Operational Justification

transcript

Operational JustificationThe Administrative Version

of Chutes & Ladders

In the beginning . . .

The 1990s

• The University’s focus shifts tooperating like a corporation.

• Printing has to redirect its focusand reduce its deficit.

A New Administrative Assignment

The Urbana campus forms Facilities & Services, combining

• Operations & Maintenance• Planning • Construction• Safety • Service Units: Parking, Carpool, Stores,

Mailing• and Printing

Mid-2000s: Ups and Downs

Joining Facilities & Services has benefits and costs

+ Part of the largest departmenton campus

+ Shared administrative services- Assigned a director who had no

printing or business experience- Extensive overhead charges

Key Performance Indicators

22 metrics to trackvolumes and revenues

2005 - 2009

Reorganizing and redefining Printing• Eliminated non-self-supporting or

technologically obsolete services• Incorporated mailing preparation• Updated digital, wide format and prepress

equipment• Had positive net results for 3 of 5 years

Net Results, 2005 - 2009

The Beginning of the End• State political and financial woes• University admissions scandal• Campus cost-cutting efforts

Bad News Abounds

Printing on the hot seat• $1M deficit• ARR emphasizes combining

service units and eliminatingnon-core services.

• Stewarding Excellent requiresa deficit explanation andthree-year business plan.

Figures for theAdministrative Review

The Ax falls.

In March 2010, the Executive Director announces that the Printing Department will cease all operations by June 2012.

State struggles continue.

• In June 2010, the Illinois passes California to become the state with the largest deficit.

• The state higher education budget is flat.• The University implements mandatory furlough

days and voluntary separation programs.

Additional review and reductions

• In February 2011, the F&S administration reviews the financials for the first half of FY11.

• Offset is scrutinized for continuing to fail to recover its costs.

Closing Offset Operations• In March, F&S decides to close all

Offset-related operations.• In June, 10 positions are eliminated:

5 Printing Production Coordinators2 Press Techs1 Bindery Worker2 Clerks

Condensing and Consolidating

• Almost all operations are moved to the first floor.

• State auctions large press and bindery equipment.

• Surplussing and scrapping activities increase.• Remaining staff take on

more duties while preparingto find new jobs.

A new player joins the game.• The Illini Union, the auxiliary that provides

student services, expresses an interest in Printing.

• At multiple meetings, Printing outlines its operations and presents its financial figures.

Information for Illini Union• Staff costs and payouts• Equipment maintenance and needs• Revenue breakdowns by production unitAll of these were thenincorporated into theUnion’s Business ServiceCenter plan.

The Turnaround

In July 2011, the Illini Union sends a proposal to the Executive Director of F&S to assume responsibility for Printing’s

• Personnel• Equipment and facilities• Deficit ($850K)

The Moment of Truth

The Executive Director reexamines Printing’s financial status and determines that• The Illini Union may not take the unit.• Printing will continue to operating in its new,

condensed form.• Printing will become Document Services.

Introducing Document Services

Document Services• Provides digital, stationery and wide format

printing and mailing preparation• Has 20 full-time and ten extra-help employees• Nets an average of $30K per month• Will retire 1/3 of its debt in June 2012

The First Six MonthsFY12 ProjectionsMay 2011

FY12 Actual ResultsJuly – December 2011

Document Services isopen for business.

Operational Justification

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