WHIRLPOOL CORPORATION

A CASE STUDY FOR INNOVATION IN FACILITIES MANAGEMENTStructureTec and Whirlpool have been working together for over 25 years. This case study outlines the history of the relationship and the improvements Whirlpool has made by implementing a proactive facilities management approach.

BRYAN BABELSVP/Director of Facilities

JLL/Whirlpool

WHIRLPOOL CORPORATION FOSTERS GROWTH THROUGH INNOVATION BRINGING REVENUES TO ALL TIME HIGHAs the global leader in manufacturing and marketing major home appliances, Whirlpool Corporation brands are known and trusted by consumers throughout the world. Whirlpool now employs over 100,000 people in more than 170 countries and generates over $21 billion annually.

From the beginning, innovation has been the main idea behind Whirlpool’s strategy for setting itself apart from the competition. This can easily be recognized in each year’s new and improved products and designs. Whether it’s a wifi-enabled washing machine, a “smart” thermostat, or a

5 door refrigerator, Whirlpool Corporation’s products are always on the cutting edge of technology, contributing to their overall goal of growth through innovation. However, Whirlpool knows that innovation in internal processes and operations are just as important as product innovation in helping a company reach its strategic business goals.

EMBRACING INNOVATION IN FACILITIES MANAGEMENTAfter having developed a relationship in a local chapter of the former American Institute of Plant Engineers (AIPE now AFE), StructureTec, who held the presidency of AIPE, was engaged by Whirlpool in 1992 to assist with a roof warranty dispute.

StructureTec performed a forensic roof inspection of several roof areas at Whirlpool’s global headquarters campus and was able to successfully negotiate their warranty settlements. During this process, StructureTec found that many of their existing roof systems had been run to expiration. Since Whirlpool’s in-house facilities management group left much of the decision-making up to their contractors, roofs were only being tended to on an as needed basis.

Shortly after the relationship developed, StructureTec created Whirlpool’s first long-range asset management program for their roofing assets through our Data Management System (DMS), placing an emphasis on proactive maintenance and capitalizing on deferred

THE START OF A 25 YEAR HISTORY

capital expenditures through roof restoration. As a result, a high percentage of roof assets were restored to gain additional service life and value in the early years. Many roofs were extended an additional 20 years for only 25% of the investment as compared to cost of replacement.

This innovative approach to facilities management has been essential to drastically improving facility conditions. In 1998, StructureTec expanded the DMS program into manufacturing plants at several locations across the United States, creating greater standardization allowing the highest standards for roofing practices and building envelope restoration to be implemented across the board.

EXPANDING OUR REACH

In 1986, Whirlpool acquired the KitchenAid brand in an effort to expand the company’s brand portfolio and meet a broader segment of consumer needs. Whirlpool relocated all of the KitchenAid Ohio staff to the newly renovated Jack D. Sparks Administrative Center in St. Joseph, Michigan. With this acquisition came dozens of manufacturing plants that were all in need of evaluation. Throughout the late 1990’s, StructureTec was able to provide a total inventory of many building envelope assets, including: roofs, walls, pavement and concrete structures. Between 1996 and 1997, StructureTec managed strategic repairs, masonry work, and roof replacements on many of Whirlpool’s buildings in St. Joseph and Benton Harbor, MI, including the Jack D. Sparks Administrative Center.

As StructureTec expanded their DMS program into various Whirlpool plants across the country, all assets needed to be evaluated, inventoried and rated. StructureScan infrared surveys were performed on each roof area to supplement the visual evaluations. The DMS team was able to create a long-range asset management plan based on the actual conditions of the roofs. Each roof area was given a Roof Condition Index (RCI) rating. StructureTec was able to provide proactive recommendations based on the priority level of each roof area, along with estimated budgets. This enabled Whirlpool to invest strategically in the roofs that required replacement or restoration rather than continued high-dollar maintenance spending. As part of the roof management program, StructureTec also helped acquire competitive quotes for these projects from qualified contractors, and implemented contract administration and construction review procedures during construction.

FINDLAY, OHIOWHIRLPOOL CORPORATION IN FINDLAY, OHIO IS A 1.03 MILLION SQUARE FOOT MANUFACTURING FACILITY WITH OVER 2,000 EMPLOYEES. IT IS ALSO THE LARGEST DISHWASHER MANUFACTURING PLANT IN THE WORLD.

1 PAVEMENT MANAGEMENT PROGRAMStructureTec conducted a thorough evaluation of all pavement areas at the Findlay location. It was found that 56% of all pavement areas were in poor condition. StructureTec created a pavement management program complete with prioritized maintenance and budget recommendations.

BUILDING ENVELOPE RESTORATIONStructureTec determined the building envelope required repair and developed a scope of work to restore the building envelope to it’s original integrity. The work included concrete, masonry, and steel restoration, as well as replacing all joint sealants. Utilizing a design-build delivery method, StructureTec’s Construction Services Group self performed the work and the StructureTec Restoration Division provided field quality control throughout the entire restoration process.

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5 EMERGENCY ROOFING PROGRAMStructureTec was engaged for emergency service to repair a roof system that was inadequately designed and failed in a significant hail storm. Inside of the facility was $400 million worth of product assets that were unprotected from the elements. StructureTec immediately identified the cause of failure and implemented emergency repairs to secure the building. StructureTec also managed a long-term solution through proper roof replacement.

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ENSURING LONG-TERM SUSTAINABILITY FOR THE NORTH AMERICAN PORTFOLIO

GALBESTOS CLADDING REMEDIATIONUpon surveying the exterior wall system, StructureTec found 150,000 square feet of deteriorating Galbestos metal cladding, a potentially hazardous asbestos containing material. Although the metal panels were exhibiting coating corrosion, they could be restored. A custom restoration program was developed, preventing a very costly asbestos abatement program.

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STRUCTURESCAN INFRARED TECHNOLOGYStructureScan is a nondestructive evaluation using thermal imagery, ground penetrating radar and ultrasonic testing. StructureScan surveys are used to depict substrata conditions not visible with the naked eye and can be performed on exterior walls that may be experiencing energy loss.

ROOF MANAGEMENT PROGRAMA detailed assessment was conducted of all roof systems servicing the plant and a prioritized 5 year asset management program for roof replacement and maintenance was developed.

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PROJECT HIGHLIGHTS

BENTON HARBOR, MICHIGAN NEW ADMINISTRATION CENTERWhirlpool contracted with StructureTec to peer review and enhance the weatherproofing details of a new construction project. StructureTec also performed extensive Field Quality Assurance to ensure a sustainable solution.

CLYDE, OHIO ASSET MANAGEMENT PROGRAMSStructureTec evaluated all Whirlpool sites in Clyde and developed a roof and pavement management program based on the conditions for each area, along with prioritized recommendations and estimated budgets to address the conditions.

PERRIS, CALIFORNIA COPING INSTALLATION & FABRICATIONStructureTec, along with Construction Services Group & Building Products Group, both StructureTec subsidiaries, was able to prepare the existing roof for solar array installation. Scope included fabricating and installing new metal coping on a 1.7 million square foot roof.

CLEVELAND, TENNESSEE NEW ROOF INSTALLATIONIn order to ensure the successful completion of a nearly 1.5 million square foot roofing project, Whirlpool utilized StructureTec’s Field Quality Control program. StructureTec inspected the work being done daily through completion.

GREENVILLE, OHIO NEW CONSTRUCTIONStructureTec provided consulting and engineering services for a new addition to the Greenville manufacturing plant. StructureTec also had a representative on site every day performing Field Quality Control, ensuring a high quality new roof.

COLUMBUS, OHIO PAVING PROGRAMStructureTec provided consulting and engineering services to determine the causes of pavement failure.

FEATURED PROJECTS

ADDITIONAL PROJECT SITES. INCLUDES PLANT & SUPPLY CHAIN DISTRIBUTION CENTERS

STRATEGICMANAGEMENTIN 2005, STRUCTURETEC EVALUATED 957,307 SQUARE FEET OF ROOF ACROSS MULTIPLE BUILDINGS THROUGHOUT WHIRLPOOL’S GLOBAL HEADQUARTERS CAMPUS AND DEVELOPED A LONG-RANGE ASSET MANAGEMENT PLAN, PRIORITIZING EACH ROOF AREA BASED ON THE ROOF CONDITION INDEX (RCI).Between 2005 and 2015, preventative maintenance and strategic repairs were conducted on numerous roof areas based on priority level and the amount of funding available. Several roof areas were restored, while other areas were completely replaced. In 2015, StructureTec re-evaluated these roofs and observed the following impact to the RCI.

STRUCTURETEC HAS MANAGED OVER 16.5 MILLION SQUARE FEET OF WHIRLPOOL ASSETS ACROSS NORTH AMERICA.

Superficial blemishes and aging symptoms on BUR or Single-ply Membranes. No Major distress. Maintenance requirement minimal.

EXCELLENT (100)

VERY GOOD (85)No significant distress conditions are apparent. Routine maintenance is required to maintain condition level and watertight integrity.

GOOD (70)Exhibiting some minor distress requiring routine repairs and/or immediate preventative maintenance.

FAIR (50)Exhibiting considerable minor or some major distress requiring immediate repair to maintain watertight integrity. Remediation is necessary within 5 years.

POOR (30)Exhibiting larges areas of major distress. Routine repairs will not extend serviceability. Frequent repairs required to prevent or correct leaks. Remediation is necessary within 2-3 years.

VERY POOR (15)Exhibits major distress throughout. Acceptable serviceability cannot be restored through repairs and/or maintenance related action. Complete remediation necessary within 1 year.

Significant improvements were made to the average RCI of the facilities portfolio

2005

Excellent Very Good Good Fair Poor Very Poor

2005

Excellent

Very Good

Good

Fair

Poor

Very Poor

2005

Excellent

Very Good

Good

Fair

Poor

Very Poor

27%

VERYGOOD

34%GOOD

28%

10%2015 1%EXCELLENT

20052005

Excellent Very Good Good Fair Poor Very Poor

2005

Excellent

Very Good

Good

Fair

Poor

Very Poor

2005

Excellent

Very Good

Good

Fair

Poor

Very Poor

44%

32%6%

FAIR

13%POOR

5%VERY POOR

www.structuretec.com • 800.745.7832

“The extent of information provided in the Long-Range Asset Management Plan that you give us each year allows us to show the value of what we are doing. In your system, I can analyze it by type of roof, by building, by age, by Roof Condition Index; the amount of information you give us makes it a lot easier for us to fight for those capital dollars and prioritize accordingly. With what you give us in terms of the estimated pricing, the high low ranges, the prioritization along with the RCI, it makes it easy for us to do our job.”

THEIMPACT

StructureTec’s innovative approach to facilities management supported Whirlpool’s economic model by creating sustainability for their facilities and maximizing return on investment. A Long-Range Asset Management Plan based on actual conditions allowed for proper allocation of funds and eliminated high-dollar maintenance spending. By utilizing StructureTec’s National Accounts Program, Whirlpool was able to standardize solutions at all locations. Whirlpool relied on StructureTec’s experts to provide management and oversight throughout construction ensuring project quality and execution parameters were met and projects were successfully completed on time. Through StructureTec’s quality assurance program, Whirlpool was able to continuously receive a superior product at a very nominal cost.

HERE’S WHAT THEY’RE SAYING ABOUT US:

-BRYAN, SVP/DIRECTOR OF FACILITIES“It takes so much stress off of me, knowing that one of your experts is constantly there managing the project. The quality assurance program provides great value. I think that is the real advantage.”

-STEVE, PROJECT MANAGER

StructureTec and Whirlpool teams collaborate on program success.

Perris, CA - 32,700 panels were installed on the roof, producing 10 megawatts of power.

Cleveland, TN - StructureTec provided specs & FQC for 1.5 million square foot new roof construction.

$81.3M IN IMPACTOVER $81.3 MILLION IN VALUE WAS REALIZED THROUGH DEFERRED CAPITAL AND PROACTIVE FACILITIES MANAGEMENT

Perris, CA - StructureTec prepared the 1.7 million square feet roof for solar panel installation.