Capture the Spending Champion/Define Presentation Phase

Project Alternatives Probability of Success Customer Satisfaction Time to Completion Impact on Budget = #1 - Increase completed work orders while reducing staff in 12 weeks #2 - Capture all spending on work order system in 12 weeks #3 - Confine Customer moderate and low survey results to.03% in 12 weeks

Business Case – Capture All Spending on Work Order System in 12 Weeks The Facilities Department is about 12% over budget and needs to improve for next year. Controlling waste in materials ordering has been an issue for a few years and the current budget crisis is a good time to apply the technique of reducing waste to near zero. The team assigned to investigate and reduce the waste will be able to make their contributions alongside their daily task because they already handle the tasks that are associated with the Facilities department materials budget. The flow of spare parts and replacement equipment into institutional and commercial facilities is constant. But in too many cases, maintenance and engineering departments manage these materials inefficiently. The result is wasted money and time (from facilitiesnet.com contributor Andrew Gager Nov 2010). Captures-Critical-Data Captures-Critical-Data12096

Problem Statement The facilities work order system is great at capturing work requests and processing them into informative work orders and tracking the work order data for regulatory purposes, but the materials management system has never been fully implemented. Materials are still ordered in irregular quantities when they are requested or when stock is empty. The unrefined process exploits the purchasing gaps and pricing. This particular budget year materials management dumped $113,000 worth of charges that rolled over from previous year onto the Facilities Department for reimbursement. The facilities budget cannot sustain that much delayed liability. All of those charges should have already been tracked in the CMMS system so they could have been paid and attached as an appropriate and justified expense.

Project Objectives: 1.Track all materials purchases in the work order system. 2.Reduce materials costs with complete tracking and planned purchasing. 3.Provide cost improvement to the Facilities department budget. Goal Statement: Improve Facilities Service value through 5% reduction of materials process waste as tracked in the work order system in 12 weeks. Project Deliverables: 1.Transition to complete tracking of material purchases. 2.Reduced materials cost through informed and planned purchases. 3.Transition from primarily reactive to primarily proactive procurement.

StakeholderProject RelationshipCommunication CFOKey CustomerReport progress CEOLeader/SponsorUpdate and consult Purchasing ManagerResource/Team MemberMeet with regularly Facilities ManagerLeader/Process OwnerLeads regular meetings CMMS Super userTeam MemberMeets regularly UsersTeam MemberMeets regularly Stakeholder Analysis:

SuppliersInputsProcessOutputsCustomers CFOImprovement points Transition the CMMS to capture materials. Verifies improvementCFO CEOAdvisesAlignmentCEO Purchasing ManagerProvides dataVerifies informationPurchasing Manager Facilities ManagerCoordinates effortVerifies completionFacilities Manager CMMS Super userProcesses dataVerifies progressCMMS Super user UsersProcesses dataVerifies processUsers

Voice of the Customer Using Strength, Weakness, Opportunity, and Threat Analysis The issue with materials came in the form of reactive notices of budget variance from the CFO as well as the update and transfer of materials charges from the Purchasing Manager. The CMMS Super user oversees the work orders and inconsistent materials tracking so that is a good place for proactive data collection. The primary weakness is obviously and verified as inconsistency in materials tracking. A primary strength is that the necessary tools are already in place. The opportunity lies with the fact that the users already handling the required information. It is agreed that complacency about transitioning the system can continue to threaten the process.

Rough ROI Numbers It is estimated to cost approximately $1700 in additional hours for the Project team and users primarily in training and meetings. The benefits will be ongoing and are estimated to be 5% of the materials budget the first year or $6600.