenarios can be created.• Funding Needed worksheet• Strategic Plan worksheet

5. 10-Year Backlog Reduction Plan• Tool to select groups of projects and prioritize them.

The 10 Processes1. Load all of your data.2. Update Backlog, Improvements, and Renewal

records through facility audits. 3. Level Cyclic Renewal items to find the annual

future need for your facilities.4. Use the Excel “Backlog/Improvement"

worksheet to analyze your Backlog Reduction Strategic Plan.

5. Develop a strategic plan to meet to your needs. Use the six Excel worksheets.

6. Test your plan.

The 10 Processes (cont’d)

7. Select individual work projects for funding for the next biennium and annual budget period.

8. Complete the preparation of a 10 year plan.9. Print your results.10.Start over with the next funding periods –

Repeat Capital Planning Process.

Capital Planning Lookups

12 New Lookups to Classify:

1. BMAR 2. Facility Improvement Items3. Cyclic Renewal Items

Capital Planning Menu

3 New tables for tracking:

1. Backlog of Maintenance & Repair2. Facility Improvement Items3. Life Cycle Renewal Records

Estimating

Create Estimates by Craft, Unit Cost, or Lump Sum

Powerful Browse & Query Capabilities

BMAR Browse Form

Graph BMAR/Facility Improvements Data

10-Year Plan Form

Six Excel Worksheets for What-if-Scenarios

Pushing CP Data to Excel Is Automated

Display Data in Understandable Formats

Large Selection of Reports & Graphs (50+)

Questions and Comments?

Thank You!

Suggestions:

gary.Schaecher@tmasystems.com