1. FM Work Orders Parts Acquisition Project

2. Mission of FM FM exists to assure that Campus buildings and grounds enhance learning and meet compliance requirements in a cost effective manner, while educating students through labor 2

3. 3 To finish the 2013-14 year with: – 95% Customer Survey score – Zero Lost-time accidents – Zero Regulatory compliance issues – 100% PM’s completed on time – 10% reduction in WO turn time from 2012-13 baseline Vision of FM

4. SIPOC of FM 4 Suppliers Inputs Process Outputs Customers Students Faculty Staff Completed PM & work orders Cleaned Spaces Landscaped Grounds Work Satisfaction Survey Suggested major repairs or renovations Training of students Building/Fire Code requirements OSHA / EPA regulations SOP’s Work Orders Major Repair requests Cleaning & Grounds Schedules Weather events Events or Special Requests Materials Vendors Parts Vendors Tools & Training EHS College O&S Management Students Faculty Staff

5. 5 Hi-Level FM Trades Work Order Process Completed Work Documentation FM Admin Work Performed FM Admin Work Request Major Repairs PM Schedule Closed Work Order Work Order PM Order Customer ( Building Owner) (FA) (Other requestor) FM Mgmt Customer Satisfaction Survey TMA Database

6. SWOT Profile of FM Strengths Select Trades skill sets Buy-in to College Mission Safety Culture Sustainability Culture Building ‘Owner’ process Weaknesses Lack of historic data metrics Lack of historic customer focus Productivity rates & expectations Lack of robust PM system Select Trades skill sets Lack of Standard Work Threats Economic / budgetary constraints Competition from local industry Opportunities Full use of TMA Full use of Tracy Time System Full use of APPA HK standards

7. Gap Analysis Opportunities and Priorities The existing Work Order parts acquisition process is too time consuming with non-valued added and expensive steps. Project focus is to: Identify value added & non-value added steps Eliminate non-value added steps Create Standard work Identify reduced cost and steps 7

8. Mission of WO parts acquisition The Work Order parts acquisition process exists to procure the necessary parts to complete work requests in an economic and effective manner so that buildings and grounds enhance learning. 8

9. 9 To finish the 2013-14 year with: – Reduced parts acquisition expense – Increased value-added work time for acquisitions Vision of WO parts acquisition

10. SIPOC of WO parts acquisition 10 Suppliers Inputs Process Outputs Customers Students Faculty Staff Completed PM & work orders Cleaned Spaces Landscaped Grounds Work Satisfaction Survey Suggested major repairs or renovations Training of students Building/Fire Code requirements OSHA / EPA regulations SOP’s Work Orders Major Repair requests Cleaning & Grounds Schedules Weather events Events or Special Requests Materials Vendors Parts Vendors Tools & Training EHS College O&S Management Students Faculty Staff

11. SWOT Profile of WO parts acquisition Strengths Buy-in to College Mission Strong Process “Owner” New TMA system Weaknesses Lack of historic data metrics Lack of historic customer focus Productivity rates & expectations Lack of Standard Work Threats Pushback of Trades technicians Lack of sense of urgency Opportunities Full use of TMA More opportune use of student labor Vendors open to “new” way of doing business

12. Project Charter Mission – Establish an improved WO parts acquisition process. Burning platform – Existing process consumes too much time & expense Process Description –To establish a value-added WO parts acquisition process that provides real time accuracy in TMA and reduces expense and non-value added work. Problem Statement – Present system is a mess. Leads to use of critical Trades resources to acquire parts Sponsor – Derrick Singleton Process Owner – Wayne Orr Team Lead – Ronnie VanHook Facilitator – Derrick Singleton Team – Derrick Singleton, Wayne Orr, Becky Berheide, Regina Williams, Jeff Reed, David Wilkerson, David Tipton

13. Hi-Level Process Map (Before) 13

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15. Hi-Level Process Map (After) 15

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17. Report-out Final Notes An eight month review of data (July 2012 to February 2013) of how many invoices were processed by the Facilities Management team and Accounting. A total of 1,602 were processed during the time frame – an average of ~200 per month or 50 per week. The average amount of these invoices during the study was $39. The lowest was for 38 cents Each invoice also indicated a trip off-campus by a trades person (often two) to obtain a part. A review of vendors and locations indicated that the average round-trip was ~5 miles. Hard data was unavailable on the time per trip, but is conservatively assumed that each trip was 30 minutes. 17

18. Report-out Final Notes Per Finance (David Wilkerson), a trade report indicated the average cost to process an invoice is $89.21. Alternatively, Fifth Third Bank, provider of the College P-Card, has a transaction cost of $21.83. Additionally, Fifth Third Bank pays the College a rebate of 1.5% on transactions. The need to lean out the project proved to have more opportunity than was originally expected. The project focused on eliminating the trips to vendors by trades technicians, the total number of trips, and the invoices created. 18

19. Report-out Final Notes The following changes have been implemented as the new process:  Vendors were negotiated with to obtain pricing discounts and/or “milk run” deliveries, the reduced the cost of parts acquisition by lowering the total vendors dealt with and reduced the need for some pick-ups.  An analysis of the highest velocity of parts being turned was completed. As a result, 241 new parts that were previously obtained from vendors were “internalized” to prevent trips.  The largest vendors were negotiated with to accept a monthly payment by PCard based on one invoice, rather than the previous method of invoicing every single itemized part bought during the month.  A new policy was implemented to only allow student labor in the FM Storeroom to be able to leave campus to obtain parts, except in an emergency case that had to be approved by a Team Leader. 19

20. Report-out Final Notes The following Lean tools were utilized:  Spaghetti Diagram – though not specifically mapped, the tool was foremost in the thinking of the project. By preventing technicians from leaving campus to obtain parts, they are not crisscrossing town and campus to obtain parts, burning fuel and doing non-value added work.  Value Stream Map – the Current and Ideal VSM’s were mapped to identify where non-value added work was occurring and where it could be eliminated. By eliminating the “muda” of back office processing of invoices and the travel time of technicians from picking up parts and refocused onto repair work, productivity is up and costs are down.  Kanban – by internalizing the inventory of 241 parts previously bought “as needed”, these parts are now managed as the rest of the inventory with use of kanban and pull refill.  Standard Work – a new directive that any parts pick-ups must be coordinated by the Inventory Mgr has been implemented. 20

21. Results The following results have been identified:  The 200 trips to procure parts and 200 invoices process per month from July ’12 to Feb ‘13 have been reduced on average over the last five months to 72 trips (64% reduction) and 6 invoices (97% reduction).  The previous cost of the process was estimated over 8 month study period to be in the range of $9,829 to $17,842 per month to one that is averaging an expense of $305 per month.  The inventory increase of the 241 new parts added ~$4,000 of initial expense to the overall inventory. However, inventory turns have improved from 2.92 during the 8-month study to 4.99 since.  Average inventory value with less parts during the 8-month study was $122.8K; average value over the new period is $108.9K.  The new process allows for the tradesmen technicians to be able to remain on campus repairing items and completing work orders, thus being more productive and assuring that the mission is met of maintaining campus buildings and grounds to be conducive to learning. 21

22. Report-out Final Notes The following productivity and customer service gains have been noted with the project:  Productivity – In the eight-month study period, a total of 6,461 work orders (807/month on average) were completed. In the five-month period after the change, 4,381 work orders (876/month on average) have been completed…an 8.6% productivity gain.  Customer Service – In the eight-month study period, the average Customer Satisfaction Index score was 94.5%. In the five-month period after the change, the Customer Satisfaction Index score was 96.0%. 22

23. Full Data Double Click to see full datasheet for calculations of savings 23