Lean Integration through the Facility Life Cycle at San Diego Community College District

SAN DIEGO COMMUNITY COLLEGE DISTRICT Lean Integration through the Facility Life Cycle at San Diego Community College District Presented to the IGLC Industry Day Conference

July 17, 2012 1

Lean Integration through the Facility Life Cycle

SDCCD Overview  Second Largest Community College District in CA  Sixth Largest in Nation  Three Colleges - City, Mesa and Miramar  Six Continuing Education Campuses

 125,000 students served plus 140,000 members of the military nationwide  Total Building Square Footage - 2,276,429

 $1.555 Billion Capital Bond Program Underway

San Diego Community College District

About the District (Current State) Current Square Footage Buildings = 2,276,429 Gross Square Feet (GSF) Parking = 840,606 Gross Square Feet (GSF)

Current Acres of Landscape = 130.2

Current Utilities Consumption Electric = $4,298,311 Gas = $391,561 Water = $868,531 Total = $5,558,403

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San Diego Community College District

About the District (Future State) Projected Square Footage Additional Building GSF = 1,133,028 Total Building GSF = 3,409,457 Additional Parking GSF = 251,264 Total Parking GSF = 1,091,870

Grand Total GSF = 4,465,327

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San Diego Community College District

Practicing the Toyota Way Business Principles

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San Diego Community College District

Capital Bond Program A3 Report

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San Diego Community College District

Program A3 – Safety

San Diego Community College District

Program A3 – Safety

San Diego Community College District

Program A3 – Planned & Actuals

San Diego Community College District

Program A3 – Bid Strategy

San Diego Community College District

Program A3 – Expenditures at a Glance

San Diego Community College District

Program A3 – Three Year Construction Schedule

San Diego Community College District

Program A3 – Small Business Outreach

San Diego Community College District

Program A3 – Pay Apps/Change Order Turnover

San Diego Community College District

Program A3 – Aging Change Orders (60+ days)

San Diego Community College District

“Rainbow” Report

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San Diego Community College District

Schedule Performance Traditional Design-Bid-Build Change Order Rate

Project Delay

Average = 10.8%

Average = 43.5 Days

CM Multi-Prime Change Order Rate

Project Delay

Average = 7.1%

Average = 19.5 Days

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San Diego Community College District

Pull Planning

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San Diego Community College District

Target Costing – Project Budget Development  Space Programming  Efficiency  Targeted Cost Per Sq. Ft.

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San Diego Community College District

BIM Standards

http://www.sdccdprops-n.com/BUILDING%20STANDARDS/SDCCD_BIM_Standards_Ver2.pdf 20

San Diego Community College District

Change Order Metrics - BIM vs. No BIM • Projects designed in BIM: – Change Order Rate = 2.3%

• Projects not designed in BIM: – Change Order Rate = 8.0%

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San Diego Community College District (SDCCD)

A3 Problem Solving – Risk/Benefit Analysis

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San Diego Community College District (SDCCD)

A3 Reporting System - HVAC Design

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San Diego Community College District

Value Stream Mapping – Change Order Process Old Change Order Process START Resolution to CM

1 Working Day

15 Working Days

CM Creates RFP; Issues to Contractor

Contractor Issues Price, CM Reviews Price, Issues COR

Determine entitlement Before proceeding From this point

Price Fair and Reasonable?

5 Working Days

5 Working Days

Contractor Signs

A/E Signs

YES

15 Working Days

END

1 Working Day Negotiate

Distribution

NO

0 Working Day

District Admin.

Receives and Processes

CM Creates Change Order 1 Working Day

Total Process Duration: 67 Working Days With Negotiation

CM Signs

IOR Signs

CPM Signs

Richard B Signs

Dave U Signs

5 Working Days

5 Working Days

5 Working Days

5 Working Days

5 Working Days

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San Diego Community College District

Value Stream Mapping – Change Order Process New Change Order Process Effective January 2011

1 Working Day

START Resolution to CM

CM Requests Pricing from Contractor via Fax/Email

5 Working Days Contractor Issues Price, CM Reviews & Prepares Change Order

7 Working Days

Negotiate

Determine entitlement Before proceeding From this point

Price Fair and Reasonable?

7 Working Days

Total Process Duration: 28 Working Days With Negotiation

NO

YES

CPM Signs

A/E, IOR, Contractor, CM Sign Separate CO Cover Sheet

Richard B Dave U Sign

District Admin.

Receives and Processes

END Distribution 1 Working Day 7 Working Days

1 Working Day

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San Diego Community College District

Safety – Root Cause Analysis of Repeated Incidents

City College Campus Safety Report – February 2012 Overall Safety Comments

Overall Safety Issues

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San Diego Community College District

Safety – Root Cause Analysis of Repeated Incidents Central Plant

Math & Social Science

Business & Humanities

Science

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San Diego Community College District

Safety – Root Cause Analysis of Repeated Incidents • Required fall protection refresher training • Enhanced training for spotters • Enhanced focus on safety culture

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San Diego Community College District

Andon Tools in Process – The Sticky Note

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San Diego Community College District

Genchi Genbutsu

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San Diego Community College District

Hourensou

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San Diego Community College District

Invoice Processing Kaizen No Vendor creates invoice

Invoice is sent to Facilities Accounting

Invoice is distributed to CPM

CPM reviews invoice

Is the invoice acceptable?

CPM collects required signatures from IOR, Architect, CM and signs

CPM staples green slip to invoice

Yes

CPM submits signed payment application to Facilities Accounting staff

No

Fully executed payment application is returned to Facilities Accounting staff

Facilities Accounting routes for remaining signatures from RB, LL, DU as required.

Facilities Accounting creates an MS Excel based cover sheet

Facilities Accounting creates a “Receiving Sign Off” document and attaches to the submitted application

Facilities Accounting logs application in MS Excel

Yes

Is the invoice acceptable / most recent?

Facilities Accounting staff logs receipt of payment application

No Was the payment application value changed during review?

No

Facilities Accounting adds and certifies the payment application in Contract Management program

Facilities Accounting creates two copies of the completed package

Facilities Accounting sends the original completed package to Accounts Payable for payment

Accounts Payable pays the invoice and files document hard copy.

Yes Facilities Accounting adds the second copy to a binder stored in F.A. work area.

Facilities Accounting creates a revised Receiving Sign Off document Facilities Accounting sends one copy to Gafcon

Gafcon scans and uploads document to SharePoint

Old Procedure • • •

Extraneous Actions Long Process Generates Excessive Paperwork 32

San Diego Community College District

Invoice Processing Kaizen No

Vendor creates invoice

Invoice is delivered directly to CPM*

Facilities Accounting creates a revised Receiving Sign Off document

Is the invoice acceptable?

Facilities Accounting revises the pay application value in Contract Management program

Yes

Yes

CPM inputs invoice into Contract Management program and prints cover sheet

CPM collects required signatures from IOR, Architect, CM and signs

CPM submits signed payment application to Facilities Accounting staff

Was the payment application value changed during review?

Fully executed payment application is returned to Facilities Accounting staff

Facilities Accounting sends the original completed package to Accounts Payable for payment

Accounts Payable pays the invoice and files document hard copy.

Facilities Accounting routes for signatures from RB and LL as required.

Facilities Accounting routes for signature from DU.

Partially executed payment application is returned to FA Staff.

Facilities Accounting creates a “Receiving Sign Off” document and attaches to the partially executed application

No Facilities Accounting certifies the payment application in Contract Management program

Facilities Accounting creates a copy of the completed package and sends to Gafcon

Gafcon scans and uploads document to SharePoint

New Procedure • • •

Simplified Actions Within 30 days Less Paperwork 33

San Diego Community College District

Beyond Lean Construction – Lean Processes in Maintenance & Operations APPA Award for Effective and Innovative Practices July 2011

By applying lean principles to custodial and maintenance functions, SDCCD eliminated the need to add 20 positions, shaving off $813,000 in the first of a sevenyear process. Additional efficiencies implemented over the next six years will increase savings to $20 million.

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San Diego Community College District

Maintenance Process Findings • Reactive organization • No formal prioritization process

• Inefficient, unpredictable processes • Too much windshield time for technicians • Needed more robust computerized maintenance management system 35

San Diego Community College District

Maintenance Process Improvement Steps • Developed a prioritization matrix • Designed new work flow processes • Created a centralized work distribution center • Standardized triage and follow up procedures to support processes and reduce windshield time 36

San Diego Community College District

Maintenance Process Improvement Steps

• Purchased a more robust computerized maintenance management system

• Added Grainger rolling stock for fleet

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San Diego Community College District

Priority Matrix – Service Level Agreement

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San Diego Community College District

Work Order Metrics FACILITIES SERVICES PRIORITY 1/2/3 WORK ORDERS AVERAGE DAYS TO COMPLETE 14.00

12.00

Days to Complete

10.00

8.00

6.00

4.00

2.00

0.00

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar' Apr' May' Jun' Jul Aug- Sep- Oct- Nov- Dec- Jan'10 '10 '10 '10 '10 '10 '10 '10 '10 '10 '10 '10 '11 '11 11 11 11 11 '11 11 11 11 11 11 12

Priority 1 5.56 2.13 0.12 0.18 0.02 0.02 0.04 0.29 0.79 0.52 1.93 1.77 0.90 0.50 0.53 0.40 0.41 0.39 0.18 0.10 0.21 0.28 0.08 0.11 0.18 Priority 2 7.89 4.26 1.10 0.46 1.00 0.00 1.44 0.09 0.48 1.48 1.04 3.29 2.92 2.00 0.98 0.57 0.88 0.62 0.33 0.35 0.41 0.41 0.13 0.38 0.71 Priority 3 13.0 7.27 2.06 1.54 1.12 1.09 1.11 1.06 0.92 1.65 1.97 3.72 2.49 1.85 1.75 1.31 1.35 0.91 0.72 0.71 0.67 1.36 0.42 0.67 0.84

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San Diego Community College District

Electronic Work Order Delivery

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San Diego Community College District

Facilities Services Lean Enterprise Efforts Industry Findings: Cost of O&M Inefficiencies

Over half the costs are from searching for and validating data

* Source: NIST Study – August 2004 41

Lean Processes

Facilities Services Lean Enterprise Efforts Building the Solution: BIM to FM Inexpensive access to BIM model

Any time, anywhere access to facilities docs Consistent, scalable, unified database Collaboration and communication productivity platform Integration with and extension of existing Program Portal

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San Diego Community College District

Assessment of Custodial Services Findings • • • • • • • •

Opening doors Stock room duties Personal assistants Event set-ups Temperature checks Movers Concierge service Cleaning 43

San Diego Community College District

Custodial Practices Improvement Steps •Stopped non-core services •Developed cleaning standards •Increased cleaning square footage •Load leveling •Custodial Beat books • Management By Walking Around • Pride Program

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San Diego Community College District

The Maintenance and Operations Challenge Custodial • Beginning cleanable square feet - 13,900 per custodian • Increase to 25,000 square feet over 3 years

Maintenance • Beginning cost per square foot - $3.93 • Reduce to $2.25 per square foot over 3 years

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San Diego Community College District

Potential Cumulative Savings - $25,863,512 FISCAL YEAR Custodial Custodial Forecast H/C

Cust Forecast Salary

$

Custodial Adj HC

FY 09/10

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16

104

113

132

149

162

173

189

191

6,098,855 $

6,650,098 $

7,769,004 $

8,731,333 $

9,504,832 $

100

122

130

140

147

77

82

88

10,169,255 $

11,098,158 $

Avg. Salary $

58,643

11,227,172 45

Custodial Adj Budget

$

4,497,197 $

4,782,522 $

5,187,077 $

5,878,320 $

7,150,669 $

7,622,296 $

8,208,826 $

8,597,611

Delta

$

1,601,658 $

1,867,576 $

2,581,927 $

2,853,013 $

2,354,162 $

2,546,959 $

2,889,331 $

2,629,561 $

19,324,187

$

13,273,027

$

76,457

Hold HC Flat until projection exceeds current HC

Maintenance Maint Forecast H/C Maint Forecast Salary

45 $

Maintenance Adj H/C

3,440,546 $ 29

50 3,793,010 $ 32

57 4,344,262 $ 37

64

69

4,857,286 $ 41

5,245,685 $ 45

73 5,579,036 $ 47

79 6,044,656 $ 51

80 6,108,880 52

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Maint Adj Salary

$

2,236,355 $

2,465,457 $

2,823,770 $

3,157,236 $

3,409,695 $

3,626,373 $

3,929,027 $

3,970,772

Delta

$

1,204,191 $

1,327,554 $

1,520,492 $

1,700,050 $

1,835,990 $

1,952,663 $

2,115,630 $

2,138,108 $

13,794,676

$

12,590,485

Hold HC Flat until projection exceeds current HC

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San Diego Community College District

FY 2011/2012 Progress Snapshot Custodial (Benchmark 13,900 SF) • Goal: 25,000 square feet per custodian • Actual: 21,225 square feet Maintenance (Benchmark $3.93/SF) • Goal: $2.25 per square foot • Actual: $2.31 per square foot

Resultant Savings in FY2011/12: $4,553,063

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SAN DIEGO COMMUNITY COLLEGE DISTRICT

Questions?

David Umstot, PE Vice Chancellor, Facilities Management San Diego Community College District dumstot@sdccd.edu (619) 388-6456

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