Title: Creating a Continuous Improvement Culture in Facilities Management Sean Schuller, Asst. Director Pro
1Creating a Continuous Improvement Culture in
Facilities ManagementSean Schuller, Asst.
Director Process Development NCCI Conference
June 2009
2Presentation 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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3Facilities 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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4Facilities 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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5What 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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6Drivers 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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7FM 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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8How 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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9Topic 1 Improvement Strategy
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10Balanced Scorecard (BSC) Approach to Strategy
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12How do we support the Us Strategic Goal?
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13Strategic Objectives on a Strategy Map
- Highlights the most important objectives for each
BSC category - Shows linkages between objectives
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14Strategy Map Uses
- Communicate priorities
- Customers/Stakeholders
- Staff
- Plan work
- Initiative planning
- Unit work plans
- Budget priorities
- Align staff
- Performance management
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15Strategic Planning Continual Cycle
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16How 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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17Quality 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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18Tool Performance Scorecard
- Identified outcomes that measure progress
- Set targets
Results
- Operational improvement
- Created alignment of staff to focus on measures
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19Tool Monthly Operating Reviews (MOR)
- Track trend information for each measure
- Review monthly
Results
- Focused improvement efforts
- Increased accountability
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20Tool 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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21Performance 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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22Tool 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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23Example 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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24Example 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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25Tools 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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26Topic 2 Lean Kaizen Implementation
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27Phase 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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28Phase 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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29Phase I Kaizen Methodology
30Phase 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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31Example Project Financial Reports
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32Current State 3 Reports To Track Financial
Alignment
Example Project Financial Reports
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33Variances highlight areas needing team leader
evaluation
Example Project Financial Reports
Future State Created Simplified New Report
Simplified and Functional
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34Sustaining Actions
Example Project Financial Reports
- Standard Work
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- Rollout Plan
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- Information Plan
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- Training Plan
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- Audit Plan
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- Process Tracker
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- Support Expectations
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- 30 Day Action List
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35Phase 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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36Phase 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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37Phase 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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38Example 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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39Example 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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40Next 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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41Lessons 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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42Contacts for additional informationWeb
www.facm.umn.eduEmail Sean Schuller
schu0196_at_umn.edu
Thank you!
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