July 2016 |
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New Measured Variables: Health, Well-being, And Productivity
Creating value in the $300 part of the “3-30-300” rule |
Ken Sinclair, |
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Our
industry has always been about controlling measured variables, but in
the past these have been the likes of temperature, pressure, flow, and
other physical things. The Internet of Things or IoT is now connecting
us to new measured variables in our buildings, "the occupants," via
cell phone apps and social media feedback, while displaying all our
interactions and visualizations in the very accessible cloud.
There is a “3-30-300” rule of thumb that organizations typically spend
approximately $3 per square foot per year for utilities, $30 for rent,
and $300 for payroll. While these figures are just archetypes, they are
useful in providing an order of magnitude between the three areas of
expenditure. According to the 3-30-300 model, the greatest financial
gain from greening a workplace is not energy savings but improvements
in productivity.
Last month I talked about the focus of CABA and LightFair on creating
savings in the $300 part of the rule rather than the $3 part. This
seems to lead us logically to this month's featured event which I am
attending, The Smart, Connected, High Performance Intelligent Buildings Conference or "IBcon," part of RealComm.
I hope this IBcon event will help us all to better understand how to play and interact with our newest measured variables.
Jim Young's comments: “There is no doubt that artificial intelligence
will someday make its way into our industry. There is no doubt that AI
will radically change how we design, build, lease, operate, transact,
and use real estate. The only questions are when, and who, will be the
first to take the lead.
“We are going to address this topic head-on in our Realcomm | IBcon
2016 General Session with a keynote by Cade Metz, a senior reporter for
WIRED, who will focus on Silicon Valley and all the emerging
technologies including AI. Cade will lend his insight on these
transformational new innovations and how they might someday change the
way we think about how we design, build, lease, operate, transact and
use buildings."
We use the term “machine learning” from this article, “Machine Learning in HVAC Controls.” HVAC
systems are often non-linear, poorly behaved, noisy, and very
unpredictable under real-world circumstances — Mike Donlon, director,
research & development, Computrols
This article talks to and describes the new class of algorithms that
have become staples of modern programming. These algorithms use large
amounts of real world data to “train” generalized computer programs to
perform tasks more analogous to human problem solving.
We are amazed by the quantity and quality of the articles/interviews
speaking to our topic this month, plus the valuable resources linked
within each. I have gathered some industry comments on this in my
review, “Documenting Productivity and Well-being” — Health, well-being, and productivity and the 3-30-300 rule, theme that is a good fit with IBcon, San Jose
Our June editors have upstaged me and made me aware of several resources I had never heard of.
Articles like:
• “The Trillion Dollar Opportunity in Transforming Existing Buildings.” — If
you had $3-5 million to invest into a 50,000 sq. ft. office building
could you significantly reduce energy consumption, improve space
utilization, and increase worker productivity? — Brad White, P.Eng,
MASc Principal, SES Consulting Inc.
“I certainly believe this is possible and I hope to use the rest of
this article to convince you that the opportunity is real and
achievable today, or at least that it’s not entirely hogwash. The path
to these outcomes is certainly not straightforward and requires pulling
together many different components like deploying IOT and other smart
building technologies, lighting upgrades, space planning, renewable
energy, training and occupant engagement while also overcoming
significant institutional obstacles.”
• “Applying All the Laws of 3 to See the Future of Smart Buildings.” Edge
control will shift BAS-industry focus toward people and productivity —
Alper Uzmezler, BASSG & Therese Sullivan, BuildingContext
"If you understand the 3-30-300 Rule, plus Murphy’s Law, Moore’s Law
and Metcalfe’s Law, you can make this prediction about the future of
smart buildings: A lot of the processing workload involved in
automating control over building infrastructure will be moving to edge
devices, rather than to a remote cloud, and people will be more
comfortable and productive in building spaces as a result."
• “Why Care About Workplace Productivity?” Delivering
even a 1 percent increase in employee productivity dwarfs any cost
cutting measure and creates a sustained value for our customers — Erica
Eaton, director, business development, Comfy
[an error occurred while processing this directive]“Eaton:
As an industry we’ve historically focused on the benefits we can
deliver in helping our customers cut costs. More efficient light
bulbs, variable speed drives, and many other efficiency measures have
us constantly debating ROI and payback with our customers. But
this scenario is subject to the law of diminishing returns — there’s
only so much juice that can be squeezed from energy and
operational budgets.
“By focusing on the highest cost within a building — the people — we
can drastically change the conversation with our customers and tap into
new avenues of added value. Delivering even a 1 percent increase in
employee productivity dwarfs any cost cutting measure and creates a
sustained value for our customers.”
These articles are all full of links to resources to allow you create
and document value in the people-productivity part of the $300 per
square foot equation.
Extracted from the presentations from the CABA event in San Diego are a summary and slides from the session titled "We Can Prove It!" The session was in the intelligent buildings track: high performance buildings improve employee productivity.
I have provided a quick photo essay overview of what I saw and heard from that and other great sessions.
I would like to thank the over 120 folks who took time on LinkedIn to
wish us the best on our 17th year anniversary of
AutomatedBuildings.com, our retirement project that goes on and on. But
seriously we are still having fun bringing you the news and being an
industry resource. My editorial in the year 2000 talked of our first year of rapid change and provides insight to the why of AutomatedBuildings.com and the over 170 issues that followed.
After being in the large building automation industry for five decades,
"change" has become the norm and reporting and adapting to it has
become a way of life. We need not to be paralyzed by what we do not
know but empowered by our deep understanding of the subject of
buildings, their systems, and their occupants and use this knowledge to
guide the rapid change upon us. The new practitioners will guide us and
lead us to new ways but we all need to be involved to successfully make
this transition to this exciting world that is evolving in the cloud,
on the edge, and in the fog between.
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