Lean Enterprise Integration Through the Facility Life Cycle That Can Save You Millions

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SAN DIEGO COMMUNITY COLLEGE DISTRICT

Lean Enterprise Integration Through The Facility Life Cycle That Can Save You Million$

Presented to the Community College Facility Coalition 19th Annual Conference ‐ November 13, 2012


San Diego Community College District (SDCCD)

Overview  The Second Largest Community College District in California  Sixth Largest in Nation  Three Colleges ‐ City, Mesa, Miramar  Six Continuing Education Campuses  125,000 students served plus 140,000 members of the military nationwide  $1.555 billion capital bond program underway

City College

Mesa College

Miramar College

Continuing Education


San Diego Community College District (SDCCD)

Overview Current Square Footage (as of September 2012)  Buildings = 2,560,187 GSF  Parking = 1,093,357 GSF

Current Acres of Landscape = 130.2 Current Utilities Consumption    

Electric $4,119,936 Gas = $334,632 Water = $790,322 Total = $5,244,890


San Diego Community College District (SDCCD)

Overview Projected Square Footage    

Additional Building GSF = 720,608 Total Building GSF = 3,280,795 Additional Parking GSF = 279,265 Total Parking GSF = 1,372,622

Grand Total GSF = 5,653,290


San Diego Community College District (SDCCD)

Overview

Practicing the Toyota Way


San Diego Community College District (SDCCD)

Capital Bond Program A‐3 Report


San Diego Community College District (SDCCD)

Capital Bond Program A‐3 Report


San Diego Community College District (SDCCD)

Capital Bond Program A‐3 Report


San Diego Community College District (SDCCD)

Program A3 Report – Propositions S & N Summarized


San Diego Community College District (SDCCD)

Program A3 Report – Safety


San Diego Community College District (SDCCD)

Program A3 Report – Safety


San Diego Community College District (SDCCD)

Program A3 Report – Planned & Actuals


San Diego Community College District (SDCCD)

Program A3 Report – Aging Change Orders


San Diego Community College District (SDCCD)

Program A3 Report – Pay Apps/Change Orders


San Diego Community College District (SDCCD)

Program A3 Report – Drawdown


San Diego Community College District (SDCCD)

Program A3 Report – Expenditures at a Glance

As of September 2012


San Diego Community College District (SDCCD)

Program A3 Report – Small Business Outreach


San Diego Community College District (SDCCD)

“Rainbow” Report


San Diego Community College District (SDCCD)

Schedule Performance Traditional Design‐Bid‐Build Change Order Rate

Project Delay

Average = 10.8%

Average = 43.5 Days

CM Multi‐Prime Change Order Rate

Project Delay

Average = 7.1%

Average = 19.5 Days


San Diego Community College District (SDCCD)

Pull Planning


San Diego Community College District (SDCCD)

Pull Planning • Insert video of pull planning session here • Click “insert” from menu bar, then click on the video icon from the far right


San Diego Community College District (SDCCD)

Target Costing – Budget Development • Space Programming • Efficiency • Targeted Cost Per SF


San Diego Community College District (SDCCD)

Building Information Modeling (BIM) Standards

http://public.sdccdprops-n.com/CR/Forms/SDCCD%20-%20Building%20Design%20Standards/2.%20BIM%20Standards/SDCCD%20BIM%20Standards%20Version%202.pdf


San Diego Community College District (SDCCD)

Change Order Metrics – BIM vs. No BIM • Projects designed in BIM: Change Order Rate = 2.3% • Projects not designed in BIM: Change Order Rate = 8.0%


San Diego Community College District (SDCCD)

A3 Problem Solving – Risk/Benefit Analysis


San Diego Community College District (SDCCD)

A3 Problem Solving – HVAC Design


San Diego Community College District (SDCCD)

Value Stream Mapping – Change Orders

Old Change Order Process

Total Process Duration: 67 Working Days With Negotiation


San Diego Community College District (SDCCD)

Value Stream Mapping – Change Orders

New Change Order Process Effective January 2011

Total Process Duration: 28 Working Days With Negotiation


San Diego Community College District (SDCCD)

Safety – Root Cause Analysis of Repeated Incidents City College Campus Safety Report – February 2012 Overall Safety Comments

Overall Safety Issues


San Diego Community College District (SDCCD)

Safety – Root Cause Analysis of Repeated Incidents Central Plant

Math & Social Science

Business & Humanities

Science


San Diego Community College District (SDCCD)

Safety – Root Cause Analysis of Repeated Incidents • Required fall protection refresher training • Enhanced training for spotters • Enhanced focus on safety culture


San Diego Community College District (SDCCD)

Andon Tools in Process – The Sticky Note


San Diego Community College District (SDCCD)

Genchi Genbutsu


San Diego Community College District (SDCCD)

Horensou


San Diego Community College District (SDCCD)

Invoice Processing Kaizen


San Diego Community College District (SDCCD)

Invoice Processing Kaizen

New Procedure • Simplified Actions • Within 30 days • Less Paperwork


San Diego Community College District (SDCCD)

Lean Processes in Maintenance & Operations APPA Award for Effective and Innovative Practices July 2011

By applying lean principles to custodial and maintenance functions, SDCCD eliminated the need to add 20 positions, shaving off $813,000 in the first of a seven‐year process. Additional efficiencies implemented over the next six years will increase savings to $20 million.


San Diego Community College District (SDCCD)

Lean Processes – Our Challenge • Current economic conditions continue to impact SDCCD • SDCCD Facilities Services must reduce FY09‐16 forecasted expenditure • While current state revenue is down, SDCCD must plan for future doubling service base without doubling the budget


San Diego Community College District (SDCCD)

Potential Cumulative Savings ‐ $25,863,512 FISCAL YEAR Custodial Custodial Forecast H/C

FY09 104

FY10 113

FY11 132

FY12 149

FY 09/10

FY13 162

FY14 173

FY15 189

FY16 191

Avg. Salary $ 58,643

Cust Forecast Salary

$ 6,098,855 $ 6,650,098 $ 7,769,004 $ 8,731,333 $ 9,504,832 $ 10,169,255 $ 11,098,158 $ 1,227,172

Custodial Adj H/C

77

Custodial Adj Budget

$ 4,497,197 $ 4,782,522 $ 5,187,077 $ ,878,320 $ 7,150,669 $ 7,622,296 $ 8,208,826 $ 8,597,611

Delta

$ 1,601,658 $ ,867,576 $ 2,581,927 $ 2,853,013 $ ,354,162 $ 2,546,959 $ ,889,331 $ 2,629,561 $

82

88

100

122

130

140

147

Hold HC Flat until projection exceeds current HC

45

$

19,324,187 13,273,027

Maintenance Maint Forecast H/C

45

Maint Forecast Salary $ Maintenance Adj H/C 29

50

57

64

69

73

79

80

$ 76,457

3,440,546 $ 3,793,010 $ 4,344,262 $ 4,857,286 $ 5,245,685 $ 5,579,036 $ 6,044,656 $ 6,108,880 32

37

41

45

47

51

52

28

Maint Adj Salary

$ 2,236,355 $ 2,465,457 $ 2,823,770 $ 3,157,236 $ 3,409,695 $ 3,626,373 $ 3,929,027 $ 3,970,772

Delta

$ 1,204,191 $ 1,327,554 $ ,520,492 $ 1,700,050 $ 1,835,990 $ 1,952,663 $ 2,115,630 $ 2,138,108 $ 13,794,676 Hold HC Flat until projection exceeds current HC

$

12,590,485


San Diego Community College District (SDCCD)

Lean Work Order Processes – Maintenance Assessment

• Identify how we are spending time • Examine priorities • Scrutinize processes • Should we redesign or improve this process? • What tools do we need to do this?


San Diego Community College District (SDCCD)

Maintenance Process Findings • Reactive organization • No formal prioritization process • Inefficient, unpredictable processes • Too much windshield time for technicians • Needed more robust computerized maintenance management system


San Diego Community College District (SDCCD)

Lean Work Order Processes – Work Prioritization • SDCCD – in its quest to be “service oriented” – had no formal work prioritization processes • This led to 85%+ of work being reactive • Open WO grew to in excess or 1,600

• A prioritization matrix was developed to establish a service level agreement within the District •

Approved by Chancellor’s Cabinet and Management Services Council


San Diego Community College District (SDCCD)

Maintenance Process Improvement Steps • Developed a prioritization matrix • Designed new work flow processes • Created a centralized work distribution center • Standardized triage and follow up procedures to support processes and reduce windshield time


San Diego Community College District (SDCCD)

Priority Matrix – Service Level Agreement


San Diego Community College District (SDCCD)

Service Level Agreement ‐ Priority Level 1 Example


San Diego Community College District (SDCCD)

Lean Process Flows – Prioritize Work


San Diego Community College District (SDCCD)

Lean Process Flows – Triage


San Diego Community College District (SDCCD)

Work Flow Priority 1‐3 Work – Maintenance Supervisor

• Planning / Scheduling is focused on future work • All ongoing work is under the direct control of the maintenance supervisor


San Diego Community College District (SDCCD)

Work Flow Without Planning/Scheduling Activity Cleanup and putting away tools Idle Time Material delays Passdown meetings (start / end of shift, feeding work to technicians) Starting late / quitting early Too many technicians per job / task Traveling and Transportation Unclear work direction Sub Total of non‐productive time

% 5 9 5 5 4 7 16 16 67

Productive time = 100‐67 or 33%. This translates to 2.7 hours in an 8‐hour shift.


San Diego Community College District (SDCCD)

Productive Maintenance Time


San Diego Community College District (SDCCD)

Call Center/Work Distribution Center

 Centralized  Standardized  Customer Service  Comments


San Diego Community College District (SDCCD)

Maintenance Process Improvement Steps

• Purchased a more robust computerized maintenance management system • Added Grainger rolling stock for fleet


San Diego Community College District (SDCCD)

Work Order Metrics


San Diego Community College District (SDCCD)

Electronic Work Order Delivery


San Diego Community College District (SDCCD)

Facilities Services Lean Enterprise Efforts Industry Findings: Cost of O&M Inefficiencies Operations & Maintenance Stage (Distribution of Inadequate Interoperability Costs) Idled Employee Costs ‐ 18%

Over half the costs are from searching for and validating data

Inefficient Business Process Management Costs – 19% O&M Staff Productivity Loss – 7%

O&M Information Verification Costs ‐ 56%

* Source: NIST Study – August 2004


San Diego Community College District (SDCCD)

Facilities Services Lean Enterprise Efforts


San Diego Community College District (SDCCD)

Custodial Practices  Identify our core mission  Identify how we were spending time  Load leveling  Increase cleaning square footage  Beat books  Cleaning Standards  Management By Walking Around  Pride Program


San Diego Community College District (SDCCD)

Assessment of Custodial Services Findings • Opening doors • Stock room duties • Personal assistants • Event set‐ups • Temperature checks • Movers • Concierge service • Cleaning


San Diego Community College District (SDCCD)

Opportunities for Improvement  Get back to Core mission  Board of Trustees and Chancellor buy‐in  Developed a door‐opening policy  Developed an out of scope work list  Directing work requests through the call center  Plan and schedule work


San Diego Community College District (SDCCD)

Custodial Practices Improvement Steps • Stopped non‐core services • Developed cleaning standards • Increased cleaning square footage • Load leveling • Custodial Beat books • Management By Walking Around • Pride Program


San Diego Community College District (SDCCD)

Management By Walking Around (MBWA) •MBWA is the SDCCD quality control tool for custodial services. • Custodial Leads are tasked with walking through every room in the District to inspect room conditions. •A tick mark is placed in the discrepancies column for every 1,000 SF in the building demonstrating the deficiency. •The sheets are given to the clerical staff of each campus to enter into a spreadsheet; thereafter, they are stored in an Access database.


San Diego Community College District (SDCCD)

SDCCD Cleaning Standards

SDCCD defined the acceptable level of cleaning for district as a Level 2. At the start of the project they were consistently at a level 3 – 4. This underlined the need to improve the level of service.


San Diego Community College District (SDCCD)

SDCCD Cleaning Standards – Levels 1 & 2


San Diego Community College District (SDCCD)

Custodial Load Level – Finding the Balance

Identify the type of space use and the finishes used within the space to identify the base cleaning factor for that space type.


San Diego Community College District (SDCCD)

Assign Cleaning Time Based on Space

Calculate the time to clean based on the assignable square footage and the base cleaning factor.


San Diego Community College District (SDCCD)

Summarize Head Count Requirements

With all buildings added, the total required HC for Level 2 Cleaning at San Diego Mesa College is 26.

The space is then summed from room up to building and then up to campus. • This leads to a qualitative method to determine the proper HC requirements • Enables the supervisor to develop project teams to tackle larger projects that require more man power and are outside the daily cleaning requirements


San Diego Community College District (SDCCD)

MBWA Implementation Began by implementing Management by Walking Around (MBWA) to track building scores. The indicator of success for this phase was simply number or percentage of MBWA inspections completed over time.


San Diego Community College District (SDCCD)

MBWA Implementation The first goal of the was to inspect all buildings consistently.


San Diego Community College District (SDCCD)

Trend by Discrepancy: Campus Example

Each week, the top discrepancies are identified.


San Diego Community College District (SDCCD)

Discrepancies

Discrepancy Trend Over Time: Campus Example

Work Week


San Diego Community College District (SDCCD)

Reviewing the MBWA Data

• Each month a query is run, and an MBWA query book is stored on a shared drive for the supervisors to view. • The book contains charts and tables for identifying the highest and lowest deficiencies.


San Diego Community College District (SDCCD)

What Information Is Tracked? • Highest Deficiencies by Discrepancy & Overall Average

• Highest Deficiencies by Building & Lowest Deficiencies by Building


San Diego Community College District (SDCCD)

Projected Increase of Custodial Headcount • In March 2011 Step Function FMC gave its final report on increasing custodial headcount to meet the needs of our growing district. • They suggested SDCCD remain custodial headcount neutral until 6/2012. • Using a base of 20,000 square feet per custodian carrying a beat (adjusted headcount), Step Function suggested SDCCD steadily increase the beat size and adjusted head count until reaching 117 custodians carry 25, 000 square feet per beat in 2016. • This would account for the removal of old buildings while attending to the needs of the newly constructed buildings. • This formula did not take into account attrition.


San Diego Community College District (SDCCD)

Projected Increase of Custodial Headcount • In March 2011 Step Function FMC gave its final report on increasing custodial headcount to meet the needs of our growing district. • They suggested SDCCD remain custodial headcount neutral until 6/2012. • Using a base of 20,000 square feet per custodian carrying a beat (adjusted headcount), Step Function suggested SDCCD steadily increase the beat size and adjusted head count until reaching 117 custodians carry 25, 000 square feet per beat in 2016. • This would account for the removal of old buildings while attending to the needs of the newly constructed buildings. • This formula did not take into account attrition.


San Diego Community College District

Lean Enterprise Integration Through the Facility Life Cycle

Questions? Richard Burkhart Construction Manager rburkhar@sdccd.edu (619) 388‐6456

Donn Betz Director, Facilities Services dbetz@sdccd.edu (619) 388‐6422

Charlie Williams Business Process Supervisor chawilli@sdccd.edu (619) 388‐6422


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