Creating a Continuous Improvement Culture in Facilities Management Sean Schuller, Asst. Director Pro

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Creating a Continuous Improvement Culture in
Facilities ManagementSean Schuller, Asst.
Director Process Development NCCI Conference
June 2009
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Presentation Overview

• Setting the context
• Overview of Facilities Management (FM)
• Drivers for change
• Improvement strategy
• Data-driven
• Multiple quality tools
• Lean/Kaizen implementation
• Phase 1 Demonstration of the Process
• Phase 2 Sustainment of Improvement Efforts
• Phase 3 Culture Transformation
• Next steps and lessons learned

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Facilities Management Overview

• 1,100 employees
• Maintenance
• Custodial
• Landcare
• Energy
• Operating and maintaining 23 million square feet
  of space in 250 buildings
• Caring for 900 acres

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Facilities Management Structure

• Twin Cities Roles
• Energy Management
• Utilities Steam production all utilities
  distribution performance
• Engineering Owners technical SME providing
  analysis, solutions, energy conservation
  projects, and building standards
• District Services Maintenance, Custodial,
  Property Services
• Central Services Landcare, Waste, FM Service
  (internal labor pool), Sign and Elevator shops
• System-wide Roles
• BSAC (Building Systems Automation Center)
• Engineering Design review, analysis, decision
  support

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What are we working to achieve?

• Customer-focused organization- In our
  communications and service delivery
• Cost effective and quality service- Competitive
  cost that provides good value
• Culture of accountability- In our own
  performance and productivity

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Drivers for Change Transformation

• University-wide Challenges
• University strategic positioning goal
• Administrative productivity initiative
• New budget model
• FM Operations Challenges
• Quantifying and communicating results
• Focusing improvement efforts
• Building a culture of accountability
• NEW CHALLENGE BUDGET!!

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FM Transformation Timeline
Phase I Customer-Focus 2006 - 2008
Phase II Cost-Effectiveness2008 2010
Phase III Culture of Accountability2010 2011
Complete

• Complete Pillar Project Charters (June 2008)
• Finalize Business Cases (December 2008)
• Determine Sub-Team Scope, Structure and
  Deliverables (January 2009)
• Launch Implementation Teams (February 2009)
• Pilot Implement Recommendations (2009-2010)

• Sustain Phase I II activities
• Integrate into FM culture
• Develop a culture of accountability and
  continuous improvement

• Launch Action Teams (January 2006)
• Complete Phase I Recommendations (June 2006)
• Launch Implementation Teams (August 2006)
• Launch New District Structure (January 2008)

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How are we Transforming FM?

• Phase I Customer Focus
• Property Services Team approach
• Easy to work with - Single Points of Contact
• Support customers - Service Level Agreements
• Phase II Cost-Effectiveness (Pillar Projects)
• Solve FMs budget challenge
• Target cost-savings opportunities
• Reduce costs to colleges and other units

Complete
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Topic 1 Improvement Strategy
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Balanced Scorecard (BSC) Approach to Strategy
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How do we support the Us Strategic Goal?
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Strategic Objectives on a Strategy Map

• Highlights the most important objectives for each
  BSC category
• Shows linkages between objectives

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Strategy Map Uses

• Communicate priorities
• Customers/Stakeholders
• Staff
• Plan work
• Initiative planning
• Unit work plans
• Budget priorities
• Align staff
• Performance management

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Strategic Planning Continual Cycle
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How do you decide where to focus improvement
efforts?

• Focus on Business Drivers
• People
• Space
• Energy
• Focus on Strategy
• Data-Driven Decisions
• Clarify Expectations and Measure Performance

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Quality Tools Applied to BSC framework
Tools Used

• Process
• Scorecard/Monthly Review
• Lean/Kaizen Events
• People
• Performance Management
• Financial
• Business Cases
• Project Plans
• Customer
• Benchmarking

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Tool Performance Scorecard

• Identified outcomes that measure progress
• Set targets

Results

• Operational improvement
• Created alignment of staff to focus on measures

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Tool Monthly Operating Reviews (MOR)

• Track trend information for each measure
• Review monthly

Results

• Focused improvement efforts
• Increased accountability

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Tool Lean Kaizen Events

• Use for less complex process changes
• Cross-functional teams

Results

• Quick process improvement (1-5 days to complete)
• Empowers staff to make decisions (culture change)
• Involvement from deep in the organization

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Performance Management

• Align FM goals with individual expectations
• Formal reviews
• Individual development plans

Results

• Culture change from anecdotal information
  (stories) to facts (data-driven)
• Culture change from status quo to continuous
  improvement

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Tool Business Cases Project Plans

• Project funding requests
• Process changes

Results

• Ability to compare and evaluate projects
• Use of pilot projects to test new processes

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Example Project Maintenance Pillar

• Project Description/Goal
• Create a maintenance strategy that balances asset
  maintenance, service levels and budget
  requirements to achieve recurring cost savings.
• Guiding Principles
• Criticality based reliability focus on making
  sure the most critical equipment (ex FLS, RAR)
  operates the most reliably
• Minimizing total asset lifecycle cost align PM
  activities with cost savings potential
• Customer communication inform customers about
  service level changes

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Example Project Custodial Closet Pilot

• Safer, More Organized Closets
• Increased Productivity
• Reduced Process Steps
• 80 Reduction in Process Time
• Restocking Cycle Shortened 75
• Sustainability
• Fewer Trucks on Campus Reduced Trips
• Increased Control over Product and Waste
• Improved Reporting
• Usage Data on Specific Closets
• Delivery Tracking

Before
After
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Tools Benchmarking

• Internal
• Year on year performance
• Comparison between departments
• External
• Performance to industry
• Comparison to peers

Results

• Evaluate performance from multiple perspectives
• Raise performance expectations

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Topic 2 Lean Kaizen Implementation
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Phase 1 Demonstration
Goals

• Proof of concept
• Test on one or more visible issues
• Showcase success by improving the process
• Achieve buy in from staff and management
• Identify issues
• Change management
• Resources for support and sustainment

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Phase 1 Demonstration
Process

• 3 week-long events
• Used external resources to lead
• Involved a variety of staff
• Structure
• Preparation (3 weeks in advance)
• Event (5 days)
• Report out to leadership (1 hour)
• Sustainment (30-day actions)

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Phase I Kaizen Methodology
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Phase 1 Demonstration
Results

• Validated the process
• Quick implementation
• Achieved buy in from staff and leadership
• Documented old and new processes
• Empowered staff
• Generated new ideas from those that use the
  process
• Drove decision making to lower levels of the
  organization

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Example Project Financial Reports

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Current State 3 Reports To Track Financial
Alignment
Example Project Financial Reports
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Variances highlight areas needing team leader
evaluation
Example Project Financial Reports
Future State Created Simplified New Report
Simplified and Functional
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Sustaining Actions
Example Project Financial Reports

• Standard Work
• Rollout Plan
• Information Plan
• Training Plan
• Audit Plan
• Process Tracker
• Support Expectations
• 30 Day Action List

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Phase 2 Sustainment
Goals

• Build in house capability
• Phase out external resources
• Expand internal capability beyond normal go to
  individuals
• Identify how to select improvement projects
• Link to strategic objectives
• Create a focal point for improvement efforts

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Phase 2 Sustainment
Process

• Trained internal project leaders
• Used external resources to transfer knowledge to
  internal staff
• Selected staff from multiple areas of the
  organization
• Structure
• Two week training focusing on point event
  capability
• Learned fundamentals of lean and kaizen
• Completed an event during training to solidify
  knowledge
• Created expectations for future events

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Phase 2 Sustainment
Results

• Trained multiple leads capable of leading
  projects
• Set up a continuous improvement focal point
• Created standard documentation
• Identified central repository for documented
  processes
• Scheduled future events to solidify knowledge and
  continue improvement efforts

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Example Project Capital Project Intake Process
Process

• Led by internal resources
• 2-day point event
• Brought together cross-functional team to solve
  an ongoing problem

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Example Project Capital Project Intake Process
Results

• Documented previously unwritten and undocumented
  processes
• Increased awareness of the function and value of
  all roles
• Broke down silos within and between departments
  and divisions
• Created a new process that was more consistent

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Next Steps

• Kaizen Phase 3 - Integrate continuous improvement
  efforts with other processes
• Implement Business Intelligence (BI)
• Better reporting and analysis capability
• Increased access to the data by the people who
  need it
• Real-time information
• Convert to an Electronic Performance Management
  System
• Increased efficiency
• Permanent storage and retrieval capability
• Improved consistency in evaluation

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Lessons Learned, Observations Recommendations

• Leadership support at the right level is
  critical.
• Start simple and improve over time.
• Commit to a regular schedule to review
  performance.
• Allow risk taking by individuals to encourage new
  approaches to improve.
• Some level of personal accountability will be
  needed to drive and sustain improvements.
• Stay committed start simple, build on success
  and sustain the effort!

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Contacts for additional informationWeb
www.facm.umn.eduEmail Sean Schuller
schu0196_at_umn.edu
Thank you!
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