Laboratory Services Private Customer Program
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1 Laboratory Services Private Customer Program Lean Six Sigma Green Belt Project In Process Review Define Phase February 18, 2016 Andrew L. Jantzer, PE Deputy Director Water Resources City of Titusville
2 Define Phase IPR Team Charter Project Plan Stakeholder Analysis SIPOC Analysis VOC Analysis Agenda
3 Team Scott Larese, City Manager Sean Stauffer, Dir Water Resources Andrew Jantzer, Dep Dir Water Resources Angela Gilbert, Laboratory Supervisor Jeff Urbano, Environmental Chemist Champion Sponsor Leader Member Member Christine McGraw, Internal Auditor Coordinator Don Johnston, CAS Adaptive Solutions Coach
4 Problem Statement Charter The Laboratory Services (LS) Private Customer Program (PCP) does not have a management plan defining key factors such as customer competency, analysis type and fees. Without such guidelines, the PCP could disrupt essential services, degrade laboratory efficiency and miss profitable market sectors. This project develops a management plan to optimize the PCP. Process Boundaries The administration of the Private Customer Program.
5 Goal Statement Charter Maximize Private Customer Program cost benefit efficiency without impairing the laboratory services conducted for Water Resources activities. Commandments The mission of LS is to provide essential laboratory services for Water Resources activities. The mission of the PCP is to utilize reserve capacity to generate revenue. Monuments In event of conflict, LS mission trumps PCP mission.
6 Mission Charter Evaluate and structure a Private Customer Program (PCP) in order to maximize private customer revenue within the core mission and infrastructure of Laboratory Services (LS). Assumptions 1. We can easily define limits where the PCP will adversely impact the LS mission. 2. We have a geographic "advantage" with certain lab services. 3. We can locate and utilize no-cost or low-cost advertising options.
7 Project Plan Project Definition: Nov-Dec 2015 Project Selection 11/5/ :00 Team Selection 12/3/ :00 Analyze Phase - Feb 2016 Team Workshop 2/25/ :00 Gate Review 3/3/ :00 Define Phase - Jan-Feb 2016 Team Workshop 1/7/ :00 Gate Review 1/21/ :00 In Process Review 2/18/2016 Improve Phase - Mar 2016 Team Workshop 3/10/ :00 Gate Review 3/17/ :00 In Process Review - 3/31/2016 Measure Phase - Feb 2016 Team Workshop 2/11/ :00 Gate Review 2/19/ :00 Control Phase - Apr 2016 Team Workshop 4/7/ :00 Gate Review 4/14/ :00
8 Stakeholder Analysis Key Stakeholders Laboratory Services Div Water Production Div Water Reclamation Div City Administration and Ratepayers Existing Private Customers New Private Customers Included in PCP Private Customers Excluded from PCP Competing Laboratory Services Providers
9 Stakeholder Analysis Key Stakeholders Attitude Towards Change Potential Concerns Concern Type Concern Level Support Level Strategy for Dealing with Concerns Laboratory Services Div MS Disruption of LS mission; regulatory noncompliance (including corrective action time & cost); budget impacts if PCP costs exceed revenue T H M Communicate that WR/PCP mission addresses concerns Water Production Div Water Reclamation Div N Same as LS Division T H M Communicate that WR/PCP mission addresses concerns City Administration and Ratepayers MS Same as LS Division; LS reserve capacity that could be filled with PCP orders to minimize rates T/P M/H M Communicate that WR/PCP mission addresses concerns Existing Private Customers New Private Customers Included in PCP Private Customers Excluded from PCP Competing Laboratory Services Providers MA Disruption of their routine; cost increases due to PCP changes T M M Explain primary mission of WR/PCP may differ from their goals MS None T L L N/A SA SA Lower level of service or higher costs due to exclusion; perception of "preferential treatment" due to exclusion Lost customer base and revenues due to competition from PCP; perception of govt/ratepayer funding of competition T/P M/H T/P H H M Clearly defined and documented PCP Provide balance sheet showing cost basis of rate schedule; use a low marketing profile; curtail PCP Legend Attitudes: Strongly Against, Moderately Against, Neutral, Moderately Support Concerns: Technical, Political, Cultural, Low, Medium, High
10 SIPOC Analysis High Level Process Steps Marketing Sample Kit Distribution Sample Check-In Analysis QA/QC Checking Reporting Invoicing Payment
11 SIPOC Analysis Suppliers Inputs High Level Process Steps Outputs Customers Lab Administrator Lab Administrator Private Customer Lab Analyst Private Customer Targeted Customer List Advertisement Script Sample Kit Request Sample Kit Sample & Forms Marketing Sample Kit Distribution Sample Check-In Advertisement Sample Kit In Processed Sample Potential Private Customer Private Customer Lab Analyst Lab Analyst In Processed Sample Analysis Raw Analysis Data Lab Analyst Lab Manager Raw Analysis Data QA/QC Checking Stored Data Lab Administrator Lab Manager Private Customer Lab Manager Stored Data Sample Forms Stored Data Reporting Invoicing Analysis Report Invoice Private Customer Private Customer Private Customer Payment HTI A/R Entry Lab Administrator Payment Lab Administrator Targeted Customer List Payment Finance Dept
12 VOC Analysis EPA METHOD 8260C VOLATILE ORGANIC COMPOUNDS BY GAS CHROMATOGRAPHY/MASS SPECTROMETRY (GC/MS) EPA METHOD 8260C VOLATILE ORGANIC COMPOUNDS BY GAS CHROMATOGRAPHY/ MASS SPECTROMETRY (GC/MS) TABLE 6 SINGLE LABORATORY ACCURACY AND PRECISION DATA FOR PURGEABLE VOLATILE ORGANIC COMPOUNDS IN WATER DETERMINED WITH A WIDE-BORE CAPILLARY COLUMN (METHOD 5030) Conc. Number Standard Range of % Deviation Compound (μg/l) Samples Recoverya of Recoveryb RSD Benzene Bromobenzene Bromochloromethane Bromodichloromethane Bromoform Bromomethane n-butylbenzene sec-butylbenzene tert-butylbenzene Carbon tetrachloride Chlorobenzene Chloroethane Chloroform Chloromethane Chlorotoluene Chlorotoluene TABLE 6 (cont.) Conc. Number Standard Range of % Deviation Compound (μg/l) Samples Recoverya of Recoveryb RSD 1,2-Dibromo-3-Chloropropane Dibromochloromethane ,2-Dibromoethane Dibromomethane ,2-Dichlorobenzene ,3-Dichlorobenzene ,4-Dichlorobenzene Dichlorodifluoromethane ,1-Dichlorobenzene ,2-Dichlorobenzene ,1-Dichloroethene cis-1,2-dichloroethene trans-1,2-dichloroethene ,2-Dichloropropane ,3-Dichloropropane ,2-Dichloropropane ,1-Dichloropropene Ethylbenzene Hexachlorobutadiene Isopropylbenzene p-isopropyltoluene Methylene chloride TABLE 6 (cont.) Conc. Number Standard Range of % Deviation Compound (μg/l) Samples Recoverya of Recoveryb RSD Naphthalene n-propylbenzene Styrene ,1,1,2-Tetrachloroethane ,1,2,2-Tetrachloroethane Tetrachloroethene Toluene ,2,3-Trichlorobenzene ,2,4-Trichlorobenzene ,1,1-Trichloroethane ,1,2-Trichloroethane Trichloroethene Trichlorofluoromethane ,2,3-Trichloropropane ,2,4-Trimethylbenzene ,3,5-Trimethylbenzene Vinyl chloride o-xylene m-xylene p-xylene a Recoveries were calculated using internal standard method. The internal standard was fluorobenzene. b Standard deviation was calculated by pooling data from three concentrations.
13 Key Customers Laboratory Staff Interviews Ratepayer/Public VOC Analysis Tele/ Inquiry History Anticipated Concerns Existing PCP Customer Telephone Interviews 2016 Questionnaires
14 Voice of Customer VOC Analysis Key Customer Issues Critical Customer Requirements Customer = Laboratory Staff (Interviews) Inquiries and samples from nonprofessionals (homeowners, developers, etc.) are historically disruptive and erroneous. The time it takes to educate customers and react to errors from industry novices is not consistent with efficiently providing essential laboratory support services or generating City revenue from reserve capacity. Limit PCP customer qualifications to Water Environment Industry professionals (water supply, treatment plant or similar industry). This limitation should be published. Maintain referral list to nearby private labs who can accommodate non-pros. LS has a large in-house volume at end of month, and there are certain days of the week when samples are not routinely processed. There are some routine analyses that can easily accommodate more samples without a significant increase in cost or effort. Conversely, the processing cost for other types of analyses are very dependent on sample quantity. The reserve capacity that is available for the PCP is schedule dependent. The processing efficiency and cost is dependent on analysis type. Limit PCP sample receipt windows to a specific published schedule for each sample profile. Limit analyses offered under the PCP to a specific published menu structured to maximize PCP revenue.
15 VOC Analysis Critical Customer Voice of Customer Key Customer Issues Requirements Customer = Ratepayer (Anticipated Concern) It makes sense for Laboratory Services reserve capacity to be filled with PCP orders in order to minimize rates. But doing so should not risk regulatory liability or increase the net cost of providing essential City services. Maximize Private Customer Program cost benefit efficiency without impairing the laboratory services conducted for Water Resources activities. Addressed by above CCRs for Lab Staff. Customer = General Public (Telephone and Inquiries) I want LS to test my (private well sample, drainage ditch sample, etc.) for tests listed on your web site. If LS won t do this work, who will? LS should perform tests listed on the web site for anybody. As a local government entity, LS has an obligation to provide testing for "local" residents. LS needs to maintain a lab referral list. Revise the web site to state LS mission and explain that LS only performs testing for treatment plants. Remove test list from web site. Delete private well testing web page. Maintain lab referral list.
16 VOC Analysis Voice of Customer Key Customer Issues Critical Customer Requirements Customer = Existing PCP Customer (Telephone Interviews 2016 and Mailed Questionnaires ) What are your suggestions for improving your satisfaction with the PCP? Change reports so they are easier to understand. The lab reports are difficult to understand Tailor the lab reports to each PCP and interpret. customer and include explanatory notes. Do you perform or send out any other lab work that might be a good fit with the PCP? An existing customer did not realize that One customer said they send out samples LS can perform analyses that they need. to another lab for tests performed by LS. Distribute the LS lab schedule to existing customers to maximize the use of reserve capacity. Do you know of any other customers who might be a good fit with the PCP? This question netted one referral who is already a PCP customer. N/A Existing customers are not a good source of referrals for new PCP customers.
17 Laboratory Services Private Customer Program Lean Six Sigma Green Belt Project In Process Review Define Phase February 18, 2016 Andrew L. Jantzer, PE Deputy Director Water Resources City of Titusville
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