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or "should/expected" costs. This practice has been an industry norm in the reliability engineering function supporting manufac- turing and utility industries for decades. Facility cost modeling tools use data sources like equipment manufactur- ers, equipment subject matter experts, Department of Energy, Bureau of Labor Statistics and even the National Oceanic and Atmospheric Administration data to develop a baseline of expected costs to operate and maintain various assets in a building. This provides a baseline designed around the real total cost of ownership. It is not infl uenced by budget constraints or cost-cutting measures. It is a cost pro- fi le geared toward what asset care and operational needs the asset has to optimize the lifecycle return on that investment. In addition, how and where to oper- ate a piece of equipment can greatly af ect maintenance. Facility cost modeling assists in understanding this to enhance bench- marking analysis activities. For example, one organization located on the West Coast was wondering why the costs on 1 ton fan coil units varied so widely in their operation. After analyzing units of similar age from the same manufacturer, it was discovered the location was impacting the data and thus skewing the benchmark. Another example is a comparison between Dallas, Texas and Seattle, Washington. Dallas' labor and mate- rial rates were lower than Seattle's, which impacted the annual maintenance and repair costs. However, Seattle's cooler climate required fewer cool- ing days annually and thus the units are expected to last 16 years longer than in Dallas. It is apparent that the various factors taken into account by facility cost modeling tools can cre- ate a more granular picture. A Tale of Four Hospitals In an evaluation of four hospital systems, maintenance and repair expenditures averaged $5.14 per square foot. The ques- tion is: what should they have spent? A facility cost model developed for the hospitals showed the "should/ex- pected" cost to be $3.89 per square foot. When compared to the facility cost model software, the hospital systems were spending $1.25 more than they should carstens.com NETWORKED MEDICATION CABINETS DESIGNED TO FIT YOUR PLANS Track activity in real time—per cabinet and user, with ongoing history & audit reports Reduce medication errors and HIPAA violations Build seamlessly into the wall or securely mount in halls or rooms based on your needs Integrate existing credentials with one swipe card Call (800) 782-1524 to schedule a demonstration, today. Set staff permissions and monitor activity from one central network Proudly made in the USA. WITH Facility Cost Modeling Comparison for Equipment Maintenance MCDM AG.COM | M AY/ J U N E 2015 | Medical Construction & Design 51 Location Annual Maintenance and Repair Costs Life Expectancy of Fan Coil Unit Seattle, Washington $394 46 years Dallas, Texas $271 30 Years