Deming on Quality | Murray Guy

The philosophy of W. Edwards Deming has been summarized as follows:

"Dr. W. Edwards Deming taught that by adopting appropriate principles of management, organizations could increase quality and simultaneously reduce costs (by reducing waste, rework, staff attrition and litigation while increasing customer loyalty). 

The key is to practice continual improvement and think of manufacturing as a system, not as bits and pieces."[20]

In the 1970s, Dr. Deming's philosophy was summarized by some of his Japanese proponents with the following 'a'-versus-'b' comparison:

(a)   When people and organizations focus primarily on quality, defined by the following ratio, quality tends to increase and costs fall over time

QUALITY = Results of Work Efforts/Total Cost

(b)   However, when people and organizations focus primarily on costs, costs tend to rise and quality declines over time.

http://en.wikipedia.org/wiki/W._Edwards_Deming

In the building industry this same formula holds.  By integrating quality control into the building process through commissioning we can improve the quality of designs and construction and prevent the mirage of change notices and rework that result from incomplete designs and turnover of systems that have never been completed or tested to verify performance.

For training or a workshop on HOW to integrate quality or lean into your projects 

Related Articles:  Retro-Commissioning  | Agent Cx | LeanCx

Contact  .... Murray Guy aka @Lean_tobe_Green

Online Training LEAN LAB

Commissioning Services:  Integrated Designs

NetZero Home Building: EcoSmart  

Retro-Cx: Mining for Gold

Based upon a 2009 study by Lawrence Berkley National Laboratories (LBNL), commissioning of buildings is the single best investment that North America can make to reduce emissions and cut operating costs.

Retro-Commissioning is a Win for the Planet & for the Pocket Book

If the entire stock of existing non-residential buildings in the U.S. were retro-commissioned, and the median savings from the study were achieved, as much as $30 billion of energy savings and 340 million tons of CO2 could be avoided annually. It is a win-win. 

There is a benefit for the planet, and it will keep the accountants, economists and chief financial officers smiling, as they will be realizing paybacks for a “tune-up” of an existing building of less than 2 years.keep the accountants, economists and chief financial officers smiling, as they will be realizing paybacks for a “tune-up” of an existing building of less than 2 years.

Presentation: Retro-Cx: Mining for Gold 

So what exactly is Retro-Cx? 

Retro-Cx is a systematic process to improve an existing building’s performance. Using a whole-building approach, Retro-Cx aims to reduce energy consumption by optimizing building systems control, air balancing, scheduling and sequences of operation to achieve a quality indoor environment while minimizing operating costs and emissions.

How to get started? 

Find a building performance agent that has the expertise to diagnose and recommend enhancements that can drastically improve performance without undertaking major surgery. The agent should be knowledgeable about HVAC, controls, commissioning and energy management. You would also like to have someone that is open to training your staff on how to sustain a healthy system.

What level of saving can I expect?

All buildings can benefit from the Retro-Cx process; the level of performance improvement will depend on how far your building is out of tune. The first step in determining the size of the goldmine is benchmarking your facility energy use in MJ/m2 or ekwh/m2 and comparing it to other building of similar vintage, occupancy type and climate zone. 

To assist building owners and operators with benchmarking, Integrated Designs Inc. (IDI) has developed an energy-benchmarking tool that converts natural gas and electrical energy use to MJ/m2 and provides energy use averages for the Prairie Provinces.


How do I mine the Gold?

Once the building has been benchmarked the next step is to do a building systems and performance investigation. This includes a survey of performance issues, checking schedules, sequences of operation, measuring and verifying where the energy is being used and incorporating all of the low cost building improvement strategies.

Why stop there?

There could also be energy saving opportunities that could drastically improve the profitability of the building asset that should be identified. A total life cycle cost analysis can be used to identify systems or equipment upgrade projects that would improve the quality of indoor environment, reduce maintenance and energy costs. Often the cost saving will fund a complete building renewal when systems that are near the end of their useful life.

Is there any funding available for Retro-commissioning?

Due to the low capital cost and short paybacks, retro-commissioning usually does not require financial incentives. However, some utility companies in North America have identified retro-commissioning as an excellent demand-side management strategy. For the Manitoba Hydro program, they will fund the investigation phase of the process in exchange for a commitment to pursue all practical energy management opportunities that provide less than a two-year payback.

What if I don’t have capital to fund projects?

If your organization is financially stable and able to lease building equipment, IDI has established a relationship with a leasing company that will provide the capital required at competitive rates as long as the energy savings will enable the lease to be paid off with-in a 6-year period.

Retro-Commissioning can be the strategy that addresses CO2 emmission Targets 

Governments, utility companies, and many financial officers have already discovered Retro-Cx as the best solution to achieve cost-effective, fast paybacks, while also doing something to address climate issues. Retro-commissioning is a huge financial opportunity that presents a win-win for both the economy and the environment. 

Feel free to show our  Retro-Cx: Mining for Gold presentation to help stake your claim to one of the best investments in the building industry.

If you need help Mining for Gold, contact us at Integrated Designs (306) 934-6818

If you want to determine the size of the Gold Mine  visit our website to download a copy of the benchmarking tool. 

Murray @Lean_tobe_Green

Lean Lab |  Integrated Designs | EcoSmart
mguy@i-designs.ca

References

[1] Lawrence BerkleyLaboratories Building Commissioning A Golden Opportunity For Reducing EnergyCosts and GHG

The Cx Agent will discover ... What is draining your PROFIT?

Performance INVESTIGATION Update

Is something draining your Profit?   

Did you know Retro-commissioning has a 50% ROI?

With the latest BUZZ about smart grid, intelligent buildings, virtual commissioning, living buildings, Net 0 and LEAN Project Delivery we decided it was time to investigate what is shaking in the building industry from a commissioning perspective. ............  Are the commissioning AGENTS, getting the job done?

When we last did a check on the building industry  we found building were still guzzling energy and operators were extremely stressed having to deal with buildings “full half dead zombie controls that arise in the night” Our mission is to separate the hype from reality and report on how real value is being created in the building industry. We wanted to discover from "the agents" how to progress to a new level of  building intelligence.  

What we have learned! 

Since the 90’s, commissioning has become more widely adopted because it is a mandatory process for LEED certification. Some Owners recognize the value of commissioning but most treat it as a commodity and select this service based upon low cost. How unfortunate!

Is there a Business Case for higher levels of Commissioning?

It is unfortunate that the industry does not recognize that Cx provides one of the best returns on investment. Based upon studies by Lawrence Berkley Laboratories the returns get better for the more intensive technical commissioning that takes time and effort.  If we take that to a whole new level and be real PROACTIVE with Lean Commissioning (LeanCx) we can get projects done 6 month early and realize a 500% return on investment.

Find out more about this from the Murray &  Gary's  LeanCx presentation in Boston title "Commissioning for Productivity, Performance & Profit" or arrange a Workshop for your Team 

Show me the Money!

This perception is changing, as there are more success stories like the University of Illinois that adopted commissioning as a strategy to fund budget gaps.  By implementing a comprehensive retro-commissioning program they were able to reduce energy costs by $350,000 to $500,000 per year for each of four facilities.  This investment yielded average paybacks for commissioning of 1.1 year or approximately a 100% ROI based upon energy savings alone.

Why do you need a Columbo?

Agents need to be confident enough to challenge the team to do their best work, persistent in ensuring project requirements are achieved and have an uncanny knack for convincing the team that they will be more successful working collaboratively to rid the project of half dead zombie controls.

Forensics will discover the truth!

A comprehensive testing program is key for discovering the truth about performance. Systems need to be tested to ensure the team has delivered the intended performance before they collect their final pay checks and head out the door.  

The Future of Commissioning 

For commissioning to become recognized for the VALUE it brings to a project, performance management needs to become everyone’s business. We need to expand the little black box they call Commissioning at the end of a schedule if we want to get done  4 to 6 months early.

Commissiong Agents are Unsung Heroes on a project?

A common theme emerged when investigating with Owners, Designers, Operators and Contractors the future of high performance buildings. They all verified that the Agent was invaluable in pulling the team together to achieve great things.   

For the owner it was technical expertise and the opportunity to reduce the risk and stress of non-performance that provided real value; 

For the operators it was the mentoring and the high involvement and the avoided stress associated with deficiencies; 

For the contractors, it was the communications and the improved coordination that helped them achieve Lean construction schedules; 

For the designer it was avoidance of the embarrassing change notices and non-performance issues.

With all this value being created it makes me wonder if the Agent is one those many unsung heroes on a project.    Just maybe together we need to change that as an industry!

Murray Guy @Lean_tobe_Green
mguy@i-designs.ca

LeanCx and Lean Project Delivery Online Training and Workshops

Lean Lab |  Integrated Designs | EcoSmart

References

[1] Lawrence BerkleyLaboratories Building Commissioning A Golden Opportunity For Reducing EnergyCosts and GHG

[2] Technicalverses Process Commissioning, Dave McFarlane ASHRAE journal June 2013

http://1.usa.gov/13kb5Bc

[3] Integrated Designs - Commissioning Guide for Lean Projects(LeanCx)

LeanCx | Commissioning for Performance, Productivity and Profit

Our Okanagan College project team introduced the concept of LeanCx as a proactive commissioning process that enables teams to get achieve performance objectives early. We call this "Getting to Done is Done."     

By eliminating the typical six months of commissioning that occurs after substantial completion that often stresses customers and eats up profit, we can demonstrate that taking a proactive lean approach can provide up to a 500% return on investment.

This requires expanding  the Little Black Box that we call commissioning and fully integrate performance management into the project from start to finish.
We offer a LeanCx Workshop on how to integrate commissioning into your project from start to finish.

The lean commissioning process (LeanCx) is outlined  in a guide “Commissioning for Lean Project Delivery.”   The system that takes quality, performance and workflow productivity to a whole new level.   The LeanCx process is currently being implemented on both the Okanagan College Trade Center in Kelowna and on the Mosaic Centre in Edmonton both, which are Living Building Challenge/Net Zero projects.   Lean Commissioning Guide

There is a business case for more proactive , hands on and higher levels of commissioning. The returns are drastically improved performance and higher profitability by getting to Done is Done.

What's in it for me?

Quality management was key in enabling Toyota to transform the automobile industry. Similarly commissioning has the potential to take quality, productivity and performance management to a whole new level for the building industry.

• Lean Projects can deliver high performance GREEN building at very little if any additional capital cost.
• Proper integration of the commissioning into a project will drastically improve workflow, productivity and profit.
• A proactive and collaborative approach to commissioning (LeanCx) is key to achieving quality management, team productivity and building performance.
• Hands on “Technical Commissioning” provides the best investment for achieving performance.
• Commissioning is a Project Managers best investment in mitigating the risk associated with non-performance.

Murray Guy aka @Lean_tobe_Green

LeanCx and Lean Project Delivery Online Training and Workshops

NetZero Projects: Learn Online LEAN LAB. Design Integrated Designs or Build EcoSmart