DYNAMIC LEADERSHIP

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DYNAMIC LEADERSHIP

• Johnson Johnsons Excellence in Facilities
  Management Award (EFMA) Program
• October 4, 2005

Vince Pomparelli, Director of Corporate Facilities
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Global Presence
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Global Presence
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Founded 1886 New Brunswick, New Jersey In a
Former Wallpaper Factory
By three brothers with a dream thatJoseph
Listers theories about sterilization could save
lives in Americas hospitals
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• Johnson Johnsons WHQ is located in New
  Brunswick, New Jersey, about 40 miles southwest
  of New York City.
• Main company headquarters address One Johnson
  Johnson Plaza New Brunswick, NJ 08933
• Headquartered in New Brunswick for 118 years

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Corporate Facilities Scope

• CAMPUS SITES
• WHQ, 410 GS, 501 GS, CDC
• Kilmer Square
• 317 George St
• North Brunswick
• REMOTE SITES
• Washington D.C. Office (Govt Affairs)
• Riverview Guesthouse
• JJ Aviation
• Hyatt Hotel

Total square footage (Campuses) 2.2
million Total acreage 230 acresCustomers
served 2700
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Corporate Facilities Major Functions for New
Brunswick and North Brunswick Campuses

• Building System Maintenance Upgrade
• Construction Building Renovations
• Space Planning
• Custodial
• Grounds
• Energy / Utility Management
• EHS / ISO - 14001
• Executive Garage
• NBC Administrative Services Security
• Remote Site Support

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Excellence in Facility Management Award (EFMA)
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Objectives of the Award

• To encourage and recognize
• Johnson Johnson Affiliates who
• achieve World Class performance
• in Facility Management.

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The Need

• A well run and properly managed facility has a
  tremendous impact on meeting Johnson Johnson
  business goals and fulfilling all elements of Our
  Credo.
• -Robert J. Darretta Vice Chairman CFO

We must constantly strive to reduce our costs.
Working conditions clean, orderly and safe.
We must maintain in good order the property we
are privileged to use, protecting the environment
and natural resources.
New equipment must be purchased, new facilities
provided.
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EFMA Criteria
Commitment 1 or more category, from any
area Bronze 3 or more categories, one
must be from Big Three Silver 5 or
more categories, two must be from Big
Three Gold 7 or more categories, must
have all Big Three
Cafeteria Capital Custodial Grounds Mail Mainte
nance Security Utilities
Categories
Big Three
Must Pass
Award Level
Must pass Safety Environmental Criteria
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Performance Criteria

• Mail Capital
• Security Utilities
• Cafeteria Grounds
• MO Custodial

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Performance Criteria

• Quality
• Cost
• Customer Satisfaction

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Mail Performance Criteria

• Quality
• Rating of 90 or better
• Mail runs completed on time
• Accuracy of mail sorted
• Percent of Express and Non-Express packages
  delivered on time
• Annual training and development program
• Documented SOPs
• Signed and current contract
• Customer Satisfaction
• Rating of 4 or better
• Cost
• .01-.03/piece of mail

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Mail Performance Criteria (cont.)

• Cost
• Hours sorting per day X fully loaded average pay
  rate X average working days in month/number of
  pieces per month cost per piece of mail.
• The benchmark is between .01-.03/piece of mail.

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Security Performance Criteria

• Quality
• Incident reporting system
• Employee escort service
• Disabled car assistance
• Annual training and development program
• Documented SOPs
• Signed and current contract
• Formal recognition program
• Cost
• Fully loaded mark up of 65
• Customer Satisfaction
• Rating of 4 or better

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Cafeteria Performance Criteria

• Quality
• LWDC
• Commitment/Bronze/Silver lt/ 1 incident,
• Gold no tolerance
• No serious injuries
• Annual health inspection satisfactory rating
• Cost
• Published Subsidy commitment
• level tracked and not exceeded
• Customer Satisfaction
• 80 or better, 15 participation

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Capital Performance Criteria

• Quality
• Utilize JJ specification guidelines or
  equivalent
• Machine guarding, safety industrial hygiene
• 2004 compliant
• New equipment meets energy star criteria
• New equipment meets environmental and regulatory
  requirements
• Five year capital forecast for mechanical,
  electrical and architectural systems
• Major HVAC and electrical equipment pass field
  testing and commissioned
• Preventative maintenance or full maintenance
  program with new equipment

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Capital Performance Criteria (cont.)

• Cost
• New equipment purchased utilizing lowest
  life-cycle costing methodology with a 5 year
  horizon incorporating all energy and maintenance
  costs.
• New equipment meets best in class cost criteria
  and JJ guideline specs
• Equipment is factory tested to guarantee energy
  efficiency.
• Customer Satisfaction
• Equipment (purchased from strategic supplier) is
  delivered on-time, etc.
• Project Engineer requests level of satisfaction
  from contractors and engineers

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Utilities Performance Criteria

• Quality
• Documented plan to implement Energy Star enhanced
  best practices
• Current level of best practices completion
• Must be at least at 90
• Cost
• Electricity and Natural Gas -
• If deregulated
• Do you participate in a third party agreement?
• Or do you negotiate directly with provider?
• Third Party audit of bill (within JNJ okay)
• Note more details are available

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Grounds Performance Criteria

• Quality
• 93 on a minimum of 9 monthly inspections from
  3rd party auditor
• Cost
• Meet or exceed cost index (see Table 1)
• Customer Satisfaction
• Less than 10 validated complaints or issues
• Results of Customer Satisfaction Survey 80
  (minimum)
•  
•  

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Custodial Performance Criteria

• Quality
•  All determined through the Daniels third party
  audits
• 105 Average Performance Score on a minimum of 3
  audits annually.
• Cost
• Administrative Lab Space - 1.00/sq.ft.
• Manufacturing w/Cleanroom Space - 1.05/sq.ft.
• Manufacturing w.o./Cleanroom Space - .95/sq.ft.
• Warehouse - .90/sq.ft.

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Custodial Performance Criteria (cont.)

• Customer Satisfaction
• Less than 10 validated complaints/quarter
  (Service Desk).
• Results of Customer Satisfaction Survey 70
  (minimum)

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Maintenance Operations Performance Criteria

• Quality
• Annual JJ B Ps re-Assessment
  C,B S G
  performed with an overall score of
  gt45 gt60 gt75
• C,B,S G
• Planned Sched. Wk hrs/Total Wk hrs
  gt 80 gt 90
• Schedule Compliance
• Preventive Maintenance
  gt 80 gt 95
• Corrective Maintenance
  gt 70 gt 90
• Workload Profile established by Work Type
  (yes/no)
• For Preventive, Emergency, Corrective, Project
• Unplanned EM Work as a of Total
  lt 20 lt 5
• Work Order Discipline Percentage
  gt 90 gt 95
• Parts Stores Turnover gt 0.8 gt 1.0
  
• Stores Service Level gt 95 99
• To achieve the EFMA Gold level, a site must meet
  or exceed the World Class level of 75 in the JJ
  Best Practices Assessment scoring, with no score
  less than 60 in any of the four key areas.

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Maintenance Operations Performance Criteria
(cont.)

• Cost
• Facility Maintenance Cost/Square Foot
• C,B,S G
• Admin. areas lt 1.75 lt 1.50
• Misc. Other labs, computer lt 3.25
  lt 2.75
• rooms, general support areas
• OR
• An improvement in the above areas versus the
  previous year of gt 15

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Maintenance Operations Performance Criteria
(cont.)

• Customer Satisfaction (Optional)
• Customer Satisfaction Survey performed at least
  bi-annually Improvement in score versus previous
  year of gt 10
• A Customer complaint/tracking/follow-up system in
  place and operative
• Aligned with the Customer Satisfaction Survey
• Demonstrate that the system is used for
  corrective action

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Maintenance Operations Performance Criteria
(cont.)

• Facility Costs
• Facility Costs include
• Direct maintenance labor (fully loaded), parts
  and materials costs
• Outside contractor costs for maintenance support
  work not performed in-house
• Facilities Costs not included
• Grounds, cleaning, security and other costs not
  directly attributable to site and facilities
  maintenance
• Parts inventory carrying costs
• Depreciation

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Best PracticeManage like a Project
Security
Cafeteria
Mail
Site Coordinator
Custodial
Capital
Grounds
M0
Utilities
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JNJ EFMA Best Practices

• January Form a team
• Decide your strategy / Roles Responsibilities
• Which categories/award level do you want to
  achieve?
• Obtain Management Commitment
• Ongoing
• Meet monthly - check where you are against the
  criteria make adjustments
• Work with SS and suppliers
• Deploy Customer Satisfaction Survey
• Communicate to key depts.
• January March of following year Complete
  application

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General Suggestions

• Recognition of different facility types, e.g.
  manufacturing, office, warehouse, etc. to level
  the playing field and ensure fair and equitable
  award consideration across the various facility
  types
• Clearly define cost elements of each metric, i.e.
  what should be included and what should be
  excluded
• Share consistent responses to questions with ALL
  interested parties

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QUESTIONS?