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Successful Space Management – Algonquin’s Experience /
Experiments!
Concurrent Session Presentation atSCUP North Central Annual Conference
Kansas City, MissouriOctober 2006
Presenter: Phil Rouble, Facilities Planning [email protected]
Ottawa Ontario Canada
Algonquin College Growth1990 to 2005
Audit Eligible Activity vs GSF of Academic Facilities
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
1990
-91
1991
-92
1992
-93
1993
-94
1994
-95
1995
-96
1996
-97
1997
-98
1998
-99
1999
-00
2000
-01
2001
-02
2002
-03
2003
-04
2004
-05
2005
-06
Total College GSF% Change from 1990-91
Fall Nov. 1 Audited Enrollments% Change from 1990-91
Net 76% Growth in Audited Enrollments
Net 10% Reduction in GSF
Residence facilities excluded in analysis
1990 – 199 GSF/Student2005 – 101 GSF/Student
7034 Students 12400 Students
1.4 M GSF 1.26 M GSF
But How Far Can You Go?
Facilities managers and planners need to develop advanced exploration techniques
to discover untapped capacity reserves
Is there a limit to space optimization?
The College saw facilities and
capacity as mission critical
Just when you think the mine has run dry, things get shaken up and new reserves
begin to emerge!
Lack of capital funding led to resistance to
fund renovations and new construction
Algonquin hit the wall in terms of
conventional targets for space optimization
Crisis: Fall 2005
Algonquin began to question its growth
strategy given funding uncertainties
Space mining:The process of extracting capacity from an existing
portfolio of space
Space mining techniques can dig deep into hidden capacity
reserves
An “Algonquinism”
A case for space mining
Growth and capacity
A corporate space
management model
A space mining toolkit
Simplified Case Study:What If Algonquin Used a “Build to Grow”
Approach from 1990 to 2005?Assumption: Say Algonquin had decided to maintain the same 199 GSF per student from 1990 to 2005 (But we didn’t!)
Capital We Didn’t Spend on Building: $242 Million
Capital We Didn’t Spend on Building Maintenance:
$18 Million
Capital We Didn’t Spend on Building Renewal and Modernization:
$9 Million
Capital We Didn’t Spend on Furniture and Equipment:
$151 Million
Operating Dollars We Didn’t Spend: $64 Million
Total Dollars We Didn’t Spend: $484 Million!
Algonquin College - Actual Growth Change % Change
Analysis Period (Years) 1990 2005 15Audited Enrollment 7034 12400 5366 76%Total Facilities GSF (Gross Square Feet) 1400000 1257000 -143000 -10%GSF / Student 199 101 -98 -49%
Case Study: Build to Grow ApproachAudited Enrollment 7034 12400 5366 76%Total GSF 1400000 2467600 1210600 76%Constant GSF/Student 199 199 0 0%
Capital CostsAnnualized
SavingsEst. Savings for
Period
Capital Cost - New Building Construction $16,141,333.33 $242,120,000Unit Cost / GSF $200
Capital Cost - Facilities Maintenance $2,421,200 $18,159,000(1.5% to 2.5% of Replacement Cost Recommended Annually) 1.0%
Capital Cost - Renewal and Modernization $1,210,600 $9,079,500(0.5% to 1.5% of Replacement Cost Recommended Annually) 0.5%
Capital Cost - Furniture and Equipment $4,035,333 $60,530,000% of Building Cost 25%
Capital Cost - Furniture and Equipment Replacement $6,053,000 $90,795,000Assumed Replacement Cycle 10 years
Estimated Total Capital $29,861,467 $420,683,500
Operating Cost per year $8,474,200 $63,556,500Unit Cost / GSF $7
Total Funds for Period $484,240,000
Simplified Case Study:Do Try This At Home!
Candidate for Target
Setting?
Sustainable Development:The Campus We Never Built!
From 1990 to 2005 Algonquin avoided building 1.2 million GSF
Algonquin College has approximately 1.26 million GSF of academic facilities (excluding residences)
Renewal and ModernizationCase Study 1
I don’t want to be put into a dirty old space!
Before:Former Outdated Welding Shop
After: Adaptive Reuse Health Sciences Simulation Centre
Renewal and ModernizationCase Study 2
You just want to squeeze me into a smaller space!
Before:6000 sf Antiquated Electrical Labs
After: Renewal / Consolidation4000 sf Modernized Electrical Labs
Growth
WHERE can we grow?
How MUCH can we grow?
Capacity
Growth
Capacity
HOW should we grow?
27
Profiling Growth Patterns
• Strategic Growth Areas– Significant new activity opportunities that may yield new growth
potential for College• High Growth Areas
– Significant new activity requiring additional resource allocations and investments
• Smart Growth Areas– Program areas with capacity to grow with low cost / no cost and
sufficient demand to fill to capacity• Declining Activity Areas
– Program areas with significant excess capacity due to reduction in activity levels due to declining demand
• Areas No Longer in Demand– These areas need to be identified as early as possible and support
provided for decision making related to effective exit strategies when appropriate
Two Sources of Capacity
Bricks and mortar campus facilitiesThe traditional campus
Virtual campus infrastructureOnline learning, distance education, hybrid courses
New Construction Existing Facilities
This Vessel Called Space
Space is a container
It is “full” at some point below the brim
Try to fill every space
Target Utilization
This Vessel Called Space
It is not a good thing to overfill!
Timetable quality and client satisfaction may suffer
Caution!
This Vessel Called Space
The question:Is it half full or half empty?
Low Utilization
(Hide it!)
Capacity to grow
(Seek it!)
This Vessel Called Space
Conventional space optimization focus
A paradigm shift – focus on capacity channels
Capacity Channels in a “Bricks and Mortar” Campus
Available Hours
Number of Seats or Stations
Station Size (sf / station)
37
Available Hours Capacity ChannelWoodroffe Campus
Fall Winter Spring / Summer
16 weeks 16 weeks 16 weeks
Daytime• Very little capacity for
growth beyond modest Core growth
• This is THE defining / limiting time period for growth
Evening• Some capacity for growth• Mostly Friday evenings in general
space• Significant capacity in dedicated
specialized facilities
Weekends• Significant capacity for
growth
Daytime and Evenings During Spring Term
• Significant capacity for growth
SunSatFriThuWedTueMon
Daytime50 hrs / week8am – 6pm
Evening20 hrs / week6pm – 10pm
Weekend20 hrs / week8am – 6pm
38
Extending the Available Hours Capacity Channel
Fall Winter Spring / Summer
16 weeks 16 weeks 16 weeks
Weekends• Encourage development of
weekend deliveries where possible and / or dedicated space resources are scarce
Spring Term• Develop plans to increase
activity levels
SunSatFriThuWedTueMon
Daytime50 hrs / week8am – 6pm
Sunday10 hrs / week8am – 6pm
Standard Academic Week76 hrs / week
M – Th 8am – 10pmF 8am – 6pmS 8am – 6pm
Standard Academic Week
• Extend scheduling M-Th to 10pm for ALL College activity
• Implement variety of split week / split day scheduling models
• Balance with continuing education / part-time studies needs
Risks• Impact on services• Impact on student
employment• Potential impact on student
timetable quality• Retention impacts• Reputation and KPI
implications• SWF impacts• Impacts on STPS enrollment
and contribution
Unsupervised Scheduled Activity• Unsupervised scheduled activity will be limited
• Will need to manage student expectations to access labs to 10pm and on weekends to complete project work
Measuring Available Capacity in a “Bricks and Mortar” Campus
Room Utilization Rates (%)
Station Occupancy Rates (%)
Average Station Size (sf / station)
Targets
Based on 50 hrs/weekM-F 8:00am to 6:00pm
Room Utilization Rates Capacity Reserves
Room Utilization Rates
Classrooms 85%
Computer Labs 80%
Other Labs 70%
Set targets(Best Guess)
Refine targets
Adjusting the denominator opens new capacity
reserves
Optimizing Other Capacity Channels
Station Occupancy Rates
Currently no specific targets - current monitoring suggests reasonable results being achieved
The scheduling team is accountable to match section size to room capacity in open / common spaces
Dedicated or specialized labs are sized to maximum section sizes
Average Station SizeOpportunity for improvement in this area through standards / benchmarks
Space costing motivates reduction in lab sizes
May be time to explore this capacity reserve
Space Management –Three Conditions for Success
Untapped capacity reserves
Motivation to access capacity
Value to clients
Motivation to Access CapacityCatalysts for Change
(Bottom-up will to change)
• A champion–A trusted authority advocates change
• Changing beliefs or trends–Trust in resource allocation–Emphasis on sustainability–Year round school
• Crisis–Lack of funds–Threat of closure
Drivers for Change(Top-down push to change)
• Targets–Something to measure and aim for
• Space cost allocation–Measuring space costs supports management of space
• Directives from outside–Funding agency
• Directives from inside–“This is what is going to happen”
MUST begin with the catalysts to build support and buy in. Need to backup with drivers to gain and keep momentum.
Value to Clients
StudentCentric
Admin Faculty
FacilitiesServices
FacultyCentric
Admin Student
FacilitiesServices
Value depends on numerous factors but is significantly influenced by the institutional focus.
What are the target clients willing to accept?
Space Management –Impediments to Success
Institutional culture
Resistance to change
Cultural Myth No. 1:But wait a minute, space is free!
Isn’t it?False
The problem is that the cost of space is hidden in capital infusions, endowments and operating
overhead
Solution: Measure the cost of space, separate it
from overhead and manage it
Cultural Myth No. 2:Paying for space is not my
problem! Is it?
FalseEvery dollar wasted in empty space is
less money available for learning and research
Solution: Allocate the cost of space to the cost centre managing the space
Cultural Myth No. 3:But my space is busy!
Probably FalseThe real utilization of space is often a
cloudy picture. A better question: Is there capacity
for growth available?
Solution:Centrally collect and publish accurate utilization statistics
Cultural Myth No. 4:Space is mission critical to my
success. I must protect it.
True and FalseTrue – Space is an enabling resource
False – It is wrong to “protect it”
Solution:Allocate space to support success
Reallocate space to where it is needed
Cultural Myth No. 5:But it’s my space!
FalseSpace is an institutional resource
Solution:Manage space as a corporate
resource Change from a culture of
ownership to one of stewardship
Space Management –Three Beginning Strategies for
Success
Corporate Management of Space
Set Target Utilizations
A Space Costing Model That Works
Our Space Mantra
Space at Algonquin is a College resource
College resources are strategically allocated to ensure the success of all College initiatives within a context of fiscal responsibility
Space is not owned but is strategically allocated by the College Space and Infrastructure Committee
The Space Management Model
Accountabilities for Facility
Optimization
Facilities are a Corporate Resource
Steering Body Advocacy
Stewardship No Ownership
College Space Inventory
Utilization Reporting
Utilization Targets
Demand Analysis
Supply / Demand
Tracking Progress
Optimization Measures
All Facilities
Space Priorities
(Multiyear)
Resource Allocation
College Space Management Committee
Oversees the allocation and quality of facility resources
Contribution
Space Costing and Cost Allocation
Direct Costs
ContributionDirect Costs
Revenues
30%(Overhead + Space)
70%
25%(Overhead)
75%(Includes Space Costs – More control with consumers of space)
Traditional model
Algonquin space costing model
Space costing is applied during program assessment through cost allocation
PROGRAM RENEWAL/NEW
PROGRAM OFFERING
REMEDIATION PLAN IMPLEMENTATION
PROGRAM REVIEW
PERFORMANCE & QUALITY MEASURES
PROGRAM COSTING
ACADEMIC AREA PROGRAM ASSESSMENT/PERFORMANCE/RENEWAL
PROGRAM SUSPENSIO
N
From: Area 5 Program Assessment Summary – June 2004
Space Costing:Does It Work? Very Well!
• Academic Schools have been provided with a tool to more accurately map costs to revenue generation
• Program subsidization has been significantly reduced and is now quantifiable
• Academic areas are provided with additional options to reduce costs and better position programs for sustainability
• Space dividend:– Space is optimized to reduce costs of program– Phenomenon of the shedding of space
• Movement towards open (shared) rather than dedicated space• Redeployment of shed space from programs faced with suspension
Space costing has been an instrumental driver in ensuring that Algonquin College did not overbuild
Evolving Processes
Mature Processes
An Evolving Space Mining Analogy
Revised: October 2006
Emerging Directions
Active Stage
Uti
lizat
ion
Rep
ort
ing
Uti
lizat
ion
Zo
ne
An
alys
is
Res
ou
rce
Bal
anci
ng
Dem
and
An
alys
is
Sh
ed o
r S
har
e P
hen
om
eno
n
Exploratory Stage
Pro
spec
tin
g f
or
Cap
acit
y
Sam
plin
g o
r A
ud
itin
g
Eva
luat
ion
of
Cap
acit
y C
han
nel
Val
uat
ion
of
Cap
acit
y R
eser
ve (
Ris
ks…
)
Developmental Stage
Co
nve
nti
on
al v
s S
elec
tive
Ap
pro
ach
Infr
astr
uct
ure
D
evel
op
men
t
Dat
a M
inin
g
Tec
hn
iqu
es a
nd
To
ols
Tra
nsi
tio
n P
lan
nin
g
Cu
ltu
re C
han
ge
Ran
k o
r C
lass
ific
atio
n
of
Cap
acit
y R
eser
ves
Exploratory Measures:Prospecting for Capacity
Hearsay
Space Leads
Walkabouts
Hunches
Rumours and
InnuendoObservations
An early stage exploratory process
that should constantly be
revisited
Audits
Prospecting is a discovery process that can help to identify to new capacity reserves
Exploratory Measures:Prospect ChartingGold Nuggets
Fool’s Gold
Polished Gems
Rough Stones
EffortEasy Hard
Pay
off
Low
Hig
h
Academic Space
Inventory
Optimization of
Specialized Labs
Optimization of General
Classrooms
Faculty OfficesDemand Analysis
Utilization Reporting
Senior Administration Offices
Change Locks on Vacant Space
After Hours Office
Walkabouts
Reclaim Poor Quality Space
Renew Shed Space
Optimization of General
Computer Labs
Lab Activity Audits
Optimization of Service and Admin Space
Developmental Measures:Drilling for Space Through Data Analysis
Data analysis can be one of the simplest, fastest and most cost effective ways to
begin optimizing space
Pivot tables in Microsoft Excel can yield stunning results fast
If you have never seen pivot tables in action – you need to!
Developmental Measures:Start with Higher Grade Reserves of Space
with Bigger Yields
General Classrooms General Computer Labs
Excess capacity in oversized specialized labs in problem areas
Drill down to more difficult yields in specialized labs
Bonus in reducing inventory of unused computers
“Just because we (Academics) ask for space, it doesn’t mean
we should be given it”Nick Papadolias, Former Chair of CSMC
And Executive Director of Academic Services
As stewards of the space resources, facility managers and planners have a
responsibility to match supply and demand for space and not to oversupply space
Active Measures:Demand Analysis – A More Fluid Approach to Refine an Inventory of General Spaces
• Process implemented prior to the start of scheduling for each term using actual timetabling information
• Use pivot tables and utilization targets to determine demand for general types of space– General classrooms– General computer labs– General drafting labs
• Match room size mix to activity section size clusters• Only supply the number of spaces needed to meet
utilization targets– Balance of rooms held in reserve:
• Demand activated to address unanticipated demand or timetable quality issues
• Not to be scheduled space redeployed for other institutional priorities– Project swing space, special events, contract activity…
Active Measures:Shed or Share Phenomenon
• Driven by the Space Costing Model• Schools and departments approach CSIC and
Physical Resources asking for help to shed space or share space– Sometimes requires reconfiguration of shop or lab
space– Renewal of programs– Renewed energy and synergies in program teams– Increased enrollments in programs
Active Measures:Assessing Specialized Space Needs
1. Profile a program area’s growth pattern
2. Complete a utilization zone analysis of the program area’s existing and projected dedicated / specialized space needs
3. Look at rebalancing resources to match the growth pattern and ensure sustainable success
Drill down to more difficult yields in specialized labs
Active Measures:Utilization Zone Analysis – A New Spin on
Utilization Reporting1. Complete a utilization report and validate its accuracy2. Group rooms into Green, Yellow and Red Zones based
on utilization– Green Zone - Supervised Hours Utilization meets or exceeds
the Target Utilization– Yellow Zone - Supervised Hours Utilization meets or exceeds
50% of the Target Utilization– Red Zone - Supervised Hours Utilization is less than 50% of the
Target Utilization
3. Ask Schools to review the zone analysis and to develop plans towards achieving green zone status in their specialized dedicated spaces
4. Schedule meetings with program teams to look at rebalancing plans
Active Measures:Resource Balancing
Activity Resources
Sustainable SuccessBest Value for Institution
Resource balancing shifts reserves of resources to where they are needed now
Active Measures: Resource BalancingAreas of Smart Growth / Declining Activity
Activity
Resources
Not Sustainable
Rebalancing Required
Increase Activity
Smart Growth
Potential
Redeploy Resources
Declining Activity
•Renew / Consolidate $$•“Shed” space
Active Measures: Resource BalancingAreas of High Growth
Activity
Resources
Not Sustainable
Rebalancing Required
Increase Resources
•Build new $$$•Renew / Repurpose existing $
Reputation and retention risks
Active Measures: Resource BalancingAreas of Strategic Growth
Activity Resources
Sustainable Success
Dynamic Rebalancing Required
Potential for significant growth and innovation
May need to stockpile reserves for pending growth
•Build new $$$•Renew / Repurpose existing $
Dedicated Resource
Needs
Active Measures: Resource BalancingFocus Group Sessions
ChairAcademic
Dean
ChairSpace
Management
DirectorAcademicResources
DirectorPhysical
Resources
FacilitiesPlanner
ChairAcademic Chair
Academic
Crisis: Fall 2005
We felt we were scraping the bottom of the barrel in solving our evolving space needs
Was there a limit to space optimization?
Fall 2006 – Made It!
Space problems were solved – but for how long?
New drivers lead to new explorations which lead to new capacity reserves
Fall 2007 and Beyond
Is there a limit to space optimization?
The answer may lie in more questions:
2. Do these reserves add value to the institution?
3. Is there motivation to extract the capacity?
1. Can you identify more capacity reserves?
Where Do We Go From Here?
• Explore the space mining analogy further– Still more parallels triggering new directions
• Work the capacity channels paradigm– Expand beyond conventional space mining explorations
• Create linchpins for further optimization through strategic new construction and adaptive reuse of vacated facilities
• Research sustainable development– Transfer urban planning concepts to campus planning –
densification– Relief from the pressures of campus densification
• Pursue integrated planning processes– Link enrollment planning with capacity management– Move to multiyear planning– Capture capital planning in business plans and look at pay back
periods to support decision making