FY2010 General Report Part 2
II. Matters relating to Efficient Business Operation
- Enhancement of Organizational Management Efficiency
- Appropriate and Efficient Budget Execution
- Compliance with Appropriate Tendering and Contracting Processes and Enhancement of Procurement Efficiency
- Adjustment of Salary Level
- Effective Use of Assets
- Enhancement of Measures to Ensure Operational Efficiency
1. Enhancement of Organizational Management Efficiency
(1) ERP System
ERP system is planned to be installed at the time of the transition to the School Corporation to enhance the operation efficiency. In preparation, taskforce teams for academic affairs, HR, accounting, IT, etc. were established to clarify the current tasks and to review the work process. Especially for the accounting, academic affairs and payroll systems, detailed design and development were commenced in FY2010.
(2) Other major activities
In addition to the above (1), following activities were conducted in aim of enhancing the efficiency of administrative operations.
- Dedicated staffs in charge of recruitment and acceptance were assigned to the Recruiting & Assistance Section of HR Group which was newly established in accordance with the reorganization that took place in April 2010. The process from recruiting to accepting new staffs, including PIs, was integrated while some of the works were outsourced to external contractors. Integrating the process enhanced information sharing between concerned sections, and enabled proper assistance to the new staffs.
- As efforts to enhance the efficiency of business travel arrangements, the integral process of ticketing international flights was outsourced, which enabled reduction of the process in collecting multiple estimates and administrative works in handling bills. In addition, the process was examined by referring to similar institutes, and the tasks of the current system were verified as to further streamline and enhance the efficiency of the process.
- As for the payroll calculation, outsourcing of the social insurance procedure was continued. In addition, preparation for the introduction of the payroll calculation and HR database system was carried out as part of the EPR as mentioned in above (1). The system is scheduled to be in full operation from November 2011.
- The online attendance management system was introduced in June 2010, and the system has been in full operation since August.
2. Appropriate and Efficient Budget Execution
Operations in relation to compilation, allocation and execution of budget were conducted as below, while strictly observing regulations such as the Accounting Regulations of the Corporation.
By utilizing the budget compilation/execution management database that has been introduced in FY2009, integral and systematic management of the Subsidy for Operations and Subsidy for Facilities was ensured through reporting the budget execution status each month in the Executive Committee, which consists of Officers and Directors, and to each budget holder, as well as reviewing the budget allocation status on quarterly basis.
The above report was made on contract-amount basis and purchase-amount basis so the actual balance can be confirmed. Monthly report of the budget execution status to CAO is also made in the Liaison Meeting since May 2010.
Especially for the facility construction budget, “OIST Facilities and Construction Budget Review Committee” was established in April 2010. The meeting of the committee was held 12 times in FY2010, in which information was shared among members concerned to ensure proper budget execution.
In addition, in order to ensure systematic and efficient budget execution, information of scheduled procurement of equipment, etc. was shared between the Procurement Section and Budget Section at the beginning of the fiscal year. Furthermore, as cost reduction efforts, monthly running cost (e.g. heating/electricity cost and maintenance cost) of common facilities in the new Camus was reviewed, and proper management was ensured through taking measures such as concluding a comprehensive contract on their renewal.TOP
3. Compliance with Appropriate Tendering and Contracting Processes and Enhancement of Procurement Efficiency
(1) Optimization of tendering and contract process
As a result of the continued efforts in implementing the “Review Plan on Contracts without Tenders” that was established in April 2010, within the 194 contracts that were concluded in FY2010 and subject to the said review, the number of competitive contracts was 173 (89.2%), which exceeded the target number 85.6% set in the Review Plan.
The Contract Review Committee, consisting of members including external experts, was held three times in FY2010. In the Committee, comments such as to clarify the internal procedure for making contracts with law firms, etc., and the necessity of having detailed stipulations concerning investigations of lowest bidders were made, which were reflected into OIST’s operation.
(2) Enhancing efficiency of procurement procedures and cost reduction
The electronic bidding was further enhanced through measures such as encouraging venders to make registration for the use of the system.
In addition, cost reduction efforts such as making unit-price contracts were made as below.
- As for research materials, bulk purchase was introduced, which lead to cost reduction by 26% (3.3million yen) from the previous year.
- As for DNA sequencing reagents, tendering for unit-price contract was conducted by presenting the annual usage forecast. This resulted in an annual cost reduction of 25.6 million yen.
- As for arranging overseas flight-tickets, the procedure was concentrated to a travel agency to enhance efficiency of operation.
- As for facility and equipment maintenance contract for FY2011, with the target of reducing the contract amount by 10% from FY2010 at minimum, bidding by use of the Comprehensive Evaluation Method was conducted after reviewing the present condition. As a result, cost reduction of 15% from FY2010 was achieved. Also the maintenance cost for research equipment was reduced by 12 million yen by grouping the equipment for each manufacture on concluding the maintenance contract.
4. Adjustment of Salary Level
As a result of the efforts made in optimizing the salary level, the Laspeyres index was reduced by approximately 10 points from 132.7 in FY2008 (issued in FY2009), to 122.8 in FY2009 (issued in FY2010). The index is expected to further reduce in FY2010. The reason why there is a difference with the government officials is explained and provided through OIST’s website.
In addition, the following measures were taken from April FY2010 as part of the continuous efforts in optimizing the salary level.
- The salary table was reviewed, and the target was set to reduce the amount by 5.5% in the coming 5 years. The annual cost reduction of 1.1% was achieved for this year.
- As for the salary table for permanent employees, the upper limit of the pay raise was lowered by reducing the upper pay-grades.
- The pay raise ratio (criteria of pay grade promotion) of the pay raise that is made based on the Employee Evaluation was reduced.
As to study the optimum benefit package and allowances, information on the level of salary and benefit package was collected from statistical information and other information available, as well as through conducting hearing from staffs and candidates during the recruitment.TOP
5. Effective Use of Assets
Seaside House and Faculty Housing were effectively used as described below.
In addition to using the Seaside House as the venue for workshops, etc. hosted by OIST to transmit information of OIST, it was used for workshops hosted by external organizations (5 events in total, which is an increase by 1 from previous year).
In addition, as an event to promote the local community’s interest to science and technology, “OIST Science Film Show” was held, in which a movie related to science was shown and discussion with PIs was held.
Also the facility is used by two research units for their research activities.
Seaside Faculty Housing
Seven out of eight are used as residence, and the other one is used for short-term stay by visiting researchers, etc. (annual operation rate: 89%).
As for the facilities in the new Campus, “Fire Prevention and Control Plan” was established in accordance with relevant regulations to ensure proper management of the facilities.TOP
6. Enhancement of Measures to Ensure Operational Efficiency
(1) Enhancement of internal control and governance
The Executive Committee; consisting of Officers and Directors, and the Managers Committee; consisting of PIs and members at manager’s level and above, are respectively held on weekly and monthly basis. Through these Committees, information is shared and communication is enhanced between research units and administrative sections.
In addition to the above internal meetings, proper administrative governance was ensured through holding meetings such as the regular liaison meetings with CAO, in which information on matters concerning the organization and administrative governance of OIST was shared and coping measures were discussed/reported.
(2) Audit by auditors
The auditors have participated in important meetings such as the Executive Committee as necessary, and were reported of important decisions in a timely manner, as well as received report and information concerning the overall operation of OIST in a timely and appropriate manner.
The regular auditing was held total four times in June, September, December and February. Interviews with each Section and PIs were conducted (total 36 times) in order to enhance the effect of the audit. In addition, audit on as-needed basis was conducted. The comments from the auditors were communicated to the President in a written form.