2. Overall Business Case
• Lee Company is evaluating the use of DST’s
Assurance Program for Value-Add in multiple areas
of it’s business
– Increase Revenue through New Business & Additional
Problems Found
– Gain Market Share & Price Premium through Higher
Quality Offering and Differentiation
– Reduce Risks from Warranties in Construction & Repairs
– Improve Labor Efficiency in PM Contracts
– Automate Paperwork & Work-Order Process
• QUESTION: How Can We Quantify These?
3. Quantification Approach
• Two Areas Can Be Quantified – Develop Field Test
– Improve Labor Efficiency in PM Contracts
– Increase Revenue through New Business & Additional
Problems Found
• The Other Areas Require Assumptions
– Gain Market Share & Price Premium through Higher
Quality Offering and Differentiation
– Reduce Risks from Warranties in Construction & Repairs
– Automate Paperwork & Work-Order Process
4. Field Test Summary
• Goal #1: quantify that the Assurance Program will
meet a cost break-even point based only on
current Lee Company PM contract customers
– Perform initial inspections, measure PM hour
efficiency improvements, document KPI
• Goal #2: present evidence of how the quality &
customer perception of Lee Company becomes
measurably superior to competitor’s service
– Engage customers in discussion about perception &
value, document feedback
5. Goal # 1 Plan & Timeline
(Break-Even Analysis)
• Identify 16 buildings for Test
– 3 different property types (A=20 to 25+% savings, B=10 to 15+%
savings, and C=less than 10% savings) will be identified and
tested against a pre-defined expectation of time savings; a small
group of representative properties will be selected ; 2 to 5
inspections a week followed up with a report for the technician
before he conducts his PM
• Document KPI and Estimate Impact when Fully
Implemented
– Develop a KPI to measure true savings using DAP on current
customer PM’s; complete the 6-sigma project in December with
a final presentation to be given to executive management in
February 2012; preliminary findings will be shared with
executive team the week of November 27
6. Goal #1: Field Test Initial Results
* Represents high & low expectations due to seasonality of the PM tasks
7. Goal #1: Initial Conclusion
• 385 of 600 Contracts fit the A/B/C Category
– A: 94 B: 172 C: 119
• % Time Reductions are Significantly Higher
than Expected even in Initial PM
• Average % Reduction looks to be well above
the 25%+ target
• Net Save of $200,000+ based on extrapolation
of net time savings for Technical PM hours
only
8. Goal # 2 Initial Results
(Customer Perception & Superior Product Offering)
• New Business Won
– United Methodist Communications
• New Business Opportunity
– Nissan, Schneider Electric, Hillsboro Hobbs
• Positive Customer Feedback
– Boy Scouts, Schneider Electric, Ingram Book,
Pleasant Hills, Nissan
