Printing ChargebacksNovember 2014

Printing Chargeback Task Force: Rick DeVries, CIT Business Services Laura Eberstein, Financial Services

Randy Nieuwsma, CIT Printing Services

Overview

Old chargeback model needs an overhaul: Inconsistent across printing platforms

Does not encourage use of lowest cost options

Do not know our true cost for printing

Good faith attempt to move from “we don’t know” to “we think we know” the cost of printing

Guiding Principles Target: 20% cost reduction Cost recovery neutral Incentives for cost savings Individual accountability Costs are pooled and charged back to departments Costs are tracked and managed Chargebacks are fair, understandable, and

defensible Usage information is provided to departments Departments are involved in decisions that impact

their costs

Historical Costs

Historical costs were spread across every department and buried in many budgets, charge cards, and grants

Impossible to accurately know historical costs at institutional level and at department level

Financial Overview

Costs and chargebacks are calculated with best information available

Impact to each department will vary

Overall institutional costs can be lowered

The Basics Device charge

Encourage device sharing

Promotes reduction of low volume devices

Not a lease/rental fee

Click charge Highly competitive base rate at Printing Services

Encourage use of lowest cost devices

Device + Click charges designed to fully recover printing costs

Chargeback program retroactive to September 1

Device Charges

Monthly Rates B&W Color

MFD $50 $75

Laser $25 $35

Local $10 $12.50

Click Rates

Click Rates B&W(single side)

Color(10x b&w)

Printing Services

$0.0225 $0.225

MFD $0.0255 $0.255

Laser printer $0.0285 $0.285

Local printer $0.0315 $0.315

Duplex discount

$0.005 $0.005

Monthly Click Report

• Summary report each month• Understand your click charges• Opportunity for discussion with top

users

• Additional reports available

• CIT will consult on workflow options and optimization

Student Printing Student employees now choose appropriate cost center

Student personal printing charged to Student Technology Services (STS) budget rather than departments paying for paper and toner

Students will be charged the same click rates as everyone else on campus – a 40% reduction for a typical student

More options to lower printing costs are now available

Print quotas will be lowered by 40% starting Interim 2015

Student Print Quotas

Term OldAmount

NewAmount

% Decreas

e

Fall $30 $18 40%

Interim $15 $9 40%

Spring $30 $18 40%

Summer $20 $12 40%

Transitioning

Funds consolidated and re-allocated to Department Printing ‘50318’

Student printing funds transferred from department budgets to Student Technology Services budget

Transitioning

Old way: Printing Services charged to ‘50315’ (Printing Services)

MFD charged to ‘50318’ (Copier/MFD)

Paper & toner charged to ‘50310” (Campus Store)

Paper & toner not ordered through OfficeMax charged to ???

Transitioning

Old way: Printing Services charged to ‘50315’ (Printing Services)

MFD charged to ‘50318’ (Copier/MFD)

Paper & toner charged to ‘50310” (Campus Store)

Paper & toner not ordered through OfficeMax charged to ???

New way: Printing Services charged to ‘50315’ (no change)

Device & click charged to ‘50318’ (Department printing)

Standard paper & toner charged to central fund

Non-standard paper charged to ‘50310’ (Campus Store)

Transitioning: Department Reallocations Goal: Make sure there is enough money in the

Department Printing (50318) budget to fund anticipated costs

Funds stay within the department and are reallocated from Campus Store and General Supplies to Department Printing

Formula based on: 2013-2014 print volumes

Estimate of 2014-2015 costs

Funds from both Campus Store and General Supplies

Transitioning: Student Printing Goal: Transfer funds into Student Technology

Services (STS) budget to cover anticipated student printing costs

Funds will be transferred from department budgets to the STS printing budget

Formula based on: 2013-2014 print volumes

Anticipated printing costs

Only departments with student computer classrooms

Funds from both Campus Store and General Supplies

Future Reductions Goal: Reduce institutional printing costs by 20% How:

Provide & encourage lower cost printing options

Improve Printing Services on-line ordering system

Promote “print to digital”

Assess printing work flows to reduce print volume

Reduce waste

Reduce fleet size Encourage shared devices

Discourage low volume & individual devices

Provide more capabilities in fewer devices

Provide monthly reports with print summaries by user

Uphold individual accountability

Future Reductions

Printing has been identified specifically as an area for cost savings and is part of the college’s plan to regain a sound financial footing

Reduce department printing budgets by as much as 20% starting next fiscal year

We appreciate your help and creative ideas as we look for ways to reduce the college’s printing costs

Program Review

Chargeback program reviewed annually and adjusted to maintain “cost recovery neutral” status

Program will be initially reviewed at the 6-month mark. Changes and adjustments will be considered at that time

Conclusion

As we move printing costs from an unstructured state into a structured state things will be a bit “messy”

initially. We will provide as much truth as possible and ask for your grace as we work and learn together.

Questions?