FY02 ASA Presentation Provide Scientific Equipment Services

1
FY02 ASA Presentation Provide Scientific
Equipment Services

• Presented by
• Johnny Robbins (Team Leader)
• Team Members
• Annalie Burke
• John Baron
• John Olguin
• James Sullivan
• Donna Bowe
• Mary Dukehart
• Dave Siecker

2
Table of Contents

• Main Presentation
• ASA Template .. 4
• Customer Perspective.. 5
• Customer Segmentation . 6
• Customer Satisfaction..
  7
• Unique Customer Measures. 8
• Internal Business Process Perspective
  9
• Service Group Block Diagram..
  10
• Conclusions from Discrete Services Deployment
  Flowcharts 11
• Process Measures. 12
• Learning and Growth Perspective.
  13
• Conclusions from Turnover, Sick Leave, Awards,
  EEO/ER/ADR Data. . 14
• Analysis of Readiness Conclusions
  . 15
• Unique Learning and Growth Measures..16
  
• Financial Perspective. 17
• Unit Cost 18
• Asset Utilization 19
• Unique Financial Measures. 20
• Conclusions and Recommendations
  .21

3
Table of Contents

• Appendices
• ASA Template.
• Customer segments graphs .
• Customer satisfaction graphs
• Block diagram.
• Process maps.
• Process measures graphs
• Learning and Growth graphs..
• Analysis of Readiness Information .
• Unit cost graphs.
• Asset utilization graphs.
• Unique measures graphs.

4
ASA Template
ASA Template - 2002
Service Group
Scientific Equipment and Instrumentation Branch
Discrete Services
Design and fabricate custom instruments
Lease and sell Scientific Equipment
Maintain scientific equipment and workstations
Stock and sell repair parts and fabrication materials
DS5
DS6
Customer Value Proposition
Provide flexible, timely, and cost effective scientific technical services, equipment and parts to support the NIH research community to enhance research efforts
Service Strategy
 



Team Leader
Johnny Robbins, Jim Sullivan
Team Members
John Olguin, John Baron, Annalie Burke, Mary Stevens, Dave Siecker, Donna Bowe
ASA Template - 2002
Service Group
Scientific Equipment and Instrumentation Branch
Discrete Services
Design and fabricate custom instruments
Lease and sell Scientific Equipment
Maintain scientific equipment and workstations
Stock and sell repair parts and fabrication materials
DS5
DS6
Customer Value Proposition
Provide flexible, timely, and cost effective scientific technical services, equipment and parts to support the NIH research community to enhance research efforts
Service Strategy
 



Team Leader
Johnny Robbins, Jim Sullivan
Team Members
John Olguin, John Baron, Annalie Burke, Mary Stevens, Dave Siecker, Donna Bowe
ASA Template - 2002
Service Group
Scientific Equipment and Instrumentation Branch
Discrete Services
Design and fabricate custom instruments
Lease and sell Scientific Equipment
Maintain scientific equipment and workstations
Stock and sell repair parts and fabrication materials
DS5
DS6
Customer Value Proposition
Provide flexible, timely, and cost effective scientific technical services, equipment and parts to support the NIH research community to enhance research efforts
Service Strategy
 



Team Leader
Johnny Robbins, Jim Sullivan
Team Members
John Olguin, John Baron, Annalie Burke, Mary Stevens, Dave Siecker, Donna Bowe
Operational Excellence Growth
Operational Excellence Growth
Operational Excellence Growth
X
X
X
Customer Intimacy Sustain
Customer Intimacy Sustain
Customer Intimacy Sustain
X
X
X
Product Leadership Harvest
Product Leadership Harvest
Product Leadership Harvest
5
Customer Perspective
6
DS1 Customer SegmentationFY 01 and FY 02

• Lease income is relatively consistent from year
  to year

7
DS1 Customer SegmentationFY 01 and FY 02

• Sales fluctuate each year depending upon the ICs
  budget and focus

8
DS2 Customer SegmentationFY 01 AND FY 02

• The IC usage has increased from FY 01 to FY 02

9
DS2 Customer SegmentationFY 01 and FY 02

• It appears that ORS is our most frequent
  customer, however a large percentage of the work
  being performed is in support of the SEIB
  Lab-wide Service Agreements or Lease Agreements
  on behalf of other ICs.

10
DS3 Customer SegmentationFY 01 and FY 02

• Sale of equipment is highly dependant on the ICs
  equipment budget.

11
DS4 Customer SegmentationFY 01 AND FY 02

• It appears that ORS is our top client however,
  most of the transactions are being made by SEIB
  for the ICs. The materials are being used for
  equipment under SEIB Lab-wide Service Agreements
  or SEIB Lease Agreements.

12
DS5 Customer SegmentationFY 01 and FY
02Design and Fabricate Custom Materials

• Business can fluctuate due to long term projects
  that may cross fiscal years

13
Customer Satisfaction Summary

• When compared to the overall ORS Scorecard
  findings SEIB scored well. We received above
  average scores in most of the areas, such as
  competence, quality, and reliability. However,
  we need to seek ways to improve timeliness and
  cost.
• SEIB will continue to improve timeliness by
  matching the right technician for the job and
  continue to train the technicians who require
  refresher technical courses to service particular
  instruments within the time frame established by
  the supervisor/manufacturer. This should assist
  SEIB in reducing the cost and equipment down time.

14
Customer Satisfaction Summary (Cont.)

• SEIB can reduce response time by developing an
  automated way to track the jobs various stages
  from time of entry to time of work completion.
  Bi-weekly reports can be generated to show job
  progression. Managers can review the data and
  initiate changes for improvement.
• Regarding cost SEIB customers may not be aware
  of our competitors hourly rates. We intend to
  revise our invoices to state you have saved 270
  by using our services instead of our
  competitors. As well, SEIB staff can verbally
  share the information with each customer.

15
Unique Customer Measures

• We did not identify any unique customer measures.

16
Internal Business Process Perspective
17
SERVICE GROUP BLOCK DIAGRAM
ASA Template - 2002
Service Group
Scientific Equipment and Instrumentation Branch
Discrete Services
Design and fabricate custom instruments
Lease and sell Scientific Equipment
Maintain scientific equipment and workstations
Stock and sell repair parts and fabrication materials
DS5
DS6
Customer Value Proposition
Provide flexible, timely, and cost effective scientific technical services, equipment and parts to support the NIH research community to enhance research efforts
Service Strategy
 



Team Leader
Johnny Robbins, Jim Sullivan
Team Members
John Olguin, John Baron, Annalie Burke, Mary Stevens, Dave Siecker, Donna Bowe
ASA Template - 2002
Service Group
Scientific Equipment and Instrumentation Branch
Discrete Services
Design and fabricate custom instruments
Lease and sell Scientific Equipment
Maintain scientific equipment and workstations
Stock and sell repair parts and fabrication materials
DS5
DS6
Customer Value Proposition
Provide flexible, timely, and cost effective scientific technical services, equipment and parts to support the NIH research community to enhance research efforts
Service Strategy
 



Team Leader
Johnny Robbins, Jim Sullivan
Team Members
John Olguin, John Baron, Annalie Burke, Mary Stevens, Dave Siecker, Donna Bowe
Service Group
Provide Scientific and Technical Instrumentation
Services
Date
10/18/02
Participants
ASA Team
Operational Excellence Growth
Operational Excellence Growth
X
X
Customer Intimacy Sustain
Customer Intimacy Sustain
X
X
Product Leadership Harvest
Product Leadership Harvest
18
Process Map DS1 DS3
19
Process Map DS2
20
Process Map DS4
ASA Template - 2002
Service Group
Scientific Equipment and Instrumentation Branch
Discrete Services
Design and fabricate custom instruments
Lease and sell Scientific Equipment
Maintain scientific equipment and workstations
Stock and sell repair parts and fabrication materials
DS5
DS6
Customer Value Proposition
Provide flexible, timely, and cost effective scientific technical services, equipment and parts to support the NIH research community to enhance research efforts
Service Strategy
 



Team Leader
Johnny Robbins, Jim Sullivan
Team Members
John Olguin, John Baron, Annalie Burke, Mary Stevens, Dave Siecker, Donna Bowe
Operational Excellence Growth
X
Customer Intimacy Sustain
X
Product Leadership Harvest
21
(No Transcript)
22
Conclusions from Discrete Services Deployment
Flowcharts

• Our Service Group completed 5 deployment
  flowcharts for 5 discrete services.
• We need to initiate a way to track response time
  for two discrete services automatically or
  manually.
• To date we have not identified repetitive steps
  or better ways to process the work.

23
Process Measures

• DS1 Average time between requests and
  delivery of rentals
• DS2 Average response time to initiate repair
• DS3 Average time between requests and
  delivery of equipment
• DS4 Average response time to fill backorders.
• DS5 Process time from initial request until
  start time
• FINDINGS
• DS1 DS3 Changing the delivery schedule from
  an as needed basis to a 2 day weekly delivery
  schedule in May 2002 did not have a negative
  impact.

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Process Measures Continued

• DS2 Our response time improved during FY 02
  compared to FY 01. Our average response time is
  7.5 hours and we are committed to maintaining
  this level.
• DS4 This is a prospective measure, no data is
  currently available. We will track backorder
  response time in FY 03.
• DS5 We do not have hard data but we believe
  turnaround time is one day. We will track as a
  prospective measure in FY 03.

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Learning and Growth Perspective
26
Learning and Growth Data Table
1 ADR case out of 42 employees
6 ER Cases out of 42 employees
0 EEO complaints out of 42 employees
About 2 awards for every 3 employees
About 6 days sick leave per employee
7 employee turnover
27
Conclusions from Turnover, Sick Leave, Awards,
EEO/ER/ADR Data

• The number of awards increased from 28 to 35 when
  we added the awards that were processed in July
  2002.
• Employee turnover includes one retirement.
• 76 of the sick leave was used by three employees
  on extended medical leave.
• Employee absences contribute to reduced
  productivity, negatively impacts finances, and
  eventually strain employee morale.
• To improve QOWL SEIB will share more information
  with staff and keep them better informed about
  issues that affect them/branch, and solicit
  feedback .
• Training is important for employee growth and
  SEIB will continue to ensure resources are
  available for this purpose and to help improve
  the QOWL.

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Analysis of Readiness Conclusions

• SEIB needs to retain highly technical employees
  with extensive knowledge or varied experience in
  the following areas
• - scientific equipment repair/instrument design
  and fabrication
• - customer service expertise
• - marketing/sales expertise
• - business/managerial skills
• Over the next three years SEIB may lose 8-10
• highly skilled employees - will re-train current
  employees, and recruit or contract out.
• Extensive training required for customer service,
  refresher courses and continuing education
  training by manufacturers, and marketing/sales
  training.

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ANALYSIS OF READINESS CONCLUSIONS CONTINUED

• SEIB will set aside resources to purchase the
  latest diagnostic equipment and calibration
  tools, customer service training, and to
  implement additional MAXIMO (management
  information and billing system) modules for
  maintenance schedules and to track rental
  equipment.
• Without the right personnel and tools SEIB will
  be unable to perform services in a timely cost
  efficient manner, to have the ability to expand
  business services, or to diversify.

30
Unique Learning and Growth Measures

• We did not identify any unique learning and
  growth measures.

31
Financial Perspective
32
Unit Cost Measures

• DS1 - items available
• DS2 - labor hours
• DS3 - of equipment sold
• DS4 - of parts material sold
• DS5 - of labor hours
• We agree with the unit measures as reflected in
  budget and we will use them for baseline
  analysis.
• The services provided in SEIB are on a
  fee-for-service bases all revenue generated is
  either by labor hours, items sold and items
  leased.

33
DS1 Asset Utilization Measures

• Lease Scientific Equipment
• 2.5 FTEs X 1500 Productive Hours 3750
• Assuming 2 hours for each output
• Production Capacity 1875 (3750/2)
• Actual Production 1636
• Asset Utilization 87.25 (1636/1875)
• FTE includes supervisor who performs other
  managerial duties not reflected in this discrete
  service.
• Someone must be available to assist customers at
  all times.

34
DS2 Asset Utilization Measures

• Maintain Scientific Equipment and Workstations
• 12 FTEs x 1500 Available Hours 18,000
• Non-Productive Hours 3,082
• Actual Productive Hours 14,918
• Asset Utilization 82.8 (14,198/18,000)
• An increase in service requests will yield a
  better utilization percentage.
• As we implement a strong market program, the
  demand for our services will increase directly
  with asset utilization.

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DS3 Asset Utilization Measures

• Sell Scientific Equipment
• FTEs 1.5 x 1500 2250
• Assuming 1.5 hours for each unit of output
• Production Capacity 1500 (2250/1.5)
• Actual Production 1155
• Asset Utilization 77 (1155/1500)
• Employee also serves as the property custodian
  for SEIB. (NOTE This work is not reflected
  under the above discrete service.)

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DS4 Asset Utilization Measures

• Stock and sell repair parts and fabrication
  materials
• 1 FTE 1500 Available Hours
• Assuming 20 minutes for each output
• Production Capacity 7500 (1500/.20)
• Actual Production 3392
• Asset Utilization 45.2 (3392/7500)
• Employee is not being fully utilized however
  someone must be available at all times to serve
  customers.
• Plan to cross train employee to perform other
  responsibilities within SEIB.

37
DS5 Asset Utilization Measures

• Design and Fabricate Custom Instruments
• 4.5 FTEs X 1500 Available Hours 6,750
• Non-Productive Hours 2,610
• Actual Productive Hours 4343
• Asset Utilization 64.3
• Productivity was low due to one employee being on
  extended sick leave for 6 months, and the work
  for our glassblower has drastically declined over
  the past few years.

38
Unique Financial Measures

• We did not identify any unique financial measures.

39
Conclusions and Recommendations
40
Conclusions from FY02 ASA

• Need to keep customers better informed on status
  of repairs.
• Need to utilize additional management information
  tools
• Noted a major loss of our customer base.
• Need to develop ways to track response time for
  two discrete services.
• Need to provide continuous training for technical
  employees

41

• Current implemented changes yielding improvements
• Reduced transportation expenses by changing the
  delivery schedule.
• Expanded computer services
• Improved relationship with manufacturers
• Worked with manufacturers to provide in-house
  technical training for SEIB and NIH researchers

42
Recommendations

• Advertise and market our services
• Utilize additional MAXIMO modules for maintenance
  schedules tracking equipment March 2003
• Request a list of equipment needs from current
  and future customers February 2003
• Purchase diagnostic equipment and calibration
  tools January 2003.
• Meet with quality assurance representatives to
  request advice on the proper information required
  for certification December 2002.

43
SEIB REVENUE BY DISCRETE SERVICES FY 1999 THROUGH
FY 2002
44
SEIB BILLABLE HOURS BY SECTION FY 1999 THRU FY
2002

• This is directly attributed to a decline in
  customer retention.

45
CUSTOMER RETENTION
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Appendices
47
Appendices

• Include the following
• Page 2 of your ASA Template
• Customer segments graphs
• Customer satisfaction graphs
• Block diagram
• Process maps
• Process measure graphs
• Learning and Growth graphs
• Analysis of Readiness Information
• Unit cost graphs
• Asset utilization graphs
• Any unique measures graphs

48
Scatter DiagramFY02 Customer Importance and
Satisfaction Ratings A Closer Look
Note A smaller portion of the chart is shown
so that the individual data points can be labeled.
49
Radar ChartFY02 Product/Service Satisfaction
Ratings
50
Radar ChartFY02 Customer Service Satisfaction
Ratings
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DS1 Unit Cost Chart
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DS2 UNIT COST CHART
56
DS3 UNIT COST CHART
57
DS4 UNIT COST CHART
58
DS5 UNIT COST CHART