Home        About       News       Library       Contact
1

Correlation

The relationship between two sets of data, which is often represented as a scatter plot on a matrix, for the purpose of extracting insight and evaluation of key performance indicators (KPIs).

In asset management, the most common variables of correlation (either for facilities and/or assets) are as follows
  • Age
  • Condition
  • Energy efficiency
  • Obsolescence
  • Mission criticality
  • Operating budget
  • Capital reinvestment

Variables
The variables of analysis are correlated in a variety of ways, including:

  • Age vs. condition (this is the most common correlation)
  • Age vs. obsolescence (pertinent to non-residential sector)
  • Age vs. energy efficiency
  • Age vs. reinvestment funding
  • Condition vs. mission criticality
  • Condition vs. energy efficiency
  • Condition vs. maintenance budget
  • Energy efficiency vs. mission criticality


Analytics
Listed below are some common examples of matrix correlations in the field of building asset management:


Funding Correlations
Listed below are examples of four funding correlations:
Scatter plot of facilities mapped to the three tiered Mission Dependency Index (MDI).
Fig. Scatter plot of facilities mapped to the three tiered Mission Dependency Index (MDI) revealing the correlation between condition and priority.


\
Multivariate matrix revealing the correlations between condition, energy efficiency and capex.
Fig. Multivariate matrix revealing the correlations between condition, energy and capital cost (capex).


A condition-age matrix with a trend line revealing a straight line correlation to year 40 and then a strong move towards reinvestment
Fig. A condition-age matrix with a trend line revealing a straight line correlation to year 40 and then a strong move towards reinvestment.


Correlation of the Facility Condition Index (FCI) and the Extended Facility Condition Index (EFCI) to establish levels of risk and to make reinvestment decisions
Fig. Correlation of the Facility Condition Index (FCI) and the Extended Facility Condition Index (EFCI) to establish levels of risk and to make reinvestment decisions.

See also:



(c) Copyright Asset Insights, 2000-2013. All Rights Reserved -  "Insight, foresight and oversight of assets". Google