Slide 2 Capture the Spending Champion/Define Presentation Phase
Slide 3 Project Alternatives Probability of Success Customer
Satisfaction Time to Completion Impact on Budget = #1 - Increase
completed work orders while reducing staff in 12 weeks. 6661028 #2
- Capture all spending on work order system in 12 weeks. 108 836 #3
- Confine Customer moderate and low survey results to.03% in 12
weeks. 8108632 Slide 4 Business Case Capture All Spending on Work
Order System in 12 Weeks The Facilities Department is about 12%
over budget and needs to improve for next year. Controlling waste
in materials ordering has been an issue for a few years and the
current budget crisis is a good time to apply the technique of
reducing waste to near zero. The team assigned to investigate and
reduce the waste will be able to make their contributions alongside
their daily task because they already handle the tasks that are
associated with the Facilities department materials budget. The
flow of spare parts and replacement equipment into institutional
and commercial facilities is constant. But in too many cases,
maintenance and engineering departments manage these materials
inefficiently. The result is wasted money and time (from
facilitiesnet.com contributor Andrew Gager Nov 2010).
http://www.facilitiesnet.com/materialhandling/article/Inventory-CMMS-
Captures-Critical-Data12096
http://www.facilitiesnet.com/materialhandling/article/Inventory-CMMS-
Captures-Critical-Data12096 Slide 5 Problem Statement The
facilities work order system is great at capturing work requests
and processing them into informative work orders and tracking the
work order data for regulatory purposes, but the materials
management system has never been fully implemented. Materials are
still ordered in irregular quantities when they are requested or
when stock is empty. The unrefined process exploits the purchasing
gaps and pricing. This particular budget year materials management
dumped $113,000 worth of charges that rolled over from previous
year onto the Facilities Department for reimbursement. The
facilities budget cannot sustain that much delayed liability. All
of those charges should have already been tracked in the CMMS
system so they could have been paid and attached as an appropriate
and justified expense. Slide 6 Project Objectives: 1.Track all
materials purchases in the work order system. 2.Reduce materials
costs with complete tracking and planned purchasing. 3.Provide cost
improvement to the Facilities department budget. Goal Statement:
Improve Facilities Service value through 5% reduction of materials
process waste as tracked in the work order system in 12 weeks.
Project Deliverables: 1.Transition to complete tracking of material
purchases. 2.Reduced materials cost through informed and planned
purchases. 3.Transition from primarily reactive to primarily
proactive procurement. Slide 7 StakeholderProject
RelationshipCommunication CFOKey CustomerReport progress
CEOLeader/SponsorUpdate and consult Purchasing ManagerResource/Team
MemberMeet with regularly Facilities ManagerLeader/Process
OwnerLeads regular meetings CMMS Super userTeam MemberMeets
regularly UsersTeam MemberMeets regularly Stakeholder Analysis:
Slide 8 SuppliersInputsProcessOutputsCustomers CFOImprovement
points Transition the CMMS to capture materials. Verifies
improvementCFO CEOAdvisesAlignmentCEO Purchasing ManagerProvides
dataVerifies informationPurchasing Manager Facilities
ManagerCoordinates effortVerifies completionFacilities Manager CMMS
Super userProcesses dataVerifies progressCMMS Super user
UsersProcesses dataVerifies processUsers Slide 9 Voice of the
Customer Using Strength, Weakness, Opportunity, and Threat Analysis
The issue with materials came in the form of reactive notices of
budget variance from the CFO as well as the update and transfer of
materials charges from the Purchasing Manager. The CMMS Super user
oversees the work orders and inconsistent materials tracking so
that is a good place for proactive data collection. The primary
weakness is obviously and verified as inconsistency in materials
tracking. A primary strength is that the necessary tools are
already in place. The opportunity lies with the fact that the users
already handling the required information. It is agreed that
complacency about transitioning the system can continue to threaten
the process. Slide 10 Slide 11 Rough ROI Numbers It is estimated to
cost approximately $1700 in additional hours for the Project team
and users primarily in training and meetings. The benefits will be
ongoing and are estimated to be 5% of the materials budget the
first year or $6600.
