Disposal of Records for Cost-Effective Space Utilization 2007

1. Six Sigma Project Title Disposal of RecordsforCost-EffectiveSpace Utilization2007

2. Team Members Project Title: Disposal of Records for Cost-Effective Space UtilizationSix Sigma Champion/s: Ken Chee Albert Dean Atkinson Team Leader: Lei P. Correo Asst. Team Leader: Eric CruelMembers: Ched Baltao (3W - Greenbelt) John Reyes (3W – Greenbelt) JV Husmillo (3W – Greenbelt) Rudy Serrano Ruben Salvino Josie Absalon Rose Veluz

3. Problem Statement DEFINE Space is now such a valuable resource, and one that is fast becoming an expensive commodity. Records Center currently occupy 16 rooms, measuring 826.75 sq.m, to house more than 20,000 boxes of records and official documents of ADB. This translates cost of space per year. And each year, more and more space is needed to accommodate the bulk of records that ADB generates. Because of this, we have already leased an off-site storage space for over 4,000 boxes of documents that cannot fit in the allotted rooms. And for the storage we pay almost $20,000.00 a year. The need for space in keeping the records that we receive is such that we are now using part of the hallway to store the boxes. If we do not do something about this soon, we will not only incur additional cost, but it will also affect the way we work and how we deliver services to the clients.

4. Project Description DEFINE

5. Project Scope DEFINE 16 Storage Rooms (FULL to the MAX)

6. Business Case DEFINE The Records Center (RC) is the centralized area for housing and servicing inactive or semi-active records. As of 07 May 2007, the RC alone is storing 23, 170 cu.ft of records; while 4, 326 are stored offsite because all RC storage areas are maximized to full capacity. These records are retained for varying periods of time and/or event, and the modes for disposition are set forth in a Records Retention and Disposition Schedule. Records disposition is one critical aspect of a responsible records management system as it enables an organization to dispose of records that are no longer needed for operational/business continuity or have no lasting value to the organization. Unfortunately, the process involved in this activity has not been looked into for a number of years. With the exponential growth of records, increasing storage cost, and decline in storage space, it is about time that we review the current practices.

7. Goal Statement DEFINE • At the end of the project, we hope to: • reduce the space used for records by at least 20% or $46,000.00 • review guidelines and procedures for records retention and disposal to ensure cost-effective utilization of space • clarify roles and responsibilities of IRS staff and departmental representatives for better records management program

8. CTQ DEFINE

9. DMAIC- Project Timeline DEFINE Define – March to April 2007 Measure – March to May 2007 Analyze – April to May 2007 Improve – April to June 2007 Control – June to July 2007

10. SIPOC DEFINE Documents are appraised Database is updated and document is assigned retention period Prepares RDA for docs with expired Retention Period Documents are disposed or sent to Archives

11. High Level Process Map DEFINE DOCUMENTS DELIVERY Central Files Station (13) (at HQ) DOCUMENTS DELIVERY Depts/Office (at HQ) DOCUMENTS DELIVERY Field Offices DOCUMENTS STORAGE APPRAISAL & DISPOSITION (Records Center) VITAL RECORDS PROTECTION (Microfilming) DOCUMENTS PRESERVATION (ADB Archives) DOCUMENTS DISPOSAL (non-essential documents)

12. Detailed Process Map DEFINE RECORDS CENTER OPERATION A ADB Staff in HQ completes RSR online detailing inactive documents for turn-over to the Records Center. Note: The RSR (Records Storage Request) form is attached to each box . No RC Aide brings down the boxed docs to Records Center RC staff sends duly received RSR to staff Upon receipt of the automatic email alert from the staff. RC aide prints RSR and checks docs in each box if they tally with the RSR. Yes A Actual docs = RSR? CF staff appraises docs, then assigns disposal date. RC staff gives copy of RSR to CF staff temporarily assigned to Disposition Functions CF staff sends back completed RSRs to RC staff End process RC staff updates database Records Retention lapsed? Yes CF staff prepares RDA (Records Disposal Authority) to seek approval from RRDC rep No Permanent or not? B CF staff checks Retention Period of docs C Yes RC aide affixes box label No CF staff completes Archives Storage Form and sends docs to Archives CF staff keeps copy of RSR RC aide stores boxed docs in warehouse D E End process End process

13. Detailed Process Map DEFINE RDA approved? No CF staff manually monitors RRDS (Records Retention and Disposal Schedule) D CF staff files back the RDA E C Yes CF staff advises RC staff to get required docs RC Aide physically get the boxed docs CF staff manually checks the boxed docs for destruction for final verification RC Aide brings docs to Shredding End process

14. Initial Data MEASURE

15. Pareto Chart MEASURE

16. Stratification Matrix MEASURE Departments & Offices FM’s / FO’s Does source matter? Electronic copy Print copy Does format matter? E-mail Courier Regular mail Documents / Files for disposal Method of delivery? BOD PS SS Consultants Does type of user matter? HQ FM’s FO’s Location of client

17. Revised Goal Statement MEASURE • At the end of the project, we hope to: • reduce the cost of space used for records by at least 50% or $34,144.27 • have a better process for the review and disposal of documents • clarify roles and responsibilities of IRS staff and departmental representatives for better records management program

18. Records Occupancy MEASURE

19. Revised CTQ MEASURE

20. Records Occupancy MEASURE

21. Records Received MEASURE

22. Document Types in ADB MEASURE Why the need to measure type of documents generated in ADB? 1. 70% - Project files are documents created by the project departments in relation to the administration of Loan, Technical Assistance (TA or RETA), Grant, Equity Investments. These documents are scanned/microfilmed by the Records Center and ALL paper copies are disposed 5 years upon project completion. 2. 30 % - Administrative files are the non-essential documents which are kept only for a certain period of time (1 to 8 years) based on an agreed schedule (RRDS – Records Retention & Disposal Schedule). All HODs are members of the Records Retention & Disposal Committee – RRDC.

23. Document Types Received MEASURE

24. Sigma Level - Before ANALYZE Process Sigma Level at the Initial Stage

25. Initial Data ANALYZE What if we scan all files (admin files included) so we can dispose the hard copy right away to save on storage space? Since all Project Files are being microfilmed / digitized, additional cost of digitization will only be for the Administrative Files of 7,803 boxes: Cost of Digitization per page: PhP2.00 Approx. Number of pages per box: 2,100 --------- Cost per box PhP 4,200.00 or $91.30 ($1=PhP46) TOTAL COST TO SCAN ADMIN FILES FOR 7,803 BOXES *NOTE: The figures above are estimates and will likely change if we do the actual count / computation NOT PRACTICAL $712,413.90

26. Fishbone Diagram ANALYZE Human factors Machine / Material N Staff keeping documents until retirement Plenty of documents created everyday N Staff turn-over N Not enough filing cabinets N No training on proper records keeping N No staff assigned in user dep’t. Small rooms N N Y Unclear delegation of responsibilities Space problem C Non-centralized storage of files C Long retention period N Unclear procedure C Duplicates C Archival docs still stored in departmental files N Records retention schedule not implemented C NOISE N Policies / Methods Environment CONTROLLABLE C

27. Quick Wins ANALYZE Quick win 1: With the realization of cost incurred using an off-site storage, Head, IRS immediately ordered the pull-out of stored documents from Crown Worldwide Movers. This resulted in an automatic hard savings of almost $20,000.00. No additional space was requested in HQ as the move was just in time when we are able to free a big space in IRS. Quick win 2: Propose to Head, IRS to temporarily assign staff responsible on the monitoring, evaluation, and timely disposal of records that have reached the retention schedule.

28. Root Causes IMPROVE

29. Findings IMPROVE • Some Findings /Suggestions: • Digitizing all docs is not an option - cost is too high and not all soft copy of documents should be retained forever– maybe in the future when cost goes considerably lower. • We need to evaluate the records from Crown to determine which can already be disposed (50% disposed; Crowne vacated) • Look at the possibility of coordinating with RMs so that files to be sent to HQ are digitized instead of paying for the shipment of documents (for further study) • Review of existing retention schedule and policies is expected to address concerns, identify best practices, and take into consideration available technology that can help (scheduled on the last quarter of 2007)

30. Solutions Matrix IMPROVE

31. Fishbone Diagram IMPROVE Human factors Machine / Material These are the root causes addressed in the solutions matrix N Staff keeping documents until retirement Plenty of documents created everyday N Staff turn-over N Not enough filing cabinets N No training on proper records keeping N No staff assigned in user dep’t. Small rooms N N Y Unclear delegation of responsibilities C Non-centralized storage of files 3 C Long retention period N 2 4 Unclear procedure C 3 Duplicates C Archival docs still stored in departmental files N Records retention schedule not implemented 1 C NOISE N Policies / Methods Environment CONTROLLABLE C

32. Sigma Level - After IMPROVE Process Sigma Level Sigma level at the end of year 2011 - 3.133

33. Improved Process Map CONTROL DOCUMENTS DELIVERY Central Files Station (13) (at HQ) DOCUMENTS DELIVERY Depts/Office (at HQ) DOCUMENTS DELIVERY Field Offices Reduce document retention through new RRDS Dispose paper documents 1 year after scanning /microfilming instead of waiting for 5 years DOCUMENTS STORAGE APPRAISAL & DISPOSITION (Records Center) VITAL RECORDS PROTECTION (Microfilming) DOCUMENTS PRESERVATION (ADB Archives) DOCUMENTS DISPOSAL (non-essential documents)

34. High level Process Map CONTROL DOCUMENTS DELIVERY Central Files Station (13) (at HQ) DOCUMENTS DELIVERY Depts/Office (at HQ) DOCUMENTS DELIVERY Field Offices DOCUMENTS STORAGE/ APPRAISAL & DISPOSITION Based on approved RRDS (Records Center) Will delete this process for 20-40 year old files IRS SENDS RDA TO DEPTS PRIOR TO ACTUAL DISPOSAL End process DISPOSE PAPER RECORDS BASED ON THE APPROVED RRDS IMPROVED PROCESS

35. Additional Benefits CONTROL COST AVOIDANCE due to current disposition activity: As we no longer have space to accommodate new documents received, we would have needed to store off-site equivalent volume of the ones recently received (in boxes): *The amount is only for half of the year. Assuming we get the same number of documents for July-December, the amount will be $16,630.64. *Retrieval Cost not yet included.

36. Income Generated CONTROL INCOME GENERATED from shredded paper due to current disposition activity: As we continue to dispose of documents, these are in turn sent for shredding which is being sold to a service provider at PhP2.75 per kilo. Actual Qty disposed as of 30 Sept 2007 – 8000 boxes Income (8000Bxs x 15kls/box x P2.75per kilo =P330,000/P46)-$7,173.91

37. US$ - income from shredded paper

38. Financial Benefits CONTROL HARD AND SOFT SAVINGS Hard Savings: Cost of off-site storage $ 19,827.50 Income Generated from shredded paper (2007) 7,173.91 (8000 boxes) Soft Savings / Cost Avoidance: Offsite storage of received materials 16,630.64 Cost of space freed (reduced retention) 48,461.04 Staff time saved (est.) 1,000.00 Retrieval cost for offsite records (30%) 2,934.00 Regular (70% @ PhP80) = 1,580.00 Rush (30% @ PhP160.00)= 1,354.00 ---------------- TOTAL (2007) $95,981.18 TOTAL FINANCIAL BENEFITS (2007) - $96,000.00

39. Action Plan CONTROL

40. BEFORE DISPOSAL

41. AFTER DISPOSAL 2 Records Room Vacated; 1 Room given to Archives

42. Recommendations/Closing CONTROL * With eSTAR, we expect project files submitted to be fully electronic by 2009 and only the administrative files will be received in print ** By 2010, eSTAR will be fully operational and only Archival materials will be received and other staff can help in the disposition, thus increasing target output Sigma level at the end of 2011 - 3.133

43. Summary of Benefits CLOSING • Major Benefits Derived from the Project: • Process improvement in line with IRS’s medium-term strategy • Increased staff morale as responsibilities become better defined and goals clearer • Financial benefits almost 300% more than the original target • Original financial target = $ 34,000.00 • Actual financial benefit = $ 96,000.00

44. Harmony with other Major Initiatives CONTROL Business Case This IRS project would also support: Paper usage and storage reduction – ISO; CO2 emission which contributes to climate change Do you know that by recycling 26,011 boxes of paper documents and using ICT for our future records, we have saved 7,803 trees? Thus contributing to the protected rainforest of Sweden (a critical ecosystem from which majority of our paper originates). (26,011 bxs X 15kilos/bx = 390,165 kilos/1000 kilos per 20 trees X 20=7,803 trees)

45. Harmony with Nature CONTROL