Erie County DPW B & G

Overtime Review

Erie County
LEAN SIX SIGMA PROJECT
April – October 2008
TEAM MEMBERS

Champion: Gerard J. Sentz, P.E. – Commissioner of Public Works

Process Owners: Jeff Quinn, Steven Rzasa, Nick Krestos

Project Team:
Darryl Ambrose, Robin Dmochowski, Nick Krestos, Marijean
Nichols, Julia MacMurray Al Poppenberg, Steven Rzasa,
William Thornton

Mentor: John Lupienski UB TCIE Green Belt: Kevin Madoo

DEFINE PHASE

DPW Buildings & Grounds

Overtime Review
Project Charter - Define

Strategic Goal/Business Case: Reduce Overtime dollar

expenditure.

Problem Statement: 2008 actual Overtime was $300,000 in

the Division of Buildings & Grounds.

Project Objective: Review and reduce the overtime hours spent

to complete tasks related to the four sectors of the Division
of Buildings & Grounds thus reducing the overtime
expenditure by $100,000.
Project Charter cont.- Define

Benefits/Savings Potential: Reduce spending; timely

completion of repairs; Well maintained properties and reduce
Overtime by $100,000 and improve overall work flow.

Scope/Boundaries: Determine and review the reasons for

overtime usage. Develop a plan to reduce overtime usage
within the HVAC and Maintenance sectors of B&G without
increasing the regular payroll budget. The Security,
Cleaners and other sectors will not be analyzed based on a
Pareto percentage of 10.9, 2.9 and 1.8.
MEASURE PHASE

DPW Buildings & Grounds

Overtime Review
 Pareto Charts 1st Level
B&G 2008 OT Usage By Sector B&G 2007 OT Usage By Sector

4000
12500

10000
3000

Hours
7500
Hours

2000
5000

1000 2500

0
07B&G Sectors HVAC Maintenance Security Cleaners Other
0 Hours 13619 8344 2804 646 371
08B&G Sectors HVAC Maintenance Security Cleaners Other
Hours 4065 2403 1270 236 146 Percent 52.8 32.4 10.9 2.5 1.4
Cum % 52.8 85.2 96.1 98.6 100.0
Percent 50.1 29.6 15.6 2.9 1.8
Cum % 50.1 79.7 95.3 98.2 100.0 Worksheet: 2007B&G OT DATA.MTW
Worksheet: 2008B&G OT DATA.MTW

Largest overtime expenditures were in HVAC, Maintenance and Security Sectors.

 Pareto Charts 2nd Level
B& G 2 0 0 8 HV AC O T U s a ge By L o c a ti on
1 40 0

1 20 0

1 00 0

80 0
Hours

60 0

40 0

20 0

0
Loc at io n OCH W . Ea g le H VA C 1 N iag a ra Alde n F lo a te r Var C PS 1 4 th f lo or R at h
Ho ur s 1 23 9 62 9 49 5 39 7 395 340 188 186 132 65
P e rc en t 3 0 .5 1 5. 5 1 2. 2 9. 8 9. 7 8. 4 4. 6 4. 6 3. 2 1 .6
Cu m % 3 0 .5 4 5. 9 5 8. 1 6 7. 9 7 7. 6 8 5. 9 9 0. 6 9 5. 2 9 8. 4 1 0 0 .0
W o rks he e t: 0 8 S e co nd LvlP a r eto _HV A C .M TW

Distribution of OT within HVAC & Maintenance.

 Pareto Charts 2nd Level

B & G 2 0 0 8 M a i n te n a n c e O T U s a g e B y P o s i ti o n
700
600
500
Hours

400
300
200
100
0
P o s itio n R I C I C R E) RK IC RK ER
RE AN AN IV
E
IM E N E RK
BO H H DR T CL HA CL O
LA EC EC T S EC R W
M M U CK P AR RE M N IO C E
E E O E
NC NC TR AR ST NC SE AN
A A L L A E N
N N U N
TE TE EG PA TE NT
Distribution CI AI
A I of OTA Iwithin HVAC & (Maintenance.
N N R N
R RI
N AI M
M .M M
G RE P
G
 Pareto Charts 3rd Level
B & G 2 0 0 8 M a in te na nc e O T U s a g e B y P e r s o n

250

200

150
Hours

100

50

0
P er so n N u m b er

Hours . . . . . . . . . . . . . . . . . . . . . . . 0 0. 0 0. 0 0. 0 0. 0 0. 0
P e r ce n t 11 10 10 9 9 9 8 7 4 4 4 4 2 2 2 1 1 1 1 1 1 1 0 0 0 0 0 0
Cum % 1 1 2 0 3 0 3 9 4 8 5 6 6 4 7 1 7 6 8 0 84 88 90 92 93 95 96 97 9 8 98 9 9 10 01 0 01 0 01 0 01 0 01 0 01 0 0

W o r k s h e e t: 0 8 S e c o n d LvlP a r e to _ M a i n t. M T W

Analyzed OT by person within HVAC & Maintenance Sectors.

Summary

 Project Team identified top 5 causes of OT and focused on 3

 Incomplete Preventative Maintenance
 Shift Coverage (e.g. Staff Vacation coverage)
 Emergencies
 Security
 Work that can be done only on 2nd Shift (e.g. building shut-downs)

 Established Subcommittees:
 Work Order System
 Job Descriptions/Duties/Union Requirements
 Management Usage/Authorization of OT for workers
 HVAC/Maintenance
ANALYZE PHASE

DPW Buildings & Grounds

Overtime Review
 Identified Areas that
Generate OT

 Special Projects (ex. construction, equip

repairs, painting)
 In-house Cost Vs Contractor Cost
 Shift Coverage
 Overtime work used to cover Vacation
 Out of Title Work on overtime
New Data Demographic

HVAC SECTOR- Pareto of OT Type Versus HOURS

2000

1500
 Identified Areas that Can
Improve OT
 Preventative Maintenance (PM):
 Re-establish manual PM program – Quick Fix.
 Re-establish, Update & Monitor Wall Charts (visual reference)
 Investigate PM software to meet current/future needs.

 Special Projects Work Procedure:

 SOP (Authorization, Availability of Reimbursements)
 Inclusion of Design Staff to best define the work in the field.

 Work Order System Review:

 Process flow map was developed and will be further developed to determine areas for
improvements.
 List estimated/expected times for job completion.
 Format Checks and Balances for work flow.

 Additional Shift Repair Crew:

 Establish a 2nd(or 3rd) shift maintenance crew for repairs to be done during non-business hours.

 Review of Workforce Scheduling:

 Use Floaters for vacation coverage in-lieu of overtime.
 Deny Vacation if it would result in overtime.
Work Order Process Flow
IMPROVE PHASE

DPW Buildings & Grounds

Overtime Review
Overtime Savings $ Potential

Overtime Potential $121,000 Savings

Potential Est. Dollars Saved

40000

30000

20000

10000

0
Savings Initiatives .
cts ra
m ow i nt
j e g Fl a
ro Pr
o
or
k tM
ia lP W hif
ec PM r- a lS
S p e n
Ord itio
k d
or Ad
W
Potential Est. Dollars Saved 36000 35000 30000 20000
Percent 29.8 28.9 24.8 16.5
Cum % 29.8 58.7 83.5 100.0
Worksheet: Worksheet 5
CONTROL PHASE

DPW Buildings & Grounds

Overtime Review
CONTROL

 Ensure completeness of Overtime Tracking Report

 Monitoring/Tracking OT per Pay Period – Control Charts

 Maintain Standard Operating Procedures (SOP)

for Preventative Maintenance (PM) and Special Projects

 Manual PMs - Binders being reviewed and updated.

- Wall Charts being updated and reviewed per
PMSOP_9/08V1.

 Develop FMEA (Failure Modes Effects Analysis) for Preventative

Maintenance Critical Operations.
 Implement Control Charts - Control
I-MR Chart of 2007/8 OT HVAC Hours by stage
1 2

800
Individual Value

600
1
400 +3SL=422.3
+2SL=374.9
_
X=280.2
200 -2SL=185.4
5 -3SL=138.0

1 6 11 16 21 26 5 10 15 20
2007/8-PPs

1 2
450
Moving Range

300

+3SL=174.6
150 +2SL=134.2
__
MR=53.4
0 -3SL=0
-2SL=0
1 6 11 16 21 26 5 10 15 20
2007/8-PPs

Worksheet: Worksheet 3
FMEA – (Preventative Maintenance)
What could go wrong?

 Some critical operations identified:

 Boilers/Heating
 Electrical Power
 …still being developed
Standard Operating Procedures (SOP)
– Special Projects

 Erie County DPW Buildings & Grounds Division SPSOP_9/08V1

 SOP
 SPECIAL PROJECTS – Development, Authorization and Monitoring
Procedure
 Supervisor reviews work request to determine if work is SPECIAL or Normal.
 If SPECIAL, determine if reimbursement is available.
 If SPECIAL, then Supervisor develops detailed work scope and cost estimate.
 Supervisor to coordinate with In-House Design Staff.
 Supervisor to develop a Project Work Proposal for In-House work.
 (Work Proposal will show labor & material costs, crews required and schedule)
 Supervisor submits Work Proposal to Deputy Commissioner for review and
approval.
 􀀹 If APPROVED, work will be monitored as follows:
 Scheduled job meetings w/supervisor and Deputy Commissioner to avoid cost overruns.
 All requests/changes (i.e. scope creep) must be brought to and APPROVED by the Deputy
Commissioner.
 Completion of work to be signed off by Supervisor and Deputy Commissioner.
Standard Operating Procedures (SOP)
– Preventative Maintenance
 Erie County DPW Buildings & Grounds Division PMSOP_9/08V1
 SOP -
 PREVENTATIVE MAINTENANCE – Verification and Monitoring Procedure
 Chief Engineer of each building updates records daily.
 Senior Chief to check board (Wall Chart) weekly and document
deficiencies.
Note: A two week deficiency for the same task will result in verbal
or written warning.
 Senior Chief to meet with and update Deputy Commissioner monthly.
 Deputy Commissioner to keep log of monthly meetings.
 Deputy Commissioner and Senior Chief to randomly visit one facility
monthly.
Next Steps & Barriers

 Next Steps

 Work Order System Review/ Restructure. - Continue

 Monitor PM/Unplanned Equipment Failures. - Continue
 Monitor OT using the Control Chart. - Continue
 Monitor Floater work scheduling.
 Implement a 2nd (or 3rd) Shift maintenance Crew.
 3rd Stage Monitoring of Maintenance when additional Shift Crew is in
operation.
 Develop Failure Modes Effects Analysis (FMEA). – In-Progress

 Barriers
 Union/Contract Agreement Issues
 Personnel Movement Policy
 Perception
 Past Practice
 <Project Title >

Six Sigma Tools Used

Define
Define Measure
Measure Analyze
Analyze Improve
Improve Control
Control
X Problem Statement  SIPOC Diagram x Potential X’s  Regression Analysis  Control Methods
 Macro Map x Process Flow Diagram  Graphical Analysis  DOE Planning x Control Plans
x Identify Customers  Value Analysis/ Muda  Hypothesis Testing  Screening DOEs  Poka-Yoke
x Project Scope x Detailed Flow (I/O)  Means  Quantifying DOEs  SPM – Monitor Y
x Primary Metric  Measurement System  Variance  Optimizing DOEs  SPC – Control X’s
Analysis
 Secondary Metric  Proportions x Verify Critical X’s  OCAP
 Capability Analysis
x Consequential Metric  ANOVA  Y = F(x)  Update FMEA
 Short Term Capability
x Baseline Data  Regression Analysis  Optimization  Project Transition
 Long Term Capability Action Plans
 Entitlement x FMEA  Generate Solutions
x Data Collection  Update Financial
x Objective Statement x ID Critical X’s  Select Solutions
Benefits
 Process Monitoring
x Financial Estimates x Quick Improvements x Pilot Trials
 Final report
x Lean Opportunities
 Non-financial Benefits x Lean Improvements  Capability Analysis
 Close Project
 C & E Fishbone
x Team Members x Process Tracking
 C & E Matrix
 Define Review  Measure Review  Analyze Review  Improve Review  Control Review