The Path to a Lean Culture at
Miami University
NACAS Central Region - Chicago
Speaker: Kim Kinsel, Associate Vice President
Housing, Dining, Recreation, and Business Services
Institution: Miami University – Oxford, Ohio
Date: Friday 6/20/14
Miami University (Oxford, Ohio)
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Established in 1809
Ohio Public Institution
Located 35 miles northwest of Cincinnati
15,460 Undergraduates and 2,260 Graduate
Students on Oxford Campus
Regional Campuses enroll 5,700 students
Two year live on requirement
99-103% enrollment in last 3 years
Securing up to 70 beds off campus
Housing, Dining, Recreation and Business Services
Finance and Business Services Division
Dining
Housing
Recreation
Center
One
Card
Central
Distribution
Bookstore
Catering
Intramurals
Concessions
Marcum
Hotel
Club
Sports
Print
Services
Childcare
Center
Box
Office
Outdoor
Pursuit
Center
Equestrian
Center
Business
Office
Airport
Vending
Conference
& Event
Planning
Ice
Arena
Auxiliary
Finance
Regional
Campuses
Bookstores
Vending
Dining
Miami University Auxiliaries
• 40 Residence Halls – 7,577 beds
• 3 tier pricing structure in residence halls – nonrenovated, renovated, new construction
• 5 AYCTE Dining Halls with 17 Dining concepts
• 500 staff members
• Employ 2,000 students
• Finance & Business Services Division
• Auxiliaries fund the Office of Residence Life which
is in the Student Affairs Division
Miami University Reality
• In the third year of a 500 million renovation and
replacement of all residence halls and dining
facilities
• Long Range Housing Model prepared by
Brailsford and Dunlavy in 2011 projected a 3.5%
price increase per year in housing and dining
• In the last year of debt service payments for the
Recreation Center
• Ten more years of debt service payments for Ice
Arena
Changing Reality in Higher Education
• Affordability Concerns
• Debt levels of students and families
• Declining demographics of the 18 – 24 age
group
• Growth of online courses
• Renewal and replacement of aging facilities
• Declining funding from State and Federal
sources
Things Change – The New Normal
• Housing and Dining price changes for 2014-15
approved at 1.8%
• Tuition – 2% increase
• Anticipate no more than 2% annually
• Financial impact of 1.5 – 2 million annually from
revenue projections in LRHP (3.5%)
• Board recently approved 150 million and are unlikely to
take on remaining debt for completion of LRHP
• Remaining will be funded from Operations – 13
buildings ($175 – 200 million over a yet to be
determined time period)
Time to Change
• Existing culture was deeply rooted
• Department and University full of silos
• Practice had been “build your own” and
everyone did
• Hard to change a culture quickly but can start
on the path by changing behaviors
• New Vision – “A primary responsibility of a
leader is to define reality”
Culture: A group of norms
of behaviors and the underlying
shared values that keep those
norms in place
Old Ways won’t work
Fundamental changes in how business is conducted
Changing Culture
Takes a long time
Commitment from the top
Driving Forces
Sense of Urgency
Silos, big ones, little ones….Oh My!
Auxiliary Culture
Customer service at almost any cost
Variety and choice each and every day
Valued and rewarded longevity
Promoted from within
Top management tightly controlled decisionmaking
• Can-do….anything attitudes
• Pride in department and self-operated businesses
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Historical Decision-Making
• Factors in decision-making
Customer
Customer
Request
Service
Scale &
Capacity
Cost
ACTION
Cost of Decision-Making
• Answer held no value
• Financial data only available in higher level
buckets quarterly
• Retrospective review occurred 1 to 4 months
later
• Financial reviews were conducted only by
highest levels of management
Target Culture:
Lean, efficient, high
quality services
Reducing cost of operations while maintaining
high quality operations and services
Establishing a Sense of Urgency
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Changing revenue flows
Debt Service payments increasing
Debt capacity for University
Need to fund several buildings from
operations
Lean Culture at Miami
• Major Objectives
– Assist Miami University departments with creating
a culture of continuous improvement
– Introduce the Lean strategy and tools to
operations and assist with project execution
– Develop the internal capability for Miami to
provide its own Lean training
– Develop leaders who can sustain a Lean Culture
at Miami
Lean Culture at Miami
“Our commonly held attitudes, beliefs, goals and practices about our
surroundings and work environment are inherent, yet invisible. We
must view our university through the lens of entrepreneurial thinking.
The implementation of Lean methodologies begins to open doors to
this type of thinking.”
- Dr. David Hodge,
President of Miami University
2011 Annual Address
Lean Culture at Miami
Primary Goal - to create a culture that is
constantly looking to improve
• Improve Decision making Process
• Eliminate Waste and Redundant Activities
• Provide Managers with better Financial Tools
Miami University Lean Structure
Lean
Goals
Lean
Leadership
Lean
Teams
Lean Structure
Lean
Champion
Lean
Tools
Overall Strategies
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Add new lean leaders – 18 in total, 6 certified
Involve all levels of organization
Reorganize department
Evaluate every open position for opportunities to
reduce – 60 positions eliminated in last 18 months
Management Training
Staff Training & education
Establish accountability structures
Retirement Incentives
Partnering opportunities
Introduce the Lean strategy and tools to operations
and assist with project execution
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Department-wide training
Managerial reorganization
Managerial training
Managing by metrics – KPI’s
Meeting structures
Projects with staff participation
Education
• Small group education on Lean – 35 sessions in 2
months
• Manager Training in Lean – Departmental goal for
100% completion this fiscal year
• Lean Fair – Poster-like sessions and
demonstrations for all staff
• Team presentations at all personnel staff meeting
• Management Training Program
• Restructured group meetings and content
• Ongoing Lean education at Unit meetings
Purpose
Miami University
Goals
Employee Goals
A Paycheck
Reduce total cost
Cost Avoidance
Maintain Quality
Eliminate Waste
Identify new
revenue
opportunities
Define demand for
services
Growth
Long Term
Mutual
Prosperity for
all
stakeholders
– students,
staff, faculty,
etc.
Good Benefits
A Safe
Workplace
Meaningful Work
Mutual Work
Input &
involvement in
workplace
Prepare Management
• Reorganized to group like areas
• Team Building
• Lean Infusion Team – comprised of individuals
in the University Lean certification process
• Accountability
Management Training
- Change management
- Managing performance
- Budgeting
- Financial management
- Managing through metrics
- Reading financial reports
- Team building
- Myers-Briggs
- Efficient & Effective Meetings
- Communication
- Conflict Management
Lean Training Program
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Metrics
Human Error/Process Error
Culture
Managing Projects
Supply Chain management
Standardizing & Documenting Processes
Broken Processes – Lean Ideas
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Document the current state
Create work flow and steps in current state
Identify repeat work, errors, bottlenecks
Include front-line staff members
Create the desired state
Document new standard work processes
Train and implement
Lean Teams
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6 to 10 members
Resource team members
Fresh eyes
Front-facing staff members
Timelines shortened – use of Kaizen
Document current state
Identify re-work, barriers, gaps
Create desired state – new standard work
Progress
Accumulated Lean Project and other initiatives
5/31/14
MU-Lean Project
Status Totals
Completed Projects
Complet
Active
ed
Future
Lean Project Total HDRBS
32
75
25
Total
132
Cost
Revenue
Cost
Avoidance Reduction Generated
$3,450,000 3,470,143
$2,807,317
Total
$9,727,460
Housing/Residence Halls
• Creating standard work processes by activity and day of
week
• Changed schedules and staffing rotations – previously
had a M-F full-time staff and Part-time every weekend
staff
• Changed work hours to match work flow
• Changed equipment and cleaning materials – use of
Kaivak
• Creation of triples
• Maintenance Repair Technicians – moved to PFD
• Contracting for up to 70 beds off campus
Dining
• Used Lean teams to create better flow in the
student center dining operations
• Simplified menus and daily selections
• Reviewed and modified standard operating
procedures
• Improved receiving and stocking practices
• Improved wait times
• Student staffing – incentives for hard to staff
periods
• Strategic Plan
Dining continued
• Strengthened Student Manager program
• Training processes
• Shared staffing – creating zones for movement
of staff
• Flattened management structure – fewer
layers, less at top
• Regional foodservice
• Strengthening managers with training
Catering and Conference Services
• Consolidated catering services into one
(previously at both Marcum Hotel &
Conference Center and Shriver Center)
• Grouped conference and event planning into
Special Events which includes catering
• Replaced Director with broader business
experience
• Strategic Plans for Catering, Hotel, and
Conference Services
Bookstores
• Expanded soft-goods and retail offerings
• Moved position supporting financials into Business
office opening
• Replaced position with Retail Merchandising position
• Strengthened management structure
• Assuming responsibility for cell phone sales, laptop
repairs, and print services from IT
• Working with Retail consultant for expanded offerings
and placement of services
• Strategic Plan
Vending
• Added healthy/leaner options
• Added regional businesses
• Now provide vending services for local fire
station
Recreation Services
• Redesigned space to add classroom space and
opportunities for more revenue-producing
classes
• Redesigned Pro Shop adding food items and
drinks which can be purchased with meal plan
• Added additional soft-goods to appeal to
students, swim groups
Goggin Ice Arena
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Utilities Project
Consultant for ice conditions and utility usage
Restructured management after 2 retirements
Expanded offerings in Pro-Shop
Expanded birthday party and social packages
Auxiliary Finance
• Built access data base for daily metrics –
Banner, Micros, and Kronos don’t talk to each
other
• Moved Business Office into Finance structure
• Grouped all finance-related positions
throughout department into area
Lean-Inspired
• Just Do-Its
• Executive Summary of project
• Include idea, who was involved, what was
done, and improvement achieved
Lean Suggestion Program
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Goals
– Culture Change – Everyone can become an agent of change
– Bottom UP - Where Challenges & Lean Solutions are Best Understood
– How –
• Provide Employees and Customer with easy method to present their ideas for
‘continuous improvement’
• Easy – User Friendly – Measurable – Automated - Sustainable
• Rule 1 - Organization must communicate and follow through
“I have a Lean Idea”
– Requested - One good suggestion per month from employees
– 150 Suggestions Received - 45% Became Projects - 19 Complete
Implemented Miami University - January 2014
– 51 New Ideas/Suggestions from 6 Departments
– 1/31/14 – 201 Ideas submitted - 38.6% New Projects
– 3/17/14 - 300 Ideas Submitted via ‘I have a Lean Idea’ Link on Website
Final thought
“As the saying goes, ‘If it doesn’t
kill you, it makes you stronger.’
That is the upside to adversity.”
Malcolm Gladwell
Author – “David & Goliath”
Questions?
Lean Reference Materials
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MainStream GS – Basic Training, Boot Camp and Certification Lean Training for MainStream Consultants
The Miami MU-Lean Experience FY 2009- FY 2012
The Lean Enterprise – Memory Jogger & The Lean Enterprise Memory Jogger for Service Richard
L. MacInnes Net Results Inc. – Pass out and permission to use from GoalQPC – Ms. Susan Griebel
Pass Out Books to Students
Project Management – Memory Jogger – 2nd Edition Goal/QPC
Creating A Lean Culture – David Mann
The Complete Lean Enterprise – Beau Keyte & Drew Locher
Good To Great – Jim Collins
Lean Thinking – James P. Womack and Daniel T. Jones
IBM Lean Service - Indianapolis Star – Business 6/25/07
Assertiveness Training for Women by Osborn
Dr. Darryl Piersol, Lecture at Motorola Management Institute
The Fifth Discipline Fieldbook by Peter Senge, et al.
Aberdeen Group – Research Briefs – The Impact of Service on Corporate Performance 2007- 2009
Toyota & GM – Financial Reporting – Internet
Lean Six Sigma for Service – Lean Six Sigma Pocket Tool Box - Michael L. George
The Lean Toolbox for Service Systems – John Bicheno
Reference: OCAI on line http://www.ocai-online.com
The Toyota Way – Jeffrey K. Liker & Toyota Culture – Liker & Hoseus
Total Quality Tools for Education – QIP,Inc.
Six Sigma for Managers – Greg Brue