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
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
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) [email protected]
Roger BilasPresidentThe Bilas Group, LLC(440) [email protected]