LBNL Facilities DivisionLean Kaizen Report Out

Metrics TeamTeam Leader:

Oscar Aguayo (HR)Scribes:

John Kpaka (FA Ops)Heather Pinto (FA Resources)

Team Members:Jim Dahlgard (FA Resources)Chris Peach (IT)

April 23, 2010

LBNL Facilities Lean Kaizen Event | April 2010Managed by the University of California for the the U.S. Department of Energy

Background

• Lean Training• Kaizen teams formed• Metrics Kaizen Team charged with creating Facilities Division

metrics• One year process – not easy & needs time

LBNL Facilities Lean Kaizen Event | April 2010Managed by the University of California for the the U.S. Department of Energy

Problem Description• Facilities Division does not have clear or consistent

performance metrics• If you can’t measure, you can’t manage

Objectives/Goals• Analyze Facilities Department Metrics• Propose final Facilities Division Metrics• Standardize, Implement, and Sustain Facilities Division

Metrics

LBNL Facilities Lean Kaizen Event | April 2010Managed by the University of California for the the U.S. Department of Energy

Analysis/Current Conditions

• Preliminary Scorecard developed for use by all Departments– Scorecard geared for measurements at Department level

or lower – Need for Dashboard that is more customer focused

LBNL Facilities Lean Kaizen Event | April 2010Managed by the University of California for the the U.S. Department of Energy

How far would you drive without your gauges?

LBNL Facilities Lean Kaizen Event | April 2010Managed by the University of California for the the U.S. Department of Energy

LBNL Facilities Lean Kaizen Event | April 2010Managed by the University of California for the the U.S. Department of Energy

Proposed MetricsLead Time

On Time

Customer Survey

UpTime

TurnoverTotal

Recordable Case Rate

InventoryLabor Cost per Work

Order

Customer

Customer

Quality

Quality

Resources

Resources

LBNL Facilities Lean Kaizen Event | April 2010Managed by the University of California for the the U.S. Department of Energy

Turnover

0%

3%

6%

9%

12%

15%

2008 2009 Jan-10 Feb-10 Mar-10 Apr-10

Resources – Turnover

• Division wide• All terminations (voluntary and

involuntary), etc.

LBNL Facilities Lean Kaizen Event | April 2010Managed by the University of California for the the U.S. Department of Energy

Total Recordable Case Rate

0

1

2

3

4

5

6

FY08 FY09 FY10

Resources – Total Recordable Case Rate

• Division wide• Frequency of injury per 100

employees• Drill down by

– Severity Indicator (e.g. avg. $400k/yr on injuries)

– Days Away & Restricted Time

Benchmark

LBNL Facilities Lean Kaizen Event | April 2010Managed by the University of California for the the U.S. Department of Energy

Resources – Inventory Turns

• Stores inventory only• Turn ratio

= Annualized issues Inventory value

Inventory Turns

0.000

0.200

0.400

0.600

0.800

1.000

1.200

1.400

FY09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10

LBNL Facilities Lean Kaizen Event | April 2010Managed by the University of California for the the U.S. Department of Energy

Resources – InventoryDrill Down by Inventory Value

Inventory Value

$335,000.00

$340,000.00

$345,000.00

$350,000.00

$355,000.00

$360,000.00

$365,000.00

FY09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10

• Cash tied up in Stores inventory

LBNL Facilities Lean Kaizen Event | April 2010Managed by the University of California for the the U.S. Department of Energy

Labor Cost per Work Order

$0

$50

$100

$150

$200

$250

FY08 FY09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10

Resources – Labor Costs per Work Order

• Operations only• Closed projects• Average cost of labor

(including overtime)per work order:

= Labor cost CM+PM Total count of CM+PM

LBNL Facilities Lean Kaizen Event | April 2010Managed by the University of California for the the U.S. Department of Energy

Quality – Customer Survey

• Covers all work orders that produce a customer satisfaction survey

• Average for all ratingsAverage Survey Score

012

34567

89

10

FY08 FY09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10

LBNL Facilities Lean Kaizen Event | April 2010Managed by the University of California for the the U.S. Department of Energy

Up Time

0%10%20%30%40%50%60%70%80%90%

100%

2008 2009 Jan-10 Feb-10 Mar-10

Quality – Up Time

• Measures up time for all building systems, including mission critical, building critical, and customer impact (e.g. water, elevators)

• Not currently being tracked

Sample

LBNL Facilities Lean Kaizen Event | April 2010Managed by the University of California for the the U.S. Department of Energy

Customer – Lead Time

Average Lead Time

0102030405060708090

FY09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10

Days

• CM’s only• Time from customer request to

work complete

LBNL Facilities Lean Kaizen Event | April 2010Managed by the University of California for the the U.S. Department of Energy

Customer – Lead TimeDrill Down by Supervisor

• Closer look for root cause analysis

Average Lead Time by Supervisor

0

20

40

60

80

100

120

140

FY09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10

Day

s

Begley Doty Dupont Murphy

LBNL Facilities Lean Kaizen Event | April 2010Managed by the University of California for the the U.S. Department of Energy

On-Time Performance

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009 Jan-10 Feb-10 Mar-10

Customer – On-Time

• Covers all work orders• % actual work complete on or

before estimated completion date

– Based on estimated dates in Maximo OR

– Based on SLA agreement (e.g. Transportation 4 days)

• Much of this is not currently tracked

• Need scheduling system for this

Sample

LBNL Facilities Lean Kaizen Event | April 2010Managed by the University of California for the the U.S. Department of Energy

Metrics and Performance Management

MetricsAnnual

PerformanceAppraisal

MonitorPerformance

RegularFeedbackMeetings

PerformanceAgreement

Meeting

LBNL Facilities Lean Kaizen Event | April 2010Managed by the University of California for the the U.S. Department of Energy

Path Forward

Action DateWork with all Facilities Departments to refine their hierarchy of metrics

October 2010

Establish processes for automating data gathering and chart creation

April 2011

Integrate metrics with annual employee performance management process

April 2011