Operational Excellence Article Misled Readers

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The graphic depicting investments and expected returns from Operational Excellence (OE) ("Excellence," Jan. 18) is misleading and could leave readers with the mistaken impression that OE could potentially cost more money that it will save. Until full implementation plans have been finalized, the specific costs are not yet known. What is known is that:

Bain Consulting has been paid $3 million thus far and is scheduled to receive up to $4.5 million more for work completed on the early stages of OE.

The cost of implementing OE will occur over the next 3 years and will include new systems and tools enabling campus to save on an on-going annual basis. Projected costs of implementation will be between $50 and $70 million in one-time costs.

Projected savings to operating costs will occur annually. The projected target is for the campus to save $75 million every year after full implementation of OE.

These one-time costs are not insignificant, but the projected savings are impressive. OE is visionary, ambitious and, most important, necessary. Although we anticipate the changes will require significant investment and cause short-term disruption to long-established campus processes, we are confident that OE will result in enabling the university to continue providing world-class teaching and research into the future.


Peggy Huston and Andrew Szeri Operational Excellence Program Office



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