Lexmark Professional Services Findings 10_14.pdf · Lexmark Professional Services. ... FL, ES, MS, HS, & a Center 9Use baseline data and then extrapolate across ... (Print, Fax, Copy,

3/3/20091 Confidential to Lexmark and The School Board of Broward County

Office Print Assessment Findings

October 14, 2008

Lexmark Professional Services


Agenda

• Assessment Objectives

• Current State Findings & Observations

• Preliminary Future State Recommendations

• Application Opportunities

• Next Steps


Assessment Objectives & Methodology• Objectives

Baseline the current output infrastructure Reduce hard dollar costs and improve management of output devicesIdentify opportunities to streamline document workflow

• Analyze KCW 9th FL, ES, MS, HS, & a CenterUse baseline data and then extrapolate across the District

• Document current costs for all output (Print, Fax, Copy, Scan)Focus – hardware, supplies, support costs and service costsUtilized industry and current contracted cost data

• Provide specific recommendation to drive down costsAsset consolidationConsolidated supportImprove workflow


Cost Drivers7 Manufacturers28 Unique models• Multiple supply items• Different support processes• IT Support complexity

Avg. age is 4.6 years84% Devices networked5% Color devices

DBMS Current State: Assets & Ratios

26 Admin. UsersUser to Device Ratio of 0.9

76 Instructional UsersUser to Device Ratio of 0.7

Location Device TotalAdmin COPIER 6

FAX 3MFP 1PRINTER 18SCANNER 1

Admin Total 29Classroom COPIER 1

PRINTER 92SCANNER 2

Classroom Total 95ESE COPIER 1

FAX 1PRINTER 1

ESE Total 3Workroom COPIER 4

MFP 1PRINTER 1

Workroom Total 6Grand Total 133

Vendor Mix

Lexmark83%

Other6%

Toshiba4%

HP4%

Panasonic3%

Device Age

< 3 Years32%

> 5 Years21%

3 - 5 Years47%

Devices Networked

Yes84%

No16%

8.525.5

51.0

0.9

34.0

0.80.0

20.040.060.0

COPIER

FAX

MFP

PRINTER

SCANNER

TOTAL

Middle School User to Device Ratio


UTILIZATION: VOLUME AS A % OF TARGET VOLUME

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

E-STUDIO

162D

X646d

teNP 62

21NP 62

21e-S

TUDIO351

cX64

6dte

E-STUDIO

162D

e-STUDIO

352

RZ220 P

rinter

-Duplic

ator

e-STUDIO

352

RZ220 P

rinter

-Duplic

ator

RZ220 P

rinter

-Duplic

ator

IR 70

95

DBMS Current State: Volumes & Utilization

Target Range

Opportunity to Consolidate

Workgroup Devices Available 95% of the Time21 days x 60 min x 8 hrs x 35 PPM x 5% use

= 17,640 pages per month

UtilizationDefined by Rule of AvailabilityEstablishes Target Volumes for Asset Utilization

1,359 Pages Annually per Student 17,827 Pages Annually per Employee

Location Annual VolumeAdmin 1,119,672Classroom 360,997ESE 49,814Workroom 287,844TOTAL 1,818,327

Annual Volume by Location

Admin61%

Classroom20%

ESE3%

Workroom16%

Location

Device Avg. Monthly Volume

(9)Admin 4,443Classroom 431ESE 1,845Workroom 5,331


121

121A

115

118

117

101

116

102

110

109

103

114

104

112

113

104A

171

106

108

107

120Mobile Cart Devices

Current StateMFP

Printer, Color

Printer, Mono

Copier

Device Key

Copier, Color

Fax Machine

Scanner

Printer, Inkjet

Networked Device


MFP

Printer, Color

Printer, Mono

Copier

Device Key

Copier, Color

Fax Machine

Scanner

Printer, Inkjet

Networked Device

Current State


DBMS Current State Cost Models

DBMS – TCO is a volume based cost Cost Per User = $654Cost Per Student = $50Blended Cost Per Page = $0.0367

DBMS data includes actual Toner, Usage, Paper, Support/Svc/Maint., & fax line expenditures.

* Accounts for TCO costs at a district level Cost Per User = $540Cost Per Student = $41Blended Cost Per Page = $0.0303

DBMS INDUSTRY TCOSupplies Toner/Ink 13,704$ Usage 10,548$ Paper 8,724$ Telecom 1,200$ Replacement 30,204$ Support & Service 2,304$ Help Desk -$ Lease -$ Total 66,684$

DBMS PROVIDED2007-2008 Annual CostsSupplies - Toner/Ink 5,960$ Usage 11,000$ Paper 6,620$ Telecom 260$ Replacement* 30,204$ Support & Service 1,000$ Help Desk -$ Lease -$ Total 55,044$

DBMS ACTUAL2007-2008 Annual CostsSupplies - Toner/Ink 5,960$ Usage 11,000$ Paper 6,620$ Telecom 260$ Support & Service 1,000$ Total 24,840$

DBMS – Actual Expense Cost Per User = $244Cost Per Student = $19Blended Cost Per Page = $0.0137


Assumptions• Page Volume

All Toshiba copiers are 15 months old All other devices used manufacturers announce date + 6 monthsDevices without page counts used average of like models at the site

• CostsPaper = $0.0048 per pageSupplies = Toner/Ink on contractSupplies = Cost per Copy on contractTelecom = Industry cost of $25 per faxReplacement = All assets depreciated over 5 years (except new copiers)Maintenance = Industry figure used 7% of the acquisition price annually for

devices > 5 years old


Deerfield Beach Middle

Future State Recommendations


• Consolidate & optimize assets to improve user productivityEstablish “Governing Principles” for best practicesCreate “Deployment Principles” for consistency Utilize MFP’s for Scan/fax/copy/print

Deploy functionality close to end-userProvide redundancy

Utilize printers with mailboxes to organize outputImplement and promote duplex printing

Train end-users • Initiate a Print Management Program to better manage assets & reduce

costsWithout active management, asset base will return to current stateMonitor volume shift to distributed devices Provides foundation for on-going cost savings

Re-deploy devices based on actual usageIdentify areas for process improvement

• Leverage technology investments to improve business processes

Recommendations for District


Recommendations for DistrictGoverning Principles

• Align output infrastructure with SBBC IT strategy

• Align output deployment principles with a “decentralized print strategy”, enabling and enhancing end-user productivity

• Adopt a network-based output environment, eliminate local-attached print devices

• Standardize the fleet to laser technology only, consistent architecture

• Utilize MFP capabilities such as scan-to-email, fax redirect, scan to network folder to improve user productivity

• Leverage additional functionality of MFP devices, as opposed to adding single function proprietary devices to address needs

• All shared output devices should accept assignable security Personal Identification Numbers (PINs), where confidentiality is required

• Deploy MFP technology providing application query and data integration capabilities using standard Open System Protocols

• Use highest-yield toner cartridges to achieve lowest cost per page

• Maximize toner saver capabilities as default settings, extending the life of the toner

• Refresh technology every 3-5 years, depending on technology model

• All output devices will be selected from the approved standards list only

• Utilize electronic monitoring and support tools, such as MarkVision Professional, to reduce service calls and provide proactive toner monitoring, minimizing user downtime

• Include Extended Warranty services on all device purchases, minimizing IT staff future involvement Place holder

• Duplex all documents greater than one page

• Only use color when necessary


Recommendations for AdministrationDeployment Principles

Consolidate single function devices using MFP technologyRemove standalone fax devicesRemove standalone scanners vs. repairRemove local attached printersRemove underutilized devicesRemove devices > 5 years oldProvide managed color devices All devices should be networkedDevice should be < 50 feet from end userEnd users will have at least two options for printing (redundancy)End user should not have to wait for output more than 5% of the timeDevices should be secure print enabled

Device StandardsWorkgroup Color Printer – 35 ppmWorkgroup Mono Printer – 45 ppmWorkgroup Mono MFP – 50 ppmDepartment Mono MFP w/ Finisher – 65 ppmPersonal Networked Mono Printer - exception


• Classroom Standard:Network Mono Laser Printer35 ppm Duplex capabilityHigh yield cartridge

• Teacher Workroom:Network Mono Multifunction Device 50 ppm, high yield cartridge, duplex capability, color scanner, additional input drawersConvenience copy, scan to email, remote color copy, leverage future workflow (Testing & Grading)

• Computer Lab:Network Mono Laser Printer 40 ppmDuplex capabilityMailbox capabilityHigh yield cartridgeAdditional input drawers

Recommendations for School Deployment


• Media Center/Library: Network Color Laser Printer: 35 ppm, standard format, duplex capability

AND / ORNetwork Mono Multifunction Device: 50 ppm, high yield cartridge, duplex capability, mailbox option, color scannerConvenience copy, scan to email, remote color copy, leverage future workflow (Testing and Grading)

• Exceptional Student Education: Network Mono Multifunction Device: 50 ppm, High yield cartridge, duplex capability, color scannerConvenience copy, scan to email, remote color copy, leverage future workflow (Scan to Easy IEP)



• General Administrative Area: Network Color and a Mono Multifunction Device

Network Color Laser Printer: 35 ppm, standard format, duplex capabilityShould have driver support for black only, color authorization, color saver

ANDNetwork Monochrome Multifunction Device: 50 ppm, high yield cartridge, duplex capability, color scannerAdditional drawers and mailbox capabilityConvenience copy, scan to email, scan to network folder, fax-redirect / fax over IP, confidential print, remote color copy, leverage future workflow (Emergency Card Capture, BRITE, etc…)

• Food Services: Network Mono Multifunction Device50 ppm, high yield cartridge, duplex capability, color scannerConvenience copy, scan to email, scan to network folder, fax redirect, leverage future workflow



Future State: Assets

105 Future State Devices90 Printers 6 Copiers6 MFPs3 Scanners

Applied Deployment Principles

Keep = 84Move = 13Change/Upgrade = 3New = 5Dispose = 33

133 Devices Inventoried

112 Printers 12 Copiers4 Fax Machines2 MFP3 Scanners

Current State Device Mix

COPIER9% FAX

3%

SCANNER2%

MFP2%

PRINTER84%

Future State Device Mix

COPIER6%

MFP6%

PRINTER85%

SCANNER3%


121

121A

115

118

117

101

116

102

110

109

103

114

104

112

113

104A

171

106

108

107

120Mobile Cart Devices

Future StateMFP

Printer, Color

Printer, Mono

Copier

Device Key

Copier, Color

Fax Machine

Scanner

Printer, Inkjet

Networked Device


MFP

Printer, Color

Printer, Mono

Copier

Device Key

Copier, Color

Fax Machine

Scanner

Printer, Inkjet

Networked Device

Future State


DBMS Business Case

Used DBMS Industry TCO to compare CS vs. FSFuture Blended Cost Per Page = $0.0302Save 18% through device consolidationGreater savings through page volume reduction

CURRENT STATEDBMS INDUSTRY TCOSupplies Toner/Ink 13,704$ Usage 10,548$ Paper 8,724$ Telecom 1,200$ Replacement 30,204$ Support & Service 2,304$ Help Desk -$ Lease -$ Total 66,684$

FUTURE STATE DBMS INDUSTRY TCOSupplies Toner/Ink 7,044$ Usage 10,536$ Paper 8,724$ Telecom 600$ Replacement 28,032$ Support & Service -$ Help Desk -$ Lease -$ Total 54,936$

Savings 11,748$


Workflow - Application

Opportunities


Output Strategy Development

ECM e-forms

BPM DOM

Business system or infra-structure (ERP, SCM, LDAP, e-mail, authentication)

• Lexmark Middleware

• e-Task Interface

• Hard-copy Infrastructure

• SAP - BRITE

• Adobe• File Maker

• Easy IEP• CAB


• Easy IEPCurrent State: faxing signed IEP at a cost of $60K +Future State: scan to Easy IEP Savings = $45K+

• ESE Medicare ReimbursementCurrent State: faxing formsFuture State: scan to file

• ESE ReferralsCurrent State: Fax referrals to school Future State: Adobe online form or scan to email

• Emergency Contact CardCurrent Sate: completed Card copied in triplicate and filed in multiple school officesFuture State: scan to online Emergency Contact Card

Workflow Opportunities


• BRITE Purchasing WorkflowCurrent State: Teacher Requisition to Dept. Head to BookkeeperFuture State: Adobe online form or scan to email

• Lesson Plan Year End ArchiveCurrent State: All teachers print all lesson plans. Then

administration binds and files.Future State: Teachers “print to PDF” and save on network share.

• Instructional Staffing FormsCurrent State: Print form, fill in with typewriter, sign, then fax to

Instructional StaffingFuture State: Fill in Abobe online form, print, sign, scan to

Instructional Staffing

Workflow Opportunities


Summary

Improve Business

Processes

Reduce Output Volume

Improve Supply Chain

Improve Infrastructure

Next Steps• Implement future state deployment

Dispose of assets > 5 years oldRemove excess copiersRedeploy Admin. devices to

classroomsPurchase five T640n and three

X4600 MFP upgrade options

• Share ideas for paper reduction

• Further reduce costs with workflow capabilities enabled by MFPs.

Lexmark Professional Services Findings 10_14.pdf · Lexmark Professional Services. ... FL, ES, MS, HS, & a Center 9Use baseline data and then extrapolate across ... (Print, Fax, Copy,

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