I LEARN – Implement Lean Educational Administration

Right Now!

Applying Lean Thinking to Educational Administration

Metropolitan Campus Eastern Campus Western Campus

Unified Technologies Center Corporate College West

Tri-C: Where Future’s Begin

CCC Structure

• Administration

• Workforce and Economic Development Division

• Academic and Student Affairs

• Finance and Business Services

Finance & Business Services (FBS)Piecing it all together…

Finance- Accounts Payable- Budget- Cash Management- Financial Reporting- Foundation- General Accounting- Grants- Payroll- Student Accounting

Plant Operations- Building & Grounds- Construction- Risk Management

Business Services(Internal Focus)

- Auto Fleet- Mail- Procurement- Quality- Receiving- Reprographics

Auxiliaries(External Focus)

- Book Centers- Business Offices- Childcare- Food Services

Public Community College Revenue and Sources 1993-2001

• Revenue has grown by over 60% during this period– Sources of funds stable

05

1015

20253035

1993 1996 2000 2001

Bill

ions

of D

olla

rs

0

10

20

30

40

50

Per

cent

Revenue% Tuition% Fed% State% Local% Grants% Other

Source: Kantor Consulting

State of Ohio Support for Higher Education Is Weak

• Higher education’s share of state spending declined from 17% to 14% during the 1988-1998 period

• Ohio ranks 40th in the nation in public investment per full-time student

0

5

10

15

20

1973 1978 1983 1988 1993 1998 2000% State Spending

Source: Kantor Consulting

Public Community College Tuition by State – 2002/03

• U.S. average tuition for public community colleges: $1479

• OH is 76% higher at $2597– Seventh highest in the nation

0

1000

2000

3000

4000

5000

Dol

lars

NH VT SD OH PA KY MI WV IL U.S. TX LA NM

NHVTSDOHPAKYMIWVILU.S.TX

Source: Kantor Consulting

CCC and Competitor Tuition• CCC tuition and fees are

slightly lower than its community college competitors– All significantly higher than

national benchmark• CCC 2nd lowest tuition in

state

0

1000

2000

3000

4000

5000

6000

7000

Tuition and Fees

U.S. 02/03OH 02/03CCCComm Coll AComm Coll BRegional Univ

Source: Kantor Consulting

Sources of Revenue

0

10

20

30

40

50

% Tuition % Local % State % Fed % Grants % Other

Percent of Revenue from Sources -- CCC and U.S.

CCC 2001CCC 2004U.S. 2001

• CCC reliance on local sources significantly greater than national average

• States, on average, provide a much higher percentage of revenue than CCC receives

• CCC tuition percentage is below national benchmarks

Look atthe

difference!

Source: Kantor Consulting

Public College Expenses 1980-2001

• Expenses have more than quadrupled at both two and four year institutions– Growth at four year schools slightly greater than at two year– Two year percent of total constant over the period

020406080

100120140160180

1980 1985 1990 1995 1998 1999 2000 2001

Billi

ons

of D

olla

rs

Total2 Yr4 Yr

Source: Kantor Consulting

CCC Expenses

• Expenses grew at a rate of under five percent during the 1993-2000 period and a rate of over eight percent during 2000-2004

0

50

100

150

200

250

1993 1995 1997 1999 2001 2003

Mill

ions

of D

olla

rs

-4-2024681012

Per

cent

Cha

nge

Expenses% Change

Source: Kantor Consulting

I LEARN – Implement Lean Educational Administration

Right Now!

Applying Lean Thinking to Educational Administration

Lean – A Working Definition

• The systematic elimination of waste in a process or activity

• Making the right product or service at the right time in the right amount at the right place

Origins of Lean Thinking

• Toyota in Post WWII Japan• Inspired by Henry Ford’s production

system• Focused on low demand, high product

variation• Little capital available for inventory

Focus is on Waste Elimination

• What is Waste?Any activity that adds cost or time, but does not

add value to the product or service

Anything the customer is not willing to pay for!

Waste as a Percentage of Lead Time

Most of the lead time in delivering a product orservice is non-value added time or waste

About 5% of theTime is in Value Adding Processes

About 95% of the Time is in Non-Value

Adding/Waste Activities

The Eight Wastes

• Overproduction• Inventory• Motion• Waiting• Over processing• Transportation• Correction (defects)• Under-utilizing people

Lean Tools

VALUE STREAM MAPPING

5S WORKPLACE ORGANIZATION AND HOUSEKEEPING

STANDARD WORK/VISUAL CONTROLS

ERR

OR

PR

OO

FIN

G

TOTA

L PR

OD

UC

TIVE

MA

INTE

NA

NC

E

QU

ICK

CH

AN

GE

OVE

R

CEL

LULA

RPR

OC

ESSI

NG

PULL

SYS

TEM

S

CONTINUOUSIMPROVEMENT

LEAN PHILOSOPHY (Eliminate Waste and Employee Involvement)

Lean Example 1: Reprographics Shop

• Why Start with 5S and Standard Work?– Disorganized operations– Flow of work interrupted

and not smooth– Resources scattered in

many areas– Shop appearance to

customers not professional

Before

After

What is 5S?

• A Workplace Organization and Housekeeping System– Sort– Set in Order– Shine– Standardize– Sustain

Standard Work and Visual Controls

• Standard Work defines the most reliable work procedures and sequences for each operation– Work Instructions– SOPS

• Visual Controls are methods or devices that get the standard as close to the point of action as possible– Signs and labels– Color coding

Chartering the Event

• Defining the purpose• Making the business case• Setting objectives• Developing the scope• Identifying the team• Linking the effort to the individual

Making the Business Case• FBS Goals

– Each student/customer has a positive experience

– Deliver responsive, efficient, and cost effective support services

– Deploy performance excellence process

– Enhance resources available for core college initiatives

• Reprographics Objectives– Increase share of internally

generated print jobs to 90%– Reduce outsourcing by 50%– Improve on-time delivery– Reduce frequency of rush orders

College Goals

FBS Goals

Department Goals

Individual Goals

Daily Activities

The 5S Event

Show 5S Video

What is 5S ?

• Sort

• Set in Order

• Shine

• Standardize

• Sustain

Before

After

The First S: Sort

• Separate the good from the bad– Throw away obsolete– Move things not used within 1 month away

from work area– Red Tag questionable items (keep or throw?)

and segregate

The Second S: Set in Order

• Minimize motion through purposeful layout– 5S Map– Labeling– Visual Workplace

• Color code• Outline• Reorder points• Etc.

SPAGHETTI DIAGRAM!• A spaghetti diagram shows the

products’ route through the shop

Reprographic Spaghetti DiagramsBefore After

Set in Place

Re-examine those spaghetti diagrams!

At this point they should appear as road maps.

* Reduced maximum distance travelled to get ti li b f 60%!

The Third S: Shine

• Clean & Inspect on a regular basis– Housekeeping schedule:

what, how, who, when

– 5 minute shine

– Fix/ report problems

The Fourth S: Standardize

• Create Consistency– Visual Workplace

– Work Instructions & Procedures

– 3S Job Cycle Chart (who, what, how)

– 5-minute 5S

– 3S Audit Checklist

– Prevention & Elimination

VISUAL Workplace

By making visual cue indicators you create a communication device that tells you at a glance:

–When to order

–How work can be done

–Where supplies & tools belong

Visual Controls in Reprographics

Visual Workplace Tools• Lines on floor to show

– Equipment, Raw Material, Work In Process– Door Open Dotted Lines– Black/ yellow Safety– Yellow Diagonal = do not store here – Yellow Aisle Lines

• Labels & Signs• Tool Outlines• Color Code … (jobs?)• Inventory reorder points on shelves/ walls• Kanban cards

The Fifth S: Sustain

• Making this the way we do business–not an event

• Ways to keep 5S alive• Without this S, the effort will not last

Sustain Tools

• Monthly 5S Day• 5S Reward & Recognition• 5S Photo Exhibits• Semi-annual Red Tag and Sign Events• 1 Minute 1S per day• Become the “expert” in 5S at your college

or university.• Lead 5S events in other departments• Tours

5S Stats for Repro & Metro Mail• Threw out 45 x 1 yd dumpsters• Surplus 12 pallets old equip & supplies• Surplus/ Dispose > 50 pieces old furniture• > 30 Work Orders Completed• Cost = $29,200

• $60,600 Cost Avoidance– found supplies – discontinued unneeded services

• $125,000 Cost Avoidance – reduced total space by 24%

(1 work room 500ft@$100/ft &1 store room 1000ft@$75/ft)

Safety: The 6th S• 5S integrates nicely with Safety• Safety participation was invaluable

– Input to Set in Place• Pinch points• Repetitive motion• Heavy items on lower shelves

– Input to Standardize• Aisle width• Breaker box clearances• Door clearances

Unexpected Benefits of 5S Kaizen Blitz

• People engaged• Other Problems more

visible• Other FBS Learned

about repro• Developed teamwork

& trust• Learn by doing• A visible “win” NOW

Replication in Other Areas

• 5S in the child care centers• 5S in the mail rooms• 5S in the chemistry and biology labs and

lab prep areas

The 2nd Step – Value Stream Mapping

• Why do Value Stream Mapping in Reprographics Operation?– To identify and prioritize the next step in

improvement activities– Reduce the cycle time in delivering the

different product families to the customer– Increase share of college’s reproduction and

copy market - $2.6 million annual purchases

What is Value Stream Mapping?

• Map the flow of all activities for a product or product family– From beginning to end – Door-to-door– Visual representation– Material & information

• Develop current and future states with implementation plan

• Requires a Value Stream Manager

Value Stream Mapping Process

• Select the Product or Service to be Mapped

• Map the Current State• Create the Future State• Create an

Implementation Plan• Work the Plan!

Current State Drawing

Future State Drawing

Work PlanAnd

Implementation

Product/ServiceFamily

Reprographics Current State Value Stream Map

Paper Supplier -Daily shipmentsGraphic Designers

1xDaily

Receive/ReviewOrder

3 people

C/T: 1 to 5 min

Shifts: 1

Uptime: 100%

C/O: 0Scrap: 60%require add'l /corrected info

Production ControlMetro, Eastern,Western CampusGraphic Design

Typeset

1 person

Shifts: 1

Uptime: 100%

C/O: 0Scrap: 80%require rework

C/T: Bus Card - 5min, Forms 60min, Broch - 8hours

Send OutNegative

Outsource

C/T: 1-2 days

Shifts:

Uptime:

C/O:

Scrap:

Strip

1 person

C/T: 5 min

Shifts: 1

Uptime: 100%

C/O: 0

Scrap: 0

Plate

1 person

C/T: Paper - 5 minMetal - 10 minShifts: 1

Uptime: 100%

C/O: 0

Scrap: 0

I3 orders

I5 orders

I5 bus cards10 brochures

3 forms

I3 months

Daily to Suppliers as Needed

Daily or

As Needed

Dai

ly Daily

Daily

Daily

Cut

1 person

C/T: 2000-5000/hr

Shifts: 1

Uptime: 98%

C/O: 1 min

Scrap: 0

Press

2 presses (2 color)1 person

C/T: 6500-8000/hr

Shifts: 1

Uptime: 100%

C/O: 5 to 40 min

Scrap: 0

Press -Envelope

1 press1person

C/T: 6500-8000/hr

Shifts: 1

Uptime: 100%

C/O: 10 min

Scrap: 0

Cut

1 person

C/T: 2000-5000/hr

Shifts: 1

Uptime: 98%

C/O: 1 min

Scrap: 0

Bindery

1 person

Shifts: 1

Uptime: 100%C/O: Fold - 30-45min, Collate - 30miScrap: 0

C/T:Fold- 4-8-10K/hr, Glue - 2.5k/hr,collate - 500/hr

Mail

1 person

C/T: Broch-4000/hrLabels - 2500/hrShifts: 1

Uptime: 100%

C/O: 45 min

Scrap: 0

Ship

1 person

C/T: 5min(labeling)Shifts: 1

Uptime: 100%

C/O: 0

Scrap: 0

IEnv - 1 week at

press

IEnv 1 month at

wall

I3 month paper

stock

I1/4 cart WIP

IOdd lots - 2-3

shelf units

I4 carts WIP at

BinderyI

O WIP at Cut(Usually 2 carts)

IPrinted forms

4 shelves

IPrinted

stationary/Env

2XDaily9:30 & 1:30

Daily

Daily

Fax, Email, Phone CallDrop off, Inter Off Mail

Electronic Form

Reprographics FacilityCurrent State Value Stream Map

2-18-05

Reprographics Future State Value Stream Map

Paper Supplier -Daily shipmentsGraphic Designers

1xDaily

Receive/ReviewOrder

3 people

C/T: 1 to 5 min

Shifts: 1

Uptime: 100%

C/O: 0Scrap: 30%require add'l /corrected info

Production Control(Ann) Metro, Eastern,

Western CampusGraphic Design

Typeset

1 person

Shifts: 1

Uptime: 100%

C/O: 0Scrap: 40%require rework

C/T: Bus Card - 5min, Forms 60min, Broch - 8hours

Create Negative

1 person

C/T: 30 min

Shifts: 1

Uptime: 100%

C/O: 0

Scrap: 0

Strip

1 person

C/T: 5 min

Shifts: 1

Uptime: 100%

C/O: 0

Scrap: 0

Plate

1 person

C/T: 10 min

Shifts: 1

Uptime: 100%

C/O: 0

Scrap: 0

I3 months

Daily to Suppliers as Needed

Daily or

As Needed

Dai

ly

Cut

1 person

C/T: 2000-5000/hr

Shifts: 1

Uptime: 98%

C/O: 1 min

Scrap: 0

Press

2 presses (2 color)1 person

C/T: 6500-8000/hr

Shifts: 1

Uptime: 100%

C/O: 5 to 40 min

Scrap: 0

Press -Envelope

1 press1person

C/T: 6500-8000/hr

Shifts: 1

Uptime: 100%

C/O: 10 min

Scrap: 0

Cut

1 person

C/T: 2000-5000/hr

Shifts: 1

Uptime: 98%

C/O: 1 min

Scrap: 0

Bindery

1 person

Shifts: 1

Uptime: 100%C/O: Fold - 30-45min, Collate - 30miScrap: 0

C/T:Fold- 4-8-10K/hr, Glue - 2.5k/hr,collate - 500/hr

Mail

1 person

C/T: Broch-4000/hrLabels - 2500/hrShifts: 1

Uptime: 100%

C/O: 45 min

Scrap: 0

Ship

1 person

C/T: 5min(labeling)Shifts: 1

Uptime: 100%

C/O: 0

Scrap: 0

IEnv - 1 week at

press

IEnv 1 month at

wall

I3 month paper

stock

IOdd lots - 2-3

shelf units

I4 carts WIP at

BinderyI

WIP - One dayor less

IPrinted forms

4 shelves

IPrinted

stationary/Env

2XDaily9:30 & 1:30

Daily

Daily

Fax, Email, Phone CallDrop off, Inter Off Mail

Electronic Form

Create PolyPlate

1 person

C/T:30 min

Shifts: 1

Uptime: 100%

C/O: 0

Scrap: 0

Cross train people intypesetting

Improve communicationbetween graphic design

and reprographics facility

Purchase direct-to-platesystem to eliminate need to

send out negatives

Develop College-widestandards for printing - look

(templates) and quantity

Create and communicatedecision tree for mailings -

develop review process

Analyze job tickets todetermine demand by type Do pricing market analysis

Investigate root causes ofwhy 69% of reprographics

work goes outside

Investigate software whichcaptures all pertinent job

data

Put reorder forms insidejobs

Eliminate special deliveriesby coordinating with

logistics

Incorporate shipping labelinto request form

Implement numberingsystem for forms and

repeat items and requirefor ordering - includecommunication plan

Create electronic formscatalog for browsing and

ordering - make it printable

Standardize andcommunicate job

requirements to customers- educate customers on

new standards

Reprographics FacilityFuture State Value Stream Map

2-18-05

Future State Project Plan

Project Tasks

Task/Project Owner Target Date

Investigate root causes of why 69% of reprographics work goes outsideImprove communication between graphic design and reprographics facilityImplement numbering system for forms and repeat items and require for ordering - include communication planCreate electronic forms catalog for browsing and ordering - make it printablePut reorder forms inside jobsIncorporate shipping label into request formCross train people in typesettingEliminate special deliveries by coordinating with logisticsCreate and communicate decision tree for mailings - develop review process Investigate software which captures all pertinent job dataPurchase direct-to-plate system to eliminate need to send out negatives

Benefits of the Value Stream Mapping in Reprographics

• Identified and prioritized projects that would enable a one day turnaround on many products

• Reduced the copy centers from 3 to 1 for a $250,000 per year savings

• Initiated the Xerox IGEN project that should result in a $300,000 per year savings in operating costs while increasing market share at the College

The 3rd Step – Business Process Redesign Workshop

Improvement Target: The Cashier Process in the Business Offices

The Cashier Process Defined:To provide customer-focused services in a timely,

accurate, and professional manner that facilitate the payment process to help the student maintain good financial standing at the college

A Business Process Is…

Any activity or group of activities that takes an input, transforms it, and provides an output to an internal or external customer

Process

Sub-Processes

Activities

Tasks

Process

Sub-Processes

Activities

Tasks

Process

Sub-Processes

Activities

Tasks

Process

Sub-Processes

Activities

Tasks

Advising Financial Aid Registrar Business Office

Enrollment

Why Redesign the Business Office Processes

• Reduce the high rate of non-collectables• Improve cashier’s accuracy reducing

errors• Improve customer service, especially

during peak periods• Standardize processes across campuses

What is a Business Process Redesign Event?

• Combines process mapping with value stream mapping

• Makes waste visible for easy analysis and elimination

• Reduces functional mindset and encourages cross-functional cooperation

Benefits of the Process Redesign Workshop

• Developed specific, prioritized action plans to achieve objectives

• Initiated the creation of cross-functional teams to organize enrollment teams for one-stop registration

• Identified 2 critical policy issues to be addressed

In Summary

• Lean is applicable to higher education and administration

• Improvement must be based on a business need

• Results were similar to those achieved in other manufacturing and services industries

• The lean journey not only improved performance, it has begun a culture change in the areas exposed to it

I Learn – Implement Lean Educational Administration Right Now!

NQEC 2005

Clint Ewell Director, Business OperationsUniversity of New Mexico(505) 863-7507cewell@unm.edu

Roger BilasPresidentThe Bilas Group, LLC(440) 933-9818roger@thebilasgroup.com