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Case Studies: Cost Reduction and Revenue Efficiency (SCOR/RE)
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WEBCAST PARTICIPANTS: Listen to audio over your computer speakers. (If you prefer to listen by phone, you may dial-in using the numbers provided in your invitation . Phone lines will be available 10 minutes prior to the event start.)Slide2
PRESENTERS
SCOR/RE Task Force Members:Dale R. Kirsch, PRSBA
Business ManagerIndiana Area School DistrictLynn Kraus, PRSBADirector of Management ServicesLincoln Intermediate Unit 12
Robert
Schoch
, PRSBADirector of Business AdministrationNorth Penn School District
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INTRODUCTION
Where we were:500 Cost Reduction Strategies (2003)
Updated: approximately 700 (2010-2011)Available at www.pasbo.orgWhere we are:SCOR/RE Task Force (2011-2012)Case StudiesWhere we want to be:Hundreds of Case Studies (2012 to ?)
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SCOR/RE TASK FORCE
Perry Baer
Chris Berdnik
Craig Boltz
Michelle Brown
Paul Fritz
Gerry Gannon
Jack Hurd
Mike Hurley
Martha Kew
Dale Kirsch
Lynn KrausMatt MalinowskiWilliam McGillSharon MillerMatthew PrzywaraGina RemboldGreg SanfordBob SaulTom SchneiderBob SchochDoreen SecorTim ShromMichele Zimmerman
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CASE STUDIES
Assignment for PASBO research committeesReview by task force
Index of cast studies to date (handout)Post to PASBO web siteOn-going effortResearch committeesRegional chaptersPersonal contactsPleadings
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TEMPLATE
2 to 3 PagesHeadings:
Type of StrategyWhere ImplementedDescriptionSavings/RevenueInitial Investment RequirementsBenefitsImplementation BarriersResourcesContact Information
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SAMPLE CASE STUDIES
Facilities Benchmarking – Dale KirschPurchasing – Lynn Kraus
Overview of Case Studies- Bob Schoch7Slide8
INDIANA AREA SCHOOL DISTRICTFACILITIES BENCHMARKING
Strategy:Expenditure ReductionEfficiency Measure
Description:PASBO facility benchmarking surveyCompare data by square feet, region, studentsPower point presentation of the results8Slide9
INDIANA AREA SCHOOL DISTRICTFACILITIES BENCHMARKING
Description: (continued)Interpreting the ResultsWhich measures most appropriate for your LEA
Understanding relationships between the dataImprovement strategiesEnergy costs (future case study)Custodial staff9Slide10
INDIANA AREA SCHOOL DISTRICTFACILITIES BENCHMARKING
Description: (continued)
Custodial Staffing:PASBO custodial staffing calculatorHillyard, Inc. CCAP programSavings/Cost ReductionNew job classification: part-time housekeeper
1 custodian position: $50,000 annually
Upon full implementation: $264,000 annuall
y
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INDIANA AREA SCHOOL DISTRICTFACILITIES BENCHMARKING
Initial Investment:Staff timeFree software
Benefits:AwarenessIncreased efficiency11Slide12
INDIANA AREA SCHOOL DISTRICTFACILITIES BENCHMARKING
Implementation Barriers:
Staff resistanceMaintaining qualityCost of more efficient equipmentResources:District web site www.iasd.cc/BUDGET.htm
Job descriptions on PASBO ERC
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INDIANA AREA SCHOOL DISTRICTFACILITIES BENCHMARKING
Contact Information:Indiana Area School District
Dale Kirsch, Business Managerdkirsch@iasd.cc724-463-8713, ext. 10813Slide14
Lehigh County Schools
Line Item Bid
vs State Contract Price14Slide15
Lehigh County SchoolsJOINT
PURCHASING
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JOINT PURCHASING MEMBERS
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Art Bid
2,497 items specified.Coordinated by Carbon Lehigh IU #21.Art Advisory Committee utilized.Committee comprised of reps from the schools participating.Line Item Bid
vs
State Contract
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Advisory Committee Responsibility
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Market Basket Analysis
Cost of Items on Line Item Bid: $25,603.
Cost of Items from Kurtz Bros Co-Stars: $42,751.Cost of Items from School Specialty AEPA: $58,963.SAVINGS COMPARISON19Slide20
Saved 67% over Kurtz Co-Stars Price
Saved 130% over School Specialty AEPA PriceTotal Art Bid was $139,293.
Potential Savings of $93,000 to $181,000.PERCENT SAVINGS20Slide21
Market Basket Analysis
Cost of Items on Line Item Bid: $50,647.
Cost from Kurtz Bros Co-Stars: $98,857.Cost School Specialty Co-Stars: $95,562
IU 12 Savings Top 25 Items
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Saved 95% over Kurtz Co-Stars
Price.Saved
89% over School Specialty Co-Stars Price.Total Art Bid was $248,161.Potential Savings of $220,863 to $235,752.
IU 12 Percent savings
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Line Item VS State Contract
Pick your poison
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State Contract
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Joint Purchasing Line Item
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DO Purchase
For Convenience
Don’t PurchaseFor SavingsState Contract
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Line Item Bids vs
State ContractCard Cost Reduction StrategyReverse Auction
Rebates from Vendors for E-ProcurementMailing Cost Reduction StrategyYear Book Cost ReductionPremium Meals and Co-Op PurchasingScor/re Purchasing Suggestions
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Robert SchochDirector of Business AdministrationNorth Penn School DistrictMarch 2012
Case Studies: Cost Reduction and Revenue Efficiency
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Today’s PresentationFocusing on labor saving in SCORRE case study submissions to date
Mailing methodsAccident and illness preventionElectronic processingElimination of positions
Floor sealerRobotic floor cleanerPASBO advice on staffing adjustmentsRevenue efficiency-Alternative revenue committeesMaximizing ACCESS/Medicaid revenue29Slide30
Importance of Labor Savings
Labor costs are the biggest cause of structural deficits (natural increase in expenditures exceeds natural increase in revenues)Labor costs result from the quantity factor (the number of staff) multiplied by the unit cost factor (amount paid). Controlling the quantity factor allows wage increases higher than Act 1.
Labor savings can result from labor saving methods, techniques, and equipment.Vacant positions may not need to be refilled if enough labor savings can be found.30Slide31
Mailing Cost ReductionsDowningtown ASD
Contract with service that offers discounted postal rates and courier serviceSavings in mailing equipment rentalSavings in labor include:
Contractor posts mail rather than district secretarial staffElimination of daily run to post office by district courier District courier picks up within district 3 days, not daily as before31Slide32
Accident and Illness PreventionPittsburgh and Centennial SDs
A labor/management joint effort to rewrite accident and illness prevention policies, procedures, and training programs
Savings in lost time and replacement laborSavings in workers compensation and healthcare costsResulted in improved morale32Slide33
Electronic Workflow ProcessingCheltenham SD
Migrate manual processes to existing automated software processesField trip approval through requisition processTracking of cyber and charter school students through encumbrances
No new softwareMinimal training due to known processes33Slide34
Elimination of PositionsGateway SD
Eliminated department coordinators and team leader positions
Replaced with teacher coordinatorsEstimated savings of approximately $120,000Gained duty periods and teaching periodsTeachers’ union has filed a grievance34Slide35
Use of Non-acrylic Floor SealersCarlisle ASD, Derry Twsp SD, Southern York SD
Approximately 25 hours of labor saved per 10,000 square feet after first year when removal of traditional floor finish is required
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Robotic Floor CleanerUpper Merion SD
Robot accounted for 25% of the labor cost reduction which was part of $504,000 reduction of operating budget.
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PASBO Staffing ComparisonsState College ASD
PASBO Facility Benchmarking Study and the Custodial Staffing Formula have been used to adjust staffing levels in custodial, maintenance, and supervisory staff
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Alternative Revenue CommitteesCentennial, Cheltenham, Pottsgrove, Pennsbury
SDs
Committee of community members explore all options including:SponsorshipsAdvertisingNaming rightsTrademarksMerchandisingExclusive rights agreements (pouring rights)Donation of goods and servicesPotential revenue of $250,000 to $400,000/yr
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Time for Questions!
CONFERENCE ATTENDEES: Please come to a microphone to ask your questions.
WEBCAST PARTICIPANTS: Send text questions using the “Chat” function at the left side of your screen. Type message in box and click the arrow to send.39Slide40
Thank you for your participation!
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CONFERENCE ATTENDEES: If you are requesting CPE credit, return the CPE form to the moderator before leaving the roomWEBCAST PARTICIPANTS: Attendance Forms are required to receive either PASBO CEU or CPE credit. Webcast sites are asked to collect Attendance Forms from each participants and return to the PASBO office by
March 16
.