1. Kaizen Event April 14, 2015 Board of Teaching

2. Context/Issues The Board of Teaching experiences gaps in services provided by the MDE finance unit when making purchases, booking travel, or issuing stipends and reimbursements to volunteers, adding delays and expense to operations. 2

3. Goals 1.Improve communication between Board and finance unit 2.Reduce the amount of time spent and costs incurred by the BOT for booking travel, issuing reimbursements and making purchases 3.More flexibility in vendor choices 3

4. 4 Out of scope: Other MDE units In scope: MDE finance unit Procurement Accounts Payable Special Expenses Scope

5. 5 Decision? Storage Location Handoff Wait (Time) Task (Time) Swim Lane Map Key

6. 6 Current State Map

7. Performance Measures Touch Time – hands on time to do the work Elapsed Time – time including delays, reworks and approvals % Complete and accurate – how many times the work is completed without errors Air flight costs if made immediately by Board Early bird conference rates missed Catering prices Lease space reduction Volunteer hours Site visit costs Voice of the customer – board/reviewers/vendors 7

8. 8 Costs are increased for Board due to MDE timelines No notification from MDE finance when issues are uncovered or delays will occur Reimbursement for volunteers is not timely Purchases are not timely enough to meet needs A lot of handoffs in the process between Board and MDE add lengthy delays Observations of Current State

9. Vision of Success Allowed timely purchasing options Board makes independent travel and hotel arrangements Flexibility in less costly vendors – Not tied to MDE contracts Notification regarding lengthy delays 9

10. 10 #Action Item (Task)Timeline 1.Other Boards finance processes (SmART) Need independent agency number to make changes May require request to the legislature Complete 2.Obtain credit card for BoardInquiry filed 3.Catering arrangements Requesting an exemption from their contract (see #1) 6/30 exp. current contract 4.Clarification of MN state policies vs. MDE policies Procurement training for staff 5/2015 and fall 2015 Ongoing 5.Investigate reimbursement processes from other state agencies 6.Interagency Agreement Needed with MDE Initial meetings held with admin and with MDE’s CFO Early 2016 Action Plan