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Operational Justification. The Administrative Version of Chutes & Ladders. In the beginning . . . The 1990s. The University’s focus shifts to o perating like a corporation. Printing has to redirect its focus a nd reduce its deficit. A New Administrative Assignment.
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Operational Justification The Administrative Version of Chutes & Ladders
The 1990s • The University’s focus shifts to operating like a corporation. • Printing has to redirect its focus and 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 department on campus + Shared administrative services • Assigned a director who had no printing or business experience - Extensive overhead charges
Key Performance Indicators 22 metrics to track volumes 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
The Beginning of the End • State political and financial woes • University admissions scandal • Campus cost-cutting efforts
Printing on the hot seat • $1M deficit • ARR emphasizes combining service units and eliminating non-core services. • Stewarding Excellent requires a deficit explanation and three-year business plan.
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 Coordinators 2 Press Techs 1 Bindery Worker 2 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 preparing to 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 unit All of these were then incorporated into the Union’s Business Service Center 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 Months FY12 Projections May 2011 FY12 Actual Results July – December 2011
