1

Performance Management Presentation

Team Members:

Gil Kruemmel, Paulette Mills

ORS National Institutes of Health

9 January 2004

Provide Printing and Document Management Services

2

Overview and Contents• Years in Review – Changes in FTE’s• PMP Template

• Value proposition and strategy• Performance objectives and measures

• Customer Perspective: Critical Measures• % Procurement Jobs with Multiple Bids

• Internal Business Processes : Critical Measures• $ change in Top 10 (DS 1) Customers

• Learning and Growth: Critical Measures• # of orders year to year• # of impressions year to year• FTE’s in Group

• Financial Perspective: Critical Measures• Unit Costs

• Conclusions and Actions• Appendix

3

Printing Branch FTE’s

Printing Staff

31

28

23

9

25

0

5

10

15

20

25

30

35

FY99 FY00 FY01 FY02 FY03

FY99

FY00

FY01

FY02

FY03

4

Revenue DS1 Printing Procurement and

DS2 Document Conversion/Management and Print Services

Printing BranchDS1 and DS2 Revenue

$(2,000,000)

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

FY01 FY02 FY03 FY04

Revenue

Total OperatingExpenses

Net Profit(LOSS)

5

Service Group Performance Management Plan

Team Members

Gilbert Kruemmel

Paulette Mills

Service Strategy

We provide our clients with traditional printing and document management services, on a best value basis, in support of the NIH community, encompassing electronic conversion, retrieval, output and distribution of digital and hardcopy information. Our customers rely on our project managment expertise to ensure each phase of the job is completed to specification, within budget and on schedule without involving the customer in time consuming production and review meetings to iron-out details that should have been settled before job processing began.

Value Proposition

Team Leader

We will continue to provide total job oversight on all printing related issues while ensuring total customer satisfaction. We will continue to deliver convenient and low cost solution to meet our customer's printing related needs.

Strategy Description

Performance Management Plan (PMP)

DS2: Provide document conversion/management and print services

DS1: Provide printing procurement services

Discrete Services

Division Approval/Date: Associate Director Approval/Date:

Provide printing and document management services

Service Group

Operational Excellence

Customer Intimacy

Product Leadership

Growth

Sustain

Harvest

6

Performance Plan For FY04 – FY05Objective Measure FY 03

FY04 Target

FY05 Target

Cu

sto

mer

C1. Improve on best price for procurement

C2. Improve Responsiveness to Customers' requests

C3. Increase Customer Satisfaction

C1.1 Average $ savings from bid systemC1.2 Control DS2 impressions costC2.1 Customer survey

C3.1 Customer survey overall rating

$1060

$.05

N/A

N/A

>FY03

$.08

tbd

tbd

>FY04

$.08

tbd

tbd

Inte

rn

al

Bu

sin

es

s

IB1. Improve Accuracy in order and fullfillment

IB2.Improve awareness of NIH printing and document management services

IB3. Keep customers informed on policies and procedures

IB1.1 Total $ Redos

IB2.1 $ change in non-Top 10 (DS1) CustomersIB2.2 Total $ from new customers

IB3.1 # cust. assist visits for JCP complianceIB3.2 NIH total activity report

30

1.3

200K

5

6.5mil

25

> FY03

250K

8

= FY03

20

> FY04

300K

10

= FY04

Learn

ing

an

d G

ro

wth

L1. Improve adoption of best business practices

L2. Increase knowledge of customer needs

L3. Be client focused professionals

L1.1 Customer Satisfaction L1.2 FTE's in group

L2.1 # of ordersL2.2 # of impressions

L3.1 Customer survey satisfaction ratings L3.2 # staff hours in cust serv tng.

N/A9

2751117M

tbd

350

tbd9

2261115M

tbd

300

tbd9

2500115M

tbd

300

Fin

an

cia

l

F1. Avoid costly mistakes

F2. Minimize Unit Costs

F1.1 Total $ Redos see

F2.1 Year-over-year internal unit costs (DS1 & DS2)

30

$1965$.05

25

$1548$.08

25

$1548$.08

7

Strategic Objectives - Strategy Mapping

8

Strategy Mapping Conclusions and Actions

• Strategy Mapping revealed our objectives should emphasize Financial as the top perspective.

• We modified our PMP to utilize more financial measures as both lead and lag indicators.

• Strategy Map Analysis:We must reach out to our existing customers and those prospective customers to inform them about our capabilities and benefits if we are to meet our customer objectives.

9

Customer PerspectiveCritical Measures

Objective Measure FY 03 FY04

TargetFY05

Target

Cu

sto

mer

C1. Improve on best price for procurement

C2. Improve Responsiveness to Customers' requests

C3. Increase Customer Satisfaction

C1.1 Average $ savings from bid systemC1.2 Control DS2 impressions costC2.1 Customer survey

C3.1 Customer survey overall rating

$1060

$.05

N/A

N/A

>FY03

$.08

tbd

tbd

>FY04

$.08

tbd

tbd

10

Objective C1. : Improve on best price for procurement Measure: C1.1 Change in 3 Bids Analysis

3 Bid ChartDS 1: Bidders

$1,524

$2,584$2,673

$1,056

$684

$936

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

First Bid Second Bid Third Bid

Brochure

Posters

Brochure average savings 1st & 2nd : $1060Posters average savings 1st & 2nd : $252

11

• No FY 03 survey was conducted• FY 04 survey will focus on the top ten

customers• Survey will be individual focus surveys

designed to determine the most important qualities of “good service”

• The print team will ask OQM in assisting in the design and best implementation to gather and report on this info.

Objective C3. Increase Customer Satisfaction

Measure: C3.1 Customer Survey

Customer Survey Methodology

12

What does this Customer Data tell us?What actions are planned?

• Our customers achieve the best market rates by using our leveraged buying power.

• Our use of multiple bids for thousands of procurement jobs keeps the vendor community aware of the value of our business at the same time it assures our customers receive the best rate.

• A key to high customer satisfaction is in providing a best price solution plus informing the customers that we are providing this valuable service for them.

13

Internal Business Process Perspective

Critical Measures

Objective Measure FY 03 FY04

TargetFY05

Target

Inte

rnal

Bu

sin

ess

IB1. Improve Accuracy in order and fullfillment

IB2.Improve awareness of NIH printing and document management services

IB3. Keep customers informed on policies and procedures

IB1.1 Total $ Redos

IB2.1 $ change in non-Top 10 (DS1) CustomersIB2.2 Total $ from new customers

IB3.1 # cust. assist visits for JCP complianceIB3.2 NIH total activity report

30

1.3

200K

5

6.5mil

25

> FY03

250K

8

= FY03

20

> FY04

300K

10

= FY04

14

-Insert chart/table here-

DS 1: Top 10 Customers

$-

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

NIDA OD NEI NIDDK NLM NICHD NHLBI NIDCR NINDS CC Other

FY01

FY02

FY03

Objective IB2. Improve Awareness of NIH printing and document management services.

Measure: IB2.1 Top customers changes

15

NIH Activity ReportCommercial Printing Activity Report

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

FY01 FY02 FY03

Directly Procured by IC

Procured by NIH PrintingBranch

Objective IB2. Improve Awareness of NIH printing and document management services.

Measure: IB2.3 NIH activity report

16

Internal Business Process PerspectiveWhat does the data tell you?

What actions are planned?

• We know who our major customers are by the type of purchases they make and the volume.

• Our total NIH activity shows the total market is 2x the size of the commercial procurement executed in our branch.

• We plan to continue our educational awareness program to all the IC’s informing them about our leveraged buying benefits and the risk

management benefits built into our procurement process.

17

Learning and Growth PerspectiveCritical Measures

Objective Measure FY 03 FY04

TargetFY05

Target

Lea

rnin

g a

nd

Gro

wth

L1. Improve adoption of best business practices

L2. Increase knowledge of customer needs

L3. Be client focused professionals

L1.1 Customer Satisfaction L1.2 FTE's in group

L2.1 # of ordersL2.2 # of impressions

L3.1 Customer survey satisfaction ratings L3.2 # staff hours in cust serv tng.

N/A9

2751117M

tbd

350

tbd9

2261115M

tbd

300

tbd9

2500115M

tbd

300

18Printing Branch FTE’s

Printing Staff

31

28

23

9

25

0

5

10

15

20

25

30

35

FY99 FY00 FY01 FY02 FY03

FY99

FY00

FY01

FY02

FY03

FY 04 Target = 9

Objective L1. Improve Adoption of best business practices

Measure: L1.2 Change in FTE’s

19

DS 1: Number Billed Jobs

3650

2426

2751

2261

0

500

1000

1500

2000

2500

3000

3500

4000

FY01 FY02 FY03 Projected FY04

Number Jobs

Objective L2: Increase knowledge of customer needsMeasure L2.1: Change in number of total jobs

20

DS 2: Number of Impressions

141,570,873 142,575,127

116,826,631 114,927,417

-

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

FY01 FY02 FY03 Projected FY04

Number of Impressions

Objective L2: Increase knowledge of customer needsMeasure L2.1: Change in number of impressions

21

Learning and Growth PerspectiveWhat does the data tell us?What actions are planned?

Minimize our on board FTE’s while sustaining high level of commercial procurement, in-house impressions to include document conversion.

In order to continue to meet the demands for orders of all types with a reduced number of FTE’s it is important we adopt the best business practices in order receipt, order management, order fulfillment and quality control.

22

Financial PerspectiveCritical Measures

Objective Measure FY 03 FY04

TargetFY05

Target

Fin

anci

al

F1. Avoid costly mistakes

F2. Minimize Unit Costs

F1.1 Total $ Redos see

F2.1 Year-over-year internal unit costs (DS1 & DS2)

30

$1965$.05

25

$1548$.08

25

$1548$.08

23

Objective F2. Minimize Unit Costs

Measure F2.1 Reduce internal unit costs (DS1 & DS2)

DS1: Printing Procurement FY01 FY02 FY03 Projected FY04Expense 4,474,312$ 4,979,875$ 5,404,562$ 3,499,355$ Number Jobs 3650 2426 2751 2261Unit Cost 1,225.84$ 2,052.71$ 1,964.58$ 1,547.70$

DS2: Document Conversion FY01 FY02 FY03 Projected FY04Expense 4,958,954$ 6,077,759$ 5,273,329$ 8,621,159$ Number of Impressions 141,570,873 142,575,127 116,826,631 114,927,417 Unit Cost 0.04$ 0.04$ 0.05$ 0.08$

24

Conclusions

25

Conclusions from PMPEye-Openers• Total NIH printing market is twice the size of Central Printing

and Publishing Management's total printing procurement revenue

• NIH Printing Procurement officials should be aware that our 3 Bid system enables us to meet customer requirements while ensuring best price available

Emphasis On• Continue emphasis on getting "Healthy" financially (Positive

NOR)• Educate customers on our capabilities and benefits• Continue to adjust resources to ever changing customer

requirements• Continue adopting Best Business Practices

26

Conclusions from PMPImprovements Achieved• Met all work requirements with less personnel resources

(Reduced FTE's by 62.5%)• Reduce space requirement by $200K

Highlight Initiatives for FY-04• Awarded Scan/Conversion Contract for electronic research

grant applications in support of the NIH eRA Initiative• Developed formal marketing plan• "Storefront" service offerings through additional DMAPS sites• Develop a contract to allow for migration to off-site contractor for

digital printing of grant material: Potential savings of over $1.1M• Move current operation out of Stonestreet location (space

savings of $300K)• Develop working partnership with QAI (conversion contractor) to

develop new business applications