Leveraging Business Intelligence to Drive Efficiency

Transcription

1 Leveraging Business Intelligence to Drive Efficiency 1

2 Agenda Introduction The Value of Business Intelligence and Key Performance Indicators (KPIs) Top KPIs and how to determine yours Resources Q&A 2

3 Introduction 3

4 SchoolDude Nation More than 6,000 schools use SchoolDude Schools across the U.S., Canada and 6 continents Smallest school has less than 10 students Largest school over 600,000 students Largest community of education operations experts 4

5 SchoolDude Nation World s largest educational database 6,000 education institutions 1.5 million professionals Serving 37 million students In 2015 alone 16.3 million work orders 2.6 million IT incidents 6.5 million events $1.5 billion utility expenses managed 5

6 Value of KPIs 6

7 We all want the same for our schools and each of our students: To always keep improving. 7

8 But to take the first steps to improve, you need to know where you stand. 8

9 We help our students measure their work with the performance of their peers. We don t have grades or standardized tests for our school facilities. 9

10 Since education institutions across the country face similar challenges, could we all benefit from learning from each other? 10

11 What if you could compare your results with your peers? 11

12 The business world calls them KPIs or Key Performance Indicators. We prefer to think of them as a way to Keep Proving Impact. 12

13 Question Do you have Facility, Business, or IT Operations KPIs you use to compare to other similar institutions? 13

14 KPIs Can Help What are my vital signs? How do they compare to others? Which ones need attention and focus? Where am I? What is possible if we improve them? 14

15 What KPIs Can t Do Alone, they are not the answer they often lead to the answer Who is best? How did they do that? What did they have to change? How long did it take them? What did they gain when they did? 15

16 The Challenges KPIs Help You Solve 16

17 The Value of KPIs 17

18 The Value of KPIs 18

19 The Value of KPIs 19

20 The Value of KPIs 20

21 KPI Categories for Education Operations 21

22 5 KPIs Leadership Should Be Aware Of 22

23 5 KPIs Leadership Should Be Aware Of 1. Physical Plant Asset: CRV and FCI 2. Preventive Maintenance to Work Order Ratio (PM/WO) 3. Hours per Employee/Week 4. Energy Intensity 5. Costs Recovered per Student/Year 23

24 Question Do you know your current replacement value of your building portfolio? 24

25 5 KPIs Leadership Should Be Aware Of 1. Physical Plant Asset: CRV and FCI 2. Preventive Maintenance to Work Order Ratio (PM/WO) 3. Hours per Employee/Week 4. Energy Intensity 5. Costs Recovered per Student/Year 25

26 1. CRV and FCI CRV (Current Replacement Value) Quick Math: What is your square footage? *Cheat sheet: 150 sq. ft/student * student enrollment What is the average cost for a new school? *Cheat sheet: $175-$200/sq. ft. CRV = Square Feet * Cost/Square Foot 26

27 1. CRV and FCI CRV KPI Example 10,000 student enrollment Square Feet = 10,000 students * 150 sq. ft./student Square Feet = 1,5000,000 square feet CRV = 1,500,000 sq. ft. * $175/sq. ft. $262,500,000 27

28 1. CRV and FCI 2. FCI (Facility Condition Index) % of CRV that needs to be repaired or replaced FCI = Backlog of repairs / CRV (%) 28

29 1. CRV and FCI FCI KPI Example CRV = $262,500,000 Backlog = $34,125,000 FCI = $34,125,000 / $262,500,000 13% Facility Condition Index *Typical FCI in U.S. exceeds 25% (D Grade) 29

30 1. CRV and FCI Invest 2% of CRV per year in repairs and replacements 2% of CRV/year ~ 30 year design life 3% of CRV/year ~ 50 year design life Some experts say 1.5-2% is enough, but this does not address backlog Example 2% of $262,500,000 = $5,250,000 $5,250,000 sinking fund per year to keep Maintenance and Energy Does not address: Deferred maintenance Adequacy or program needs 30

31 5 KPIs Leadership Should Be Aware Of 1. Physical Plant Asset: CRV and FCI 2. Preventive Maintenance to Work Order Ratio (PM/WO) 3. Hours per Employee/Week 4. Energy Intensity 5. Costs Recovered per Student/Year 31

32 2. PM Work Order Ratio PM: Work Order Ratio Identifies resource allocation to proactive and planned maintenance work 32

33 2. PM Work Order Ratio Cost Impact Sustained PM allocation of 30% or more results in: 50% - 65% reduction in rate of emergency work Lower cost per work order - average cost per work order 28.6% to 39.3% less 33

34 5 KPIs Leadership Should Be Aware Of 1. Physical Plant Asset: CRV and FCI 2. Preventive Maintenance to Work Order Ratio (PM/WO) 3. Hours per Employee/Week 4. Energy Intensity 5. Costs Recovered per Student/Year 34

35 3. Hours Per Employee/Week Hours per employee = wrench turning time 35

36 3. Hours Per Employee/Week Wrench turning time EDUCATION SEGMENT WORK HOURS PER EMPLOYEE/WEEK Public K Indi/Private/Charter Higher Education Comm. College Overall Average

37 3. Hours Per Employee/Week Facilities managers have a sense of urgency to increase productivity in response to shrinking budgets and increased demand for services Schools that implement productivity strategies increase wrench turning time 3-4 hours/week Equivalent of adding more than a month of productive time per year! EDUCATION SEGMENT WORK HOURS PER EMPLOYEE/WEEK Public K Indi/Private/Charter Higher Education Comm. College Overall Average

38 5 KPIs Leadership Should Be Aware Of 1. Physical Plant Asset: CRV and FCI 2. Preventive Maintenance to Work Order Ratio (PM/WO) 3. Hours per Employee/Week 4. Energy Intensity 5. Costs Recovered per Student/Year 38

39 4. Energy Intensity 39

40 4. Energy Intensity Energy Intensity per Square Foot Convert all units to kbtu to benchmark or rank schools according to how much energy they use per square foot. 40

41 4. Energy Intensity Energy Conversion Factors 1 kwh = kbtu 1 CCF = 103 kbtu 1 Gal Propane = 91.6 kbtu 1 Gal #2 Fuel Oil = 139 kbtu 41

42 5 KPIs Leadership Should Be Aware Of 1. Physical Plant Asset: CRV and FCI 2. Preventive Maintenance to Work Order Ratio (PM/WO) 3. Hours per Employee/Week 4. Energy Intensity 5. Costs Recovered per Student/Year 42

43 5. Costs Recovered Costs Recovered for Community Use of Schools To compare schools of varying sizes, use a metric of cost recovery/student Costs recovered per student = total invoiced annually / # of students 43

44 5. Costs Recovered Facility Scheduling Amount Paid by Year and Month 44

45 Other Important KPIs You Should Know Requests from Online Portals Energy cost per student per year Average inventory in stock per student per year Average cost per trip Number of total IT assets and percentage with expired warranty WHAT IT MEASURES WHY IT MATTERS HOW TO IMPACT How many work order requests are submitted from the MySchoolBuilding online request site vs. by staff. How your energy costs per student compare nationally based on similar building types. How much inventory you have to manage and store. How much you re spending on each field trip in past year. How many assets are tracked via asset management and how many are past their warranty expiration date. Increase communication of visibility into operations, improving customer satisfaction overall. Can t control price of energy, but you can control your usage. Subtle consumption changes = significant savings. Knowing whether or not you re overstocking/managing unused inventory can create savings. Determine if you need to consider cutting costs on field trips. Gain a high level overview and tracking capabilities for IT assets. Know how many need to be replaced. Require all faculty and staff to submit requests electronically to gain efficiency. Provide resources and training. Implement programs that emphasize behavioral changes to decrease consumption. Evaluate which items are use frequently and which are not. Change purchasing routines according to supply/demand. Evaluate where costs are coming from and look for opportunities to save money. Make the case for upgrades and plan ahead for asset cycle times. 45

46 Summary KPIs aren t the answer they illuminate the answer 5 Key Performance Indicators Leadership Should Know: Physical Plant Asset: CRV and FCI PM/Work Order Ratio Hours per Employee/Week Energy Intensity Costs Recovered per Student/Year 46

47 SchoolDude Solutions 47

48 Resources KPI Overview Resource Page ebook: Showing Your Work Matters: Rethink Your Reporting KPI Datasheet Case Study: Moreno Valley Unified School District 48

49 Final Questions 49

50 April 30th - May 3rd, 2017 Raleigh Convention Center in Raleigh, NC university.dudesolutions.com 50