FY02 ASA Presentation Provide Scientific Equipment Services Presented by: Johnny Robbins (Team Leader) Team Members: Annalie Burke John Baron John Olguin

18

FY02 ASA Presentation

Provide Scientific Equipment Services

Presented by: Johnny Robbins (Team Leader)

Team Members:Annalie BurkeJohn BaronJohn OlguinJames SullivanDonna Bowe Mary DukehartDave Siecker

Office of Research ServicesNational Institutes of Health

18 November 2002

2

Table of Contents

Main PresentationASA Template ……………………………….………………………………. 4Customer Perspective……………………….………………………………. 5

Customer Segmentation …………………….…………………………………… 6Customer Satisfaction……………………….……………………………………. 7Unique Customer Measures………………………………………………………. 8

Internal Business Process Perspective…………………………………… 9 Service Group Block Diagram………………………………………………….. 10Conclusions from Discrete Services Deployment Flowcharts……………… 11Process Measures………………………………………………………………. 12

Learning and Growth Perspective…………………………………………. 13Conclusions from Turnover, Sick Leave, Awards, EEO/ER/ADR Data……. . 14Analysis of Readiness Conclusions…………………………………………… . 15Unique Learning and Growth Measures……………………………..16

Financial Perspective………………………………………………………. 17Unit Cost…………………………………………………………………………… 18Asset Utilization…………………………………………………………………… 19Unique Financial Measures…………………………………………. 20

Conclusions and Recommendations……………………………………… .21Conclusions from FY02 ASA..…………………………………………………… 22Recommendations………………………………………………………………… 23

3

Table of Contents

AppendicesASA 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

ASA Template - 2002

Customer Value Proposition

Team Leader

Scientific Equipment and Instrumentation Branch

DS5:

Discrete Services

Service Group

Maintain scientific equipment and workstations

Customer Intimacy Sustain

Provide flexible, timely, and cost effective scientific technical services, equipment and parts to support the NIH research community to enhance research efforts

Design and fabricate custom instruments

Lease and sell Scientific Equipment

DS6:

Stock and sell repair parts and fabrication materials

Product Leadership Harvest

Johnny Robbins

Operational Excellence Growth

Service Strategy

Team Members

John Olguin, John Baron, Annalie Burke, Mary Stevens, Dave Siecker, Donna Bowe

X

X

ASA Template

5

Customer Perspective

6

DS1: Customer SegmentationFY 01 and FY 02

Lease income is relatively consistent from year to year

DS1: Leased Equipment Income

0100000200000300000400000500000600000700000800000

AF

IP

CC

FD

A

NC

I

NE

I

NH

GR

I

NH

LB

I

NIA

NIA

AA

NIA

IDN

IAM

S

NIC

HD

NID

CD

ND

CR

NID

DK

NIM

H

NIN

DS

OR

S

NID

A

OT

HE

IC

FY01

FY02

18

DS1: Sale of Lease Equipment

$-$20,000

$40,000$60,000$80,000

$100,000$120,000

$140,000$160,000

CC

FD

A

NC

IN

EI

NIA

NIA

AN

IAID

NIA

MN

ICH

D

NID

CD

NID

CR

NID

DK

NIM

HN

IND

S

OR

SN

HLB

I

FY01

FY02


Sales fluctuate each year depending upon the ICs budget and focus

18

DS2: Customer SegmentationFY 01 AND FY 02

The IC usage has increased from FY 01 to FY 02

DS2: Computer Repair Section

0

100

200

300

400

500

600

700

800

900

NCI CC NHLBI ORS NIAID OD OTHERS

FY01

FY02

18


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.

DS 2: Laboratory Equipment Repair

0

200

400

600

800

1000

1200

1400

ORS OD NINDS NIDDK NICHD NIAID NHLBI NCI FDA CC Others

FY02

FY01

18


Sale of equipment is highly dependant on the ICs equipment budget.

DS3: New Equipment Sales Income

$-

$200,000

$400,000

$600,000

$800,000

CC

NC

IN

EIN

HG

RI

NH

LBIN

IAN

IAAAN

IAIDN

IAMS

NIC

HD

NID

AN

IDC

DN

IDC

RN

IDD

KN

IMH

NIN

DS

NIN

RO

RS

NIEH

S

IC

FY 01

FY 02

18

DS4: Customer SegmentationFY 01 AND FY 02

DS4: Stockroom Transactions by IC

0

100

200

300

400

500

600

700

800

900

1000

FY 2001

FY 2002

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.

18


Design and Fabricate Custom Materials

Business can fluctuate due to long term projects that may cross fiscal years

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

FY-01 FY-02

CC NCI NHLBI NICHD NIMH ORS All Other

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

18

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

Service Group: Provide Scientific and Technical Instrumentation Services

Date: 10/18/02 Participants: ASA Team

Request for service

or equipmentProcess order

Provide service orequipmen

t

Invoice

18

DS 1 & 3: Lease and Sell Scientific EquipmentDate: 10/13/02 Participants: ASA Team

SEIB Office StaffNHLBI

Procurement

SEIBProcurement

StaffSEIB Technical Staff

Receive request fromresearcher - sale (from

website) or rental (to staff)

Purchase?

Equipmentavailable?

Process throughDELPRO

Deliver equipment

Yes

No

Receive specialpurchase

No

Yes

Deliver equipment

Continuerenting?

Track rental and billmonthly

Yes

Buy out or pick up

Close rental or bill

Make purchase

Withinpurchasingauthority?

Make purchaseNo

Yes

No

Process Map DS1 & DS3

18

DS 2: Maintain Scientific Equipment and WorkstationsDate: 10/18/02 Participants: ASA Team

VendorSEIB Office Staff Supply StaffSEIB Procurement

StaffSEIB Technical

Supervisors/Staff

Receive request forservice from customer or

over website

Issue work request

In-house? (W/inscope, cost-

effective, staffavailable)

Engage vendor

Perform repair

Invoice bill andclose job

Assign totechnician

Parts needed?Parts in stock?

Perform repair

Inspect work

Notify requestor

Order/receive parts

Return totechnical staff?

Return to customer

Bill SEIB

Provide parts

Yes

Yes

Work OK?

YesNo

No

No

No

A

Yes

A

A

Inspect work

No

Work OK?

Yes

Yes

No

Process Map DS2

18

DS4: Stock and sell repair parts and fabrication materialsParticipants: ASA Team Date: October 18, 2002

SEIB OfficeStaff

SEIBProcurement

StaffSEIB Supply Technician

Customer(SEIB Tech, IC

staff)

Item in stock?

Customer hasJob # or CAN?

Check status ofitem

Yes

On order?Place emergency

order

Follow up order

No

Enter request incomputer

Customer receivesorder

Enter into AdminData Base

Inventory MgmtSystem

No

Yes

Create Job

Requests StockRoom item

No

Receive order

Yes

Requestor isSEIB tech?

Notify requestor

Documenta-tion of order on

hand?No

YesYes

No

Bill

Process Map DS4

18

DS 5: Design and Fabricate Custom InstrumentsDate: 10/18/02 Participants: ASA Team

SEIB Office StaffSEIB Technical

Supervisors/StaffSupply StaffVendorSEIB Procurement

Staff

Yes Yes

No

No

Work OK?

Bill SEIB

Work OK?

Inspect work

In-house? (W/inscope, cost-

effective, staffavailable)

Order/receive parts

Inspect work

Assign totechnician

Parts in stock?

Engage vendor

A

Manufacture

Fabricate

Provide parts

Receive request forservice from researcher,

over website, etc.

Prepare costestimate

A

Yes

Estimateapproved byresearcheror IC A/O?

Yes

A

Invoice bill andclose job

No

Cancel

No

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.

18

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

18

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

572 12 2 0.16 307 25 11 0.89 0 0.00 4 0.32 0 0.00572B 12 0 0.00 601 50 6 0.50 0 0.00 1 0.08 0 0.00572C 6 1 0.18 163 29 0 0.00 0 0.00 0 0.00 1 0.18572D 7 0 0.00 742 111 7 1.05 0 0.00 0 0.00 0 0.00572E 5 0 0.00 178 36 4 0.80 0 0.00 1 0.20 0 0.00

Service Group 31

Total42 3 0.07 1991 48 28 0.67 0 0.00 6 0.14 1 0.02

14

• The number of awards increased from 28 to 35 when we added the awards that were processed in July 2002.

• 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

18

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

18


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.

18


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.)

18


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.

18


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

18

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 2003.

Meet with quality assurance representatives to request advice on the proper information required for certification – December 2002.

Recommendations

18

SEIB REVENUE BY DISCRETE SERVICES FY 1999 THROUGH FY 2002

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

FY-1999 FY-2000 FY-2001 FY-2002

Parts and Materials Sell Scientific EquipmentMaintain Equipment Lease EquipmentDesign and Fabricate Instruments

18

SEIB BILLABLE HOURS BY SECTION FY 1999 THRU FY 2002

• This is directly attributed to a decline in customer retention.

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

FY-1999 FY-2000 FY-2001 FY-2002

ElectronicsLab EquipDesign/Fab

18

CUSTOMER RETENTION

Revenue from SEIB's Top Customers - 2000 - 2002

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

Top Customer #2 #3 #4 #5 #6 #7

FY-00

FY-01

FY-02

18

Appendices

18

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

18

Scatter DiagramFY02 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.

6.50

6.75

7.00

7.25

7.50

7.75

8.00

8.25

8.50

8.75

9.00

9.25

9.50

9.75

10.00

6.50 6.75 7.00 7.25 7.50 7.75 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00

Satisfaction

Imp

ort

an

ce

SATISFIED,IMPORTANT

Cost

Convenience

Availability

QualityTimeliness

Data based on 30 respondents

Reliability

Competence

Handling of Problems

Responsiveness

18

Radar ChartFY02 Product/Service Satisfaction Ratings

ORS Index = 8.27

8.40

8.28

8.48

7.42

1.00

4.00

7.00

10.00Cost

Quality

Timeliness

Reliability


Service Group Index = 7.99

8.74

7.74

8.52

6.53

1.00

4.00

7.00

10.00Cost

Quality

Timeliness

Reliability


18

Radar ChartFY02 Customer Service Satisfaction Ratings

ORS Index = 8.55

8.60

8.58 8.54

8.518.51

1.00

4.00

7.00

10.00Availability

Responsiveness

ConvenienceCompetence

Handling ofProblems


Service Group Index = 8.60

8.738.41

8.708.77

8.40

1.00

4.00

7.00

10.00Availability

Responsiveness

ConvenienceCompetence

Handling ofProblems


18

DS 1 Process MeasureAverage Turnaround Time for Rental Items - By Item

July - September 2002

2.08

1.91

2.33

0

0.5

1

1.5

2

2.5

July August September

Aver

age

days

18

DS:2 Process Measure Turnaround Time for Performing Repairs

FY 2001 and FY 2002

0

2

4

6

8

10

12

ADP/ELE LES

FY2001

FY2002

18

DS 3 Process MeasureTurnaround Time for Scientific Equipment Sales

July - September 2002

0

0.5

1

1.5

2

2.5

3

3.5

July August September

Ave

rage

day

s

18

DS1: Unit Cost Chart

Lease Scientific Equipment

0

500

1000

1500

FY 2002 FY 2003 FY 2004

Unit Cost

18

DS2: UNIT COST CHART

Maintain Scientific Equip and Workstations

132

134

136

138

FY 2002 FY 2003 FY 2004

Unit Cost

18


Sell Scientific Equipment

0

1000

2000

3000

4000

FY 2002 FY 2003 FY 2004

Unit Cost

18


Stock and Sell Repair Parts

7.90

8.00

8.10

8.20

8.30

FY 2002 FY 2003 FY 2004

Unit Cost

18


Design and Fabricate Custom Instruments

050

100150200250300

FY 2002 FY 2003 FY 2004

Unit Cost

Documents

FY02 ASA Presentation Provide Scientific Equipment Services Presented by: Johnny Robbins (Team Leader) Team Members: Annalie Burke John Baron John Olguin