1 / 37

About

Leaner operations and cost-effective workflow METLIB Zagreb, May 21, 2010 Jens Ingemann, City Librarian. About. Jens Ingemann City Librarian, City of Copenhagen, since 2004 Adjunct professor, Royal Danish Library School Copenhagen - capital of Denmark 530.000+ inhabitants

alanna
Download Presentation

About

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Leaner operations and cost-effective workflowMETLIB Zagreb, May 21, 2010Jens Ingemann, City Librarian

  2. About • Jens Ingemann • City Librarian, City of Copenhagen, since 2004 • Adjunct professor, Royal Danish Library School • Copenhagen - capital of Denmark • 530.000+ inhabitants • Greater Copenhagen Area – 2.500.000+ inhabitants (Denmark / Sweden).

  3. Denmark

  4. NV – kombineret bibliotek og kulturhus

  5. Ørestad folke- og skolebibliotek

  6. Copenhagen Central Library

  7. City Hall Library

  8. Sundby Library and Cultural House

  9. Vigerslev Public and School Library

  10. Contents – this is not Business School but… ABC – Activity Based Costing What is ABC and how it can be used Results – from ABC to Lean Lean What is Lean and how we have worked with Lean What we have achieved with Lean Holding onto/anchoring Lean 12 PRÆSENTATIONSTITEL DATO

  11. What is Activity Based Costing? • An accounting costing system based on the assignment of all costs (direct and indirect, for example, capacity and overhead). • The indirect costs are spread by assigning them proportionally to the activities. • Gives the real costs of a service (e.g. a book loan consists of the purchase of the book, the material processing but also rent (cost of facility) , IT etc. PRÆSENTATIONSTITEL

  12. ABC – a small explanation … • What can ABC-models be used for? • ABC-models focus on variations in both direct and indirect costs. • ABC-models calculate the ”profitability” of products and services. • Which companies and organisations may use ABC-models • ABC is very relevant for organizations where a large part of total costs are indirect costs – i.e. public sector services. Budget for service ’Cost of doing business’ ABC - modeller Indirect ser på variationen costs her og her! - Variable costs related to specific service

  13. Why ABC when we already have a budget … • A budget divides the financial situation into organisational units. • But it is not possible via budget statements to see development in effectiveness, i.e. how price per unit of a particular service changes. • A budget and the ABC model fulfil thus two different management tasks and are supplement to each other: Budget: Follows costs and income and the overall financial result including liquidity development. Management of general financial development. ABC model: Follows effectiveness and profitability. Input for strategic planning. PRÆSENTATIONSTITEL

  14. The results of an ABC analysis • The result of an ABC analysis is an answer to the question: ”How much does it cost” • The costs will be the average realised costs in the period analysed. • You will not just get the overall costs but also, for example, the proportion of the costs assigned to the payroll, IT, material processing, rent, overhead, etc. • The results can, for example, be used in a forward-thinking planning and budgeting of variations in activity levels. PRÆSENTATIONSTITEL

  15. What can ABC be used for • A quality basis for decision, for example, on how much the loan of a physical item of material costs versus a digital loan • Focus on high resource consumption areas – how much do we use, for example, on projects, institution services, etc. • Information about the flow of materials – important, for example, in connection with a new retrieval system, materials flow assessment, etc. • ABC for the assessment of focus areas for LEAN, etc. PRÆSENTATIONSTITEL

  16. The scope of the analysis • Pilot project in 2005 at HB + 3 local libraries • The existing analysis covers all of the year 2006 – and all the local libraries, HB and FSE • Data sources: • Accounts 2006 • Database with loans 2006 • Time tracking information 2006 PRÆSENTATIONSTITEL

  17. Omkostning Beløb Payroll costs 134.673.277 Payroll income -7.027.575 Staff costs 1.062.802 Material costs 36.344.013 Other 28.841.608 Arr.&Exhib.. 1.825.260 Property costs. 37.089.336 Other income -27.817.331 Total 204.991.390 Composition of costs according to the type of costs 16% Payroll, netto Staff costs Material costs Other 1% Arr.& Exhib. Property costs. 12% 55% 16% 0% PRÆSENTATIONSTITEL

  18. 6% 1% 5% Material flow 3% 1% Direct user contact 1% 1% Services for institutions and special groups Special services - § 20 and revenue funded activities.. 10% 21. Bibliotek/ bibliotek.kk.dk 51% Teaching (formalised) Arrangements, etc.. (formalised) Development, projects, net services, PR and communication Local cooperation in the community Adminstration Fællesservice 21% Composition of costs according to services PRÆSENTATIONSTITEL

  19. Material flow • Material flow costs include all the costs of processing material from cradle to grave. • Processing loans and reservations • Acquisition of material, purchasing and discarding • Transport • Administration of fees • Proportion of local administration and competency development • Proportion of property costs and IT • Covers both local costs and central costs at central library (HB) and Joint Services in Copenhagen Libraries(FSE) PRÆSENTATIONSTITEL

  20. The average loan 25,00 Loan processing 3,63 20,00 0,55 1,28 Local processing Transport and sorting of material Purchase of material 15,00 Local purchase of material FSE purchase of material 6,26 Local preparation, discarding, etc. FSE cataloguing, preparation, basic care, etc. Services HB – fees, etc. Management and adm. Locally and communal 10,00 Material management 1,60 IT 1,45 Property costs 0,36 2,82 5,00 0,80 3,64 - PRÆSENTATIONSTITEL

  21. 7,00 6,00 1,28 Local material acquisition 0,46 5,00 Preparation of new material Local discarding and maintenance of materials 1,14 4,00 Shelving of material after transport Reserved material not picked up 0,80 3,00 Processes for returned material - reserved material 0,32 Processes for returned material - not reserved 0,57 Fetching reserved material 2,00 0,67 1,00 1,26 0,00 Local costs PRÆSENTATIONSTITEL

  22. Library Loans Returns Difference i% Bispebjerg -2,7% 94.864 97.384 -2.520 Blågaard -7,6% 232.171 249.915 -17.744 Brønshøj -0,2% 223.057 223.558 -501 Rodosvej -3,7% 173.294 179.646 -6.352 Islands Brygge -5,6% 127.197 134.268 -7.071 Christianshavn -6,2% 113.655 120.707 -7.052 HB 13,5% 1.051.013 908.708 142.305 Husum -3,8% 105.880 109.931 -4.051 Nørrebro -7,7% 288.309 310.488 -22.179 Jagtvej -2,9% 371.244 381.965 -10.721 Ørnevej -3,6% 181.115 187.558 -6.443 Østerbro -2,6% 314.352 322.387 -8.035 Solvang -3,0% 86.836 89.435 -2.599 Sundby -4,0% 311.266 323.790 -12.524 Sydhavn -3,3% 117.578 121.488 -3.910 Tingbjerg -2,7% 36.507 37.488 -981 Valby -3,6% 219.573 227.435 -7.862 Vanløse -2,0% 274.210 279.818 -5.608 Vesterbro -5,3% 320.201 337.143 -16.942 Vigerslev -1,2% 72.838 73.710 -872 Activities 2006 PRÆSENTATIONSTITEL

  23. Library Loans Costs Costs/per loan 94864 Bispebjerg 2.013.198 21,22 232171 Blågaard 4.044.262 17,42 223057 Brønshøj 3.743.220 16,78 173294 Rodosvej 2.669.717 15,41 127197 Islands Brygge 2.138.496 16,81 113655 Christianshavn 2.056.784 18,10 1051013 HB 21.364.516 20,33 105880 Husum 1.868.332 17,65 288309 Nørrebro 4.792.566 16,62 371244 Jagtvej 6.124.647 16,50 181115 Ørnevej 3.571.842 19,72 314352 Østerbro 5.029.625 16,00 86836 Solvang 1.524.390 17,55 311266 Sundby 4.878.384 15,67 117578 Sydhavn 2.399.403 20,41 36507 Tingbjerg 944.422 25,87 219573 Valby 3.966.829 18,07 274210 Vanløse 4.088.459 14,91 320201 Vesterbro 4.973.828 15,53 72838 Vigerslev 1.319.158 18,11 Costs per loan (total costs) Plus 3,64 kr. for property costs PRÆSENTATIONSTITEL

  24. 35 30 25 Local processing Transport and sorting of material Local purchase of material 20 FSE purchase of material Local preparation, discarding, etc. FSE cataloguing, preparation, basic care, etc. 15 Services HB – fees, etc. Management and adm. locally and communal IT Property costs 10 5 0 Valby Bibliotek Husum Bibliotek Hovedbiblioteket Vanløse Bibliotek Ørnevej Bibliotek Nørrebro bibliotek Vestebro Bibliotek Tingbjerg Bibliotek Vigerslev Bibliotek Bispebjerg Bibliotek Blågårdens Bibliotek Sundby Bibliotek Sydhavnens Bibliotek Østerbro Bibliotek Brønshøj Bibliotek Øbro Jagtvej Bibliotek Islands Brygge Bibliotek Bibliotkeshuset Rodosvej Christianshavns Bibliotek Solvangs Centrets Bibliot Local variations – loans PRÆSENTATIONSTITEL

  25. ABC analysis of material processing • The ABC analysis from 2006 shows that: • 105 FTE are used for material processing at the libraries • 33 % of total staff time in the libraries are used for material processing, while ca. 27 % are used for direct contact with users. • Material processing connected with loans takes up the most time PRÆSENTATIONSTITEL

  26. From ABC to Lean ABC is an analysis of the actual resource consumption while Lean is a method or a tool to improve working procedures, make them more efficient and/or give a better service. ABC can be used to select focus areas for Lean and subsequently provide documentation for effect/less consumption of resources. 28 PRÆSENTATIONSTITEL DATO

  27. Lean objectives in material processing To free resources in the material processing that is connected with loan processes and as a result: • Improve the physical working environment by reducing the amount of repeated and monotone work. • Improve user services by transferring the resources to direct user contact and development tasks. PRÆSENTATIONSTITEL

  28. What has been done? • Lean has been implemented at all the libraries in Copenhagen in 2008-2010 (19 local libraries and Central Library). • A manager and 2 employees from each library have participated in a joint training course with other libraries. • The training courses have consisted of 5 modules (over a 4 month period) with both training in Lean and tasks connected with preparing local initiatives. • A ”Toolbox” has been prepared with descriptions of solutions that can be used at the libraries. • Now Lean will be implemented at all institutions in the Department for Culture and Leisure. PRÆSENTATIONSTITEL

  29. Diagnosis as basis for Lean Lacking knowledge of users’ preferences Have we optimally organised our daily tasks? Too much firefighting and not enough planning Individuals making priorities – no ”team” prioritisation We don’t, in fact, include operation and service objectives in our daily work Not all tasks are visible Standards are not actively used Duty is shared out … not tasks There is often no precise responsibility for operation tasks Operation management is not in focus What did we discover? PRÆSENTATIONSTITEL

  30. What has been achieved? • Now generally more focus on production management • Improvement of specific working procedures so that the libraries supply users with material quicker with a lower resource consumption • Improvement of the physical working environment by reducing the amount of repeated and monotone work • Better service for users by transferring resources to direct user contact and development tasks • Basis for further work with continuous improvement due to greater focus on production management and target management. PRÆSENTATIONSTITEL

  31. What have we learnt? • Management is crucial in order to get results. • Lean is about creating a better daily operation. • It is difficult to transfer experience from one library to another – the training process is also a learning process for the participants. • Important to define a local target for the implementation, e.g. 10 % cost reduction.. • Solutions should be tailored to local requirements and conditions PRÆSENTATIONSTITEL

  32. Lean and management • Lean puts focus on operations management – an often forgotten discipline in service organisations and in connection with administrative tasks • Focus on management is often either on professional management or strategic management • Prestige and rewards are often connected with development projects. • ”The operation looks after itself” Strategic management Focus and direction Pofessional management Faglig ledelse Personnel management Personale ledelse Faglig kompetence Professional expertise Providing Sikring af og kvalitet And quality resources ressourcer Operations management Driftsledelse Styring og Control and optimering optimisation PRÆSENTATIONSTITEL

  33. Holding onto and anchoring Lean • Lean as a way of working – focus should be held onto this for continuing results with Lean • Fora should be planned for knowledge sharing, assessment and the opportunity of consulting an adviser in connection with ad hoc initiatives. • Lean/operations management as a part of the education of management within administration • Lean/operations management participating in performance based pay and Balanced Scorecard • Lean/operations management as a mutual language and method in administration • From a change management to an improvement management! PRÆSENTATIONSTITEL

  34. Objectives for Lean in 2010- To ensure an effective, safe and professional operation by: • Securing better quality services for citizens. • Streamlining working procedures so that existing tasks are executed with fewer resources. • Improving the working environment by reducing stress and repeated working procedures . • Introducing a structured target management and improvement culture. • Within the main objectives, local management should formulate objectives for e.g. freeing resources in order to extend opening hours or retaining a level of service despite a cutback. PRÆSENTATIONSTITEL

  35. Thank you!! Questions and comments are most welcome!

More Related