The document discusses quantifying the benefits of DST's Assurance Program for Lee Company. It outlines two areas that can be quantified: improved labor efficiency from preventative maintenance contracts and increased revenue from new business and additional problems found. A field test is proposed to collect data on time savings from inspections and gauge customer perception changes. Initial results found time reductions higher than expected and positive customer feedback, indicating the program offers quantifiable benefits and improved customer experience.

1. Evaluation & Quantification of
DST’s Assurance Program
Presented by:
Brian Johnson & John Jenkins

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

9. Contract Categories Detail
# BLDGS A B-Upcharge B C 63 85149C 87904C 85146-C 83426-C
1 89331 13066C 12044C 11335-C 64 85158G 87916-C 85148C 83430C
2 14361-C 14362-C 22456C 13295C 65 85170-C 87934-C 85162-C 83446-C
3 22453C 15270C 26451-C 14954-C
66 85174-C 88108-C 85167-C 83900-C
4 22454-C 30223-C 26497-C 20399C
67 85327-C 88264-G 85171-C 83900-C
5 22455C 42201C 26497-C 22355C
6 22457C 43112C / 84581C 30818C 22928C 68 85532-C 88491-G 85524C 84066-C
7 22458C 43553C 35904C 24319C 69 85535C 88559-C 85529-C 84143C
8 25981C 46146C 36216C 24322C 70 85537C 88594-C 85545-C 84145-C
9 39017C 58523C 41923C 35439C 71 85549-G 88596-C 85552C 84416-C
10 44367C 63231C 42632C 36219C 72 85565-G 8971G 85553-C 84549-C
11 46343C 66579C 54438C 39796-C 73 85750-C 9312G 85568C 84564-C
12 47005C 66868C 54848C 39831C
74 86354-C CRESCENT NFU 85575-C 84814-C
13 55312CL 67788C 55512C 39834C
75 86550-C 85770-C 84835-C
14 55883G 68853C 57546C 41686C
15 56030C 70569C 58799C 43113C 76 87256-C 86350C 84836-C
16 56346C 77860C 59953C 43551C 77 87260-C 86476-C 85137-C
17 56920C 77864C 60339C 46147C 78 87265C 86551-C 85139-C
18 60594C 77866C 61023C 46490C 79 87292-C 86561-C 85140C
19 62916C 77875C 61137C 55684C 80 87322-C 86996-C 85141-C
20 66248C 78414-C 63040G 55685C 81 87400-C 87262-C 85145-C
21 66637C 78781-C 64052-C 55798C
82 87891-C 87278-C 85151-
22 68850C 80017C 64133-C 60692C
83 88263-C 87284-C 85155-C
23 71326C 80050-C 68742C 60859C
24 74480-C 81102C 69586C 61139C
84 88597-C 87513-C 85168C
25 7719-C 81114C 76530-C 61141C 85 8909G 87685-C 85179-C
26 77895C 81717C 77598-C 61800C 86 89293-C 87886C 85262-C
27 78404-C 81815C 7818-C 64815-C 87 89391C 87897C 85533C
28 78701-C 81833-C 78373-C 65431-C 88 89553-C 87900C 86559-C
29 78756-C 81843C 80037C 6856-C 89 90074-C 88098-C 8671-C
30 80039C 81858-C 80045C 68704C
90 90252-C 88131-C 8695-C
31 80046C 81860C 80302-C 76294-C
91 G0000 88266-C 87273-C
32 80364-C 81861C 80372C 76761-C
33 80385C 82468-C 80684-C 77589C
92 G0001 88547-C 87274-C
34 81105-C 82471C 81111-G 77833-C HOLYFAMIL
35 81120C 83316-C 81801C 77856-C 93 Y 89156-C 87280-C
36 81123-C 83403-C 81803-C 77883C 94 VOUGHT 90302-C 87289-C
37 81260-C 83422G 81817-C 78410-C 95 90510-C 87319-C
38 81829C 83428-C 81824-C 80036-C 96 9668C 87503-C
39 81836-G 84061-C 81827-C 80091-C 97 9855C 87751-C
40 81839C 84070 C 81851C 80201-C
98 CRESCENT NEMU 87755-C
41 81848-C 84076-C 81857C 80377-C
99 87883-C
42 81854C 84089_C 82302-C 80378-C
43 81859C 84108-G 82462-C 80747-C 100 87892-C
44 82289-C 84111C 82469-C 80869-C 101 87918C
45 82467-C 84127-G 82473C 81099C 102 87931-C
46 82472-G 84129-C 82513-C 81550-C 103 87935-C
47 82478-G 84824-C 83015-C 81702C 104 88318-C
48 83382-C 84831C 83244-C 81716-C 105 88353-C
49 83414-C 84953-C 83412C 81805-C 106 88359-C
50 83438-C 85150C 83425C 81816-C
107 88394-C
51 83854-C 85152-C 83435-C 81819-C
52 84065C 85157-C 83436-C 81822-C
108 88400C
53 84121-C 85180-C 83437-C 81936C 109 88411-C
54 84132-C 85540-C 83440-C 82466-C 110 88983-C
55 84140-C 85666-C 84058-C 82479-C 111 89113-C
56 84145-C 86471-C 84078+-C 82492-C 112 89115-C
57 84422-C 86472G 84106-C 82987-C 113 89300-C
58 84431-C 87263-C 84215-C 82990-C 114 90141-C
59 84557-C 87272-G 84549-C 83021-C
115 90249-C
60 84832C 87283-C 84817-C 83084-C
116 90269-C
61 84958-C 87293-G 84828C 83417-C
62 84968-C 87887-C 85138--C 83424C 117 9425-C
118 9655-C
119 FAIRVIEW