Business Improvement Proposal

From: Will Goodwin, Lab Assistant

Date: October 1, 2015

Subject: Proposal to Improve Sample Collection Procedures

Joiner Micro Labs (JML) is one of the leading water and wastewater testing facilities in the Fauquier County area. Having been around for nearly 25 years, it is safe to say that JML knows a thing or two about water testing. I was thrilled when I got an opportunity to become a Lab Assistant here. Working for a small business gives me valuable experience, while allowing me to be in an environment I truly enjoy. My duties here include various tasks including office work, lab maintenance, and water sample collection. Water sample collection being what I believe to be the most crucial job I have to do for the lab. Water collection can be a very sensitive task. Temperatures must be controlled from the time the sample is taken until it reaches the lab, which in some cases can be up to 8 hours. The current system involves 5 Igloo coolers, which must be filled with ice every morning, delivered to water sample drop off point, and then picked up in the evening. I believe that Joiner Micro Labs could eliminate wasted samples and achieve more accurate test results by purchasing more advanced coolers. This would also save money in the long run by pairing them with reusable ice packs, instead of store bought ice.

Water Sample Collection Process:

Collecting water samples is a process that must be done right to ensure the preservation of the samples, and the accuracy of the test results. Joiner Micro Labs does water and waste water testing so that business and individuals can stay in compliance with the Virginia water regulations. These tests are used to analyze coliform bacteria, E. coli, and heterotrophic plate count. Many homeowners and businesses use these tests to get approval to drill a well, or achieve other regulatory requirements the state of Virginia has in place. A failed test could stop the progress of a home being built, or halt operation of a business. Tests that analyze the presence and count of the bacteria in a sample must be done in a controlled environment that eliminates all possible lurking variables that could affect the results. One of these variables is the temperature of the samples.

Temperature can either kill bacteria or cause it to multiply quite quickly, both of which could alter water test results. Joiner Micro Labs currently has a system in place to try and eliminate temperature from affecting their work, especially when moving the samples over long distances. Policy permits that if you or your business is within 30 minutes of the lab address you can deliver the samples yourself. If you fall outside of that radius you must deliver the sample to one of the drop off points located in various counties, some as far as 90 minutes away. There is currently five drop off points that samples can be delivered to, most of which residing within another business that JML has an agreement with. Every morning a courier will stop by the lab, pick up five empty coolers, fill them with ice from a nearby gas station, and then proceed to deliver them to the drop off points. Then customers will place their samples in the coolers throughout the day, in approved sample bottles they have received from JML. Toward the afternoon a courier, myself being the primary one for nearly two years now, will retrieve the coolers and deliver them back to the lab. Although this process is good, I believe it could be improved. Most of the time, the samples come back good and the test results are accurate. However, there have been times when the samples have either gone bad from the time of pick up, or produce bad data resulting in faulty test results. In my experience this primarily occurs in cases where an old or inefficient cooler allows the ice to melt causing the samples to sit in a lukewarm pool of water rather than a bed of ice. This leads to me offer three solutions that could benefit the company and lead to more consistent samples and test results.

Solutions:

In order to improve the quality of water samples and in turn the test results I feel there are three solutions that would be realistic and achieve effective results. The first solution would be to purchase high quality reusable ice packs replacing the need for store bought ice. Certain brands of icepacks have been proven to stay colder longer than ice, and have an added benefit of not turning into liquid once they thaw out. This would also prove to be cost-effective in the long run as the company would save money by not having to purchase ice daily. One issue that may arise in this solution would be how to store the icepacks overnight. However, I do not see this issue being a deal breaker because the chest freezer located in the lab always has plenty of room for storage, and with a little reorganization JML can create a section just for water sample ice packs.

The second solution that could help to increase water sample quality would be to purchase new, more effective coolers. Currently the coolers in use are all ten years old or older. Many do not have properly working lids, which causes heat to get in and melt the ice before the coolers are picked up in the afternoon. If a new set of high quality coolers were purchased we could eliminate the variability of temperature fluctuation of the water samples. I suggest that Joiner Micro Labs purchase five Yeti coolers, widely considered the best brand in portable refrigeration, to replace the existing ones. Yeti coolers, although expensive, come with a warranty, are nearly indestructible, and have permafrost insulation. They are known for their ability to keep ice frozen for over 12 hours in the heat, and for their durable construction, which will help to prevent any possible damage. This is the most effective solution for controlling the temperature of the water samples. The only issue with this option is the price. Yeti coolers tend to be some of the most expensive coolers on the market. However, I do believe that it is a worthy investment that will save the lab time in the long run by preventing wasted man hours performing tests on poor quality water samples.

The final solution I will suggest is a combination of the previous two. I think that by purchasing new coolers and high quality ice packs, we could almost solve the problem of receiving poor quality water samples. I will not say that this is an absolute, because there is the always the possibility of a bad sample for numerous reasons, but I believe that temperatures’ influence on the quality of Joiner Micro Labs’ water samples can be eliminated with this final solution. Yeti coolers can keep ice cold for over 12 hours, and ice packs cold for even longer. A sample is usually at the drop off point for a maximum of 8 hours. By providing optimal levels of refrigeration, the samples will remain at the desired temperature, even at the maximum wait time. The major issue with this solution is cost, purchasing both the icepacks and the coolers is the most expensive solution, but I believe it will be the most effective.

Cost of Solutions and Recommendation:

I realize the solutions I have suggested will not be free, so I have taken the liberty of calculating the costs of each solution along with each of their potential savings.

Solution one is the cheapest route of action, the purchasing of reusable ice packs. Joiner Micro Labs usually purchases two 20-pound bags of ice every morning and distributes the ice evenly throughout the 5 coolers. This averages out to about 8 pounds of ice per cooler to keep the water samples completely surrounded in ice. This leads me to believe that four 32 oz. ice packs, or 8 pounds worth of ice packs, would be necessary in each cooler to achieve the desired effects. This would also allow the samples to be covered from four sides. A case of 24 U-Line ice packs costs $110.00. We will only need 20 to fill the five coolers, so this will provide Joiner Micro Labs with 4 additional icepacks to keep on hand for back up, if necessary. Time and man hour costs would not be a factor for this solution because it can be implemented in the time it takes to order the icepacks online. Potential savings for this solution could be huge. A 20-pound bag of ice costs $3.00, and Joiner Micro Labs purchases two a day, which ends up being $30 per workweek. In four, five-day workweek, Joiner Micro Labs would begin to experience savings. The year long savings total would be $1450. After that, the savings grows by $1560 per year. This solution would produce extreme savings for a low cost investment. However, the ice pack may thaw out faster in the warmer seasons if they are in faulty coolers.

The second solution, the purchasing of Yeti coolers, is more costly than the first, but may be more effective at preserving the quality of water samples. The current capacities of the coolers in use now are 9 by 11 inches. Yeti makes a cooler called the Tundra 35 with 9 ½ by 11 1/8 inch dimensions that will provide adequate room for the water samples. Each Tundra 35 runs at a price of $300. Replacing all five coolers would cost $1500. The company could replace one at a time, or at any rate they see fit, and the cost would be the number of coolers being replaced multiplied by $300. Although the price seems high for these coolers they have a 5 year guaranteed warranty and are considered the best on the market. There would be no man hours or time related costs for this solution except for the time it takes to order the coolers. Potential savings for this solution would be measured in the amount of money saved on paying for employees to run tests on bad water samples. Lab Technicians are the ones who perform the testing on samples and they make between $20.00 and $30.00 per hour. On average it takes 3 hours total to test a water sample. The lab usually gets about 20 bad samples a month. The cost in labor hours of these 20 bad samples per month is $1200. I believe with the purchasing of Yeti coolers we reduce the amount of bad samples to around 5 per month. This would save the company a total of 45 hours of labor wasted on unnecessary tests. Using the minimum amount a Lab Tech makes, $20.00 per hour, purchasing the coolers would save $900.00 per month and after two months they will have paid for themselves, and Joiner Micro Labs will begin to experience the money saving benefits.

The third solution, a combination of the above two, is what I recommend and consider being the best option. Although it would be the most expensive at the onset of implementation, with a cost of $1610, it would also provide the most return on the investment. After one full year with the Yeti coolers and reusable icepacks, savings could be as much as $10,750. Beyond year one when no further purchases are needed, savings could be as high as $12,360. I believe, if you choose to, that this is the solution we should implement. I feel that even if the savings are only half as much as I have predicted they could be, it is still a worthy investment that will provide extra resources that could be put to better use however you see fit.

Conclusion:

Joiner Micro Labs relies on quality water samples to provide quality test results to their customers. To accomplish this we must eliminate as many variables as possible that could alter the test results, temperature being one of them. The current system of coolers and ice used to collect water samples is working, but I believe it can be improved. With the purchase of new Yeti coolers and reusable icepacks we can drastically improve the quality of the samples we collect. This in turn will save us money on ice costs and man hours in the future. In addition, it will help us get more accurate results back to our customers, increasing Joiner Micro Labs already great reputation in the Fauquier County area. Although implementing this proposed solution to help mitigate temperature variability of water samples will not be free, in the long run we stand to gain more than we will lose. This solution will give the company additional resources to use how you see fit.

I look forward to hearing your response to my proposed solutions and to speaking with you about the details and steps involved to implement it. Thank you for considering my proposal.

Sincerely,

Will Goodwin

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