priority processes owner art johnson, project mgr. april...

CREATE COST BENEFIT ANALYSIS PROCESS IMPROVEMENTS

Work System OwnerEd Curry

Work System Enabling LeaderDane Theodore, Director

Priority Processes Owner Art Johnson, Project Mgr.

April 22, 2009

Revision 1

R TE NC EI IP

R TE NC EI IPGOVERNOR’S

STERLING AWARDGOVERNOR’S

STERLING AWARD

00 72 00 72

CREATE COST BENEFIT ANALYSIS A. JOHNSON

Key WorkProcess (5): Process Owner:



REVISION LOG

SECTION NUMBER REVISION DATE REVISION DESCRIPTION

6

17

4/22/09

4/22/09

DMAIC Lite Storyboard Lite Gap

EZDMAIC 20 Checkpoint Review

Table of Contents1. Cover Sheet2. Table of Contents3. Internal and External Customers4. Macro Flow Chart - Manage Resource Conservation 5. Key Work Process 5 Flow Chart - Identification of Facility and Behavioral Modification Improvements & Recommendations6. DMAIC Lite Storyboard - Check Points 1-187. Priority Process Selection Matrix Form8. Key-In-Process Measures Determination Form System Form9. BPS Process Management System10. Macro Process Control System Form11. Key Work Process 5 Process Control Form12. Countermeasure Matrix13. Countermeasure Action Plan Matrix14. Root Cause Action Plans15. Document Tree16. Key Work Process Indicator Data17. EZDMAIC 20 Checkpoint Review



FACILITIES INTERNAL CUSTOMERSSchool Board

SuperintendentArea SuperintendentsDistrict AdministrationSchool Administration

FACILITIES EXTERNAL CUSTOMERSState of Florida

Florida Department of EducationParents / Guardians

StudentsTaxpayers



NEED ISMET

Deliverables: D1 - MONTHLY FACILITY AUDIT & INSPECTION REPORTS D2 - COST BENEFIT ANALYSIS REPORTS D3 - MONTHLY FACILITY AND BEHAVIORAL MODIFICATION IMPROVEMENT RECOMMENDATIONS LIST D4 - MONTHLY SENIOR STAFF RESOURCE CONSERVATION BOX SCORE D5 - MONTHLY DISTRICT AND SCHOOL RESOURCE CONSERVATION BOX SCORE

Identify district wide resource conservationinitiatives to reduce facility operation costs related toelectrical, water, and gas usage, trash disposal and facilityefficiencies.

?

?

?

?

IS FUNDINGAVAILABLE?

CAPITALPROJECT?

IS THE RECOMMENDATIONA FACILITY IMPROVEMENT?

IS THE FACILITYRECOMMENDATION

COMPLEX?

YES

YES

YES

NO

NO

NO

PREPARE RESOURCECONSERVATION DOCUMENTS

PERFORM BEHAVIORALMODIFICATION TRAINING

IMPLEMENT NON-COMPLEX FACILITY IMPROVEMENT

MANAGE DISTRICT & SCHOOLRESOURCE CONSERVATION

P1 - # POLICIES, PROCEDURES, PLANS, TRAINING

COURSES, CHECKLISTS, MANUALS, SURVEYS,

HANDBOOKS AND PAMPHLETS DEVELOPED,

REVIEWED & UPDATED

P2 - # OF UTILITY CONSUMPTION

REPORTS / BILLS COLLECTED

P3 - # OF MONTHLY FACILITY INSPECTIONS AND QUARTERLY

AUDITS PERFORMED

P4 - # OF MONTHLY INSPECTION REPORTS AND

QUARTERLY AUDIT REPORTS PUBLISHED

P5 - # OF MONTHLY CONSUMPTION DATA ANALYSIS

PERFORMED

P6 - # OF MONTHLY FACILITY INSPECTION AND QUARTERLY

AUDIT DATA ANALYSIS PERFORMED

P7 - # FACILITY RECOMMENDATIONS ISSUED

P8 -# OF BEHAVIORAL MODIFICATION IMPROVEMENTS

ISSUED

P9 - # OF SCHOOL RECEIVING A BEHAVIORAL MODIFICATION

RATING SCORE EQUAL TO OR GREATER THAN 90%

P10 - # NON-COMPLEX FACILITY IMPROVEMENTS

COMPLETED.

P11 - # OF COST BENEFIT ANALYSIS COMPLETED

P12 - # COMPLEX FACILITY PROJECTS ADDED

TO DEFERRED MAINTENANCE LIST

P13 - # OF COMPLEX FACILITY DEFERRED

MAINTENANCE

PROJECTS THAT WERE COMPLETED

P14 - # COMPLEX FACILITY PROJECTS

ADDED TO THE CAPITAL PROJECT LIST

P15 - # OF COMPLEX FACILITY PROJECTS

THAT WERE COMPLETED.

P16 - # OF WORK ORDERS

SUBMITTED

P17 - # FACILITY IMPROVEMENT AND

BEHAVIOR MODIFICATION TRAINING

ANALYSIS AFTER ACTION

REPORTS PUBLISHED.

CREATE COSTBENEFIT

ANALYSIS

ADD TO UNFUNDED RCPROJECT LIST

ADD TO CAPITAL PROJECT LIST

SUBMITWORK ORDER

IDENTIFICATION OF FACILITY& BEHAVIORAL MODIFICATION

IMPROVEMENTS &RECOMMENDATIONS

KWP2

KWP1

MONITOR & ANALYZEFAC IMP PROJECTS

& BM TRAININGRESULTS

KWP6

Note: CBC Includes5-Year Pay Back

Analysis

KWP5

KWP4

KWP3

YES

NO

KWP = Key Work Process

WHO

STEP

MacroProcess: Process Owner:

BPS SCHOOLBOARD SCHOOL

FACILITIES RESOURCECONSERVATION

PREPARE

QUESTION

QUESTION

NEED

IDENTIFYRECOMMEND

PERFORM

IMPLEMENT

MANAGED

MONITORANALYZE

SUBMIT

QUESTION

QUESTION

ADD

ADD

CREATE

MANAGE DISTRICTRESOURCE

CONSERVATION

FACILITIES SERVICES: ROBERT J. WIEBEL / ART JOHNSON 12/16/08

Q1 - REDUCE ELECTRICAL USAGE 10% BY END OF FY 08/09

Q2 - REDUCE WATER USAGE BY 10% BY END OF FY 09/10

Q3 - REDUCE GAS / HEATING OIL USAGE BY 10% BY END OF FY 09/10

Q4 - REDUCE THE VOLUME OF TRASH HAULED 10%BY END OF FY 09/10

Q5 - IMPROVE FACILITY EFFICIENCY 10% BY END OF FY 10/11

A. JOHNSON

NEED ISMET

PERFORM A COST BENEFIT ANALYSISON EACH RECOMMENDED COMPLEX FACILITIES PROJECT.

RESOURCE CONSERVATION

NEED

MACRO Q MEASURES

IS A COST BENEFIT ANALYSISREQUIRED FOR THE ENERGY

CONSERVATION MEASURE(ECM)?

DOES THE ECM ACHIEVE THE

5-YEAR OR SOONERPAYBACK?

NO

NO

YES

YES

COLLECT DATA

ANALYZE DATA

IMPLEMENTECM

NOTE: IN SOME CASES A CBA IS NOT NEEDED ON A RECOMMENDED COMPLEX FACILITY PROJECT(ECM).

GOTO

IDENTIFICATION OF FACILITY& BEHAVIORAL MODIFICATION

IMPROVEMENTS &RECOMMENDATIONS

MACRO KWP2

WHO

STEP


BPS SCHOOLBOARD

FACILITIES RESOURCECONSERVATION

QUESTION

QUESTION

ANALYZE

COLLECT

NEED

MANAGED

IMPLEMENT

CREATE COST BENEFITANALYSIS

FACILITIES SERVICES: ROBERT J. WIEBEL / ART JOHNSON 3/5/09




Q4 - REDUCE THE VOLUME OF TRASH HAULED 10%BY END OF FY 09/10

A. JOHNSON

?

?

P11.1 # COST BENEFIT ANALYSIS PERFORMED.

P11.2 COST BENEFIT COMPLETION RATIO.

ATTACHMENT A

© ets, Inc. / CTi 1990 - 2008 Page 1 RC KWP5

INSTRUCTIONS: Please return your completed DMAIC Storyboard, along with your Process Control System (both flow chart and indicator information) and your completed Action Plan (see “Improve” checkpoint #10), via email to [email protected] and copy Steve Muzzy on all emails. Thank you, Bob Seemer, President & COO, Electronic Training Solutions, Inc. Priority Process Name: Resource Conservation

Key Work Process: CREATE COST BENEFIT ANALYSIS Work System / Leader: Art Johnson

Revision : 1 Date: 2/26/09

KWP5 DMAIC “Lite” Storyboard

DEFINE

1. Describe how the linkage between the process Q measures and the District’s KPIs (or strategic objective measures) was established and confirmed.

In order to meet 2008/2009 Strategic Plan 2.3.3 –‘Develop and Implement a district-wide energy reduction plan by October 1, 2008 to deal with rising statewide energy costs, a new department was formed called the Resource Conservation department. The new department was formed in July of 2008 and immediately started deploying six sigma methodologies and tools to reduce the resource consumption. In light of the need to reduce energy consumption, the following Q measures were created.




Q4 - REDUCE THE VOLUME OF TRASH HAULED 10% BY END OF FY 09/10

2. Explain which process Q measure(s) will be improved.

In order to identify the Q measure(s) that should be focused on for improvement efforts, a Facilities Resource Conservation Priority Process Selection Matrix and a Key In-Process Measures Determination Form were created (see Pages 7 and 8). It was determined that Key Work Process (KWP) 5 “CREATE COST BENEFIT ANALYSIS” was in need of improvement. After a preliminary analysis of this key process, it was noted that Q measures Q1 would be affected and improved. By increasing the number of cost benefit analyses performed, more conservation projects can be completed and Q measure Q1 would be improved thus resulting in an overall reduction in Kilowatt Hours (KWH) used at each school campus and District ancillary facility location.

3. Develop a theme statement which will focus your process improvement efforts. The theme statement must be consistent with the measure in checkpoint #2, above.

In order to meet or exceed the FY 08/09 minimum 10% energy reduction target, energy reduction facility projects must be designed, constructed and deployed / operated as soon as possible after approval.

ATTACHMENT A

© ets, Inc. / CTi 1990 - 2008 Page 2 RC KWP5

DMAIC “Lite” Storyboard

MEASURE

4. List up to five (5) potential problem areas as to why the projects are not being deployed / operated as soon as possible after approval. List associated P measure(s) for each.

A. Insufficient money to fund energy reduction capital projects.

B. The deployment of the project will occur until after the end of the 08/09 fiscal year.

C. Cost Benefits Analysis not being completed in a timely manner.

5. Select the most significant problem or opportunity and develop a problem statement which answers the questions: What? When? Gap between actual and targeted values?

Problem: In order to maximize the reduction of energy consumption, at each school and ancillary facility, to meet or exceed the minimum 10% energy reduction target, recommended facility project cost benefit analysis need to be completed as soon as possible.

Problem Statement: At the beginning of July of 2008, the Resource Conservation Team (RCT) was formed. By the end of October 2008, all school sites had been inspected and audited. The RCT identified 623 complex facilities projects to reduce energy consumption at school and ancillary facilities. A Cost Benefit Analysis (CBA), to include a 5-Year Payback Analysis, is required for each project. As of January 31st, 2009 only 409 cost benefit analysis have been completed.

Gap: Since October 2008, 409 out of 623 complex facility projects (65.65%) have completed cost benefit analysis. The gap is 34.35%

ATTACHMENT A

© ets, Inc. / CTi 1990 - 2008 Page 3 RC K


ANALYZE

6. List up to five (5) potential causes of the selected problem from checkpoint #5 in the “Measure” step.

A. Inability to collect KWH usage data at the equipment level.

B. The number of data loggers used to collect energy data at the equipment level is inadequate.

C. Project cost estimating cycle times rely on field survey collection data.

D. Subcontractor quotes take too long to get.

E. Outside influences affect field data collection.

1. List the root causes and describe the approach used to select them from among the others.

Root Causes Approach Used To Select Root Cause A. Inability to collect KWH usage data at the

equipment level. Team Consensus

B. The number of data loggers used to collect energy data at the equipment level is inadequate.

Team Consensus

C. Project cost estimating cycle times rely on subcontractor quotes. Team Consensus

D. Subcontractor quotes take too long to get. Team Consensus

E. School-site equipment data collection resources not adequate to provide timely data collection.

Team Consensus

ATTACHMENT A



IMPROVE

8. List the countermeasure(s) you considered for implementation for each selected root cause from the “Analyze” step.

A&B. Purchase 2 additional data loggers to collect equipment level energy consumption data.

C. Provide specific data collection instructions / requirements.

D. Communicate more frequently with subcontractors.

E. Hold more project specific meetings to identify project requirements.

9. Determine the “effectiveness x feasibility” score for each countermeasure, and note the highest scores. See attached countermeasure matrix.

Countermeasure Effectiveness Feasibility Overall Action A &B 4 5 20 Yes

C 5 5 25 Yes D 3 2 6 No E 4 5 20 Yes SCALE: 5 = Extreme 4 = High 3 = Moderate 2 = Low 1 = None

(Hint: Refer to six sigma DMAIC course, checkpoint #18 of the “Improve” step.)

10. Develop an action plan for each countermeasure to be implemented which shows the following: What (description of countermeasure) When (projected start and end dates) Who (accountable person) Which organizations need to support you Estimated cost to implement See attachment. (Remember: Email your action plan(s) with this completed DMAIC “Lite” Storyboard, per instructions on page 1.)

ATTACHMENT A



CONTROL

11. Briefly explain how you know the root causes were reduced or eliminated.

New data loggers allow collection of kWh data at the equipment level (root causes A&B reduced). Having specific data collection instructions/procedures streamlines data collection at the school site and reduces cycle time for both ERC team members and subcontractors.

12. Briefly explain how you know the problem was reduced.

Data is collected correctly the first time, allowing the majority of CBAs to be completed in a 30 day cycle.

13. Briefly explain how you know the theme measure was improved.

Timely completion of CBAs allows projects to be initiated more quickly.

14. Explain how you will prevent this problem from recurring.

ERC staff will be sure to get written procedures and meet to discuss project specifications before beginning data collection efforts.

15. Identify which other BPS locations should consider implementing your countermeasures.

N/A

16. Identify what other BPS locations could learn from this project.

N/A

17. List the remaining problem areas in this process.

Obtaining timely quotes from subcontractors.

18. List the key lessons learned from this process improvement.

Take the time to determine all needed inputs and to thoroughly gather data so that CBAs can be produced quickly and accurately.

ATTACHMENT A

© ets, Inc. / CTi 1990 - 2008 Page 6 02110

FACILITIES OPERATIONS AND MAINTENANCE PRIORITY PROCESS SELECTION MATRIX FORM

Selection Factor Key Work Processes Importance x Gap = Point Score Priority Rank

KWP1 Prepare Resource Conservation Documents 3 3 9 4

KWP2 Identification of Facility & Behavioral Modification Improvements & Recommendations

5 5 25 1

KWP3 Perform Behavioral Modification Training 4 2 8 5

KWP4 Implement Non-Complex Facility Improvements 4 2 8 5

KWP5 Create Cost Benefit Analysis Reports 3 5 15 3

KWP6 Monitor & Analyze FAC Improvement Projects & Behavior Modification Training Results

5 4 20 2

SCALE: 5 = Extreme 4 = High 3 = Moderate 2 = Low 1 = None

ATTACHMENT A

© ets, Inc. / CTi 1990 - 2008 Page 7 02110

KEY IN-PROCESS MEASURES DETERMINATION FORM Outcome Measures In-Process Measures

1. P2 - # of Utility Consumption Reports / Bills Collected Q1 Reduce Electrical Usage 10% By End of FY

08/09 2. P5 - # of Monthly Consumption Data Analysis Performed

1. P2 - # of Utility Consumption Reports / Bills Collected Q2 Reduce Water Usage 10% By End of FY

09/010 2. P5 - # of Monthly Consumption Data Analysis Performed

1. P2 - # of Utility Consumption Reports / Bills Collected Q3 Reduce Gas – Heating Oil Usage 10% By End

of FY 09/010 2. P5 - # of Monthly Consumption Data Analysis Performed

1. P2 - # of Utility Consumption Reports / Bills Collected Q4 Reduce The Volume of Trash Hauled 10% By

End of FY 09/010 2. P5 - # of Monthly Consumption Data Analysis Performed

Macro Process Control System Process Name: Facilities Resource Conservation Process Owner: Art Johnson Process Customer: The School Board of Brevard County, representing staff, students, parents and the community Critical Customer Requirements:

Current Sigma Level: TBD Process Purpose: Manage and Improve District and School Facilities Operating Resources Outcome Indicators: Q1 – Q5

Process and Quality Indicators Checking / Indicator Monitoring Process

Indicators Control

Limits Data to Collect Timeframe

(Frequency) Responsibility Quality

Indicators Targets / Baseline What is Checking Item or Indicator Calculation

When to Collect Data?

Who will Check?

Contingency Plans / Miscellaneous Actions Required for Exceptions Procedure References

P1 # Policies, Procedures, Plans, Training Courses, Checklists, Manuals, Surveys, Handbooks And Pamphlets Developed, Reviewed & Updated

Target: - 90 D after FY starts. Baseline: 60 D Monthly Activity Report Monthly

End of month Resource Team Mandate additional department resources to complete the development, review, additions or deletions as soon as possible.

P2 # of Utility Consumption Reports / Bills Collected

Target: - 320 Electrical Invoices Received From Accounting Baseline: 320

Monthly Activity Report End of month Brian Blenis Contact utility company directly for data.

P3 # Of Facility Quarterly Audits & Monthly Inspections Performed

Target: - 101 Inspections / Audits Performed. Baseline: 92

Monthly Activity Report Monthly End of month Jim Varney Reschedule Inspections and Audits

P4 # of Quarterly Audit and Monthly Inspection Reports Published

Target: - 101 Inspection / Audit Reports Published Baseline: 92

Monthly Activity Report Monthly End of month Jim Varney

Mandate additional department resources to complete the development, review, additions or deletions as soon as possible.

P5 # of Consumption Data Analysis Performed

Target: 101 Consumption Analysis Performed Baseline: 101

Monthly Activity Report Monthly End of month Team

Evaluate the data analysis and increase department resources to complete the data analysis as soon as possible.

P6 # of Facilities Data Analysis Performed Target: 34 Facilities Audit Data Analysis Performed. Baseline: 34

Monthly Activity Report Monthly End of month Team

Evaluate the data analysis and increase department resources to complete the data analysis as soon as possible.

P7 # Facilities Recommendations Issued Target: Reduce Cycle Time by 5 Days Baseline: 15 Day Cycle Time Monthly Activity Report Monthly

End of month Art Johnson Evaluate the recommendation process and increase department resources to complete the recommendations as soon as possible.

P8 # of Behavioral Modification Improvements Issued

Target: Reduce Cycle Time by 5 Days Baseline: 15 Day Cycle Time Monthly Activity Report Monthly

End of month Art Johnson Evaluate the BM improvement issuing process and increase department resources to complete the issuing of BM improvements as soon as possible.

P9 # of Schools receiving a Behavioral Modification Training Sessions Conducted

Target: 174 Per Year (2 per School Site) Baseline: 22

Monthly Activity Report Monthly End of month Team Evaluate BM training and discuss

improvements with Site-Based Manager

P10 # of Non-Complex Facilities Improvements Completed

Target: Complete Non-Complex Improvements in 30 Days Baseline: 20

Monthly Activity Report Monthly End of month Brian Blenis Evaluate the Non-Complex facilities

improvement process and revise.

P11 # of Cost Benefit Analysis Completed Target: Complete CBA in 30 Days Baseline: 2 Monthly Activity Report Monthly

End of month Brian Blenis Mandate additional department resources to complete CBA.

And


Indicators Control Limits Data to Collect

Timeframe (Frequency) Responsibility


Quality Indicators

Specs/ Targets

What is Checking Item or Indicator Calculation

When to Collect Data? Who will Check?

P12 # of Complex Facilities Projects Added to Deferred Maintenance List

Target: Zero Baseline: Zero Monthly Activity Report Monthly

End of month Brian Blenis Evaluate the process and revise.

P13 # of Complex Facilities Deferred Maintenance Projects Completed

Target: Zero Baseline: Zero Monthly Activity Report Monthly

End of month Brian Blenis Evaluate the Complex Facilities Deferred Maintenance improvement process and revise.

P14 # of Complex Facilities Projects Added to Capital Project List

Target: None Baseline: 2 Monthly Activity Report Monthly

End of month Art Johnson Evaluate the process and revise.

P15 # of Complex Facilities Projects Completed

Target: Complete Complex Facilities Projects in 12 months. Baseline: 1

Monthly Activity Report Monthly End of month Art Johnson Evaluate the Complex facilities improvement

process and revise.

P16 # of Work Orders Submitted In 60D Target: 19 Baseline: 19 Monthly Activity Report Monthly

End of month Art Johnson Evaluate the process and revise.

P17 # Facility Improvement and Behavior Modification Training Analysis After Action Reports Published

Target: Publish 101 After Action Reports. Baseline: 92

Monthly Activity Report Monthly End of month Art Johnson

Mandate additional department resources to complete and publish training analysis after action reports.

Q1 Reduce Electrical Usage Target: 10% KWH Reduction by end of FY 08/09 Baseline: 147,322,517 KWH

FPL Monthly Invoices & School District Monitoring System

Monthly End of month Brian Blenis

Refer to contingency plans and miscellaneous information above related to individual submittals.

Q2 Reduce Water Usage 10% by End of FY 09/10

Target: 10% Cost Savings by end of FY 09/10 Baseline: 08 Annual Water Usage

Monthly Water Invoices Monthly End of month Art Johnson


Q3 Reduce Gas / Heating Oil Usage 10% By End of FY 09/10

Target: 10% Cost Savings by end of FY 09/10 Baseline: 08 Annual Gas / Oil Usage

Monthly Gas and Heating Oil Invoices Monthly End of month Brian Blenis


Q4 Reduce the Volume of Trash Hauled 10% By the End of FY 09/10

Target: 10% Cost Savings by end of FY 09/10 Baseline: 08 Annual Trash Volume Hauled

Monthly Solid Waste Invoices Monthly End of month Art Johnson


Approved: Date: Rev # Rev Date:

And

KWP5 Process Control System Process Name: Create Cost Benefit Analysis Process Owner: Art Johnson Process Customer: The School Board of Brevard County, representing staff, students, parents and the community

Critical Customer Requirements: Reduce Energy Costs by 10% During 08/09 Fiscal Year. Current Sigma Level: TBD Process Purpose: To assess the 5-Year Payback for Each Complex Project

Recommendation. Outcome Indicators: Q1-Q4


Indicators Control Limits Data to Collect

Timeframe (Frequency) Responsibility

Quality Indicators

Specs/ Targets

What is Checking Item or Indicator Calculation

When to Collect Data?

Who will Check?


P11.1 # of Cost Benefit Analysis Completed Target: None (One CBA will be done for each complex improvement recommendation.) Baseline: 68

Monthly Activity Report Monthly End of month Brian Blenis Mandate additional department resources to

complete CBA.

P11.2 Cost Benefit Analysis Completion Ratio Target: 90% Baseline: 66% Monthly Activity Report Monthly

End of month Brian Blenis Mandate additional department resources to complete CBA.

Q1 Reduce Electrical Usage Target: 10% KWH Cost Avoidance by end of FY 08/09 Baseline: 77,928,833 KWH

FPL Monthly Invoices & School District Monitoring System

Monthly End of month Brian Blenis Refer to contingency plans and miscellaneous

information above related to individual submittals.

Q2 Reduce Water Usage 10% by End of FY 09/10

Target: 10% Cost Savings by end of FY 09/10 Baseline: 08 Annual Water Usage

Monthly Water Invoices Monthly End of month Art Johnson Refer to contingency plans and miscellaneous


Q3 Reduce Gas / Heating Oil Usage 10% By End of FY 09/10

Target: 10% Cost Savings by end of FY 09/10 Baseline: 08 Annual Gas / Oil Usage

Monthly Gas and Heating Oil Invoices Monthly End of month Brian Blenis Refer to contingency plans and miscellaneous


Q4 Reduce the Volume of Trash Hauled 10% By the End of FY 09/10

Target: 10% Cost Savings by end of FY 09/10 Baseline: 08 Annual Trash Volume Hauled

Monthly Solid Waste Invoices Monthly End of month Art Johnson Refer to contingency plans and miscellaneous


Approved: Date: Rev # Rev Date:

And

Countermeasures Matrix:

EFFECTIVENESS X FEASIBILITY = OVERALL ACTION

PROBLEM

ROOT CAUSECOUNTER-MEASURE

PRACTICALMETHODS

Scale: 1 = Negligble 2= Somewhat 3= Moderate 4= Very 5 = Extreme

Inability to collect KWH usage data at the equipment

level.

The number of data loggers

used to collect energy data at the equipment

level is inadequate.

Project cost estimating

cycle times rely on field survey collection data.

Subcontractor quotes take too

long to get.

Outside influences affects field

data Collection.

Purchase four (4) additional data loggers at

$2,500.00 each.

Provide specific data collection instructions /

requirements.

Communicate more frequently with subcontractors.

Hold more project specific meetings to identify

project requirements.

RC Manager to complete purchase

order request.

RC Manager to complete purchase

order request.

RC Project Managers to Develop

instructions / requirements.

RC Project Manager to communicate with their subcontractors.

RC Team to create a formal agenda and

have a special section for projects.

4 5 20

20

25

25

20

4 5

5 5

3 2

4 5

Yes

Yes

Yes

No

Yes

KWP5 - Perform CostBenefit Analysis

In order to maximize the reduction of energy consumption, at each school and ancillary facility, to meet or exceed the minimum 10% energy reduction target, recommended facility project cost benefit analysis need to be completed as soon as possible

Purchase additional data loggers to collect

equipment level energy consumption data.

ATTACHMENT A

© ets, Inc. / CTi 1990 - 2008 Page 6 03050

DMAIC LITE STORYBOARD – IMPROVE – CHECKPOINT 10

Countermeasure Action Plans

COUNTERMEASURE

PROJECTED START DATE

PROJECTED END DATE

ACCOUNTABLE PERSON

SUPPORT ORGANIZATION

ESTIMATED COST

Purchase four additional data loggers.

2/26/09 4/7/09 Brian Blenis purchasing $10,200 + 4 hours labor

Provide specific data collection instructions/requirements

2/25/09 ongoing Jim Varney facilities leadership, maintenance, contractors

Labor, varies per project

Hold more project specific meetings

2/27/09 ongoing Art Johnson Facilities leadership

1 hour labor for 10 people per week (meeting time)

Date:

Owners:

1 2 3 4 5 6 7 8 9 10 11 12 Comments

Scheduled 2/26/09

Completed

Scheduled 3/2/2009

Completed

Scheduled 4/2/09

Completed

Provide purchasing with information to obtain data loggers and approve purchase.

BB

AJ

BB2

Action Plan - Resource Conservation

Root Cause:

Countermeasure:

Practical Method:

Ed Curry, Art Johnson

25-Feb-09Inability to collect KWH usage data at the equipment level, the number of data loggers used to collect energy data at the equipment level is inadequate.

Purchase four (4) additional data loggers at $2,500.00 each to collect equipment level energy consumption data.

WeekNo. Task Accountable

Person

1

3

BB to send cut sheet to purchasing

AJ to authorize procurement

Purchasing to obtain pricing

Date:

Owners:

1 2 3 4 5 6 7 8 9 10 11 12 Comments

Scheduled 2/26/09

Completed

Scheduled 2/26/09

Completed

Scheduled 2/26/09

Completed

WeekNo. Task Accountable

Person

1

JV to develop scope of work for data collection tasks

JV to develop data collection form JV

2

Action Plan - Resource Conservation

Root Cause:

Countermeasure:

Practical Method:

Ed Curry, Art Johnson

25-Feb-09Project cost estimating cycle times rely on subcontractor quotes. School-site equipment data collection resources not adequate to provide timely data collection.

Provide specific data collection instructions / requirements; Hold more project specific meetings to identify project requirements.

Provide data gathering team with complete specifications of data needed for subcontractor quotes with written instructions and in organized meetings.

JV

AJ

3

AJ to develop standard meeting agenda

MANAGE RESOURCECONSERVATION

MANAGE RESOURCECONSERVATION

A. Johnson

Process Improvement

Document TreeMacro

Process: Process Owner: Document Title:

MACRO DMAIC LITE STORYBOARD

MACRO PCS

MACRO FLOWCHART

MACRO PRIORITY PROCESSSELECTION MATRIX FORM

MACRO KEY IN-PROCESSMEASURES DETERMINATION

SYSTEMS FORM

MACRO DMAIC LITE STORYBOARD

MACRO PRIORITY PROCESSSELECTION MATRIX FORM

KWP2 IDENTIFICATION &RECOMMENDATION OF

F&BM MODS AND IMPROVEMENTS FLOW CHART

KWP2 ACTION PLAN(s)

KWP2COUNTERMEASURE

MATRIX

KWP2 INDICATOR DATA

KWP6 DMAIC LITE STORYBOARD

KWP5 DMAIC LITE STORYBOARD

KWP6 PRIORITY PROCESSSELECTION MATRIX FORM

KWP5 PRIORITY PROCESSSELECTION MATRIX FORM

KWP6 MONITOR & ANALYZE FACIMPROVEMENT PROJECTS &

BM TRAINING RESULTS FLOW CHART

KWP5 CREATE COST BENIFIT ANALYSIS

FLOW CHART

KWP6 ACTION PLAN(s) KWP5 ACTION PLAN(s)

KWP6COUNTERMEASURE

MATRIX

KWP5COUNTERMEASURE

MATRIX

KWP6 INDICATOR DATA KWP5 INDICATOR DATA

Note 1: May be required if flow chart has internal work processin addition to individual steps.

Note 1Note 1

Key Work Processes 1 - 9

1st DMAIC Lite Storyboard 2nd DMAIC Lite Storyboard 3rd DMAIC Lite Storyboard

INPUT OUTPUTCOST BENEFIT

ANALYSIS PROCESS

1. CONSUMPTION DATA a.Meter Level b.Calculations c.Data Logger

2. COST DATA a. Project Cost b. Utility Cost

3. SOLUTION TECHNOLOGIES

NEW TECHNOLOGYORGANIZATIONAL KNOWLEDGEFLEXIBILITY IN DESIGNVOICE OF THE CUSTOMER

CYCLE TIMEPRODUCTIVITYCOST CONTROL

EFFICIENCY AND EFFECTIVITY

ELECTRICAL USAGE FORECASTELECTRICAL COST FORECAST5-YEAR PAYBACK ANALYSISGO/NO-GO DECISION

FEEDBACK LOOP

RC CREATE COST BENEFIT ANALYSIS PROCESS MAP

Facilities Department - Robert J. Wiebel / Art Johnson 2/13/09

Total CBA Completed Analysis

0

100

200

300

400

500

600

Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09

Reporting Months

Tota

l CB

A

Total CBA Completed Baseline Target

Total CBA Completed 0 409 423 475

Baseline 0 436 436 436 436 436

Target 0 522.8 522.8 522.8 522.8 522.8

October-08 January-09 February-09 April-09 May-09 June-09

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EZDMAICSM is a registered Service Mark of ets Inc. ~ Copyright 2009, ets Inc. Page 1

Macro Process Name: Manage Resource Conservation Key Work Process: KWP5 – Create Cost Benefit Analysis

Work System / Leader: Ed Curry Process Owner: Art Johnson DMAIC Status: Improve Cycle: Yes Refine Cycle: No Revision Status: N/C 4/21/09

DEFINE

1. The stakeholder and need were identified. Yes: X No: Rating: 5 Comment: Internal and external customers were identified.

2. An indicator measuring our performance in meeting the need was developed. Yes: X No: Rating: 5

Comment: An indicator to measure “Q1 – Reduce Electrical Usage 10% by the end of FY 08/09” was developed. By increasing the number of cost benefit analyses performed, more conservation projects can be completed and Q measure Q1 would be improved thus resulting in an overall reduction in Kilowatt Hours (KWH) used at each school campus and District ancillary facility location. See checkpoint 3.

3. A theme statement consistent with the indicator was selected. Yes: X No: Rating: 5

Comment: Yes, the theme statement is consistent with “Q1” to reduce the District-wide KWH usage.

Theme Statement: In order to meet or exceed the FY 08/09 minimum 10% energy reduction target, energy reduction facility projects must be designed, constructed and deployed/operated as soon as possible. Rating Legend:

5 = Checkpoint Fully Satisfied / 4 = Meets Most Criteria of Checkpoint / 3 = Meets Minimal Requirement of Checkpoint 2 = Checkpoint Somewhat/Partially Satisfied / 1 = Checkpoint Not Addressed




MEASURE

4. The theme was stratified from various viewpoints and a significant problem was chosen. Yes: X No: Rating: 5

Comment: The theme was stratified into three problems: 1) Insufficient money to fund energy reduction capital projects; 2) The deployment of the project will occur after the end of the 08/09 fiscal year; 3) Cost Benefit Analysis not being completed in a timely manner.

Problem #3 was selected as the most significant.

5. A target for improvement was established based on the stakeholder's need and its impact on the theme indicator was determined. Yes: X No: Rating: 5

Comment: A target has been established to reduce the District’s electrical usage in KWH. The target is a 10% reduction in KWH used.

6. A problem statement that addressed the gap between the actual and target values was developed. Yes: X No: Rating: 5

Comment: Actual and target gap values have been identified. . In July of 2008 the Resource Conservation Team (RCT) was formed. By the end of October 2008, all school sites had been inspected and audited. The RCT identified 623 complex facility projects to reduce energy consumption at school and ancillary facilities. A cost benefit analysis (CBA), to include a 5 year payback analysis is required for each project. As of January 1st, 2009, only 409 cost benefit analyses have been completed.

Gap: As of December 31, 2008, a cost benefit analysis has been completed for 409 out of 623 complex facility projects (65.65%).

Rating Legend:





ANALYZE

7. Potential causes most likely to have the greatest impact on the problem were selected. Yes: X No: Rating: 5

Comment: Five potential causes were selected: 1) Inability to collect kWh usage data at the equipment level; 2) The number of data loggers used to collect energy data at the equipment level is inadequate; 3) Project cost estimating cycle times rely on field survey data; 4) Subcontractor quotes take too long to get; and 5) Outside influences affect field data collection.

8. A relationship between the root causes and the problem was verified with data. Yes: X No: Rating: 5

Comment: The relationship between root causes and the problem was verified by conducting field inspections and audits from previous experience with determinations of project cost. This relationship was not verified by quantifiable data. 9. Root causes were selected and the impact of each root cause on the gap was

determined. Yes: X No: Rating: 5

Comment: The impact of the root cause was determined. During fact finding inspections and audits, the following root cause impact on the gap was noted. A. Inability to collect KWH usage data at the equipment level. B. The number of data loggers used to collect energy data at the equipment level is inadequate. C. Project cost estimating cycle times rely on subcontractor quotes. D. Subcontractor quotes take too long to get. E. School-site equipment data collection resources not adequate to provide timely data collection. All of the above root causes impacted to increase cycle time for producing a cost benefit analysis. Rating Legend:





IMPROVE

10. Countermeasures were selected to address verified root causes. Yes: X No: Rating: 5

Comment: Four countermeasures were developed.

1. Purchase 2 additional data loggers to collect equipment level energy consumption data.

2. Provide specific data collection instructions / requirements.

3. Communicate more frequently with subcontractors.

4. Hold more project specific meetings to identify project requirements.

11. The method for selecting the appropriate practical methods was clear and considered

effectiveness and feasibility. Yes: X No: Rating: 5

Comment: An effectiveness and feasibility matrix was used to select which countermeasures to deploy. Practical methods were developed for each countermeasure by using a brainstorming session. See Storyboard package for effectiveness and feasibility matrix. Countermeasures 1,2 and 4 were deployed. It was determined by benchmarking that countermeasure 3 was only moderately effective and not feasible because of the lack of control over subcontractors.

IMPROVE

12. The action plan reflected accountability, schedule, and cost, and was implemented. Yes: X No: Rating: 5

Comment: An overall action plan was developed that incorporated selected countermeasures. A countermeasure action plan matrix was developed which shows deployment accountability, schedule and associated cost. See Storyboard. Rating Legend:





CONTROL

13. [Results] The effect of countermeasure on the root causes was demonstrated. Yes: X No: Rating: 5

Comment: The effect of the countermeasure on the root cause was demonstrated. As of April 7, 2009, all countermeasures were fully deployed. 14. [Results] The effect of countermeasures on the problem was demonstrated. Yes: X No: Rating: 5

Comment: The effect of the countermeasure on the problem was demonstrated. As of April 13, 2009, the number of completed Cost Benefit Analyses has increased from 409 to 476. The gap has been improved by 10.76% from 34.35% to 23.59%. 15. [Results] The improvement target was achieved and causes of significant variation were

addressed. Yes: X No: Rating: 5

Comment: As of February 28, 2009, the deployment of the countermeasures to increase the number of energy projects completed and decrease energy usage reduced the District energy usage by 14% exceeding the 10% target. Schools not achieving savings were targeted for investigation and additional projects. See Macro charts. 16. [Results] The effect of countermeasures on the theme indicator representing the

stakeholder’s need was demonstrated. Yes: X No: Rating:

Comment: Theme Statement: “In order to meet or exceed the FY 08/09 minimum 10% energy reduction target, energy reduction facility projects must be designed, constructed and deployed / operated as soon as possible.” The chart in the Macro clearly shows that the countermeasure is having an effect on the theme statement.

CONTROL

17. [Standardization] A method was established to document, permanently change, and communicate the revised process or standard, and was implemented. Yes: No: X Rating: 3

Comment: The countermeasures have been instituted. A Cost Benefit Analysis data gathering procedure has been developed. The use of the data collection form and project specific meetings has become standard operating procedure. 18. [Standardization] Specific areas for replication were identified, and an action plan was

developed to promote organizational learning. Yes: X No: Rating: 5

Comment: This checkpoint was analyzed. The developed countermeasures will be utilized as resource conservation is focused on water, gas and heating oil and trash removal.

19. [Future Plans] Any remaining problems of the theme were addressed. Yes: X No: Rating: 5

Comment: There are no remaining problems associated with the theme at this time. The problem of subcontractor quotes taking too long has been reduced with countermeasures designed to assist in more rapid data collection.




CONTROL

20. [Future Plans] Lessons learned, P-D-C-A of the ets Six Sigma DMAIC Method, and team growth were assessed and documented. Yes: X No: Rating: 4

Comment: The problem solving activity to improve the theme occurred over numerous brainstorming and data analysis sessions. Data was examined from varying view points to understand the problem and gap. Lessons learned were discussed and documented.

Rating Legend: 5 = Checkpoint Fully Satisfied / 4 = Meets Most Criteria of Checkpoint / 3 = Meets Minimal Requirement of Checkpoint 2 = Checkpoint Somewhat/Partially Satisfied / 1 = Checkpoint Not Addressed