Procurement Process Improvement Plan

1. Procurement Process Improvement Plan Donna Bertrand, MBA, BS, CPPO Director - Procurement Susan Dalton, MBA, BS, CPA Controller

2. KSU Procurement Process Improvement Plan: Enhancing Customer Focus Strategic Sourcing and Creation of Agency Contracts Outreach to campus units on Procurement Policies Communication with Customers Staff Training Establishing Benchmarks to Measure Success 2

3. Procurement Process Improvement Plan This Plan is an enormously valuable explanation of where our Procurement department has been and needs to go. Through an ethos of transparency and strong internal governance, we have reviewed this department through the prism of ideas rather than an isolated, aching-tooth approach. This Plan has been vetted by outside experts to demonstrate credible applicability----by the former Director overseeing Procurement at Georgia Institute of Technology as well as by a Professor of supply-chain management with relevant work experience in the industry. We believe therefore that the Plan addresses the issues of knowledge asymmetry between the department and the other Campus departments. We have also leveraged the educated human capital within the department (Ivy League educated, professional legal input, professionally experienced and certified) to bring about a central transformation via business re-engineering processes within the department. Additionally, we give a sample of accolades received by the Procurement Department from the State Purchasing Department and from Faculty and Staff.   Ashok K. Roy, Ph.D., CIA, CBA Assistant Vice President for Financial Services 3

4. Procurement Process Improvement Plan “Smart Procurement can significantly increase an institution’s capacity to advance its academic mission, since every dollar saved is a dollar available to spend on teaching, research, and student aid.” Power Shopping Business Officer Magazine NACUBO February 2009 4

5. Review of the Procurement Process Improvement Plan “I have reviewed the Kennesaw State University Procurement Process Improvement Plan. The plan addresses all the major issues and when implemented will create a best of class procurement organization. I am confident the Kennesaw State University Purchasing organization will be the model for all Colleges and Universities in the north Georgia area. The organization will be one that all customers will appreciate and recognize as the best service department at Kennesaw State University.” Tom Pearson, CPM Director of Business Services Georgia Institute of Technology 5

6. Review of the Procurement Process Improvement Plan “As a current professor of Supply Chain and Operations Management at Kennesaw State University (KSU) and former procurement practitioner, I was asked to review KSU's Procurement Department's Process Improvement Plan.  I feel that the plan marks a significant effort on the part of Procurement to improve their ability to serve the campus community.  They are taking meaningful steps to both improve both procurement processes and relations with campus users.” Dr. Michael Maloni Assistant Professor Department of Management & Entrepreneurship Coles College of Business  6

7. Testimonials Rick Beal, MPA, C.P.M., Category Manager State Purchasing/Strategic Sourcing Division Department of Administrative Services “State Purchasing Division appreciates procurement professionals like you and your team for following the order of precedence guidelines in the Georgia Procurement Manual.  Thank you!” 7

8. Testimonials Dr. Sheb True, Associate Dean Coles Graduate Business and Executive Programs “I want to let you know how much I appreciate the work of the Business Services department. The amount of cooperation that I have experienced has been critically important in helping our programs to accomplish our strategic goals. The willingness of Donna Bertrand and the Procurement office to listen to our questions and the time and effort they extend to help us is extraordinary. Their level of professionalism and positive attitudes truly make every encounter with them an enjoyable experience. Adhering to the state's policies and procedures for procurement can be intimidating and time consuming for us, but the Business Services team always works with us to find an acceptable solution. It is evident that Susan Dalton and Donna Bertrand understand the importance of supporting the work of KSU's units and programs -- and you can deliver timely and reliable results. Your team deserves the award for Outstanding Customer Service at KSU. Thank you! ” 8

9. Testimonials Dr. Frank Butler, Executive Director Georgia Youth Science & Technology Centers “From my days as Interim Dean of the Bagwell College of Education to my current position as Executive Director of the Georgia Youth Science and Technology Centers, I have enjoyed an excellent relationship with the Office of Business Services in general and with the Procurement Services unit in particular. When things were changing rapidly at KSU they were eager to share information on a proactive basis through meetings with the Leadership Team in BCOE which they requested. On one occasion, I asked them to help me solve a problem that turned out to need resolution through another department. They took the initiative and followed up with that department in order to help put me on the right track. That is the kind of model for facilitation that really needs to be universally adopted!” 9

10. Testimonials Dr. Michael Maloni, Assistant Professor Management & Entrepreneurship "Procurement Services at KSU serves a very challenging yet critical role for the university. They manage campus-wide compliance with rapidly-changing purchasing guidelines set externally by the Georgia Department of Administrative Services. Yet they also ensure vendor service quality while minimizing costs across tens of millions of dollars of purchasing spend. Overall, Procurement Services is a major enabler of our ability to meet tightening university budget requirements in this difficult economy." 10

11. Testimonials Gerald Donaldson, Director Environmental Health & Safety “Just wanted to say thanks for your effort thus far. The specs are a lot better. We should get some good pricing this time around.“ Shelvie Booth, Business Affairs Manager Facilities – Planning & Design “It meant a lot to the Facilities Support Group to have you take time out of your busy schedule to have a workshop for us. We really do appreciate it. I believe you have answered all the questions that were asked.” 11

12. Your Professional Team is in Place Professionals serving the KSU Community for excellence in education, programs and research. 12

13. Professional Team In Place

14. 14 Accomplishments: Compliance with Policy Favorable Audits: Annual audits from State Department of Audits and Board of Regents Auditors, P-Card Performance Audit and Internal Audits of Procurement, P-Card and Accounts Payable. Certified Procurement Officer: Donna Bertrand

15. Accomplishments KSU Business Services is Recognized by USG as a Model for other Institutions ?Georgia Tech: Visited to observe Internal Controls, including procurement, as recommended by BOR ?Armstrong Atlantic College: Copied KSU’s P-Card Policy and Procedures ?Valdosta, Georgia Southern, Savannah, Georgia Perimeter, West Georgia seek advice on procurement processes

16. 16 Accomplishments: Strategic Sourcing and Creation of Agency Contracts Recent Agency Contracts: ?Job Order Costing contract Contracts with two general contractors to cover all repair and maintenance on campus without needing to issue bids for each job ?Promotional Items This contract will allow the departments to purchase promotional Items, i.e. t-shirts, pens, mugs, etc on an as needed basis. ?Catering From high-end to basic service, the catering contract will offer the campus a variety of menus, including ethnic foods. ? Agreement with UGA for printing UGA’s print shop is available for most of our printing needs until the campus print shop is fully operational

17. 17 Challenges We heard your suggestions We reviewed our operations We have solutions

18. 18 Challenges Where do we go from here? ?Enhance Customer Focus ?Continue to Communicate Policies ?Continue to Re-engineer Processes ?Expand Technological Support

19. 19 Enhance Customer Focus Campus Outreach Each Semester ?Meetings with Deans and Chairs ?Attend Faculty, Administrative and Staff Senate meetings ?Attend Chairs Meetings ?Meet with college representatives to clarify or resolve purchasing issues (i.e. CSM) ?Participate in Sponsored Ops Steering Committee

20. 20 Enhance Customer Focus Customer Involvement ?Focus Groups: Feedback from high volume procurement clients ?Workshops: Drop-in Centers to ask procurement questions ?Procurement Survey: Use feedback to streamline procurement processes ?Business Process Certification Program for Support Staff and new Business Managers

21. 21 Enhance Customer Focus Website Enhancements ?“How to purchase” instructions for goods and services ?“What’s New In Procurement” section ? Microsoft Project Management software to allow campus to view the status of projects/RFPs ?Dashboard – display each month’s productivity on the Financial services website and newsletter ?FAQ’s – Based on Q & As from procurem@kennesaw.edu

22. 22 Enhance Customer Focus ePro Implementation ?Internal testing ?ePro administrator will use “pull” method. Review all open requests daily and assign to purchasing officer. ?Visiting Medical College of GA to observe ePro processes Increase P-Card Usage ?P-Card can now be used for services under State or University Contract ?Develop more multi-departmental university contracts

23. 23 Enhance Customer Focus Addressed all concerns expressed by Faculty during campus visits with VP of Research Candidates (copy available) Note: 1. Grants account for less than one percent of Procurement activities. 2. Only 3 percent of all Grant dollars require procurement processing. Worked with Dr. Robert Paul to include sustainability language in all competitive solicitations

24. Communicate Policies Campus must follow DOAS & BOR rules and regulations, as required by the Official Code of Georgia Annotated. Only the Procurement Department is authorized by DOAS to enter into procurement transactions for KSU. Contact Procurement with any procurement question at procurem@kennesaw.edu.

25. 25 Continue Reengineering Procurem@kennesaw.edu ?Central Repository for Procurement questions ?One person monitoring, assigning and logging questions and answers to ensure quick turnaround time ?Average turnaround time on responses: 24 hours

26. 26 Continue Reengineering Project Update Software: ? Implement Microsoft Project Management -Online staff training began February ’09 -Susan Campbell is working with ESS & OLS to adapt the software to procurement’s needs -Develop standard narratives to advise stakeholders of status of RFP or large dollar eQuote ?Develop online classes – i.e. How to create an AGS or an ePro requisition

27. 27 Continue Reengineering Specialty Teams – Procurement Managers 1. John Kreeger ?Services & Construction ?Request for Proposals (RFP) ?Reporting – Minority Vendor Reports, Monthly Management Report, other oversight reports 2. Jim Walker ?Goods & Technology ?Renewals ?Contract Compliance and Administration

28. 28 Strategic Sourcing Develop Agency Contracts based on Spend Data ?Increase P-Card usage Steps: 1. Develop contracts for the products or services with the largest spend 2. Develop contracts needed by more than one department 3. Use spend data to anticipate the needs

29. 29 Strategic Sourcing Peer Review/Quality Assurance Steps: ?All stakeholders will review the scope of the Request for Proposals (RFP) ?Each purchasing officer’s RFP will be reviewed by a team of peers ?Second review by managers: procurement director, controller and the procurement manager ?Final document will be sent to end-user department for review, before submission to the State Department of Administrative Services (DOAS) ?Upon receiving feedback from DOAS, it will be shared with RFP team and reviewers to incorporate into the next project.

30. 30 Training Training - Department of Administrative Services ?Purchasing officers will complete Basic Procurement Certification within a six month period ?New P-Card administrator will complete Procurement Card Certification and Basic Procurement Certification within three to six months of hiring. ?RFP team will complete Basic Procurement Certification and RFP Certification within a nine month period ?Director and Procurement Managers must complete all DOAS training within twelve months.

31. 31 Training Continuing Education Staff will be encouraged to participate in training offered by: ? National Institute for Government Procurement ? Institute for Supply Management ? Professional development classes at KSU Center for University Learning

32. 32 Expand Technological Support ePro Implementation ?Expedited Invoice Payment Process: Campus can indicate receipt of product/service online ?One Ordering System requisition ? p-card/purchase order ? payment ?Exploring the use of P-Card payment as a choice on the ePro requisition

33. 33 Expand Technological Support Microsoft Project Management: Software to track and update stakeholders on the status of projects Drupal: Expand use of Drupal to enhance website and support website postings of data from Microsoft Project Management

34. 34 Measurement of Success Follow-up Survey with the Campus Community Increased Staff Certifications Peer Review: Team will be led by Georgia Tech’s Former Director overseeing Procurement FY 10 Audits – Dept of Audits, BOR and DOAS audits

35. Procurement Process Improvement Plan Summary Strategic Sourcing and Creation of Agency Contracts Outreach to campus units on Procurement Policies Communication with Customers Staff Training Establishing Benchmarks to Measure Success 35

36. Procurement Process Improvement Plan Summary “Suppliers want higher prices and greater volume, faculty want lower cost and instant service. Procurement has to make each of those parties come to realize what is possible.” Affleck Graves Executive Vice President Notre Dame University in Business Officer Magazine February 2009 36