Strategic Life Cycle Costs Analysis (SLCCA): A Great Place to Start Sustainability Planning

Debora Hankinson, CRB

Effectively managing energy and operating costs can be a daunting task for many building managers and owners. In addition to the complexities of planning energy efficiency in new and existing buildings, most facility managers lack a simple method to strategically plan and communicate sustainability initiatives to upper management and decision makers. Without a strategic plan, it can be difficult to get everyone on the same page and obtain the investments needed to improve sustainability.

Developing a strategic life cycle cost analysis (SLCCA) is a new and innovative approach to sustainability planning. The presenter developed this approach recently in response to a client's request to quickly understanding the "total picture" for their facility costs and how well, or how poorly, they were performing compared to others in the industry.

Organized according to an industry standard LCCA formula, the presenter, together with the facility managers, compiled the annual expenses for all capital and OM&R (operations, maintenance and repairs) costs. Comparisons to industry benchmarks and projections for future costs were made. With this baseline data in hand, the owner's annual expenses were applied to the useful life of the building to create a clear vision of the owner's total costs of their facilities. And most importantly the SLCCA identified where to target future energy efficiency and cost reduction efforts moving forward and effectively communicated this to company executives.

From a strategic facility planning perspective it is important to know where you are today before you can decide where you need to go in the future. Developing a SLCCA is a great place to start developing your roadmap for sustainability efforts and investments. In this 30 minute presentation, the presenter will share with attendees the SLCCA methodology used, the data collected, the benchmarks applied, and the results produced.

Learning Objectives

  • To explain the strategic life cycle cost analysis methodology and application
  • To learn how to execute a quick, effective, and comprehensive analysis of OM&R costs.
  • To learn how information and results of a SLCCA can be effectively communicated to company executives.
  • To learn about industry benchmarks that are available for annual operating costs

Biography:

Debora has more than 25 years of professional experience encompassing strategic facility planning, laboratory planning, project management, and design. Debora's expertise lies in the strategic planning of complex life science projects. She has been responsible for strategic planning for several fortune 500 companies including big biotechnology companies, medical device companies, universities, and public agencies.

 

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