Larry Wash & Matt Pike – June 29th
Understanding Equipment’s Life Cycles and
How Safety Improves Tenant Satisfaction
Copyright KONE, Inc. 2015
Agenda
Using Risk Mitigation
Assessments to Improve Safety
Understanding Equipment
Lifecycles
KONE in Brief
Todays Speakers
How to Best Manage an Aging
Asset
Summary
Today’s speakers
Larry Wash Executive Vice President,
KONE Americas
– Expertise: Senior executive
with extensive experience
running global organizations
and growing multi-billion dollar
businesses.
– Areas of focus:
Business strategy
Change management and
transformation
Operational improvements
Thought leader in energy
services / sustainability
3
Matt Pike Manager, KONE Customer
Based Risk Management
– Expertise: Corporate manager
focused on developing risk mitigation
practices with extensive field
experience.
– Areas of focus:
North American customer safety training
Customer risk assessments
Safety auditing systems
Safety implications in People Flow®
4
KONE in brief
KONE
– Industry-leading elevators and
escalators company. Our services
cover the entire lifetime of
a building, from the design phase to
maintenance, repairs and
modernization solutions
Quick facts:
– KONE Americas includes Canada,
Mexico and the U.S.
– 65 branches across the geography,
around 5,500 employees
– Approximately 2,300 of our employees
are technicians
Understanding Equipment Life Cycles
1 July 2015 5
Aging Buildings in the United States
15-19
~200 ~250
~2,000
+25
~100
20-24 10-14
High number of aging high-rise buildings
Over 50%
Total US
installed
base
Of which
at least 20
years old
~1.0M
Installed elevators and escalators
base is aging
Number of buildings with 25 or more floors by age
(building age in years)
6
Over half of all elevators and escalators are beyond the end of their useful life
span, which creates reliability challenges for property managers.
How To Best Manage Your
Aging Assets
Managing Your Aging Assets?
8
Why is it important to think about an asset management plan?
Analyze Plan Update
An asset management plan is a comprehensive analysis of
your equipment designed to prepare for future enhancements
in a systematic manner that focus on key areas:
Code
Safety
Accessibility
Eco-Efficiency
Reliability
Aesthetics Performance
Asset management planning is a critical life cycle management tool
that can help you prioritize elevator and escalators needs.
Expecations of an Asset Management Plan
A building owner / property
manager should expect an Asset
Management Plan from their
service company
A living document that can
change with the needs of the
building
Smarter investments with the
biggest impacts
9
Asset Management Plans align goals to
equipment needs to prevent downtime.
Focus Areas: Dealing with Aging Equipment
10
How can performance and reliablity in an assest management plan
benefit your building?
Code
Safety
Accessibility
Aesthetics
Eco-Efficiency
Performance
and Reliability
• Door equipment
• Addresses issue that
cause call outs or
shutdowns
• Improving tenant
satisfaction
Focus areas provide solutions to chronic problems, that can help
increase your uptime and reliability.
Focus Areas: Dealing with Aging Equipment
11
How can safety in an assest management plan help reduce potential
end user risk?
Code
Safety
Accessibility
Performance
and Reliability
Aesthetics
Eco-Efficiency
• Door restrictors
• Stops unauthorized
access to the
elevator hoistway
• Immediately
improves safety
Safety actions provide immediate benefit which brings peace of mind and
reduces liability.
Using Risk Mitigation Assessments to
improve Safety and Reduce Liability
Risk Mitigation Assessments
What is a Risk Mitigation
Assessment?
Targets safety items that help reduce
risk and liability
Helps an owner / property manager
prioritize equipment needs
Written report that defines items
identified during asset management
planning to make more impactful
decision.
13
A risk mitigation assessment is a
roadmap to help prioritize assets based
on risk and liability exposures.
Risk Mitigation Assessments – Understanding
Potential Risks
14
Why is it important to think about a Risk Mitigation Assessments?
Code Safety
Upgrades
Site
specific
issues
Safety
Training
Crowd
Control Modernization
Risk Mitigation Assessments allow owners / property managers to
make the best informed decisions.
Detailed report to help an owner / property manager understand
and create a holistic approach to equipment management.
Focused Analysis: Site Specific issues
Risk Assessment
Recommendation
– Moving displays that
attract children away
from equipment
– End user education on
how to properly use
equipment
– Identifying outside
factors that create
liability exposures
15
Risks identified
– Attractive nuisances
– Equipment misuse
– Outside factors that
impact equipment
Reviewing a site from a risk reduction standpoint helps exposure site
specific risks that maybe non-elevator / escalator related.
Site
specific
issues
Focused Analysis: Customer Training
Safety Materials
– Owner safety training
– End-User flyers
– Equipment specific
training
16
Safety
Training
Having a strategy on addressing end-user and employee training helps
reduce liability exposures.
Focused Analysis: Safety Upgrades
Aesthetics Items
– 2 elevator Asset
Management Plan
provided
Cab upgrades =
$40,000
– Overall benefit is
superficial and does
not address
mechanical updates.
1 July 2015 17
Safety / Code Items
– 2 elevator Asset
Management Plan
provided
Door restrictors = $15,000
Safety Door edges =
$10,000
Reduced cab upgrades =
$15,000
– Same investment
addresses safety, reliability
and aesthetics.
Prioritizing an owners / property managers goals with professional elevator
and escalator equipment planning addresses multiple needs.
Safety
Upgrades
18
Summary
• Aging equipment base
Over 50% of all elevator and escalator
equipment is at or beyond the end of
their useful life cycle
• Asset Management Planning
Having a plan in place helps prepare for
the costs associated with safety
upgrades, modernization, and other
associated costs
• Risk Mitigation Assortments
Integral part of an owner / property
manager strategic plan for the future
Proactive management of your assets
reduces the likelihood of unforeseen
expenditures .