Here's a maintenance-related news story, that might be relevant to the folks reading this board. On the newspaper page, at the bottom is space for reader comments (and there are a few of those).
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tinyurl.com/2tt5rlOvertime Spending Raises Flag in Ferry Yard Audit
By Rachel Pritchett (Contact)
Friday, October 19, 2007
BAINBRIDGE ISLAND
A million dollars spent in 2006 for overtime at Washington State Ferries' maintenance yard at Eagle Harbor has caught the attention of the state auditor's office, along with other inefficiencies at the yard.
A recently released performance audit report stated that as much as $455,000 in overtime could be saved each year if a second, straight-time shift were added.
Currently, there is just one shift at the hub for repair and maintenance of the system's ferries and terminals. It goes from about 7 a.m. to 3:30 p.m. weekdays. But boats that need work aren't always available then. The yard has an unofficial second shift that sometimes follows. Workers on that shift get overtime. The report is recommending that shift be converted to straight time.
That suggestion didn't fly with Diane Meyer, who lives on Eagle Harbor across from the yard. She has complained about loud noise from workers' tools ricocheting across the water and into her living room.
"It's the worst possible thing they could do," Meyer said.
Responding to the recommendation, a statement by the state Department of Transportation, which oversees the ferry system, questioned whether a second shift would have much effect on overtime. Most overtime comes during emergencies, done late in the evenings and on weekends.
Still, the report stated that a second shift would reduce out-of-service times for boats and improve the condition of the fleet and terminals.
The $1 million in overtime made up more than 12 percent of the yard's total labor cost.
Other inadequacies pointed out in the report showed:
Frequent Temporary Promotions: In a given year, 40 or more yard workers temporarily change their job titles and get pay raises. Management is to approve temporary promotions, but it has delegated the authority to union members, who use it frequently. The report recommended the yard's superintendent make decisions about temporary promotions, but a ferry system statement defended the practice.
Too Few Managers: Only two managers oversee 115 workers at the yard. That forces union foremen who may lack training to make management decisions "not necessarily made in the best interest of cost controls and efficiency." The report recommended strengthening management.
Maintenance Costs: On paper, at least, the cost of maintaining the yard itself is three times higher than the cost of maintaining the ferry system's biggest and most costly terminal, Colman Dock in Seattle.
That's because the yard charges about 25 percent of its total labor costs to "indirect work codes." A quarter of the indirect work codes are charged toward maintenance of the yard. In reality, staff said that the yard didn't take any more time to maintain than Colman Dock. The ferry system blamed the yard's outdated computerized timekeeping system for so much work charged to indirect work codes.
Beyond that, comparing a terminal to a maintenance yard constantly dealing with emergencies may be an inappropriate comparison, according to Marta Coursey, director of communications for the ferry system.
Performance Measures: Yard managers have too few performance indicators to effectively manage overall costs of the yard. The report recommended establishing cost-accounting and control measures.
Lost Time: Many yard workers take the ferry to work, and unless there's an emergency, they have to wait in line with paying customers. The workers are paid for their wait — sometimes overtime — costing the state and taxpayers lost productivity. The report suggested moving workers to the front of the line. But a DOT statement defending the policy said paying customers "have little patience" for yard workers let ahead.
Flawed Time-Keeping: The yard essentially shuts down to perform a cumbersome and inefficient timekeeping process so its workers can be paid, the report said. A better system was recommended.
Preserving Knowledge Amid Attrition: Too little information recorded about tasks, processes and policies at the yard has led to the risk of specialization of skills rather than cross-training. When someone leaves, they take the knowledge with them. And, the yard has no plan to counter the loss of knowledge when senior staff retire. The study recommended writing things down for others to learn.
Re-inventing the Wheel: The highly traditional and independent yard has not always drawn on existing ferry system resources, and at times instead has created its own from scratch. The report cites one example in which yard workers created a labor database when it could have used one the ferry system already had. DOT responded that some work already has been done to correct duplication.
Retired businesswoman Wini Jones of Bainbridge Island, who said she was disturbed by the report, said "taxpayers should definitely be concerned" about the potential costs of inefficiencies.
"If these people were in the private sector, they would be out of business in a minute and a half."
Jones is a member of Reclaim Our Waterfront, a Bainbridge group also interested in relocating the boatyard, or some of its functions, to an industrial location.
She believes the report will fuel its cause.
"Hopefully, the Legislature will follow up and see that their recommendations are put in place, and if they're not, commence the discussion to look at outsourcing."
State Rep. Christine Rolfes, D-Bainbridge Island and a member of the House Transportation Committee, said the Legislature is obliged to report on follow-up to the audit
"In the end, a lot of the recommendations will help that facility get the job done better," Rolfes said.
Coursey, the ferry system spokeswoman, said many of the findings weren't unexpected.
"The bulk of the findings we were already aware of," she said, adding that ferry officials are weighing them in context of ferry financing legislation that will continue in the next legislative session.
ON THE WEB
A new report that looks at Washington State Ferries and its Eagle Harbor maintenance yard can be viewed on the state Auditor's Office Web site,
www.sao.wa.gov. Click on "Performance Audit" on the left, then on "Audit Reports."
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