Graphics/Mail Services/Warehouse Audit

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Graphics/Mail Services/Warehouse Audit
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Scope of AuditBegan Audit on December 8,
2005Completed May 1, 2006
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Audit TeamBrad Goldstein-Director of Business
ServicesMarcus Thimm-Director of Information
ServicesGayle Hilton-Secretary/Career Technical
EducationJeannie Sung-Principal/Liberty
ElementaryMelanie Meidel-Associate
Principal/South Elgin HSAl Flota-Associate
Principal/Elgin HSKathy Davis-Assistant
Principal/Abbott MS
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Process

• Set up interviews with staff and customers
• Monitor workflow by spending separate days
  viewing workflow and interviewing each staff
  member
• Analyze virtually every work order going through
  each entity
• Utilized Gordon Flesch Company, Inc. to analyze
  Graphics/Mail Services
• Gordon Flesch is a company that specializes in
  auditing and analyzing graphics departments and
  mail rooms

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Mail Services

• Incoming mail is estimated at 2,850 pieces per
  day
• Volume is not tracked therefore these are based
  upon estimates

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Mail Services

• Mail Services does not source backup staffing
  during short-term absences
• Temporary help is sourced to cover long-term
  absences such as medical leave
• Cross-training of staff has been performed within
  Mail Services. However, little cross-training
  has occurred between Mail Services and Graphic
  Services

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Mail Services

• Mail distribution is done twice a day internally
  at the Educational Services Center
• School Mail is divided into 3 routes and
  delivered by warehouse drivers on a daily basis.
  Routes are color coordinated with mail bags, and
  set up geographically to minimize distance and
  time for each route
• Mail routes are run in the morning, mail is
  collected and then picked up and dropped off at
  the school
• All the mail is then consolidated onto one truck
  for delivery to the Mail Services Center

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Mail Services

• There is no current Operations Manual for Mail
  Services
• There is no updated User Guide to let them know
  what services are available and how to request
  them

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Mail Services

• The current cost is approximately .15 per piece
  including inter-office mail
• This is based upon approximately 730,000 pieces
  of mail handled yearly with a budget of 109,727
  after chargebacks for postage

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Mail Services

• Graphics and Mail Services currently operate
  essentially as independent operations within the
  Educational Services Center, requiring a separate
  work area and separate staffs
• According to Gordon Flesch these areas do not
  work together consistently for their mutual
  benefit there is little sharing of labor
  resources or cross-training between the two
  functions.
• Labor sharing appears to occur during employee
  absences, and is not necessarily based on work
  volume in these areas.

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Mail Services

• Equipment Requirements
• According to the auditor the Mail Service
  Department is adequately supplied with equipment
  to efficiently process the outgoing mail stream
• Staffing
• Staffing in the Mail Services Department is at an
  appropriate level for the tasks performed and the
  volume of work according to the auditor
• Wages are high compared to the private sector
  according to Gordon Flesch

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Mail Services

• Processes
• Mail Services has effective processes in place
  for the operation
• Field Perception of Mail Services
• The U-46 employees located in the Educational
  Services Center generally have a positive
  perception of the Mail Services Department as
  indicated through customer surveys
• In general, the Mail Services Department is well
  regarded by the field. We did hear some negative
  comments during the interviews, but they were in
  the minority, and could be attributed to the
  routes coming to their schools early, thus
  delaying their mail by a day.

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Graphics

• Staffing
• 1 Desktop Publisher/Graphics Designer
• 1 DocuTech Operator
• 1 Copy/Binding/Finishing Clerk
• Cross-training
• Cross-training of staff within Graphic Services
  has been performed

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Graphics

• Copy/Print Request Form
• Graphic Services utilizes a 4-part carbonless
  Graphic Services Order Form. Each has its own
  job number that enables tracking through the
  production process and final billing
• There is no electronic request form or file
  submission software to facilitate placing
  requests over the network
• Design Services
• The Graphic Services Department also offers
  design services through two staff members

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Graphics

• Forms Inventory/Fulfillment
• The Warehouse maintains an inventory of these
  items. End users place an order through the
  requisition system
• When inventory is low the Warehouse creates a
  purchase order for the needed item. Graphics
  then decides if the order will be produced in
  Graphics, or sent to an outside vendor. In the
  past there was a volume/cost point that was used
  in the decision making process. However, since
  the offset printing equipment is no longer being
  operated most orders for letterhead, envelopes,
  and multi-part forms are sent to an outside
  vendor.

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Graphics

• Quality Control
• Other than the sign-off procedure for graphics
  design pieces, there are no documented quality
  control procedures to ensure accuracy during work
  production according to Gordon Flesch
• Operations Manual
• There is no current Operations Manual to document
  procedures and equipment operation. There are
  some written procedures that were developed as
  needed-some appear obsolete
• User Guide
• There is no updated User Guide to let end users
  know what services are available and how to
  request them

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Graphics

• Job Tracking
• Detailed information for each received print/copy
  request is manually entered into a master
  spreadsheet, including jobs that are sent to
  outside vendors

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Graphics Summary

• Graphics and Mail Services currently operate
  essentially as independent operations within the
  Educational Services Center. According to Gordon
  Flesch it would be beneficial to combine these
  operations and cross-train the staff to work in
  both areas.
• Equipment Requirements
• Based on stated volumes and provided descriptions
  of work, it would appear that the DocuTech copier
  is severely under-utilized both from a volume
  perspective and feature use. The desktop
  publishing features do not appear to be utilized.
  All employees submit their work in hard copy
  format, thus rendering this high volume digital
  production system as little more than a basic
  copier. It is currently running approximately
  300,000 copies per month, and according to the
  auditor, they should be running at least 750,000
  copies to be most cost effective.

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Graphics Summary

• Equipment Requirements
• According to the auditor, the Xerox 5100
  represents very old technology it is an analog
  machine that does not have the print quality,
  network capability or throughput enhancement
  features offered by todays digital machines
• Staffing/Wages
• Key information is not available that would aid
  an accurate determination of required staffing
  levels. Examples would be hours spent on
  graphics design work and finishing work
• Wages are high compared to the private sector
  according to Gordon Flesch

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Graphics Summary

• Effective Processes
• Graphics is lacking in some of the effective
  processes and characteristics normally associated
  with an efficient high volume production
  operation.
• It is Gordon Fleschs impression that the
  department focuses on graphic design services
  rather than production services. There are as
  many graphic designers as there are production
  personnel, There is no active production manager
  on the floor to drive the production process.
• The two graphic designers operate from different
  software platforms, causing dislocation rather
  than cooperation.

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Graphics Summary

• Internal Competition
• There are two internal competitors to the
  Graphics Department
• Bartlett and Elgin High Schools provide classes
  in Graphics through the Career and Technical
  Education program
• Many departments utilize these operations to
  fulfill their graphics needs
• We recommend that this use be analyzed and
  determine if it is an appropriate allocation of
  resources

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Graphics/Mail ServicesSummary

• Customer Surveys
• Feel that Graphics could do a better job of
  notifying the field as to what services it has to
  offer.
• Would like the ability to send Graphics work
  electronically.
• Turnaround times are deemed unacceptable by many
  departments, and therefore jobs are done
  internally.
• Many felt that their pricing was out of line with
  the open market.

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Graphics/Mail ServicesRecommendations

• Centralization versus De-Centralization
• During our analysis, we observed a combination of
  processes created to achieve the copying and
  finishing requirements of district
• A centralized Graphic Services department in the
  Educational Services Center
• Smaller print centers throughout the district
• Higher end copiers, usually found in production
  facilities, have been placed in some schools.

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Graphics/Mail ServicesRecommendations

• The recommendation is a mix of centralized and
  de-centralized with a set of procedures that
  defines what materials should be produced in the
  Graphic Services Department, and what specific
  production is to be retained at the schools.
• Examples of jobs that should be designated for
  Graphics Services would be
• Bulk Mailing Pieces
• Newsletters
• Menus
• Color Work
• Binding or Finishing Jobs

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Graphics/Mail ServicesRecommendations

• Service Center Consolidation
• The Mail and Graphic Services currently operate
  as independent operations within the ESC,
  requiring separate work areas and staffs. In
  keeping these entities separate, the departments
  are not benefiting from the increased
  efficiencies and cost savings that can be
  achieved through consolidation according to
  Gordon Flesch

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Graphics/Mail ServicesRecommendations

• A few benefits of this consolidation are
• Possible cost-savings through staff reduction
• Increased direct line-of-sight supervision
• Complete cross-training
• Increased capability to cover responsibilities of
  employees on sick or vacation leave.

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Graphics/Mail ServicesRecommendations

• Marketing
• Departments indicated they were not aware of all
  of the services offered by Graphic Services
• We recommend an increased push to market the
  services provided by Graphic Services. Awareness
  of the products and services provided will
  increase volume in the department
• Continued surveying should be conducted to
  determine the service performance levels and
  proactively identify areas of improvement

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Graphics/Mail ServicesRecommendations

• Effective Procedures
• Gordon Flesch did not observe sufficient or
  effective policies and procedures in the Graphics
  Services area.
• The recommendation is for a complete review of
  this area defining the staging process, job
  tracking, best practices and quality control
  process. These processes and policies should be
  documented and made available for employees
  reference.
• We also recommend the implementation of
  electronic submission for Graphics Services jobs.
  This would decrease the turn-around time to
  end-users.

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Graphics/Mail ServicesRecommendations

• Graphics Services Pricing
• In discussion with several schools, the general
  view is that Graphic Services pricing is too
  high. Schools believe they are able to perform
  their copying at a decreased cost
• We recommend a review of the pricing structure
  published by Graphics Services
• The current pricing is higher on most jobs
  produced at the schools
• Schools have a clerical person assigned to handle
  copying from 4 to 6 hours per day
• The pricing on copies ranges from .022 and .032
  per copy including labor according to Gordon
  Flesch

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Graphics/Mail ServicesRecommendations

• Graphics Services Pricing
• One of the reasons that schools have found it
  cheaper to do the jobs themselves is due to the
  current method of billing for copiers
• Currently copiers are paid for centrally, and
  therefore a school can run as many copies as they
  want without feeling the effect of increased
  costs
• Next year each school will be billed for the
  copies they make, therefore Graphics may actually
  may be less expensive, and thus see an increase
  in usage

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Mail/Graphics ServicesRecommendations

• Graphics Services
• It is necessary to have someone on the floor
  driving the work. Currently there is no one
  prioritizing the workflow.
• Current emphasis on design should be redirected
  to production
• DocuTech is currently running 250,000-300,000
  copies, the machine should be producing an
  optimum minimum volume of 750,000 copies
  according to the auditor

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Warehouse Audit

• Warehouse Functions
• Receive nearly all items from vendors with few
  exceptions
• Furniture moves/Rental
• Mail delivery
• Delivery of Board Packets
• Textbook Coding, Scanning and Distribution
• Warehousing of most used items 700 in all
• Graduation set up
• Back up for food service drivers

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Warehouse Audit

• Warehouse Functions
• Pickup of donations
• Disposal of large unusable items
• Coordination of Auctions
• Storage and delivery of food service items
  (cereal, spork kits, containers, etc.)
• Pick up and distribution of books for bindery
• Pick up and delivery of recycled items (light
  bulbs, computers, books)
• Handling returns to vendors

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Warehouse Audit

• Warehouse Major Projects
• Movement of Educational Services Center to and
  from South Elgin HS in 2004-05
• Delivery and removal of over 24,000 computers and
  peripherals in fall of 2005
• Moves for 114 teachers during the summer of 2005
• Summer school classroom movement for 20
  classrooms yearly
• Furniture moves for mobiles

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Warehouse Audit

• Fleet
• The warehouse fleet is in poor shape. An Age and
  Obsolescence Plan has been written but not
  implemented due to the pending nature of this
  audit.

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Warehouse Audit

• Inventory
• Total Inventory on hand as of March 3, 2006
  463,613
• Days inventory on hand 97
• Some factors to consider include
• Large purchase items are only brought in once a
  year such as bookcases, maps,

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Warehouse Audit

• Budget
• Budget for 2004-05 598,361
• Actual Costs for 2004-05 765,141
• Purchase orders processed per day 155
• Total dollar volume of POs per day 38,893
• Furniture moves per year 1367
• Budgetary variance largely due to employee
  medical expenses being charged to the warehouse
  as well as additional labor used to move to and
  from the Educational Services Center

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Warehouse Audit

• Most school districts have either reduced their
  warehouse, or eliminated it entirely.
• Rockford only warehouses commodities and forms,
  they also function as food service drivers.
• St. Charles eliminated warehouse. Have a van
  driver for mail. Grounds department handles
  equipment moves. Utilize old building to store
  old equipment.
• Naperville does not have a warehouse. Order in
  bulk at the beginning of year and have grounds
  distribute. Grounds also distributes textbooks.

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Warehouse Audit

• Major issues if warehouse were to be eliminated
• Coordination of furniture and classroom moves
• Difficulty in undertaking major projects such as
  distribution of AO for computers and peripherals
• Distribution and bar coding of textbooks during
  the summer would be difficult.
• If items were to be delivered directly to
  schools, the handling of receipts in our
  accounting system by the schools may make it
  difficult for vendors to get paid.

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Warehouse Audit

• Customer Survey
• Most respondents indicated that the warehouse was
  effective and efficient.
• Respondents also indicated they were very timely
  in their ability to fill orders with little rate
  of error.
• 88 indicated that they were either satisfied or
  extremely satisfied with the warehouse services.

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Warehouse Audit

• Options to improve efficiency
• Go from daily deliveries of goods to 3 days a
  week
• Reduce items available from warehouse. Have
  direct delivery of all office and schools
  supplies.
• Restructure the mail delivery to school buildings