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MIT - 0.$1!2345(!web.mit.edu/instituteplanning/TaskForceFinalReport.pdf · 2009-12-21 · MIT - 0.$1!2345(! ... 4 5

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Page 1: MIT - 0.$1!2345(!web.mit.edu/instituteplanning/TaskForceFinalReport.pdf · 2009-12-21 · MIT - 0.$1!2345(! ... 4 5

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Page 2: MIT - 0.$1!2345(!web.mit.edu/instituteplanning/TaskForceFinalReport.pdf · 2009-12-21 · MIT - 0.$1!2345(! ... 4 5

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Institute-wide Planning Task Force

Ideas Presented by the Working Groups

Ideas 1

Working group Number Idea Short Description of Idea Recommended Action

Academic Education Accountability and Associated Metrics

Academic Education1 Flexible metrics for measuring efficiencies

Academic units to measure and understand the resources utilized to provide education to both graduate and

undergraduate students and draw upon that awareness to identify inefficiencies and adjust resources. FORM: TEAM #3

Academic Education2 Improve understanding of faculty workloads

Academic units to measure and make transparent faculty teaching loads to ensure that teaching loads are fairly

distributed and balanced with non-faculty teaching staff. FORM: TEAM #3

Academic Education3 Program evaluation

Deans to begin an assessment of their various programs for continued relevance, quality and importance to the

overall profile of the School. FORM: TEAM #3

Academic Education Higher Impact Action Steps

Academic Education

4Increase productive faculty/student

educational interactions

As an initial target, consider raising student to teacher ratio from 4.6. Currently: 1. There is a large variation in

the expected standard teaching load for faculty across the Schools. 2. There is a large number of small classes

(221 classes with less than 9 students per class). 3.Expectations of TA's is inconsistent across MIT. 4. TAs

spend signficant time creating new problem sets as opposed to standard problem sets that can be re-used 5.

Significant barriers exist for cross-School teaching. 6. The 12 unit class is not always the optimal size of a

subject offering.

ASSIGN: PROVOST

Academic Education5

Develop summer classes for GIRs and other

coursesUse capacity of educational plant during idle period to increase revenue - This idea requires further study ASSIGN: DUE

Academic Education

6 Increase undergraduate enrollment

Increase the number of undergraduates by 10%, from about 4,200 to 4,600. Idea requires further study of

impact, including housing analysis and financial aid impacts. The assumption is that the incremental teaching

costs from additional students is very low for many subjects and for many departments.

ASSIGN: EMG

Academic Education

7 Soften faculty salaries

a. Increase academic year salary distribution to research funds -- savings potentially shared between GIB and

faculty discretionary funds.

b. Shift January salary distribution to research funds -- savings potentially shared between GIB and faculty

discretionary fund.

c. Explore possibility of "returning" to faculty some portion of overhead funds collected on research beyond a

certain volume threshold.

ASSIGN: VPR

Academic Education8 Change RA tuition subsidy

Consider a reduction in the academic year tuition subsidy from the GIB from 50% to 45% (i.e., 55% paid from

grants). Further study is required as to the desirable size of the graduate student and post doc population. ASSIGN: VPR

Academic Education

9Cap balances in faculty discretionary

accounts

There are approximately 375 endowed faculty chairs. Idea is to more tighly manage the funds provided to the

chair holders as annual scholarly allowances by considering a reduction in the annual allowance and not

allowing more than two years' allowance to be held in discretionary accounts.

NOT AT THIS TIME

Academic Education10 Change drop/add dates

Move add- and drop-date earlier in the term or have them coincide on the same day to reduce fluctuation in

class size during the term and resulting additional costs.ASSIGN: DUE

Academic Education

11 Modify faculty compensation

a. Freeze salaries or give a lower than usual increase for one or more years.

b. Consider discontinuing contributions to retirement accounts after a certain age, perhaps tied to Social

Security eligibility.

ASSIGN: PROVOST

Academic Education

12 TA Cost Abatement

Currently, roughly 600 graduate students receive financial support as a TA each term. In addition to stipends,

TAs receive full tuition support. TA appointments and utilization vary widely among departments with regards to

roles, responsibilities, expectations and reimbursement methods of TAs, highlighting the different methods of

using teaching staff across the Institute..

a. Match appointment and pay to actual TA effort.

b. Consider providing every doctoral student with at least one semester of teaching experience for course credit

in lieu of pay.

ASSIGN: DGE

Academic Education Lower Impact Action Steps

Academic Education13 Increase number of special students

a. Offer excess capacity in existing undergraduate class to the general public for a fee on a term-by-term basis.

b. Require visiting students who attend classes to pay.FORM: TEAM #2

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Institute-wide Planning Task Force

Ideas Presented by the Working Groups

Ideas 2

Academic Education

14 Eliminate Athena clusters

Use and importance of clusters has decreased now that 95% of students have laptops; certain clusters have

very low levels of usage and should clearly by closed; others areas are still heavily used during peak hours and

peak times of semester. Further study is required on how students and faculty actually use the Athena clusters

before any drastic action is taken to close any of the heavily used clusters.

ASSIGN: DUE/IS&T

Academic Education 15 Limit printing in Athena clusters Reduce waste and promote "green" practice; consider a per-page printing fee to achieve result. ASSIGN: IS&T

Academic Education16 Centralize graduate admissions

Migrate all departments to graduate admissions system owned and maintained by EECS to streamline IT

support and reduce the overall cost of maintenance.ASSIGN: DGE

Academic Education

17Reduce costs for alternative freshman

programs

MIT currently provides three alternative teaching models for freshman: the Experimental Studies Group (ESG),

Concourse, and Terrascope. Institutionalize these programs and create savings by:

a. decreasing the number of Science instructors associated with ESG and Concourse by approximately 50%

and substitute with faculty, making ESG/Concourse part of the normal departmental assignments

b. consider disbanding Terrascope or integrating it with other alternate freshman programs or departments

ASSIGN: DUE

Academic Education

18 Enhance professional education

Currently, MIT offers relatively few educational programs that unequivocally bring in revenue. There are some

professional masters programs and a small boutique program of short professional courses. Currently, the main

beneficiaries of the revenue coming in from the Professional Education programs are the faculty instructors.

Idea is to expand professional masters programs and professional courses to leverage the MIT brand and target

students who would pay full tuition to the Institute. This idea requires further study.

FORM: TEAM #2

Academic Education Other Strategic Studies

Academic Education

19Study and understand graduate education

model

The work of the Task Force has shed new light on the activities of the Insitute and generated insights for how

new efficiencies can be realized. However, this process has also raised new questions that require more time to

answer. The idea is to research and model the finances and processes of the Institute to gain a better systems-

level understanding of how MIT actually works.

FORM: TEAM #3

Academic Education

20 Study impacts of graduate financing plan

Currently, many graduate students are admitted to departments for doctoral study with offers of funding that are

only for their first year. The idea is to require departments to have a plan for supporting their doctoral students

beyond the first year and optimally for four or five years, contingent on the student making good progress,

possibly resulting in a smaller number of stronger and better supported students.

ASSIGN: DGE

Academic Education

21 Right-sizing the graduate population

MIT and Stanford are the only members of the Ivy-Plus group with an uncontrolled (i.e. free to grow with

research volume) graduate student population and MIT is the most dependent on externally funded research

assistantships (RAs) of the Ivy-Plus Group. The idea is to understand the marginal cost of a graduate student

for different types of students (e.g., Ph.Ds, S.M.s, M.Engs, and MBAs) that have different costs and revenues

associated with them to understand the true costs of providing graduate education.

ASSIGN: DGE

Academic Education22 Study impacts of time-to-completion

Research the feasibility of reducing Ph.D. time-to-completion, as well as mechanisms/incentives for achieving

reduction; study outlying students.ASSIGN: DGE

Academic Education

23 Manage faculty positions better

Currently, roughly 60 to 70 faculty positions remain unfilled in a given year. In general, these TBA slots and the

GIB budget allocations associated with them are allowed to remain in departments. "TBA funds" are then

applied to replacement teaching costs or to general department operating costs.Idea is as follows:

a. Deans to take a more active approach in managing unfilled faculty slots and GIB budget allocations each

year, allowing Schools to evolve strategically.

b. Reduce the number of unfilled positions

ASSIGN: PROVOST

Academic Education

24Eliminate the physical education

requirement (alternate models)

The PE requirement adds costs to the academic degree programs. Alternative models that enhance the

independence and leadership skills of the students, while maintaining, if not improving upon, the rigor of the

fitness program include:

a. Similar to TAs, using exemplary undergraduate athletes as PE instructors

b. Fulfilling the time requirement with cardio machine/swimming laps

c. Counting intra-fraternity and dormitory competitions towards PE

d. Abolishing IAP offerings and long weekend hiking/climbing trips

e. Using life-guard/CPR certified students who earn PE credits as swimming instructors

ASSIGN: DUE

Academic Research Laboratories and Centers

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Institute-wide Planning Task Force

Ideas Presented by the Working Groups

Ideas 3

Academic Research

1 Consolidation of smaller labs and centers

Some labs and centers (LCs) have research volume and administrative complexity that may not justify

committing MIT resources to their administration. Smaller LCs should be evaluated to determine whether their

goals could be achieved more efficiently by merging them with other LCs.Idea is to develop evaluation criteria

for consolidation or elimination that will be used to assess all existing LCs, followed by periodic reviews. Cost

reductions to the GIB from consolidating or eliminating some LCs would come primarily through having fewer

directors, assistant and associate directors, and administrative staff for labs and centers.

FORM: TEAM #3

Academic Research

2 Sharing of Lab/Center Infrastructure

Idea is to encourage LCs to share various types of infrastructure, including administrative support, IT systems,

financial management systems and lab facilities. Cost reductions to the GIB would come primarily through

having fewer staff and fewer facilities and systems to maintain.

Extending this idea to encourage new faculty to use existing specialized facilities or upgrading such facilities to

meet their needs may also reduce the need for large start-up packages for new faculty.

ASSIGN: VPR

Academic Research

3Re-evaluation of criteria for MIT support to

Labs and Centers

The guidelines used by MIT to set support to director salaries, discretionary funds, assistant or associate

directors, and administrative officers is based entirely on research volume and does not appear to have been

revisted since 1995. Idea is as follows:

a. Reevaluate support provided to labs and centers to maximize value of direct support

b. New criteria to be set for evaluation of support deserved and needed by labs and centers; provide support on

a case-by-case basis; expect labs and centers to use other sources before GIB; encourage labs and centers to

cover part of directors' salaries from grants whereever possible, with some sharing of savings between GIB and

department funds

FORM: TEAM #3

Academic Research

4Re-evaluation of intellectual property and

royalty distribution

Current formula for distributing income from intellectual property (IP) very roughly is 1/3 each to the Institute; to

the department, lab, or center; and to the individual inventor.

Idea is to leave apportionment to inventors at 1/3, re-allocate MIT apportionment between GIB and department

relative to inputs of money and effort with creating the IP.

ASSIGN: VPR

Academic Research Research Administration

Academic Research

5

Post award administration - financial

reporting and forecasting sharing of

Lab/Center infrastructure

Transition from DLC-specific forecasting processes to standard on-line forecasting and modeling tool. Formulate

a team of administrators to share best practices to support the development of the new tool. Create a policy for

regular reporting of forecasted results.

This type of tool is currently under development through sponsorship of the Office of the VP for Research. Idea

is to fast-track the effort to accelerate realization of efficiencies.

ASSIGN: VPR

Academic Research

6Standardize sponsored research proposal

process

In FY 08, MIT submitted over 2,200 new proposals to over 200 sponsors for research funding. The process is

complex. Some sponsors require highly prescriptive formats while others are more flexible.

Process efficiencies can be realized by:

a. Developing a single proposal preparation process that incorporates best practices for consistently preparing

and presenting budget information

b. Formulating a team of OSP, TLO and faculty reps to review, map and refine the non-federal proposal process

c. Developing templates, tools and best practices for MIT-wide use

d. Developing and delivering training to all individuals in the process

ASSIGN: RACC

Academic Research

7Research administration training for faculty

and staff

Training classes related to research administration are currently offered by mulitiple central units (OSP, VPF,

IS&T). There is no"recommended curriculum based on roles, and a signficant amount of the learning takes

place on the job. The learning curve is steep, and the decentralized nature of the training perpetuates local

processes that differ across the Insitute.

Efficiencies can be realized by:

a. Developing a comprehensive research administration training program, with role specific certification

b. Developing a PI training program for all new faculty; encouraging existing faculty and PIs to attend

This idea builds upon the RAII recommendations.

ASSIGN: RACC

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Institute-wide Planning Task Force

Ideas Presented by the Working Groups

Ideas 4

Academic Research

8 Review staffing of Units

Currently, there are over 100 DLCs managing sponsored research funds. Federal regulations and compliance

requirements, as well as specialized tools such as Grants.gov, have made research administration increasing

complex. Ideas to ensure compliance, efficiency and the highest level of service are:

a. Centralize research administration whereever possible

b. Develop standard practices and expectations for all of MIT's research administration staff and implement a

required training/certificate program

c. Establish size thresholds for local research admin support. Pursuing ASO type models for small DLCs and

strengthening ties to Dean's office regarding oversight.

d. Explore development of appropriate metrics for research administrative staffing levels

ASSIGN: RACC

Academic Research

9Enact efficient procedures for industrial

research contracts

Industrial research volume was $200 million in FY 08 and growing. Grow revenue by developing a separate

process for negotiating industrial research contracts with strict timelines to meet the higher level of

responsiveness required to win and that is flexible to the different negotiation approaches and interests of the

partners.

ASSIGN: RACC

Academic Research

10 Project managers for PIs

It is estimated that faculty funded by federal projects devote 58% of time to active research with the other 42%

consumed taken up with administrative and compliance activities. Idea is to increase the amount of faculty time

devoted to active research by hiring and sharing project managers amongst several PIs to assist with the

adminstrative and compliance aspects of monitoring sponsored research activities. Pilot in one school and DLC

to determine viability across campus.

ASSIGN: RACC

Academic Research Research Infrastructure

Academic Research

11

Reduce or eliminate commodities

(cconsumables) supplied by internal

providers

Require the "hidden" costs of space and utility usage to be included in an assessment of the cost of producing

commodities in campus facilties relative to outside suppliers. Perform this analysis for one laboratory as an

example and expand analysis as appropriate.

ASSIGN: VPR

Academic Research

12Consolidation or termination of some

service facilities

There are 72 service centers in the FY 08 summary report -- with $17.2 milion in expenses, excluding the cost of

utilities and the utilization of over 93,000 square feet of space. Assess the portfolio of services and evaluate the

economics (including energy costs and space) and determine which facilities are cost effective and fit to Institute

needs. Consider phasing out or consolidating some facilities that are not cost effective and do not have a

mission critical to the research program.

FORM: TEAM #3

Academic Research

13 Implement shared equipmentpool

Large amounts of equipment are purchased each year to start up programs and then are set aside when

projects are discontinued. It is estimated that 10% of the present equipment inventory is surplus that would likely

be useful to other groups. Present equipment purchase levels indicate that about $5 million in equipment per

year might be resuable. Idea is to create a point system to encourage groups to make their surplus equipment

available that can be used towards the cost of borrowing equipment from the pool.

ASSIGN: VPR

Academic Research14

Evaluation of research-library journal

subscriptions and conference proceedings

Part of the F&A recovery supports the use of the libraries by the research community. Replace hard-cover

subscriptions to research journals and conference proceedings with on-line versions.ASSIGN: LIBRARIES

Academic Research

15 Web inventory of service centers

There are at least 72 service center facilities, many of which are used by a limited number of researchers within

a specific lab or center, although such facitiies are available to the whole MIT community. Idea is to improve

utilization of these capabilities by creating a web inventory of the service centers to help the entire MIT research

community understand what exists.

ASSIGN: VPR

Academic Research

16 Amortization of service center equipment

Allow service centers to amortize the purchase cost of equipment to shift costs from Institute funds to sponsored

research funds. The current policy only allows service centers to replace equipment with funds from a pool

adminstered by the VP for Research.

ASSIGN: VPR

Academic Research

17 Lab equipment "time share" system

Equipment purchases by the DLCs totalled over $300 million between 2004 and 2008. Nearly 40% of these

purchases were made using MIT funds. A 10% reduction would reduce cash outlays by about $2.5 million per

year and save space, energy and maintenance costs. Create a web-based inventory of eqipment for temporary

transfer or shared use.

ASSIGN: VPR

Academic Research Research Personnel

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Institute-wide Planning Task Force

Ideas Presented by the Working Groups

Ideas 5

Academic Research

18 Charge academic year salary to grants

In 2008, faculty AY salaries totaled $128 million -- 73% or $94 million was paid by GIB. Every 1% shift to

research saves the Institute about $1.6 million, including benefits. Idea is to share the savings between the GIB

and department funds.

ASSIGN: VPR

Academic Research

19 Incentives for retirement

The idea is to identify incentives that will encourage people to retire at predictable milestones.

Ideas include:

a. Making the current program to incent retirement a bit more generous

b. Stopping MIT 401k contributions when employees reach a certain age

c. Replacing lifetime tenure with a long-term contract

NOT AT THIS TIME

Academic Research

20Termination policy for Senior and Principal

Research Associates

Senior and principal research associates currently are given enhanced severance benefits beyond what is

offered to other MIT employees, usually 1-3 years of notice prior to lay-off, as opposed to a termination period

based on the number of years of service. Idea is to eliminate this for new hires and make it consistent with

general MIT policy.

ASSIGN: VPR

Academic Research

21 Mentoring for Postdocs

We have a large population of post docs who have been here much longer than the allowed 4 years. To improve

the quality of the postdoctoral experience, the idea is to provide a mentoring system that encourages them to

think of their employment as a temporary position that should be followed by employment in a different category,

either at MIT or elsewhere. NSF is now requiring mentoring plans for postdocs, and it is likely that other funding

agencies will follow suit.

ASSIGN: VPR

Academic Research22 Consolidation of salary decisions

Decisions about the levels of increases for both adminstrative and technical staff could be made centrally within

large units. This is unlikely to produce savings, but it could correct an inequities.ASSIGN: VPR

Academic Space Overarching Ideas and Principles

Academic Space

1MIT's physical infrastructure should be

recognized as part of the endowment

In this way, investments in addressing deferred maintenance and other actions that require near-term

investments but accrue benefits over a long time can be appropriately compared to alternative investment

options.

ASSIGN: EVP

Academic Space

2 Invest in preventative maintenance

MIT currently under-invests in regular preventative maintenance and therefore spends more on costly, reactive

repairs with a resulting decrease in space functionality and a net increase in total costs; this practice also

increases campus energy use. Idea is to identify priorities and structure a program of capital investment to

accelerate capital renewal and address the Institute's deferred maintenance. The goal is to bring existing

facilities to a level of physical condition that can be sustained by routine maintenance.

ASSIGN: EVP

Academic Space

3Endow maintenance and energy costs when

fund-raising for new buildings

Currently, the long-term maintenance and energy burdens of capital projects and renovations are not explicitly

calculated when making project design decisions. Currently decisions are inappropriately weighted towards first

costs, rather than long term costs -- in some cases driving us away from lower-cost, more energy efficient

options. The Institute should consider "endowing" maintenance and energy costs when fund-raising for new

buildings or major renovations.

ASSIGN: EVP

Academic Space

4

Adopt a stronger cost-based and schedule-

based approach to capital and major

renovation projects

In the recent past, there are examples at MIT of capital projects (e.g., Sydney-Pacific) that adopted a "developer

philosophy" (fixed budget, fixed schedule, limited options, and typically lower costs per square foot). Conversely,

there are examples of capital projects (e.g., Simmons Hall and Stata) that adopted more of an "institutional

philosophy" (budget and schedule typically increase over time, unique, specialized, purpose-built designs, and

typically higher costs per square foot -- both initial costs and long term costs). For future investments, MIT

should carefully consider the objectives of the projects in this context.

ASSIGN: AP Space

Academic Space

5Economies of scale, bundling of

renovations, and co-location of like functions

MIT should look for economies of scale, both in terms of back-filling opportunities when space is relinquished

bundling of renovations, and co-location of like functions (computer clusters, wet labs, etc.) Much of what is

done today is fractured, and this leads to additional costs and inefficient usage.

ASSIGN: AP Space

Academic Space

6 Design for modularity and flexibility

MIT should design for modularity and flexibility to the extent possible. Often this will lead to suboptimal

performance for an initial user, but over the longer term, the benefits can be significant in terms of enabling the

more effecitive use of space.

ASSIGN: DoF

Academic Space

7 Better understanding space usage

Collectively the MIT community should better understand space usage. Regular accounting of space usage and

transparent public reporting of space usage will help identify opportunities for, and provide incentives for, more

efficient usage.

FORM: TEAM #3

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Institute-wide Planning Task Force

Ideas Presented by the Working Groups

Ideas 6

Academic Space

8 Establish a space "bill of rights"

This will identify what members of the community should reasonably expect in terms of space allocation and

usage, to more clearly establish principles for ownership and allocation of space, and to provide benchmarks

and standards for both space usage and also renovation and capital project costs. Best practices should be

shared among DLCs, ultimately leading to the development of Institute-level recommended practices for space

planning and allocation within DLCs.

FORM: TEAM #3

Academic Space

9 Accelerate space decision-making

MIT should develop processes to delegate decisions for smaller space renovations and allocation options, and

generally strive to accelerate space decision-making. Currently, people sit on poorly used space because they

do not have confidence in the system of space planning (e.g., they are afraid to give up space, because they

won't get new space if they need it in the future).

ASSIGN: AP Space

Academic Space

10Creating a space economy and incentives to

drive behavior and efficiency

Such an economy would create incentives for optimizing space. In order to achieve this, the Institute would

need to develop methods to track utilization and define standards for space. Specifically, standards for space

utilization (e.g. sq.ft./person) vary widely across units. Further, very few units actually track utilization as part of

a space management process. The Space Working Group suggests that establishing a method for tracking

utilization is critical, and that “publication” of the utilization metrics may help drive appropriate behaviors. It is

suggested that these metrics would need to be flexible to reflect the diversity of operational models across

schools. MIT should strive to create incentives for a space economy to drive better behavior and efficiency. This

may be best accomplished by developing a new financial model for DLCs, potentially involving space charges.

FORM: TEAM #3

Academic Space Renovations and Deferred Maintenance

Academic Space

11Establish memoranda of understanding for

renovation projects

Establish memoranda of understanding for all renovation projects to drive better behavior in limiting project

scope creep. Create a process to develop a detailed project scope at project outset, to obtain buy-in from all

involved parties, and track all scope changes in the same way that construction changes are tracked by change

orders to avoid budget overruns and misaligned expectations.

ASSIGN: DoF

Academic Space

12 Whole-building or large-scale renovations

Improve the cost effectiveness of renovations by mimimizing the number of room-by-room renovations, This

requires an investment in swing space and other approaches to address funding and management of competing

urgent needs.

ASSIGN: AP Space

Academic Space

13 Project bundling to reduce costs

Currently, materials and services for renovations and capital projects are procured on a project-by-project basis.

Increase efficiencies and obtain deeper discounts in the bidding process by bundling purchases for more

multiple projects. Savings could also be achieved through sharing or bundling project management, architectural

services and contractor supervision costs.

ASSIGN: DoF

Academic Space

14Raze structures to stop annual maintenance

and utilities expense

MIT has a number of buildings designated as "soft" buildings, which are in very poor condition and/or occupy

future sites for campus development that may be better off demolished than occupied and maintained. Requires

a case-by-case analysis.

ASSIGN: DoF

Academic Space Space Utilization and Allocation

Academic Space

15 Reduce MIT's lease expenses

MIT pays about $5.2 million annually to lease about 95,000 nasf of research and administrative space. Consider

relocating these spatial needs to MIT-owned property, recognizing that this requires a one-time

renovation/moving expense and a continued lease expense. Address leases that have no exit strategy.

ASSIGN: AP Space

Academic Space16 Decrease or eliminate Pool C real estate

Pool C real estate has strategic value for future campus growth, but is currently owned as investment properties.

The handling of this class of properties should be systematically re-evaluated.ASSIGN: AP Space

Academic Space

17 Reduce or charge for storage space

Idea is to increase the efficiency of our use of campus space by providing an incentive structure to use less

space and charging units that are using more than their normal amount of space. This would enable us to

reduce the approximately $5.2 million annually spent on leased space and the significant maintenance and

energy costs for buildings that are old and suited to be razed.

ASSIGN: DoF

Academic Space Operations and Maintenance

Academic Space

18 Dispatch for utilities operations

MIT generates its own electrical and thermal power. Operations involves a complicated optimization process.

Outsourcing assistance to optimize the proper mix of boilers, chillers, etc., for a given day is recommended.

Based on a dispatch simulation from one vendor, the savings to MIT, net of fees, is estimated at $1.5 million.

ASSIGN: DoF

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Institute-wide Planning Task Force

Ideas Presented by the Working Groups

Ideas 7

Academic Space

19 Vehicle fleet purchase and maintenance

MIT has over 225 vehicles owned and operated by approximately 40 DLCs. There is no formal policy or process

for the purchase and/or maintenance of these vehicles. Purchase discounts and reduced maintenance costs can

be obtained with the creation of a policy that leverages MIT purchasing power and capabilities and targeted

vendor services.

ASSIGN: DoF

Academic Space20

Energy savings through efficient fume-hood

management

MIT has over 1100 fume hoods, which require significant energy. Savings can be obtained by reducing the

working height of fume hoods and reducing the face velocity, as well as shutting them off when not in use.ASSIGN: DoF

Administrative Admin

ProcessesCreating a Digital MIT

Administrative Admin

Processes

1 Modernization of the MIT travel system

Currently travelers make arrangements for air, hotel, conference fees, and related travel needs in the manner of

their choosing. A complete portfolio of options would assist travelers with trip planning, payment for expenses,

post-trip expense reporting and reimbursement for out-of-pocket expenses and would better serve MIT travelers

and realize efficiencies.

ASSIGN: VPF

Administrative Admin

Processes

2 Buy-pay process and electronic tools

Currently, only 57% of MIT procurement transactions are processed using efficient payment tools, like eCat and

P-card. An analysis identified measures that could lead to 90% usage of such tools. The envisioned solution is

to expand existing programs, establish new tools and do focused strategic sourcing. Wider adoption of

electronic procurement and payables tools could be achieved in part by raising the per-transaction and monthly

spending limits on P-cards and by increasing the number of eCat vendors from 24 to 45. Establishing new

programs will also increase usage.

ASSIGN: VPF

Administrative Admin

Processes

3 Budgeting

Currently, MIT's budget process is more of a budget allocation process. It lacks systematic planning for how

funds will be spent and how savings (fund balances) will be used or increased. The envisioned solution is to

transition to a high-level budget authorization process; eliminate (or reduce) budget changes and reallocations;

develop a secure repository for financial statements; and consider elminating budget authorizations distribution.

Streamlining the budget process would result in efficiencies, while also improving financial planning and

reporting.

ASSIGN: VPF

Administrative Admin

Processes

4 Reporting and forecasting

Currently, Reporting is done through BrioQuery, which is complicated and difficult to use. Forecasting is done

through complex spreadsheets, with little consistency of format or methodology among DLCs. Envisioned

solution is to provide a web-based platform for reporting and financial forecasting to achieive efficiencies,

enhanced compliance monitoring, improved forecasting, and time savings across the Institute.

ASSIGN: VPR

Administrative Admin

Processes

5 Research proposal submissions

Currently proposals are submitted in various forms depending on the sponosoring agency and unit, and

compliance with the terms of the sponsor and MIT policies varies widely.

Envisioned solution is to develop a common set of tools, templates, and practices for proposal submissions and

increase training of DLC administrators which will increase the accuracy of research proposals, minimize staff

time devoted to correcting errors, and reveal major policy and logistical ramifications of proposals

ASSIGN: RACC

Administrative Admin

Processes

6 HR/Payroll transaction processing

Current manual system processes approximately 10,000 transactions annually. The system entails re-keying

and instances of hand-carrying hard copy forms. Envisioned solution is to implement an automated process

through SAPWeb, achieiving greater efficiency and accuracy

ASSIGN: VPF

Administrative Admin

Processes

7 Electronic pay stubs and W-2 forms

Currently payroll stubs are generated and mailed manually to on-campus and off-campus locations. Envisioned

solution is to implement an electronic e-pay stub solution that provides individuals with access to a secure site to

view pay stubs on demand or alternatively "pushes" pay stubs to pay recipients in a secure manner.

ASSIGN: VPF

Administrative Admin

Processes

8 Next generation student systems

Currently, the MIT student system is a complex and pervasive enterprise system that pervades every aspect of

MIT's academic mission providing the foundation for MIT's educational enterprise and initiatives. Envisioned

solution is a series of projects billed as NGS3 that aim to use current technology to automate manual business

processes, support business process design efforts in more than 100 functional areas, and improve services to

students, faculty and staff.

ASSIGN: DUE/DGE/IS&T

Administrative Admin

Processes

9 Graduate student admissions

Currently, different admissions processes are in place across the Institute. Some are paperless; others are

paper based. Envisioned solution is to implement an MIT-developed paperless online graduate admissions

system through which applicants apply, MIT evaluations are conducted, and decisions are made collaboratively.

ASSIGN: DGE

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Institute-wide Planning Task Force

Ideas Presented by the Working Groups

Ideas 8

Administrative Admin

Processes

10 Stop or reduce campus bulk mailings

Currently, any MIT organization can print materials and request distribution by MIT Mail Services.Envisioned

solution is to set up a system to either stop printing of campus mailing or have opt-in options to current paper

mailings.

FORM: TEAM #4

Administrative Admin

Processes

11 Document retention and ownership

Currently , some record retention policies are administered by the Archives Dept, but there is not widespread

knowledge of the policies, and the policies do not cover all types of records. Envisoned solution is to draft and

adopt comprehensive Institute record retention policies for all records. Establish a database so records can be

easily accessed. Provide for electronic document management sysytems.

FORM: TEAM #4

Administrative Admin

ProcessesOther processes for further evaluation

Administrative Admin

Processes

12Innovative scheduling to minimize premium

pay

In FY 2008, $5.5 M was spent on overtime pay across campus, excluding Lincoln Lab. Envisioned solution is to

adjust methods for assigning work. One option is to create pools of on-call, part-time employees to fill needed

gaps. Efforts to increase staff management flexibility will enable us to better align requirements with staff

schedules.

ASSIGN: HR/DoF

Administrative Admin

Processes

13 Faculty search

Currently, there is a disparate process for applicant submissions, which is reliant upon expensive advertisment

posts and in some cases significant manual labor. There is no sharing of best practices. Envisioned solution is

to develop a single online system to support the faculty search process and identify opportunities for

coordination and savings related to advertising.

ASSIGN: PROVOST

Administrative Admin

Processes

14 Nonfaculty recruiting and search

Currently, DLCs use HR Staffing Services for only 25% of the 1,100 searches each year for non-faculty

positions. Envisioned solution is to encourage greater use of HR Staffing Services by DLCs seeking to fill non-

faculty positions.

ASSIGN: VPHR

Administrative Admin

Processes

15Vacation tracker for nonsponsored exempt

staff

Currently, departments are responsible for tracking vacation time accrued and used for non-sponsored exempt

staff members locally. At termination, vacation balances are reported to Payroll for payout. Envisioned solution

is to implement a SAPWeb-based centralized vacation tracker for all exempt staff, based on the system

currently being implemented for sponsored-research staff.

ASSIGN: VPHR

Administrative Admin

Processes

16 In-house services versus outsourcing

Currently, each year, roughly $9 million is spent annually on facilities-related services, both with the Department

of Facilities and externally. Many of the service activities are routine enough that they require full-time contractor

staffing. Envisioned solution is to require an in-house proposal when issuing a request for proposal (RFP) for

contracted services in situations where the services are envisioned to be continual. The in-house competitive bid

can help insure that procurement decisions are made with all options available.

ASSIGN:DoF

Administrative Admin

Processes

17 Shuttle services

Current shuttles provide 22.1K hours of service to 661K riders throughout Boston. The FY 08 budget was $1.4

million, with a small revenue stream of $57K from charters and fee-based trips (airport, grocery). Envisioned

solution is to reduce potential redundancy of routes (both within Shuttle Service and the MBTA), reduce

frequencies, increase fee-based service for non-core routes, and increase frequency of community members

choosing healthier options.

ASSIGN:DoF

Administrative Admin

Processes

18 Key request process

Currently, there is a manual, paper-driven process for requesting and issuing the roughly 4,700 keys requested

each year.The process sometimes requires multiple visits by requestosr before keys are available. Envisioned

solution is to automate a process through SAPWeb for requesting keys.

ASSIGN:DoF

Administrative Admin

Processes

19 Room scheduling and events registration

Currently, there are various scheduling processes involving faculty, students,and administrators. Event

registration is a manual, decentralized process. Envisioned solution is to implement a central tool for room

scheduling and event management across the Institute.

NOT AT THIS TIME

Administrative HR/Benefits1 Moderate salary increases

This is a short-term opportunity to reduce costs. If continued over a longer period of time, it would compromise

MIT's competitive positionASSIGN: PROVOST

Administrative HR/BenefitsHealth Plan for Active Employees

Administrative HR/Benefits

2Add copay for services received at MIT

Medical facility

Currently, there is no co-pay. Recommendation is based on a copay for same visit type in commercial plan.

Change will be needed to comply with Mental Health Parity Act (effective 1/1/2010). The savings potential is

estimated at $600,000 per year, based on 60,000 visits at $10 copay.

ASSIGN: VPHR

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Institute-wide Planning Task Force

Ideas Presented by the Working Groups

Ideas 9

Administrative HR/Benefits

3

Consolidate current plan offerings to one

multiple tier offering with all insured risk in

single pool

Redesign current healthcare program to consolidate current plan offerings to one multiple tier offering with all

insured risk in one pool. Estimated annual savings potential is $200,000.ASSIGN: VPHR

Administrative HR/Benefits

4 Leverage excess capacity at MIT Medical

Provide financial incentives, through copay differentials, to encourage all medical plan participants to utilize

specified services at MIT Medical by self-referring. MIT Medical currently has excess capacity and can provide

these services at a lower cost than the commercial plan networks. Services include mammograms, EKG, stress

tests, and routine lab panels. The estimated annual savings potential in combination with #5 below is $500,000.

ASSIGN: VPHR

Administrative HR/Benefits

5Incent employees to use lower cost

providers for radiological services

Charge differing copays for radiological services based on "preferred" provider selection would guide employees

and medical providers toward more efficient facilities. Estimated annual savings potential in combination with #4

above is $500,000.

ASSIGN: VPHR

Administrative HR/Benefits

6

Leverage MIT Medical covered population in

annual rate negotiation with Blue Cross Blue

Shield

This would lower administrative costs. The estimated annual savings potential is $25,000-$50,000 ASSIGN: VPHR

Administrative HR/Benefits7

Reduce rate of growth for prescription

medication expense in healthcare program

Access discounting available through MIT Medical and continue to add management features available through

Express Scripts. Estimated savings potential: $250,000.ASSIGN: VPHR

Administrative HR/Benefits

8Eliminate MIT paid spousal subsidy for

employees covering a divorced spouse

MIT currently covers approximately 70 divorced spouses, with 34 divorced spouses enrolled in family or

employee & spouse coverage. Current procedure is to allow an employee to keep a divorced spouse in the

family unit until either the employee or ex-spouse remarries. Estimated annual savings potential is $120,000-

$200,000.

ASSIGN: VPHR

Administrative HR/Benefits

9Revisit and reaffirm cost-sharing formula or

modify

Revisit current cost-sharing formula and determine whether savings from other program recommendations can

be used to offset expense of MIT contribution increase. This moves MIT's active healthcare program to a more

competitive position with our peer comparison group. Cost TBD based on contribution sharing formula selected.

ASSIGN: VPHR

Administrative HR/BenefitsHealth Plan for Retirees

Administrative HR/Benefits

10Change reimbursement strategy for

Medicare eligible retirees on Medex

For employees who retire on or after 1/1/2010, change reimbursement strategy for Medicare eligible retirees on

Medex program from Coordination of Benefits to Government Exclusion. Requires retirees to pay 20% of the

amount that is eligible for Medicare but is not paid by Medicare. On a $200 expense, this method would require

retirees to pay $4. Estimated savings: $1.5 million annual savings, $16 million FASB 106 funding liability

decrease recognized over 4 years.

ASSIGN: VPHR

Administrative HR/Benefits11

Implement new cost-sharing formula for

retiree healthcare program

This eliminates complex, service-based calculation. Idea is to freeze MIT's contribution at retirement and lower

spouse's subsidy to 50% of retiree's subsidy.ASSIGN: VPHR

Administrative HR/Benefits12

Health coverage for retirees with 5-10 years

of servuce

Allow employees who retire with between 5 and 10 years of service to purchase retiree health coverage by

paying the full cost. Provides access to coverage and is cost neutral.ASSIGN: VPHR

Administrative HR/Benefits13

Eliminate MIT paid life insurance that

follows employees into retirementEliminate MIT paid life insurance that follows employees into retirement ASSIGN: VPHR

Administrative HR/BenefitsRetirement

Administrative HR/Benefits14

Revise 401(k) plan to change current match

to a discretionary match.

Reduce MIT's matching contribution to the 401(k) plan from 5% to 4% -- match 100% of the first 3% contributed

by employees and 50% of the next 2% contributed by employees.ASSIGN: VPHR

Administrative HR/Benefits15 Freeze qualified spousal benefit

The qualified spousal benefit is a death benefit to a surviving spouse above and beyond that provided by a joint

and survivor payment option.ASSIGN: VPHR

Administrative HR/Benefits16 Eliminate pension disability benefits

Currently, employees who become disabled and qualify for MIT's long-term disability coverage continue to

accrue benefits in the basic pension plan untl they are 65.ASSIGN: VPHR

Administrative HR/Benefits17

Change actuarial methodology used to

accrue benefits after 65Method currently in use provides very generous benefit accrual after attaining age 65. ASSIGN: VPHR

Administrative HR/Benefits18 Cap service for pension formula Cap service for pension formula ASSIGN: VPHR

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Institute-wide Planning Task Force

Ideas Presented by the Working Groups

Ideas 10

Administrative HR/Benefits19

Change cash balance plan interest rate

creditChange cash balance plan interest rate credit ASSIGN: VPHR

Administrative HR/Benefits20

Effective for new hires on or after

01/01/2010, eliminate formula benefitImplement for employees hired on or after 1/1/2010. ASSIGN: VPHR

Administrative HR/Benefits

21

Effective for new hires on or after

01/01/2010, reinstall 3-year vesting

requirement

Implement for employees hired on or after 1/1/2010. ASSIGN: VPHR

Administrative HR/Benefits

22

Freeze formula benefit accruals (defined

benefit formula) for all participants effective

7/1/2010

Implement for all current participants effective 7/1/2010. ASSIGN: VPHR

Administrative HR/Benefits

23

Reduce cost volatility by changing

investment strategy in defined benefit (DB)

plan

Reduce cost volatility by changing investment strategy in DB plan ASSIGN: VPHR

Administrative HR/Benefits24 Eliminate supplemental pension accruals Impacts individuals making more than $230,000. ASSIGN: VPHR

Administrative HR/BenefitsPaid Time Off

Administrative HR/Benefits25

Eliminate 5th week vacation accrual in 10th

year of serviceEliminate 5th week vacation accrual in 10th year of service ASSIGN: VPHR

Administrative HR/Benefits26

Implement formal tracking system for

administrative use of vacation time

Savings potential through improved level of accountability and verified account balances for payout at

termination.ASSIGN: VPHR

Administrative HR/Benefits27

Accrual of sick time for Support and Service

staff

Change method of accrual of sick time for Support and Service staff from annual accrual based on anniversary

date, to monthly accrual. Savings potential through improved level of accountability.ASSIGN: VPHR

Administrative HR/Benefits28 Extended Sick Leave (ESL) policy

Change practice for maximum absence under Extended Sick Leave (ESL) policy so that employees are no

longer eligible to use an additional 26 weeks of ESL after sick leave accrual is exhausted. Savings TBDASSIGN: VPHR

Administrative HR/Benefits29 Implement Short Term Disability program

Implement Short Term Disability program that will replace 60% of pay after one week of absence for up to 26

weeks, when long term disability becomes available. Savings TBDASSIGN: VPHR

Administrative HR/Benefits

30

Discontinue practice of counting paid time

off for purposes of calculating overtime

worked

Discontinue practice of counting paid time off for purposes of calculating overtime worked ASSIGN: VPHR

Administrative HR/BenefitsTransportation and Parking

Administrative HR/Benefits

31Implement salary-based contribution toward

cost of parking on campus

MIT has historically subsidized the cost of parking on campus and provided various incentives for employees to

take public transportation and avoid parking on campus. The estimated cost of a parking space on campus is

$3,000 per year. Implement salary-based contribution toward cost of parking on campus, with those making

$125,000 and more paying 50% of market rate next year and those making less than $125,000 subject to the

11% increase. Estimated annual savings $500,000.

ASSIGN: VPHR

Administrative HR/Benefits

Temporary Help and Consultants (Joint

with Procurement Task Force)

Administrative HR/Benefits

32Reduce temporary help and consultant

expense

MIT temps currently processes payroll forms for over 500 temporary positions annually. The dollar amounts are

quite large. The working group estimates the potential for an overall savings of between $60 and $80 million

spent on outside professional services. a. Negotiate a single vendor management contract with an outside firm

b. Develop internal systems and management discipline to maximize use of expertise within the MIT workforce

before turning to temporary or consulting services

ASSIGN: VPHR/VPF

Administrative

Procurement

Procurement - Cross Cutting Process

Improvements

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Institute-wide Planning Task Force

Ideas Presented by the Working Groups

Ideas 11

Administrative

Procurement1 Reduce the number of purchasing choices

Currently, there is an over-abundance of choice, which should be reduced in ways that aggregate purchases

and thus drive down costs and drive towards sustainability.ASSIGN: VPF

Administrative

Procurement

2 Automate and streamline key processes

Currently, many procurement processes are still based on paper requisitions, reimbursement forms, manual

filing and audits, etc. This will not only reduce costs significantly but also enhance the transparency and even

accuracy of the entire procurement process.

ASSIGN: VPF

Administrative

Procurement

3Educate the community about procurement

processes

Currently, many people involved in the ordering of goods or services have never been formally trained in how

best to use MIT's electronic catalogues and purchasing cards, how to take advantage of special deals with

particular vendors, or even how to accurately allocate the correct account number or code for individual

purchases. This creates inaccuracies and re-work.

ASSIGN: VPF

Administrative

Procurement4

Renegotiate and bid out contracts for key

goods and services Develop strong, transparent, long-term relations with a small number of key vendors. ASSIGN: VPF

Administrative

Procurement

5 Promote sustainable purchasing practices

Examples include reducing small orders, automating processes where ever possible, migrating towards

multifunctional machines, promoting videoconferencing vs. frequent travel, simply reducing the amount of goods

we consume on campus every day.

ASSIGN: VPF

Administrative

Procurement6

Ensure that costs savings are not achieved

at the expense of others.

Ensure that costs savings for certain goods and services do not enhance our well-being at the expense of

others. Example: temporary workersASSIGN: VPHR/VPF

Administrative

Procurement

7 Develop creative solutions and fair policies Develop creative solutions and fair policies for the numerous employees who will be impacted by our proposed

changes (i.e. internal job banks)ASSIGN: VPHR

Administrative

ProcurementProcurement - Information Services

Administrative

Procurement

8Standardize personal computing purchases

on PCs

In the last fiscal year, Dell and Apple had a relatively even 50/50 split of the total laptops purchased (955 Dell to

883 Apple), while 70% of desktops purchased were Dell.

Idea is that standardization allows MIT to better utilize signficant campus agreements in place for Windows and

Office software, leverage more time/cost-effective repair and maintenance over the lifecycle of the computer,

and take better advantage of the substantial volume of business transacted with Dell. Estimated potential

savings is $800K per year. While Dell is used as the vendor for this example, standardization on other PC

vendors should be explored. Opening this service to competition may produce additional savings.

ASSIGN: IS&T/VPF

Administrative

Procurement

9

Standardize on a common solution for all

web/audio/video conferencing services at

MIT.

Currently, MIT uses a variety of web, audio and video conferencing services for meetings, colloborations,

events, and conferences -- requiring coordination and planning.

The selection of Webex will allow MIT to leverage the existing community around Webex, establish better

volume pricing, and centralize our conferencing services with single click web access, without the need for the

coordination and planning of today's solutions. Additional data is required to estimate savings.

ASSIGN: IS&T/VPF

Administrative

Procurement

10Reduce the number of fax machines

throughout MIT

Currently. MIT maintains a significant number of Fax machines simply for occasional use.

Leverage VoIP infrastructure to move stand-alone fax machines to new centralized services that allow members

of the MIT community to send and receive faxes through email.

ASSIGN: IS&T/VPF

Administrative

Procurement

11Purchase only MIT recommended desktop

and laptop configurations

Reduce the amount of customization within the MIT recommended desktop and laptop configurations and also

to reduce the amount of models and choices available in the MIT recommended choices. Savings potential is

estimated at $1.4 million.

ASSIGN: IS&T/VPF

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Institute-wide Planning Task Force

Ideas Presented by the Working Groups

Ideas 12

Administrative

Procurement

12

Change purchasing card rules to make it

possible to buy computers directly on a

purchasing credit card

Eliminate time-consuming purchase order requirement. ASSIGN:VPF

Administrative

Procurement13

Examine the impact of the $3,000 capital

equipment rule on computer purchasesEliminate incentive to pad purchases with unnecessary products so that item is capitalized instead of expensed. ASSIGN:VPF

Administrative

ProcurementProcurement - Facilities

Administrative

Procurement

14Consolidation of design services leading to

partnering agreements

Design services on renovation projects represented $6.34 million in FY 2008. Of this amount 61% or $3.9 million

was for repetitive projects that could have benefited from a partnership approach. 43 separate firms worked on

135 projects in FY 2008.

ASSIGN: DoF

Administrative

Procurement

15Leverage facilities related purchasing power

across departmental boundaries

Approximately $15 million of facilites-related purchases, excluding construction, were purchased outside of the

Department of Facilities, while the Department of Facilities purchased $8 million. Savings potential estimated at

$450K per year.

ASSIGN: DoF

Administrative

Procurement

Procurement - Furniture and Laboratory

Supplies

Administrative

Procurement16

Combine MIT campus and MIT Lincoln

Laboratory furniture procurement

IN FY 2008, Campus purchased $1.5 million in furniture and Lincoln Lab spent $1.2 million (excluding technical

furniture). Savings potential is estimated at $75K per year.ASSIGN:VPF

Administrative

Procurement

17Elminate independent buying from Office

Depot

In FY 2008, Campus bought $63,000 of furniture at Office Depot. If the remainder of furniture purchases were

made through Office Depot, MIT could have saved an estimated 10% on those purchases. Estimated potential

savings is $6K per year

ASSIGN:VPF

Administrative

Procurement

18

Convert lab supply and equipment orders <

$5K to eCAT/Sciquest or procurement card

transactions

FY 08 total lab supplies and equipment purchases were $74.37M - $9.1M, spent on 15,176 orders processed

via orders with total amounts less than $5K using manual processing. Estimated potential savings is $30k-96K

to GIB, $500K-$1,700K total

ASSIGN:VPF

Administrative

Procurement19 PCARD/eCAT rebate

Rebate was lost by processing orders less than $5K manually.Estimated potential savings is a $75k-$194K

rebate per year GIB.ASSIGN:VPF

Administrative

Procurement20

Renegotiate existing lab supply and

equipement contract with VWR Scientific

VWR has currently offered a one-time $350K rebate to be applied to the Insitute's GIB- one time rebate is

estimated savingsASSIGN:VPF

Administrative

Procurement

21

Create savings by negotiating scientific

equipment contracts with suppliers that

currently have GIB spend greater than

$100K

The FY 08 GIB spend for lab supplies and equipment was $4.7 million. Nine suppliers exceeded $100,000 in

purchases. Estimated potential savings - TBD.ASSIGN:VPF

Administrative

Procurement

22

Renegotiate existing Lab Supply contracts

for Sciquest/ECAT suppliers with high

volume

Three suppliers total $1.5 million. Estimated potential savings - TBD. ASSIGN:VPF

Administrative

Procurement

Procurement - Administrative Supplies

and Travel

Administrative

Procurement23

Use a BanK of America (BOA) travel card

with corporate liability

Current practice requires travelers to request an advance or pay out of pocket and seek reimbursement. Use of

the credit card for travel will result in rebate income to MIT.ASSIGN:VPF

Administrative

Procurement

24Concur expense reporting and online

booking (Cliqbook)

Current practice requires travelers to reconcile expenses with manual processes that are paper driven, time

consuming and challenging to manage -- 31,000 reimbursements are processed each year. On-line booling and

expense reporting would eliminate these manual processes. Estimated potential savings is $85k-$127K per

year.

ASSIGN:VPF

Administrative

Procurement25 Consolidated travel agency model

Consolidate external travel vendors, introduce a complementary on-line booking system, and consolidate MIT

and Lincoln Lab travel offices.Estimated potential savings is $1 million per year.ASSIGN:VPF

Administrative

Procurement

26 Direct air and national hotel contracts

Currently MIT is a member of the Medical Academic and Scientific Community Organization (MASCO) and has

adopted its airline contract pricing structure. Proposal is that MIT negotiate its own direct contracts with air and

hotel providers and utilize the MASCO agreement or other if/when they are more favorable.Estimated potential

savings is $5.7 m-$7.6 million per year.

ASSIGN:VPF

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Institute-wide Planning Task Force

Ideas Presented by the Working Groups

Ideas 13

Administrative

Procurement

27 Electronic travel reimbursements

Currently, paper forms are completed to request reimbursement for out-of-pocket expenses for business

travel.Direct deposit of these reimbursements would replace paper checks generated for this purpose.

Estimated potential savings - TBD.

ASSIGN:VPF

Administrative

Procurement28 Accelerating Green Procurement @ MIT Support 100% recycled product purchases.Estimated potential savings - TBD. ASSIGN:VPF

Administrative

Procurement

29 Onsite life science operation

MIT's partner for cylinder management (Airgas East) has proposed on onsite solution (state of the art cryogenics

facility, encompassing products, services and value added efficiencies geared toward reducing MIT's costs,

streamlining mission critical processes and shrinking the Institute's carbon footprint. Estimated potential savings -

TBD.

ASSIGN:VPF

Administrative

Procurement30 Airgas proposal Extend the existing partnership agreement.Estimated potential savings is $70k-$80K per year. ASSIGN:VPF

Administrative

Procurement31

Vendor consolidation for clerical temporary

help

Continuation of vendor consolidation and reducing choice of vendors.Estimated potential savings $600K per

yearASSIGN:VPF

Administrative

Procurement32

Transition from laser jet printers to

multifunctional devices

Currently there are 751 copiers and 4,220 printers as part of central inventory system - combine with Institute

wide plan to reduce total amount of printing on campus. Estimated potential savings is $3.5 million per year.ASSIGN:VPF

Administrative

Procurement

33

Office supplies - update core contract list,

implement a minimum order value of $50

and limited view catalog

The core contract list is for 427 items, which represents 38% of the business. Idea is to update the list to the top

239 items to achieve a $70,822 product savings by lowering prices on products not previously on the core list.

Estimated potential savings is $435K per year.

ASSIGN:VPF

Administrative

Procurement

34 Office supplies - rebid office supplies

Initial term ends 12/31/2009 - recent third party audit states that MIT has highly competitive pricing structure -

but economic conditions may allow further savings.

Estimated potential savings - TBD.

ASSIGN:VPF

Administrative

Procurement

35Reduction of small dollar purchase orders

processed by MIT procurement

Procurement processes 125,000 purchase orders on a yearly basis, over 46,000 of which are less than $5,000

and are not processed through ECAT system. Idea is to establish and enforce new policies that require use of

procurement card or ECAT for small purchases.Estimated potential savings $120k-$180K per year.

ASSIGN:VPF

Administrative

Procurement

Procurement - Temporary Staff and

Consultants

Administrative

Procurement36 Employee job share bank

Create a central database to track available employees and share resources.

Estimated potential savings - TBD.ASSIGN: VPHR

Administrative

Procurement37 In-house casual labor

Converting casual labor workforce from outside agencies including NextSource to in-house.Estimated potential

savings - TBD.ASSIGN: VPHR

Administrative

Procurement

38 Implement a vendor management system

A VMS is an Internet-based procurement application outsourced to a temporary agency which is responsible for

managing the process for all outsourced procurement activities outsourced to them. This would require the

community changing the way we procure professional services.Estimated potential savings per year: $480-

$720 GIB, $8M-$12M total.

ASSIGN:VPF

Administrative IT IT @MIT - Standardization

Administrative IT

1Centralize purchasing and management for

computer hardware

Currently a loosely managed process. Idea is to standardize a small number of hardware options and then

centralize purchasing, installation, maintenance, support and eventually disposal and replacement .Estimated

potental savings per year is $1.7 million.

ASSIGN: IS&T/VPF

Administrative IT

2Centralize purchasing and management for

computer software

MIT spends over $4 million on software licenses and software management. Savings can be realized with 1.

Enterprise-wide licences and quantity discounts, 2. Standardizing on a small number of software products 3.

Open source software .Estimated potential savings: TBD.

ASSIGN: IS&T/VPF

Administrative IT3

Centralize online process for graduate

admissions

Current process is paper driven, costly and inefficient. Idea was also proposed by the Education and

Administrative Processes Working Groups.ASSIGN: DGE

Administrative IT

4Decustomize administrative enterprise

systems

MIT was an early adopter of SAP, which required major customization -- some capabilities are now

standard.Potential savings would be realized from reducing developer time and making processes more

efficient. Estimated savings of $2.6 milion per year.

ASSIGN: IS&T

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Institute-wide Planning Task Force

Ideas Presented by the Working Groups

Ideas 14

Administrative IT

5Decustomize educational enterprise

systems

WEBSIS, Stellar and OCU are the three enterprise educational systems. Decustomizing will require some

changes in how MIT does business. Potential savings would be realized from reducing developer time and

making processes more efficient. Estimated $0.6 million per year in savings.

ASSIGN: IS&T

Administrative IT IT@MIT - User-centered IT Systems

Administrative IT

6Remove pain points in using MIT enterprise

systems

Many user interfaces are awkward and prohibit tasks from being done efficiently. Far more emphasis needs to

be placed on improvements to the way we provide management information to support our business. MIT

administrators estimate that they spend 10-20% of their time translating transactional information into

management information. Potential productivity savings are estimated at $1.5 million.

ASSIGN: IS&T

Administrative IT IT@MIT - Outsourcing

Administrative IT

7 Outsource voice and video communication

MIT currently installs and manages its own voice telephone system. Operating costs are estimated at $3.2

million/year and capital costs are estimated at $6 million per year.

It is estimated that outsourcing could potentially save 30% of current annual operating costs or $1.3 million.

ASSIGN: IS&T

Administrative IT8 Replace landlines with mobile phones

Currently almost all employees have landlines and also about 10% have cellphones.

Proposal requires a serious RFP process but potential savings are estimated at about $0.5 million per year.ASSIGN: IS&T

Administrative IT

9Remove disincentive for outsourcing

research technical support services

Currently this work is done by 1. graduate students, postdocs or research staff; 2. permanent staff and 3.

outside vendors. Outside vendors are often a the best solution but overhead is charged on all of these services,

creating a disincentive.Idea is to renogotiate overhead rules so that the overhead charge is exempted for

amounts over $25K, consistent with subcontracts.

ASSIGN: IS&T

Administrative IT Streamline operations for IT at MIT

Administrative IT

10End support for selected IT products and

services

Over the years, MIT has collected many IT products and services that are no longer appropriate for support --

They are out of date, used by few people, or better altermatives are available.Estimated potential savings from

closing or de-supporting some services is $1.2-$1.8 million but requires further investigation.

ASSIGN: IS&T

Administrative IT

11 Reduce printing costs

Modifying the way printing is done is estimated to save about $4.3 million or 58% of the total annual printing

costs. Ideas are as follows: 1. active print management, 2. elimination of banner pages, 3. duplex printing, and

4. toner savings.

FORM: TEAM #4

Administrative IT

12Streamline help-desk support and outsource

as appropriate

MIT has several departments providing help desk IT services to either the entire community or within their own

DLC. There is substantial overlap in services provided.

Potential savings are estimated at $1.5 to $2 million annually across the Institute.

ASSIGN: IS&T

Administrative IT

Streamline the governance structure for

IT at MIT

Administrative IT

13Reorganize committees and organizational

units related to IT

IT at MIT suffers from an overabundance of advisory committees and organizational units, coupled with unclear

processes for decision making, often times resulting in a great deal of effort expended to achieve very

little.Savings are difficult to quantify but potentially large.

ASSIGN: IS&T

Administrative IT Innovation and strategic advantage

Administrative IT

14 Support location-independent work

Formally provide technological and organizational support for "location independent work." Potential savings are

estimated at $4.4 million, with $2.7 million from a reduction in office space and $1.7 million in productivity

savings.

FORM: TEAM #5

Administrative IT

15Create a more cost-effective research-

computing environment

Research computing is at the heart of the MIT community's knowledge-generating work. It is often done in a

scattered ad-hoc manner across the campus. Idea is to have a more coordinated centralized approach so that

space, cooling and power can be shared (and possibly network infrastructure). Estimate of potential off-campus

research computing power savings is $3.5 million.

ASSIGN: VPR

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Institute-wide Planning Task Force

Ideas Presented by the Working Groups

Ideas 15

Student Life

1 Fee structure for visiting students

The number of reqistered visiting students has risen dramatically (from ~200 in 2003 to ~650 in 2008). Faculty

currently pay a one-time $1,000 fee per visiting student, regardless of a student's duration of stay.Idea is a new

an higher pro-rated fee that would cover more overhead.

ASSIGN:DGE

Student Life

2Improvement of housing utilization during

the Summer

Currently, housing utilization during the summer is low, particularly in undergraduate dorms -- all dorms remain

open. Idea is to have a more rational utilization of our housing stock during the summer by defragmenting the

use of dorms so that they are either fully used by our students, by MT programs or outside programs, or are

closed to residents other than year-round residents, such as GRTs and housemasters. Potential savings is

estimated at $1.1 to $4.5 million.

ASSIGN: DSL

Student Life3

Relaxation of four-year on-campus housing

commitment

Currently, undergraduates have been de facto guaranteed four-year on-campus housing.

Potential savings is based on not going forward with W1 project -- estimated at $2.5 million in yearly savings.ASSIGN: EMG

Student Life

4 Metering of dormitories

Current cost of metering the remainder of the dorms is estimated at $790K.

Current annual energy bill for the dorms is $8 million. Energy savings based on Google metering is 5-15%. If a

midpoint of 10% were achieved, savings would be $800K. If we shared with students, savings would be $400K.

ASSIGN: DSL

Student Life

5 Adjusting financial aid to true food costs

Currently, the board (food) component of the cost of education does not accurately reflect the actual student

expenditure on food. This results in a discrepancy in the financial aid MIT allocates for board and students'

actual food expense. The MIT board cost is set at $4,460 per academic year. A recent survey found student self-

reported expenditures on food ranged from $1,700 to $2,240 per academic year. The idea is to reduce the board

component of financial aid to $3,000 per academic year for students who decline the meal plan. Board would

remain at $4,460 for students on the meal plan. This change would provide an incentive for students to opt for

the meal plan, which would benefit the MIT dining program financially and lead to better student nutrition. It

would also lead to significant savings in financial aid allocated to students who decline the meal plan.

Potential savings: If board is set at $3,000 and 80% of students decline the MIT meal plan, $2.4 million in UG

financial aid savings would be realized.

ASSIGN: EMG

Student Life

6Implementation of meal plan changes in

house dining -- fall 2010

An examination of the Blue Ribbon Committee's (BRC) proposed meal plan changes found the changes would

lead to a reduction in MIT's approximately $500K annual subsidy of the dining system. The idea is to provide a

$600 dinner plan in place of the current $300 dinner plan as a requirement for new students as of fall 2010.

Among the foreseeable benefits of the new plan are that it would create revenue stability and attendance

predictability.

ASSIGN: DSL

Revenue Enhancement Scalable Educational Platforms

Revenue Enhancement 1 Online freshman year Would radically change MIT culture. Revenue potential of $50-$100 million. Not recommended. NOT AT THIS TIME

Revenue Enhancement

2Selected undergraduate subjects for credit

via e-learning

Web-based, for-credit, distance-education subjects to learners worldwide. The for-credit subjects would have

24/7 on-line TAs, homework submission, and grading and graded examinations. Revenue potential of $60

million.

FORM: TEAM #1

Revenue Enhancement

3 E-learning masters degrees

Masters degrees at a distance (via asynchronous "e-learning") to both individual learners and to groups of mid-

career professionals at companies. On-line support would be offered by 24/7 graduate TA teams. An extensive

market analysis, stratified by different market segments worldwide, would be needed. Revenue potential of $30

million.

FORM: TEAM #1

Revenue Enhancement

4MIT continuing education program

(extension studies)

Develop full continuing education degree or certificate program to be executed weekday evenings on the MIT

campus and 24/7 online using a modified OCW platform and content. Non-regular faculty to teach on-campus

courses. Revenue potential of $10 million.

FORM: TEAM #1

Revenue Enhancement5 MIT Lifetime Academy

MIT provides early, mid and late career education to advance alumni professionally and personally - in the form

of short courses and modules, on campus and at a distance by e-learning. Estimated revneue $9-$45 MFORM: TEAM #2

Revenue Enhancement6 Partnerships with corporate universities

MIT preferred partner to corporate universities with a strong scientific and technical orientation. Revenue

potential is greater than $10 million.FORM: TEAM #2

Revenue Enhancement7

Executive/professional education to

enhance corporate partnerships

Complement research in leading corporate relationships with significant custom executive/professional

education programs. Revenue potential is $20-$30 million.FORM: TEAM #2

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Institute-wide Planning Task Force

Ideas Presented by the Working Groups

Ideas 16

Revenue Enhancement

8 MIT Energy Pathways

A thematic set of educational offerings that cuts across a variety of delivery mechanisms is proposed. This

package of subjects/courseware could be exploited in several on/off campus revenue enhancement schemes.

Revenue potential of less than $10 million.

FORM: TEAM #2

Revenue Enhancement Corporations and Government

Revenue Enhancement9 Large-scale institutional initiatives

Groups of faculty and researchers within MIT participate in large, interdisciplinary, institutional initiatives.

Research income: modest GIB impact. Revenue potential: $10's of millions.ASSIGN: VPR

Revenue Enhancement10

Lower cost-recovery rate for foundation

research grants

Policy changes to allow charging less than the rate established by the ONR for recovery of overhead costs for

research projects funded by foundations. Revenue potential: $30+ million.ASSIGN: VPR

Revenue Enhancement

11 Foreign government collaborations

International colloborations with foreign governments, in the style of SMA, MIT-Portugal, etc. Requirement for a

fixed (say 10%) contribution to the GIB for all such agreements exceeding $10 million/year. Revenue potential:

10's of millions.

ASSIGN: VPR

Revenue Enhancement

12 Transition laboratories

Establish labs and/or teams of faculty and researchers to perform applied research for industry. Primarily

research support, but potential for contribution to GIB in form of fees and royalties. Revenue potential: 10's of

millions.

ASSIGN: VPR

Revenue Enhancement

13Expansion of Office of Corporate

Relations/Industrial Liaison Program

Increase the number of officers by 5 to expand ILP member portfolio by 50 to 230-240 companies to increase

fees, research, and gifts, plus corporate development for major MIT initiatives. Revenue potential: $6 million.ASSIGN: VPRD

Revenue Enhancement

Issue Based Groups and Individual

Donors

Revenue Enhancement

14 MIT research multiplier fund

Contributions from individual and corporate donors to match additional funds from private foundation, supporting

research, educational projects and other worthwhile initiaitives at MIT. Potential for reduction of unrestricted gifts

to MIT. Revenue potential: $25 million.

ASSIGN: VPRD

Revenue Enhancement

15Expansion of the resource development

program

MIT's resource development is efficient but has significantly less staff than peer institutions. Officers currently

manage 4,200 prospects, but the Institute has the potential to engage some 3,200 already identified additional

major and principal gift prospects. Revenue potential: $180 million per yea above current levels.

ASSIGN: VPRD

Revenue Enhancement

16Expansion of acceptable gift planning

vehicles

Generate incremental revenue by expanding its gift planning marketing efforts and gift acceptance policies to

include additional instruments, e.g. charitable lead trusts, pooled income funds, and retained life estate gifts of

real estate. Revenue potential greater than $10 million.

ASSIGN: VPRD

Revenue Enhancement17 Market the MIT brand

Devise a business model to vend Institute merchandise cost-effectively to specfic, targeted markets. Revenue

potential: $1-5 million.ASSIGN: PROVOST

Revenue Enhancement18

Forge high-return alumni connections:

"William Barton Rogers Visitorships"

A visitorship for distinguished alumni, who, in conjunction with a signficant gift on the order of $150,000 would

come to the MIT campus for an academic year. Revenue potential: $2 million.ASSIGN: AA

Revenue Enhancement Exploiting Physical Assets

Revenue Enhancement

19 Maximize use of MIT owned real estate

Attract developer to build conference center (with hotel, retail space, and renovated MIT museum) where MIT

provides conference content and outside party runs facility. MIT already has a very capable real estate

development office that is profit driven. Revenue potential: not quantified.

ASSIGN:EVP/MITIMCo

Revenue Enhancement20 Dorm room summer rental

Dorm rooms rented during the summer for academic confernences and other MIT-affiliated events during the

summer. Revenue potential: $0.5 million.ASSIGN: DSL

Revenue Enhancement

21Replace library roaming stacks with new

business model

Phase 1: MIT reinvents "roaming stacks" in libraries by removing them, saving thousands of square feet of prime

real estate for more productive purposes (including moving high-rent MIT offices onto campus). Revenue

potential: $0.5 million.

Phase 2: MIT and its partners change the library book delivery business model into a for-profit national

company. This company is the first of several delivering routine services to colleges and universities.

Considerable revenue potential not quantified.

ASSIGN: LIBRARIES

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