Achieving Value for Money in Public Sector ... - Federated Press
Achieving Value for Money in Public Sector ... - Federated Press
Achieving Value for Money in Public Sector ... - Federated Press
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Best practices: deliver<strong>in</strong>g sav<strong>in</strong>gs and value <strong>for</strong> money <strong>in</strong> public sector spend<strong>in</strong>g<br />
<strong>Achiev<strong>in</strong>g</strong> <strong>Value</strong><br />
<strong>for</strong> <strong>Money</strong> <strong>in</strong> <strong>Public</strong><br />
<strong>Sector</strong> Procurement<br />
Case studies from procurement, supply cha<strong>in</strong> management and f<strong>in</strong>ance<br />
“Very professional,<br />
<strong>in</strong>terest<strong>in</strong>g & thought<br />
provok<strong>in</strong>g.”<br />
Optional workshops<br />
Gett<strong>in</strong>g value <strong>for</strong> money from your procurement department<br />
Leo Gotlieb, Director, Western Management Consultants<br />
<strong>Achiev<strong>in</strong>g</strong> value <strong>for</strong> money sav<strong>in</strong>gs through effective procurement-bus<strong>in</strong>ess unit collaboration<br />
Ron Edgar, Senior Consultant, PPI Consult<strong>in</strong>g<br />
Danielle Sanagan, Consultant, PPI Consult<strong>in</strong>g<br />
Emily Chiang, Consultant, PPI Consult<strong>in</strong>g<br />
Participat<strong>in</strong>g organizations<br />
ACM CONSULTING INC.<br />
BAYCREST<br />
CARLETON UNIVERSITY<br />
CITY OF MISSISSAUGA<br />
DELOITTE & TOUCHE LLP<br />
KPMG LLP<br />
MINISTRY OF GOVERNMENT SERVICES<br />
MINISTRY OF HEALTH & LONG-TERM CARE<br />
MINISTRY OF TRANSPORTATION<br />
Conference highlights<br />
“Very dynamic,<br />
very <strong>in</strong>terest<strong>in</strong>g.”<br />
“Lots of valuable<br />
<strong>in</strong><strong>for</strong>mation.”<br />
June 13, 14 & 15, 2011, Toronto<br />
ONTARIO REALTY CORPORATION / INFRASTRUCTURE ONTARIO<br />
ORNGE<br />
PLEXXUS<br />
PPI CONSULTING<br />
PWC ADVISORY SERVICES<br />
ROUGE VALLEY HEALTH SYSTEM<br />
THE HOSPITAL FOR SICK CHILDREN<br />
TRILLIUM HEALTH CENTRE<br />
WESTERN MANAGEMENT CONSULTANTS<br />
• Learn how Trillium Health Centre achieves value <strong>for</strong> money through collaborative procurement<br />
• Hear how the M<strong>in</strong>istry of Transportation uses life-cycle cost<strong>in</strong>g to ensure value <strong>for</strong> money over the life of the purchase<br />
• Discover how the Rouge Valley Health System streaml<strong>in</strong>ed its procurement process to get value <strong>for</strong><br />
money not only from the procurement department, but from the goods & services it buys<br />
• Learn how Ontario Realty Corporation and Infrastructure Ontario achieves value <strong>for</strong> money from public sector real estate assets<br />
• Hear how the M<strong>in</strong>istry of Health & Long-term Care manages and measures spend<strong>in</strong>g efficiency and effectiveness<br />
• Discover how Baycrest has devised smarter procurement strategies so that money saved can<br />
be re<strong>in</strong>vested <strong>in</strong> <strong>in</strong>frastructure, upgraded materials and patient care<br />
• Hear how Carlton University achieves value <strong>for</strong> money when procur<strong>in</strong>g ma<strong>in</strong>tenance and construction services<br />
• Discover how the Hospital <strong>for</strong> Sick Children has developed KPIs that allow it to measure value <strong>for</strong> money <strong>in</strong> its spend<strong>in</strong>g
Dear Colleague,<br />
From Management Board of Cab<strong>in</strong>et procurement guidel<strong>in</strong>es, to the Broader <strong>Public</strong> <strong>Sector</strong> Procurement Directive (effective April<br />
1st) to annual Auditor General VfM reports, the government has <strong>in</strong>troduced tighter controls over achiev<strong>in</strong>g value <strong>for</strong> money from<br />
government procurement and all public sector organizations are struggl<strong>in</strong>g to comply.<br />
Indeed, as a result of this heightened focus, improv<strong>in</strong>g the efficiency and effectiveness of spend<strong>in</strong>g and achiev<strong>in</strong>g value <strong>for</strong> money<br />
<strong>in</strong> purchas<strong>in</strong>g has become of paramount importance to all government departments, municipalities and the broader public sector.<br />
Jo<strong>in</strong> lead<strong>in</strong>g procurement executives from these prov<strong>in</strong>cial, municipal and broader public sector organizations and learn how they<br />
are achiev<strong>in</strong>g value <strong>for</strong> money from their external spend.<br />
- M<strong>in</strong>istry of Health & Long-term Care<br />
- City of Mississauga<br />
- M<strong>in</strong>istry of Transportation<br />
- Carleton University<br />
- Trillium Health Centre<br />
- M<strong>in</strong>istry of Government Services<br />
- Ontario Realty Corporation / Infrastructure Ontario<br />
As they discuss their approaches to:<br />
- <strong>Achiev<strong>in</strong>g</strong> value <strong>for</strong> money through collaborative procurement<br />
- Communicat<strong>in</strong>g and devis<strong>in</strong>g clear KPIs<br />
- Measur<strong>in</strong>g and achiev<strong>in</strong>g value <strong>for</strong> money over the life cycle of the purchase<br />
- How to <strong>in</strong>tegrate social value <strong>in</strong>to susta<strong>in</strong>able purchas<strong>in</strong>g cost effectively<br />
- Us<strong>in</strong>g streaml<strong>in</strong>ed approaches to improve supplier relationship management<br />
- Ensur<strong>in</strong>g fairness, objectivity, accountability and transparency and achiev<strong>in</strong>g value from your spend<br />
- Comply<strong>in</strong>g with the new Broader <strong>Public</strong> <strong>Sector</strong> Procurement Directive<br />
- <strong>Achiev<strong>in</strong>g</strong> value <strong>for</strong> money <strong>in</strong> the procurement of ma<strong>in</strong>tenance and construction work<br />
With the level of practical experience at this conference, this is one event you cannot af<strong>for</strong>d to miss.<br />
P.S. Don’t miss our optional workshops on gett<strong>in</strong>g value <strong>for</strong> money from your procurement department and achiev<strong>in</strong>g value <strong>for</strong><br />
money sav<strong>in</strong>gs through effective procurement-bus<strong>in</strong>ess unit collaboration.<br />
Who should attend<br />
Director and Heads of Procurement<br />
Purchas<strong>in</strong>g<br />
Supply Cha<strong>in</strong><br />
Contracts<br />
Contract Management<br />
Accommodations<br />
Materials<br />
Controllers<br />
Department Directors<br />
<strong>in</strong>clud<strong>in</strong>g IT<br />
Construction, Health<br />
SPONSORSHIP OPPORTUNITIES<br />
Maximize your company’s visibility <strong>in</strong> front of key decision-makers <strong>in</strong> your<br />
target market! <strong>Federated</strong> <strong>Press</strong> events are attended by those with the seniority<br />
and authority to change the way their organizations operate. For sponsors<br />
this means an unparalleled opportunity to raise your profile be<strong>for</strong>e a manageable<br />
group of senior decision makers. There are a wide range of sponsorship<br />
packages, which can be customized to fit your budget and market<strong>in</strong>g<br />
objectives.<br />
Contact Nayla Costandi at: 1-800-363-0722 ext. 244 <strong>for</strong> more <strong>in</strong><strong>for</strong>mation.
<strong>Value</strong> <strong>for</strong> money <strong>in</strong><br />
the supply cha<strong>in</strong><br />
May Chang, Vice President, Corporate Services and Chief F<strong>in</strong>ancial Officer,<br />
Trillium Health Centre<br />
9:00-9:45<br />
ACHIEVING VALUE FOR MONEY WITHIN THE<br />
GOVERNMENT OF ONTARIO<br />
Fil Stabile, Director, Corporate Services,<br />
M<strong>in</strong>istry of Government Services<br />
The Government of Ontario has set great store <strong>in</strong> achiev<strong>in</strong>g value <strong>for</strong><br />
money <strong>in</strong> an ef<strong>for</strong>t to reduce costs and <strong>in</strong>crease value. This discussion<br />
details the approach used by the M<strong>in</strong>istry of Government Services to<br />
ensure value <strong>for</strong> money <strong>in</strong> government spend<strong>in</strong>g.<br />
· What value <strong>for</strong> money really means <strong>for</strong> government<br />
and its relationship to outcomes <strong>for</strong> citizens<br />
· Assess<strong>in</strong>g value <strong>for</strong> money<br />
· Secur<strong>in</strong>g efficiencies <strong>in</strong> order to ma<strong>in</strong>ta<strong>in</strong> front-l<strong>in</strong>e services<br />
· Strategies and options <strong>for</strong> government as a whole to<br />
cut costs and work more efficiently<br />
· Us<strong>in</strong>g a collaborative approach<br />
9:45-10:30<br />
CASE STUDY: ACHIEVING VFM THROUGH<br />
COLLABORATIVE PROCUREMENT<br />
May Chang, Vice President, Corporate Services and<br />
Chief F<strong>in</strong>ancial Officer, Trillium Health Centre<br />
This discussion details how Trillium Health Centre has adopted the<br />
strategy of group procurement as a way of reduc<strong>in</strong>g procurement costs,<br />
while ensur<strong>in</strong>g cont<strong>in</strong>uity of supply without compromis<strong>in</strong>g quality.<br />
· Determ<strong>in</strong><strong>in</strong>g when collaboration is appropriate and<br />
when it is more cost effective to tender <strong>in</strong>dividually<br />
· What are the constra<strong>in</strong>ts and how can they be tackled?<br />
· Ensur<strong>in</strong>g all partners ga<strong>in</strong> from the arrangement<br />
· <strong>Achiev<strong>in</strong>g</strong> procurement benefits:<br />
· Cost sav<strong>in</strong>gs<br />
· Reduc<strong>in</strong>g cost and per<strong>for</strong>mance variation among suppliers<br />
· Improved patient pathway<br />
10:30-11:00 NETWORKING BREAK<br />
11:00-11:30<br />
CASE STUDY: USING LIFE-CYCLE COSTING TO EVALUATE<br />
VALUE FOR MONEY: MEASURING THE COST OVER<br />
THE LIFE CYCLE OF THE PURCHASE<br />
Sarath Liyanage, Team Lead, In<strong>for</strong>mation Management – Investment<br />
Plann<strong>in</strong>g Section, Prov<strong>in</strong>cial Highways Management Division,<br />
M<strong>in</strong>istry of Transportation<br />
Evaluat<strong>in</strong>g costs over the life cycle of a purchase is essential to determ<strong>in</strong><strong>in</strong>g<br />
whether the organization is truly gett<strong>in</strong>g value <strong>for</strong> money from<br />
its spend<strong>in</strong>g or whether its simply gett<strong>in</strong>g the lowest purchase price<br />
today. This discussion details how to ensure value <strong>for</strong> money through<br />
life-cycle cost<strong>in</strong>g.<br />
· Us<strong>in</strong>g life-cycle cost<strong>in</strong>g to m<strong>in</strong>imize construction,<br />
operational and ma<strong>in</strong>tenance costs of <strong>in</strong>frastructure<br />
· Factor<strong>in</strong>g <strong>in</strong> all phases of the <strong>in</strong>frastructure life cycle<br />
· Tak<strong>in</strong>g <strong>in</strong>to account all costs of purchases, plann<strong>in</strong>g,<br />
<strong>in</strong>stallation, operation and disposal<br />
· Measur<strong>in</strong>g social and user costs<br />
11:30-12:00<br />
HOW GREEN PROCUREMENT CAN PROVIDE SAVINGS<br />
Andrew Miller, President, ACM Consult<strong>in</strong>g Inc.<br />
With billions of dollars spent on goods and services each year, public<br />
procurement can be a driver <strong>for</strong> change and a leader <strong>in</strong> contribut<strong>in</strong>g<br />
to the susta<strong>in</strong>able prosperity of Canadian communities. Indeed, green<br />
procurement has become a strategic option <strong>for</strong> organizations that are<br />
focused on improv<strong>in</strong>g per<strong>for</strong>mance and <strong>in</strong>creas<strong>in</strong>g the susta<strong>in</strong>ability of<br />
their supply cha<strong>in</strong> and it can lead to powerful sav<strong>in</strong>gs opportunities. In<br />
this session, attendees will learn:<br />
· How to <strong>in</strong>tegrate social value <strong>in</strong>to susta<strong>in</strong>able<br />
purchas<strong>in</strong>g cost-effectively<br />
· How to assess the social and economic impact a green<br />
procurement strategy can have <strong>for</strong> their organization<br />
· How to implement the beg<strong>in</strong>n<strong>in</strong>g elements of a green<br />
procurement strategy an achieve quick results<br />
12:00-12:30<br />
CASE STUDY: CREATING VALUE FOR MONEY IN<br />
PUBLIC SECTOR REAL ESTATE<br />
John MacKenzie, Director, Development and AFP Initiatives,<br />
Ontario Realty Corporation / Infrastructure Ontario<br />
This discussion details how the Ontario Realty Corporation and Infrastructure<br />
Ontario achieves value <strong>for</strong> money from public sector real estate<br />
assets through effective and efficient real estate portfolio management,<br />
procurement and collaboration with other levels of government<br />
and stakeholders.<br />
· Utiliz<strong>in</strong>g the award w<strong>in</strong>n<strong>in</strong>g ORC Geoviewer System GIS system<br />
to assess and <strong>in</strong><strong>for</strong>m plann<strong>in</strong>g <strong>for</strong> government land assets<br />
· Develop<strong>in</strong>g strategies <strong>for</strong> unlock<strong>in</strong>g and<br />
creat<strong>in</strong>g value on government lands<br />
· Procur<strong>in</strong>g technical experts to help meet bus<strong>in</strong>ess<br />
needs and to create greater value <strong>for</strong> taxpayers<br />
· Creat<strong>in</strong>g certa<strong>in</strong>ty <strong>for</strong> new government <strong>in</strong>frastructure <strong>in</strong>vestments<br />
by elim<strong>in</strong>at<strong>in</strong>g tim<strong>in</strong>g and f<strong>in</strong>ancial risks <strong>for</strong> AFP projects<br />
· Measur<strong>in</strong>g value <strong>for</strong> money <strong>in</strong> recent development projects<br />
12:30-1:30 LUNCH<br />
SESSION 1<br />
Monday, June 13 th<br />
Monday, Tuesday & Wednesday, June 13, 14 & 15, 2011 • Registration: 8:00 – 9:00
Ensur<strong>in</strong>g efficient<br />
procurement<br />
Kurt Ritcey, Partner,<br />
Deloitte & Touche LLP<br />
1:30-2:15<br />
CASE STUDY: STREAMLINING THE PROCUREMENT PROCESS<br />
Boris Ts<strong>in</strong>man, Jo<strong>in</strong>t Director, Procurement & Supply Cha<strong>in</strong>,<br />
Rouge Valley Health System<br />
A procurement procedure that is mired <strong>in</strong> red tape and <strong>in</strong>efficient processes<br />
is highly unlikely to obta<strong>in</strong> value <strong>for</strong> money from its external<br />
spend. This discussion details how to streaml<strong>in</strong>e the procurement<br />
process to ensure that procurement itself achieves value <strong>for</strong> money <strong>for</strong><br />
the organization.<br />
· Driv<strong>in</strong>g <strong>in</strong>ternal per<strong>for</strong>mance to establish a<br />
streaml<strong>in</strong>ed procurement process<br />
· Creative strategies <strong>for</strong> improv<strong>in</strong>g the efficiency of the procurement<br />
stream through <strong>in</strong>novation and greater accountability<br />
· Reduc<strong>in</strong>g the cost of procurement <strong>for</strong> both the<br />
public sector and private bidders<br />
· Us<strong>in</strong>g streaml<strong>in</strong>ed approaches to improve<br />
supplier relationship management<br />
· Institut<strong>in</strong>g the right technology, policies and processes<br />
· Facilitat<strong>in</strong>g <strong>in</strong>novative contract<strong>in</strong>g approaches, such as<br />
e-procurement, remote requisition<strong>in</strong>g, tender<strong>in</strong>g sites<br />
· Ensur<strong>in</strong>g you have the right people <strong>in</strong> place with the<br />
skill set to support your long-term structure needs<br />
2:15-3:00<br />
CASE STUDY: ACHIEVING VALUE FOR MONEY WITHIN<br />
THE GOVERNMENT’S PROCUREMENT POLICY<br />
Kathleen Callan, Manager, Procurement, Ornge<br />
At first glance, government procurement directives designed to foster<br />
fairness and transparency can appear to be a roadblock to achiev<strong>in</strong>g<br />
value <strong>for</strong> money. Strategies and approaches adopted by the private<br />
sector to negotiate or squeeze value from suppliers are often not part<br />
of the public sector approach. However, gett<strong>in</strong>g value <strong>for</strong> money while<br />
work<strong>in</strong>g with<strong>in</strong> these constra<strong>in</strong>ts is possible. This discussion details<br />
how Ornge, Ontario’s transport medic<strong>in</strong>e organization funded by the<br />
M<strong>in</strong>istry of Health, achieves value <strong>for</strong> money <strong>in</strong> their spend, while comply<strong>in</strong>g<br />
with government directives.<br />
· Improv<strong>in</strong>g efficiency and effectiveness of the spend<br />
· Driv<strong>in</strong>g additional value from supplier relationships<br />
· Encourag<strong>in</strong>g competition among contractors<br />
· Obta<strong>in</strong><strong>in</strong>g the highest quality of goods and services<br />
· Ensur<strong>in</strong>g fairness, objectivity, accountability and<br />
transparency and achiev<strong>in</strong>g value from your spend<br />
3:00-3:30 NETWORKING BREAK<br />
3:30-4:15<br />
CASE STUDY: COMPLYING WITH THE NEW BROADER PUBLIC<br />
SECTOR PROCUREMENT DIRECTIVE - MAXIMIZING VALUE<br />
FOR MONEY FROM HOSPITAL PROCUREMENT AT BAYCREST<br />
Mark Wilson, Manager Supply Cha<strong>in</strong>, Baycrest<br />
With government dollars <strong>in</strong> short supply, patient care costs <strong>in</strong>creas<strong>in</strong>g<br />
at an exponential rate, a decreas<strong>in</strong>g tax base and the prov<strong>in</strong>cial<br />
government’s recently <strong>in</strong>troduced Broader <strong>Public</strong> <strong>Sector</strong> Procurement<br />
Directive, hospitals now have to look closely at maximiz<strong>in</strong>g the value<br />
they receive from the use of public funds. This discussion details how<br />
Baycrest has identified <strong>in</strong>efficient processes and faster, smarter ways<br />
to conduct bus<strong>in</strong>ess so that the money saved can be re<strong>in</strong>vested <strong>in</strong> <strong>in</strong>frastructure,<br />
upgraded materials and patient care.<br />
· SSOs (JIT), GPOs<br />
· Competitive RFTs, RFPs (<strong>in</strong>vitational or directed) processes<br />
· Government VORs<br />
· Long-term service contracts: Ma<strong>in</strong>tenance, Repair<br />
· Proactive contract adm<strong>in</strong>istration<br />
· Lean<strong>in</strong>g purchas<strong>in</strong>g and logistics functions<br />
4:15-5:00<br />
ACHIEVING VFM THROUGH LEAN SOURCING<br />
Kurt Ritcey, Partner, Deloitte & Touche LLP<br />
Cont<strong>in</strong>uous improvement tools such as lean and six sigma may have<br />
orig<strong>in</strong>ated <strong>in</strong> a manufactur<strong>in</strong>g environment, but they have been successfully<br />
deployed <strong>in</strong> many public sector procurement departments.<br />
Indeed, apply<strong>in</strong>g these cont<strong>in</strong>uous improvement methodologies to<br />
advance strategic sourc<strong>in</strong>g policies and procedures can help secure<br />
significant sav<strong>in</strong>gs and further cost reductions over the life of the contract.<br />
· Challeng<strong>in</strong>g the team to not just manage cost but also<br />
streaml<strong>in</strong>e process improvements and tackle <strong>in</strong>efficiencies<br />
· Conduct<strong>in</strong>g lean assessments<br />
· Tak<strong>in</strong>g a six sigma approach<br />
· Examples of cont<strong>in</strong>uous improvement projects<br />
· Work<strong>in</strong>g process improvement <strong>in</strong>to the<br />
government-contractor relationship<br />
· Additional cost reduction opportunities via<br />
collaboration with supply partners<br />
· Quantify<strong>in</strong>g quality <strong>in</strong> lean sourc<strong>in</strong>g <strong>in</strong>itiatives<br />
Collaborative Procurement<br />
SESSION 2<br />
Monday, June 13 th
Ensur<strong>in</strong>g costeffectiveness<br />
of the spend<br />
Brian Smith, Director, Advisory Services Procurement & Supply Cha<strong>in</strong>,<br />
KPMG LLP<br />
9:00-9:45<br />
CASE STUDY: ACHIEVING VALUE FOR MONEY IN THE<br />
PROCUREMENT OF MAINTENANCE AND CONSTRUCTION<br />
WORK AT CARLTON UNIVERSITY<br />
Darryl Boyce, Assistant Vice President, Facilities Management and<br />
Plann<strong>in</strong>g, Carleton University<br />
Effective life-cycle plann<strong>in</strong>g is key to obta<strong>in</strong><strong>in</strong>g value <strong>for</strong> money from<br />
Carlton University’s many ma<strong>in</strong>tenance and construction projects. This<br />
discussion details how Carleton University uses multi-year plans support<br />
more effective management of resources and save money when<br />
procur<strong>in</strong>g construction and ma<strong>in</strong>tenance work.<br />
· Develop<strong>in</strong>g effective capital renewal models<br />
· Prioritiz<strong>in</strong>g renewal projects<br />
· M<strong>in</strong>imiz<strong>in</strong>g space needs and facility costs<br />
· Manag<strong>in</strong>g and ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g facilities cost effectively<br />
· Establish<strong>in</strong>g effective purchas<strong>in</strong>g policies and procedures<br />
· <strong>Value</strong> <strong>for</strong> money <strong>in</strong> new construction and build<strong>in</strong>g retrofits<br />
9:45-10:30<br />
CASE STUDY: DELIVERING SAVINGS BY LEVERAGING<br />
YOUR GOODS AND SERVICES SPEND<br />
Erfa Alani, Manager, Operational Procurement Policy,<br />
Government Services<br />
Deliver<strong>in</strong>g sav<strong>in</strong>gs is no longer one of a number of <strong>in</strong>itiatives fight<strong>in</strong>g <strong>for</strong><br />
time and attention. It has risen to the top of all public sector priorities.<br />
More effectively leverag<strong>in</strong>g what you spend on goods & services can<br />
play a significant part <strong>in</strong> deliver<strong>in</strong>g cash sav<strong>in</strong>gs without cutt<strong>in</strong>g frontl<strong>in</strong>e<br />
services. This discussion details how to develop a procurement<br />
sav<strong>in</strong>gs strategy that will cut costs without cutt<strong>in</strong>g services.<br />
· Maximiz<strong>in</strong>g the purchas<strong>in</strong>g power of the public sector<br />
· Deliver<strong>in</strong>g sav<strong>in</strong>gs through better collaborative procurement<br />
· Mak<strong>in</strong>g efficiency sav<strong>in</strong>gs and cutt<strong>in</strong>g waste quickly<br />
· Negotiat<strong>in</strong>g the best conditions<br />
10:30-11:00 NETWORKING BREAK<br />
11:00-11:45<br />
CASE STUDY: COMMUNICATING AND DEVISING CLEAR KPIS<br />
Vicky Zhao, Senior Manager, Purchas<strong>in</strong>g,<br />
The Hospital <strong>for</strong> Sick Children<br />
<strong>Public</strong> sector organizations are under enormous pressure to cut costs,<br />
create efficiencies and demonstrate value <strong>for</strong> money. However, without<br />
key per<strong>for</strong>mance <strong>in</strong>dicators (KPIs), it is extremely difficult to know<br />
whether an organization is <strong>in</strong> fact gett<strong>in</strong>g value <strong>for</strong> money from its<br />
spend<strong>in</strong>g. This discussion details how The Hospital <strong>for</strong> Sick Children<br />
develops clear KPIs to measure value.<br />
· What constitutes value <strong>for</strong> money?<br />
· Devis<strong>in</strong>g clear KPIs<br />
· How the organization developed value <strong>for</strong> money KPIs<br />
· What is measured: efficiency, cost, wider benefits<br />
· How value <strong>for</strong> money is reported<br />
11:45-12:30<br />
DRIVING CASHABLE SAVINGS WHILE MAINTAINING<br />
QUALITY SERVICES<br />
Brian Smith, Director, Advisory Services –<br />
Procurement & Supply Cha<strong>in</strong>, KPMG LLP<br />
This discussion details how government departments and agencies<br />
can reeng<strong>in</strong>eer the way they conduct their procurement spend to f<strong>in</strong>d<br />
spare cash that can then be used to fund other services.<br />
· Us<strong>in</strong>g an <strong>in</strong>tegrated, comprehensive spend<strong>in</strong>g analysis across<br />
departments to identify potential cashable sav<strong>in</strong>gs with<strong>in</strong><br />
the procurement spend<br />
· Creat<strong>in</strong>g fully <strong>in</strong>tegrated work<strong>in</strong>g partnerships to<br />
share <strong>in</strong><strong>for</strong>mation and trace sav<strong>in</strong>gs<br />
· Demonstrat<strong>in</strong>g results of procurement spend<strong>in</strong>g to<br />
w<strong>in</strong> support among <strong>in</strong>ternal and external stakeholders<br />
· Actual reduction on procurement process costs<br />
· Cost reduction on items purchased<br />
· Price sav<strong>in</strong>gs from collaborative contracts and<br />
aggregated purchas<strong>in</strong>g<br />
12:30-1:30 LUNCH<br />
Streaml<strong>in</strong><strong>in</strong>g Procurement Processes<br />
SESSION 3<br />
Tuesday, June 14 th
Ensur<strong>in</strong>g efficiency and<br />
effectiveness of the spend<br />
L<strong>in</strong>o Casal<strong>in</strong>o, National Procurement & Supply Cha<strong>in</strong> leader and National<br />
<strong>Public</strong> <strong>Sector</strong> Operations Competency Leader, PwC Advisory Services<br />
1:30-2:15<br />
PLANNING & MEASURING VALUE FOR MONEY<br />
IN PUBLIC SECTOR SPENDING<br />
Brian Habjan, Vice-President, PwC Advisory Services<br />
The traditional method of manag<strong>in</strong>g value <strong>for</strong> money <strong>in</strong> the public sector,<br />
that of squeez<strong>in</strong>g reductions <strong>in</strong> fund<strong>in</strong>g levels <strong>for</strong>c<strong>in</strong>g organizations<br />
to become more efficient and obta<strong>in</strong><strong>in</strong>g economies of scale, often has<br />
a detrimental effect on quality and the ability of an organization to adapt<br />
and cope with change. Indeed, more robust VfM measures are needed<br />
to measure value delivered rather than simply measur<strong>in</strong>g cost reduction.<br />
This discussion details key VfM measures.<br />
· Def<strong>in</strong><strong>in</strong>g VfM, cover<strong>in</strong>g economy, efficiency and effectiveness<br />
· Framework and approach to VfM measurement<br />
· Ensur<strong>in</strong>g each KPI supports the value <strong>for</strong> money plan<br />
· Key risks <strong>in</strong> obta<strong>in</strong><strong>in</strong>g VfM and avoid<strong>in</strong>g perverse<br />
<strong>in</strong>centives <strong>in</strong> VfM <strong>in</strong>dicators<br />
· Avoid<strong>in</strong>g over reliance on measures that simply reduce<br />
cost and quality rather than <strong>in</strong>crease value <strong>for</strong> money<br />
· Key f<strong>in</strong>ancial and non-f<strong>in</strong>ancial KPIs<br />
2:15-3:00<br />
CASE STUDY: VALUE FOR MONEY THROUGH<br />
EFFICIENT AND EFFECTIVE SPENDING<br />
Maria Fernandes, Manager, Appropriation and Expenditure<br />
Management Unit, Fiscal Oversight & Per<strong>for</strong>mance Branch,<br />
M<strong>in</strong>istry of Health & Long-term Care<br />
Spend<strong>in</strong>g at the M<strong>in</strong>istry of Health and Long-term Care represents approximately<br />
40% of the Ontario budget. As such, it is imperative that<br />
the department achieves value <strong>for</strong> money <strong>in</strong> its external spend. This<br />
discussion details <strong>in</strong> practical terms how the M<strong>in</strong>istry has managed to<br />
improve spend<strong>in</strong>g efficiency by 20% and improve value <strong>for</strong> money of<br />
its external spend.<br />
· Leverag<strong>in</strong>g spend data to identify key<br />
opportunities to curtail expenditures<br />
· Streaml<strong>in</strong><strong>in</strong>g criteria <strong>for</strong> consult<strong>in</strong>g contracts <strong>for</strong><br />
specialized and other services<br />
· Prioritiz<strong>in</strong>g and rank<strong>in</strong>g program expectations and<br />
cost<strong>in</strong>g accurately<br />
· Assess<strong>in</strong>g & benchmark<strong>in</strong>g per<strong>for</strong>mance to<br />
identify areas <strong>for</strong> improvement<br />
· Ga<strong>in</strong><strong>in</strong>g efficiencies through cost avoidance<br />
· Collaboration with <strong>in</strong>ternal and external partners to<br />
achieve efficient and effective spend<strong>in</strong>g<br />
3:00-3:30 NETWORKING BREAK<br />
3:30-4:15<br />
CASE STUDY: ACHIEVING VFM THROUGH AGGRESSIVE<br />
SOURCING AT THE CITY OF MISSISSAUGA<br />
Marlene Knight, Manager of Material Management and<br />
Adm<strong>in</strong>istration, Office of the Chief Adm<strong>in</strong>istrative Officer,<br />
City of Mississauga<br />
Aggressive sourc<strong>in</strong>g employs a reverse market<strong>in</strong>g strategy to create an<br />
<strong>in</strong>tensively competitive, flat play<strong>in</strong>g field among suppliers and exploits<br />
a range of analytical sav<strong>in</strong>gs strategies to drive down prices without<br />
compromis<strong>in</strong>g quality. This discussion details how the City of Mississauga<br />
employs aggressive sourc<strong>in</strong>g to achieve VfM.<br />
· Strategic ways to better manage supplier relations<br />
· Better understand<strong>in</strong>g of supplier pric<strong>in</strong>g<br />
· Elim<strong>in</strong>at<strong>in</strong>g non-value add<strong>in</strong>g middle men<br />
· Ga<strong>in</strong><strong>in</strong>g a clear understand<strong>in</strong>g of the suppliers economics<br />
· Key techniques and per<strong>for</strong>mance management<br />
tools used to drive results<br />
· Leverag<strong>in</strong>g on supplier relationships to achieve cost sav<strong>in</strong>gs<br />
4:15-5:00<br />
CASE STUDY: ACHIEVING VALUE FOR MONEY AT PLEXXUS<br />
David E. Yundt; President and Chief Executive Officer, Plexxus<br />
This discussion details how Plexxus, a not-<strong>for</strong>-profit shared service<br />
funded by its member hospitals, has developed <strong>in</strong>novative approaches<br />
to achiev<strong>in</strong>g and measur<strong>in</strong>g value <strong>for</strong> money with<strong>in</strong> healthcare procurement.<br />
· Strategies and <strong>in</strong>novative practices to engage stakeholders<br />
· Streaml<strong>in</strong><strong>in</strong>g and standardiz<strong>in</strong>g of procurement processes<br />
· Apply<strong>in</strong>g effective governance<br />
· Track<strong>in</strong>g and measur<strong>in</strong>g sav<strong>in</strong>gs and service level improvements<br />
Lean Sourc<strong>in</strong>g<br />
SESSION 4<br />
Tuesday, June 14 th
OPTIONAL WORKSHOP A<br />
Wednesday, June 15 th - 9:00-noon<br />
GETTING VALUE FOR MONEY FROM YOUR<br />
PROCUREMENT DEPARTMENT<br />
Leo Gotlieb, Director, Western Management Consultants<br />
Procurement and departmental leaders are feel<strong>in</strong>g the urgency of<br />
achiev<strong>in</strong>g value <strong>for</strong> money from public spend<strong>in</strong>g as never be<strong>for</strong>e.<br />
New directives on achiev<strong>in</strong>g value <strong>for</strong> money from the prov<strong>in</strong>cial<br />
government seem to come out on a monthly basis and the annual<br />
Auditor General’s report consistently sh<strong>in</strong>es a spotlight on achiev<strong>in</strong>g<br />
value <strong>for</strong> money from public procurement. In the face of severe<br />
economic challenges and <strong>in</strong>creased pressure to comply with government<br />
value <strong>for</strong> money directives, develop<strong>in</strong>g an efficient and<br />
effective public purchas<strong>in</strong>g approach is critical to achiev<strong>in</strong>g value<br />
<strong>for</strong> money from public spend<strong>in</strong>g. This <strong>in</strong>teractive workshop will help<br />
delegates achieve value <strong>for</strong> money from their procurement process.<br />
· Optimiz<strong>in</strong>g whole-of-life value <strong>for</strong> money <strong>in</strong> purchas<strong>in</strong>g<br />
· Develop<strong>in</strong>g efficient procurement procedures designed to<br />
achieve value <strong>for</strong> money from external spends<br />
· <strong>Achiev<strong>in</strong>g</strong> the appropriate level of competition<br />
· Ensur<strong>in</strong>g efficiency by avoid<strong>in</strong>g unnecessary process costs<br />
· Encourag<strong>in</strong>g competition by purchas<strong>in</strong>g <strong>in</strong> a way that<br />
ma<strong>in</strong>ta<strong>in</strong>s the long-term susta<strong>in</strong>ability and<br />
competitiveness of the supplier market<br />
· Measur<strong>in</strong>g the procurement function aga<strong>in</strong>st key<br />
efficiency and value <strong>for</strong> money metrics<br />
· Systematic and timely identification, analysis,<br />
treatment, management and mitigation of risks<br />
· Proactively manag<strong>in</strong>g contract delivery to ensure and<br />
ma<strong>in</strong>ta<strong>in</strong> value <strong>for</strong> money spent<br />
· Monitor<strong>in</strong>g per<strong>for</strong>mance of suppliers to ensure value <strong>for</strong> money<br />
Leo Gotlieb has over 25 years experience <strong>in</strong> consult<strong>in</strong>g to a<br />
wide variety of clients <strong>in</strong>clud<strong>in</strong>g resource companies, f<strong>in</strong>ancial<br />
<strong>in</strong>stitutions, retailers, school boards, municipalities, utilities,<br />
associations, agencies, prov<strong>in</strong>cial governments and national<br />
governments. His major practice areas are IT, governance and<br />
organization, technology acquisition, organizational design, project<br />
assurance and bus<strong>in</strong>ess process improvement. A recent area<br />
of focus is procurement, <strong>in</strong>clud<strong>in</strong>g fairness advisory services. Leo<br />
often acts as a bridge between the technology and bus<strong>in</strong>ess side<br />
of the organization, and his clients are split about equally between<br />
systems and user groups.<br />
He was awarded the Fellow Certified Management (FCMC) designation<br />
<strong>in</strong> recognition of his contributions to the management<br />
consult<strong>in</strong>g profession, and served <strong>for</strong> many years as chair of<br />
certification <strong>for</strong> the Canadian Institute of Certified Management<br />
Consultants.<br />
OPTIONAL WORKSHOP B<br />
Wednesday, June 15 th - 1:30-4:30<br />
ACHIEVING VALUE FOR MONEY SAVINGS<br />
THROUGH EFFECTIVE PROCUREMENT-<br />
BUSINESS UNIT COLLABORATION<br />
Ron Edgar, Senior Consultant, PPI Consult<strong>in</strong>g<br />
Danielle Sanagan, Consultant, PPI Consult<strong>in</strong>g<br />
Emily Chiang, Consultant, PPI Consult<strong>in</strong>g<br />
The public sector’s current drive to achieve greater value <strong>for</strong> money<br />
from its spend<strong>in</strong>g has led many organizations to critically exam<strong>in</strong>e<br />
their purchas<strong>in</strong>g practices to determ<strong>in</strong>e how best to align them with<br />
chang<strong>in</strong>g bus<strong>in</strong>ess needs and priorities. This <strong>in</strong>teractive workshop<br />
will help delegates develop a governance framework <strong>in</strong> which procurement<br />
and the bus<strong>in</strong>ess units work together to reduce <strong>in</strong>efficiencies<br />
and achieve better value <strong>for</strong> money outcomes <strong>in</strong> their spend<strong>in</strong>g.<br />
· Integrat<strong>in</strong>g people, processes and tools<br />
· How to get bus<strong>in</strong>ess units to write a proper statement of work<br />
· Work<strong>in</strong>g together to determ<strong>in</strong>e the bus<strong>in</strong>ess<br />
need <strong>for</strong> the purchase<br />
· Exam<strong>in</strong><strong>in</strong>g alternatives to the government’s<br />
traditional life-cycle practices<br />
· Collaborat<strong>in</strong>g <strong>in</strong> <strong>in</strong>vestment plann<strong>in</strong>g: exam<strong>in</strong><strong>in</strong>g where one<br />
spends money today and how that money can be better spent<br />
· Develop<strong>in</strong>g a governance framework to ensure that<br />
procurement is deeply <strong>in</strong>volved with bus<strong>in</strong>ess<br />
units to develop the specifications<br />
Ron Edgar is a seasoned professional with more than 30 years<br />
experience encompass<strong>in</strong>g bus<strong>in</strong>ess management, project management<br />
and procurement management skills. His professional<br />
experience <strong>in</strong>cludes project development <strong>in</strong> both commercial enterprises<br />
and government. For the last 6 years, he has specialized<br />
<strong>in</strong> management consult<strong>in</strong>g on major strategic procurement activities<br />
<strong>in</strong>volv<strong>in</strong>g both IT and bus<strong>in</strong>ess procurements.<br />
Danielle Sanagan is a certified project management professional<br />
with more than 5 years experience encompass<strong>in</strong>g project management<br />
and operational work. Her professional experience <strong>in</strong>cludes<br />
project management <strong>in</strong> both public and private sectors. For the last<br />
2 years, she has focused on manag<strong>in</strong>g the IT operations of a small<br />
Toronto-based hospital oversee<strong>in</strong>g projects, strategic direction and<br />
IT systems management. Prior to jo<strong>in</strong><strong>in</strong>g PPI, Ms. Sanagan held<br />
a role at Shared In<strong>for</strong>mation Management Services (SIMS) and<br />
worked with a number of Partner Sites <strong>in</strong>clud<strong>in</strong>g University Health<br />
Network, Providence Healthcare, Women’s College Hospital and<br />
St. Michael’s Hospital as a Project Manager and Sr. Project Manager,<br />
and most recently held the title of SIMS IT Site Manager <strong>for</strong><br />
Women’s College Hospital.<br />
Emily Chiang jo<strong>in</strong>ed PPI <strong>in</strong> 2010 and has focused on assist<strong>in</strong>g public<br />
sector clients with procurement and fairness advisory services.<br />
Previously, Emily was a Senior Consultant <strong>in</strong> Deloitte & Touche’s<br />
F<strong>in</strong>ancial Advisory Services group specializ<strong>in</strong>g <strong>in</strong> Corporate F<strong>in</strong>ance.<br />
Emily has worked extensively with clients and management<br />
to ref<strong>in</strong>e value propositions and strategic growth plans.
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