Chargeback presentation

Report
Printing Chargebacks
November 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)
Printing Services
$0.0225
Color
(10x b&w)
$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
Old
Amount
New
Amount
%
Decrease
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?

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