FY02 ASA Presentation Provide Scientific Equipment Services Presented by: Johnny Robbins (Team Leader) Team Members: Annalie Burke John Baron John Olguin James Sullivan Donna Bowe Mary Dukehart Dave Siecker Office of Research Services National Institutes of Health 18 November 2002

2 Table of Contents Main Presentation ASA Template ……………………………….………………………………. 4 Customer Perspective……………………….………………………………. 5 Customer Segmentation …………………….…………………………………… 6 Customer Satisfaction……………………….……………………………………. 7 Unique Customer Measures………………………………………………………. 8 Internal Business Process Perspective…………………………………… 9 Service Group Block Diagram………………………………………………….. 10 Conclusions from Discrete Services Deployment Flowcharts……………… 11 Process Measures………………………………………………………………. 12 Learning and Growth Perspective…………………………………………. 13 Conclusions from Turnover, Sick Leave, Awards, EEO/ER/ADR Data…….. 14 Analysis of Readiness Conclusions……………………………………………. 15 Unique Learning and Growth Measures……………………………..16 Financial Perspective………………………………………………………. 17 Unit Cost…………………………………………………………………………… 18 Asset Utilization…………………………………………………………………… 19 Unique Financial Measures…………………………………………. 20 Conclusions and Recommendations……………………………………….21 Conclusions from FY02 ASA..…………………………………………………… 22 Recommendations………………………………………………………………… 23

3 Table of Contents Appendices ASA Template………………………………………………………. Customer segments graphs ………………………………………. Customer satisfaction graphs……………………………………… Block diagram………………………………………………………. Process maps………………………………………………………. Process measures graphs………………………………………… Learning and Growth graphs…………………………………….. Analysis of Readiness Information ………………………………. Unit cost graphs……………………………………………………. Asset utilization graphs……………………………………………. Unique measures graphs………………………………………….

4 X X ASA Template ASA Template Service Group Service Group Scientific Equipment and Instrumentation BranchScientific Equipment and Instrumentation Branch Discrete ServicesDiscrete Services Design and fabricate custom instrumentsDesign and fabricate custom instruments Lease and sell Scientific EquipmentLease and sell Scientific Equipment Maintain scientific equipment and workstationsMaintain scientific equipment and workstations Stock and sell repair parts and fabrication materialsStock and sell repair parts and fabrication materials DS5:DS5: DS6:DS6: Customer Value PropositionCustomer Value Proposition Provide flexible, timely, and cost effective scientific technical services, equipment and parts to support the NIH research community to enhance research effortsProvide flexible, timely, and cost effective scientific technical services, equipment and parts to support the NIH research community to enhance research efforts Service StrategyService Strategy Team Leader Team Leader Johnny Robbins, Jim SullivanJohnny Robbins, Jim Sullivan Team Members Team Members John Olguin, John Baron, Annalie Burke, Mary Stevens, Dave Siecker, Donna BoweJohn Olguin, John Baron, Annalie Burke, Mary Stevens, Dave Siecker, Donna Bowe Operational Excellence Growth Operational Excellence Growth Customer Intimacy Sustain Customer Intimacy Sustain Product Leadership Harvest Product Leadership Harvest X X ASA Template ASA Template Service Group Service Group Scientific Equipment and Instrumentation BranchScientific Equipment and Instrumentation Branch Discrete ServicesDiscrete Services Design and fabricate custom instrumentsDesign and fabricate custom instruments Lease and sell Scientific EquipmentLease and sell Scientific Equipment Maintain scientific equipment and workstationsMaintain scientific equipment and workstations Stock and sell repair parts and fabrication materialsStock and sell repair parts and fabrication materials DS5:DS5: DS6:DS6: Customer Value PropositionCustomer Value Proposition Provide flexible, timely, and cost effective scientific technical services, equipment and parts to support the NIH research community to enhance research effortsProvide flexible, timely, and cost effective scientific technical services, equipment and parts to support the NIH research community to enhance research efforts Service StrategyService Strategy Team Leader Team Leader Johnny Robbins, Jim SullivanJohnny Robbins, Jim Sullivan Team Members Team Members John Olguin, John Baron, Annalie Burke, Mary Stevens, Dave Siecker, Donna BoweJohn Olguin, John Baron, Annalie Burke, Mary Stevens, Dave Siecker, Donna Bowe Operational Excellence Growth Operational Excellence Growth Customer Intimacy Sustain Customer Intimacy Sustain Product Leadership Harvest Product Leadership Harvest X X ASA Template ASA Template Service Group Service Group Scientific Equipment and Instrumentation BranchScientific Equipment and Instrumentation Branch Discrete ServicesDiscrete Services Design and fabricate custom instrumentsDesign and fabricate custom instruments Lease and sell Scientific EquipmentLease and sell Scientific Equipment Maintain scientific equipment and workstationsMaintain scientific equipment and workstations Stock and sell repair parts and fabrication materialsStock and sell repair parts and fabrication materials DS5:DS5: DS6:DS6: Customer Value PropositionCustomer Value Proposition Provide flexible, timely, and cost effective scientific technical services, equipment and parts to support the NIH research community to enhance research effortsProvide flexible, timely, and cost effective scientific technical services, equipment and parts to support the NIH research community to enhance research efforts Service StrategyService Strategy Team Leader Team Leader Johnny Robbins, Jim SullivanJohnny Robbins, Jim Sullivan Team Members Team Members John Olguin, John Baron, Annalie Burke, Mary Stevens, Dave Siecker, Donna BoweJohn Olguin, John Baron, Annalie Burke, Mary Stevens, Dave Siecker, Donna Bowe Operational Excellence Growth Operational Excellence Growth Customer Intimacy Sustain Customer Intimacy Sustain Product Leadership Harvest Product Leadership Harvest ASA Template

5 Customer Perspective

6 DS1: Customer Segmentation FY 01 and FY 02  Lease income is relatively consistent from year to year

DS1: Customer Segmentation FY 01 and FY 02  Sales fluctuate each year depending upon the ICs budget and focus

DS2: Customer Segmentation FY 01 AND FY 02  The IC usage has increased from FY 01 to FY 02

DS2: Customer Segmentation FY 01 and FY 02  It appears that ORS is our most frequent customer, however a large percentage of the work being performed is in support of the SEIB Lab-wide Service Agreements or Lease Agreements on behalf of other ICs.

DS3: Customer Segmentation FY 01 and FY 02  Sale of equipment is highly dependant on the ICs equipment budget.

DS4: Customer Segmentation FY 01 AND FY 02  It appears that ORS is our top client however, most of the transactions are being made by SEIB for the ICs. The materials are being used for equipment under SEIB Lab-wide Service Agreements or SEIB Lease Agreements.

DS5: Customer Segmentation FY 01 and FY 02 Design and Fabricate Custom Materials  Business can fluctuate due to long term projects that may cross fiscal years

7 When compared to the overall ORS Scorecard findings SEIB scored well. We received above average scores in most of the areas, such as competence, quality, and reliability. However, we need to seek ways to improve timeliness and cost. SEIB will continue to improve timeliness by matching the right technician for the job and continue to train the technicians who require refresher technical courses to service particular instruments within the time frame established by the supervisor/manufacturer. This should assist SEIB in reducing the cost and equipment down time. Customer Satisfaction Summary

Customer Satisfaction Summary (Cont.) SEIB can reduce response time by developing an automated way to track the jobs various stages from time of entry to time of work completion. Bi-weekly reports can be generated to show job progression. Managers can review the data and initiate changes for improvement. Regarding cost; SEIB customers may not be aware of our competitors hourly rates. We intend to revise our invoices to state “you have saved $270 by using our services instead of our competitors.” As well, SEIB staff can verbally share the information with each customer.

8 Unique Customer Measures We did not identify any unique customer measures.

9 Internal Business Process Perspective

10 SERVICE GROUP BLOCK DIAGRAM X X ASA Template ASA Template Service Group Service Group Scientific Equipment and Instrumentation BranchScientific Equipment and Instrumentation Branch Discrete ServicesDiscrete Services Design and fabricate custom instrumentsDesign and fabricate custom instruments Lease and sell Scientific EquipmentLease and sell Scientific Equipment Maintain scientific equipment and workstationsMaintain scientific equipment and workstations Stock and sell repair parts and fabrication materialsStock and sell repair parts and fabrication materials DS5:DS5: DS6:DS6: Customer Value PropositionCustomer Value Proposition Provide flexible, timely, and cost effective scientific technical services, equipment and parts to support the NIH research community to enhance research effortsProvide flexible, timely, and cost effective scientific technical services, equipment and parts to support the NIH research community to enhance research efforts Service StrategyService Strategy Team Leader Team Leader Johnny Robbins, Jim SullivanJohnny Robbins, Jim Sullivan Team Members Team Members John Olguin, John Baron, Annalie Burke, Mary Stevens, Dave Siecker, Donna BoweJohn Olguin, John Baron, Annalie Burke, Mary Stevens, Dave Siecker, Donna Bowe Operational Excellence Growth Operational Excellence Growth Customer Intimacy Sustain Customer Intimacy Sustain Product Leadership Harvest Product Leadership Harvest X X ASA Template ASA Template Service Group Service Group Scientific Equipment and Instrumentation BranchScientific Equipment and Instrumentation Branch Discrete ServicesDiscrete Services Design and fabricate custom instrumentsDesign and fabricate custom instruments Lease and sell Scientific EquipmentLease and sell Scientific Equipment Maintain scientific equipment and workstationsMaintain scientific equipment and workstations Stock and sell repair parts and fabrication materialsStock and sell repair parts and fabrication materials DS5:DS5: DS6:DS6: Customer Value PropositionCustomer Value Proposition Provide flexible, timely, and cost effective scientific technical services, equipment and parts to support the NIH research community to enhance research effortsProvide flexible, timely, and cost effective scientific technical services, equipment and parts to support the NIH research community to enhance research efforts Service StrategyService Strategy Team Leader Team Leader Johnny Robbins, Jim SullivanJohnny Robbins, Jim Sullivan Team Members Team Members John Olguin, John Baron, Annalie Burke, Mary Stevens, Dave Siecker, Donna BoweJohn Olguin, John Baron, Annalie Burke, Mary Stevens, Dave Siecker, Donna Bowe Operational Excellence Growth Operational Excellence Growth Customer Intimacy Sustain Customer Intimacy Sustain Product Leadership Harvest Product Leadership Harvest Service Group: Provide Scientific and Technical Instrumentation Services Date: 10/18/02Participants: ASA Team Request for service or equipment Process order Provide service or equipment Invoice

Process Map DS1 & DS3

Process Map DS2

X X ASA Template ASA Template Service Group Service Group Scientific Equipment and Instrumentation BranchScientific Equipment and Instrumentation Branch Discrete ServicesDiscrete Services Design and fabricate custom instrumentsDesign and fabricate custom instruments Lease and sell Scientific EquipmentLease and sell Scientific Equipment Maintain scientific equipment and workstationsMaintain scientific equipment and workstations Stock and sell repair parts and fabrication materialsStock and sell repair parts and fabrication materials DS5:DS5: DS6:DS6: Customer Value PropositionCustomer Value Proposition Provide flexible, timely, and cost effective scientific technical services, equipment and parts to support the NIH research community to enhance research effortsProvide flexible, timely, and cost effective scientific technical services, equipment and parts to support the NIH research community to enhance research efforts Service StrategyService Strategy Team Leader Team Leader Johnny Robbins, Jim SullivanJohnny Robbins, Jim Sullivan Team Members Team Members John Olguin, John Baron, Annalie Burke, Mary Stevens, Dave Siecker, Donna BoweJohn Olguin, John Baron, Annalie Burke, Mary Stevens, Dave Siecker, Donna Bowe Operational Excellence Growth Operational Excellence Growth Customer Intimacy Sustain Customer Intimacy Sustain Product Leadership Harvest Product Leadership Harvest Process Map DS4

11 Our Service Group completed 5 deployment flowcharts for 5 discrete services. We need to initiate a way to track response time for two discrete services automatically or manually. To date we have not identified repetitive steps or better ways to process the work. Conclusions from Discrete Services Deployment Flowcharts

12 Process Measures DS1 : Average time between requests and delivery of rentals DS2: Average response time to initiate repair DS3: Average time between requests and delivery of equipment DS4: Average response time to fill backorders. DS5: Process time from initial request until start time FINDINGS: DS1 & DS3 – Changing the delivery schedule from an as needed basis to a 2 day weekly delivery schedule in May 2002 did not have a negative impact.

Process Measures Continued DS2: Our response time improved during FY 02 compared to FY 01. Our average response time is 7.5 hours and we are committed to maintaining this level. DS4: This is a prospective measure, no data is currently available. We will track backorder response time in FY 03. DS5: We do not have hard data but we believe turnaround time is one day. We will track as a prospective measure in FY 03.

13 Learning and Growth Perspective

Learning and Growth Data Table About 6 days sick leave per employee About 2 awards for every 3 employees 7% employee turnover 0 EEO complaints out of 42 employees 6 ER Cases out of 42 employees 1 ADR case out of 42 employees

14 The number of awards increased from 28 to 35 when we added the awards that were processed in July Employee turnover includes one retirement. 76% of the sick leave was used by three employees on extended medical leave. Employee absences contribute to reduced productivity, negatively impacts finances, and eventually strain employee morale. To improve QOWL SEIB will share more information with staff and keep them better informed about issues that affect them/branch, and solicit feedback. Training is important for employee growth and SEIB will continue to ensure resources are available for this purpose and to help improve the QOWL. Conclusions from Turnover, Sick Leave, Awards, EEO/ER/ADR Data

15 SEIB needs to retain highly technical employees with extensive knowledge or varied experience in the following areas: - scientific equipment repair/instrument design and fabrication - customer service expertise - marketing/sales expertise - business/managerial skills Over the next three years SEIB may lose 8-10 highly skilled employees - will re-train current employees, and recruit or contract out. Extensive training required for customer service, refresher courses and continuing education training by manufacturers, and marketing/sales training. Analysis of Readiness Conclusions

ANALYSIS OF READINESS CONCLUSIONS CONTINUED SEIB will set aside resources to purchase the latest diagnostic equipment and calibration tools, customer service training, and to implement additional MAXIMO (management information and billing system) modules for maintenance schedules and to track rental equipment. Without the right personnel and tools SEIB will be unable to perform services in a timely cost efficient manner, to have the ability to expand business services, or to diversify.

16 Unique Learning and Growth Measures We did not identify any unique learning and growth measures.

17 Financial Perspective

18 DS1: - # items available DS2 - # labor hours DS3: - # of equipment sold DS4: - # of parts & material sold DS5: - # of labor hours We agree with the unit measures as reflected in budget and we will use them for baseline analysis. The services provided in SEIB are on a fee-for- service bases; all revenue generated is either by labor hours, items sold and items leased. Unit Cost Measures

19 Lease Scientific Equipment 2.5 FTEs X 1500 Productive Hours = 3750 Assuming 2 hours for each output Production Capacity = 1875 (3750/2) Actual Production = 1636 Asset Utilization = 87.25% (1636/1875) FTE includes supervisor who performs other managerial duties not reflected in this discrete service. Someone must be available to assist customers at all times. DS1: Asset Utilization Measures

DS2: Asset Utilization Measures Maintain Scientific Equipment and Workstations 12 FTE’s x 1500 Available Hours = 18,000 Non-Productive Hours = 3,082 Actual Productive Hours = 14,918 Asset Utilization = 82.8% (14,198/18,000) An increase in service requests will yield a better utilization percentage. As we implement a strong market program, the demand for our services will increase directly with asset utilization.

DS3: Asset Utilization Measures Sell Scientific Equipment FTEs = 1.5 x 1500 = 2250 Assuming 1.5 hours for each unit of output Production Capacity = 1500 (2250/1.5) Actual Production = 1155 Asset Utilization = 77% (1155/1500) Employee also serves as the property custodian for SEIB. (NOTE: This work is not reflected under the above discrete service.)

DS4: Asset Utilization Measures Stock and sell repair parts and fabrication materials 1 FTE = 1500 Available Hours Assuming 20 minutes for each output Production Capacity = 7500 (1500/.20) Actual Production = 3392 Asset Utilization = 45.2% (3392/7500) Employee is not being fully utilized however someone must be available at all times to serve customers. Plan to cross train employee to perform other responsibilities within SEIB.

DS5: Asset Utilization Measures Design and Fabricate Custom Instruments 4.5 FTEs X 1500 Available Hours = 6,750 Non-Productive Hours = 2,610 Actual Productive Hours = 4343 Asset Utilization = 64.3% Productivity was low due to one employee being on extended sick leave for 6 months, and the work for our glassblower has drastically declined over the past few years.

20 Unique Financial Measures We did not identify any unique financial measures.

21 Conclusions and Recommendations

22 Conclusions from FY02 ASA Need to keep customers better informed on status of repairs. Need to utilize additional management information tools Noted a major loss of our customer base. Need to develop ways to track response time for two discrete services. Need to provide continuous training for technical employees

Current implemented changes yielding improvements Reduced transportation expenses by changing the delivery schedule. Expanded computer services Improved relationship with manufacturers Worked with manufacturers to provide in-house technical training for SEIB and NIH researchers

23  Advertise and market our services  Utilize additional MAXIMO modules for maintenance schedules & tracking equipment – March 2003  Request a list of equipment needs from current and future customers – February 2003  Purchase diagnostic equipment and calibration tools – January  Meet with quality assurance representatives to request advice on the proper information required for certification – December Recommendations

SEIB REVENUE BY DISCRETE SERVICES FY 1999 THROUGH FY 2002

SEIB BILLABLE HOURS BY SECTION FY 1999 THRU FY 2002 This is directly attributed to a decline in customer retention.

CUSTOMER RETENTION

Appendices

Include the following: Page 2 of your ASA Template Customer segments graphs Customer satisfaction graphs Block diagram Process maps Process measure graphs Learning and Growth graphs Analysis of Readiness Information Unit cost graphs Asset utilization graphs Any unique measures graphs

Scatter Diagram FY02 Customer Importance and Satisfaction Ratings: A Closer Look Note: A smaller portion of the chart is shown so that the individual data points can be labeled.

Radar Chart FY02 Product/Service Satisfaction Ratings

Radar Chart FY02 Customer Service Satisfaction Ratings

DS1: Unit Cost Chart

DS2: UNIT COST CHART

DS3: UNIT COST CHART

DS4: UNIT COST CHART

DS5: UNIT COST CHART