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BUSINESSPLAN2020FY2021-2023
Maryland Correctional EnterprisesStrategic Business PlanFiscal Years 2021- 2023Stephen SandersChief Executive OfficerSeptember 2020Robert L. GreenWayne HillSecretaryActing Deputy Secretary of OperationsDepartment of Public Safety andCorrectional ServicesDepartment of Public Safety andCorrectional Services
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Department of Public Safety and Correctional ServicesMaryland Correctional Enterprises7275 WATERLOO ROAD JESSUP, MARYLAND 20794 www.mce.md.gov(410) 540-5400 FAX (410) 540-5570 TTY USERS (800) 735-2258STATE OF MARYLANDLARRY HOGANGOVERNORBOYD K. RUTHERFORDLT. GOVERNORROBERT L. GREENSECRETARYRACHEL SESSACHIEF OF STAFFCHRISTOPHER McCULLYDEPUTY SECRETARYADMINISTRATIONWAYNE HILLACTING DEPUTYSECRETARY OPERATIONSCAROLYN J. SCRUGGSASSISTANT SECRETARYGARY W. McLHINNEYASSISTANT SECRETARYMARYLAND CORRECTIONALENTERPRISESSTEPHEN SANDERSCHIEF EXECUTIVE OFFICERSeptember 2020Dear MCE Employees and Stakeholders:On behalf of Maryland Correctional Enterprises (MCE), it is indeed a pleasure topresent a copy of the Strategic Business Plan Fiscal Years 2021-2023 for yourreview. The Plan was developed by MCE employees, facilitated by the DPSCSPolice and Correctional Training Commissions, and is based on the goals of:maintaining a self-supporting status, increasing inmate employment, increasingcustomer satisfaction, improving organizational excellence, and providing supportand services for successful inmate transition to the community.In May 2001, the first MFR Seminar was held at the Maritime Institute ofTechnology to review the first Business Plan published in September 2000 and toprepare for the next edition. MCE has held to this schedule ever since.Due to the COVID-19 Pandemic, MCE’s 2020 MFR Seminar was conductedremotely and focused on planning for success in this new era. Thank you to allthose involved in this year’s seminar.2020 MFR ParticipantsFacilitators: Jennifer Beskid and Darla RothmanCliff BenserTodd DeakMark RowleyRon BrownDerek HadleyStephen SandersRicky BudoyMat HallThomas SeltzerJim ClusterJanet LaneSteve ShilohNicole CopelandAshley LohrVerona WilliamsChristineCunninghamRicky RoweStability has been established in working towards attainment of the long range Goals andObjectives by the accomplishment of the shorter term Strategies. However, success of the plancan only be achieved through cooperation and teamwork. Any questions or comments may bedirected to myself, Ashley Lohr (410-540-5405) or Cliff Benser (410-540-5404).Best Regards,Stephen Sanders2
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Strategic Business Plan FY 2021 - 2023MISSION STATEMENTThe mission of Maryland Correctional Enterprises (MCE) is to provide structured employment and training activities for offenders inorder to improve employability upon release, to enhance safety and security, to reduce prison idleness, to produce quality, saleablegoods and services, and to be a financially self-supporting State agency.VISION STATEMENTTransforming lives through mentoring, providing marketable skills, and instilling positive work ethics to contribute to a safercommunity.VALUES STATEMENTThe following beliefs (core principles) support our mission and vision statements:Quality and Customers - We are committed to provide our customers with the highest quality products and services ina timely manner within all areas of Maryland Correctional Enterprises.Environmentally Friendly – We are committed to improving our environmental awareness in all areas of MarylandCorrectional Enterprises.Financially Successful - We will manage our financial resources (assets, profits, sales, cash, investments) to supportexisting operations and future expansion.Transition Services - We are committed to quality training and preparation of our inmate work force to enhance theiremployment opportunities upon release.Teamwork and Communications - We value each employee as an important asset in helping to achieve the missionof the agency through teamwork and effective communications.Professionalism - We value effective leadership and strive for impartiality and fairness in the workplace. Weencourage personal and professional development. We recognize and reward dedication and commitment to excellence.4
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Chief Executive OfficerExecutive AssistantProjects ConsultantChief Operating OfficerManagement Council Executive DirectorChief Administrative OfficerAdministrative AideDesignManagerDesign,MCIWChief Development OfficerStaff DevelopmentDirectorDirectorDirector ofSalesDirectorofMarketingCust. tionTechnologyManagerChief FinancialOfficerAccts. phicsRegional ManagerJessupRegional ManagerTextilesRegional ManagerCentral WarehouseManagerSign, PATXGraphics I, MCIJGraphics II, MCIJQuick Copy,MCIJGraphics, RCIFurn. Manufact., JCITag, JCIMailing/Dist., MCI-WFurn. Restor., ECILaundry, CMCFSew, JCISew, MCIWTextiles, ECILaundry, ECICourier ServiceTextile CoordinatorMoving and LaborAccountingServicesAccts. Rec.ManagerHagerstownWarehouse ManagerPolicies &ProceduresManager(ECSO)Director ofReentry ServicesFixed Assets/Payroll ManagerCost AccountingManagerWesternRegional ManagerUpholstery, MCIHMetal I & II, MCIHMeat, MCIHLaundry, MCIHPartition, MCTCFurniture, WCIBrush/Carton, MCTCPIE, MCIHInmate WorkersMANAGEMENTMarylandCorrectional EnterprisesMANAGEMENT(410) 540-5400Chief Executive OfficerTitleAssistant to the CEOExecutiveChief Executive OfficerChief OperatingExecutive OfficerAssistant to the CEOChief AdministrativeOfficerChief OperatingOfficerChiefAdministrativeChief Development Officer OfficerChief Development OfficerStaff DevelopmentDirectorStaff DevelopmentDirectorDirectorof MarketingDirectorof MarketingExec. Directorof Mgmt. CouncilExec. Directorof ManagementCouncilDirector of SalesDirector of SalesSales ManagerSales ManagerChief Financial OfficerOperationsManagerChief FinancialOfficerSenior AdvisorOperations ManagerProjects ConsultantSeniorCustomerAdvisor Service ManagerDesignManagerProjects ConsultantIT ManagerCustomer Service ManagerRe-Entry Services DirectorDesign ManagerStephen SandersNameVacantStephen SandersVacantVacantMark enkinsTodd DeakTodd DeakJim HookJim HookVeronaWilliamsVacantVerona WilliamsSteve ShilohVacantCliff BenserSteveHoffmanShilohShariTerryHillCliff BenserEngrican BudoyShari HoffmanJanet LaneTerry HillRegional ManagersNameIT ManagerEngrican BudoyWesternRon BrownReentryServices DirectorJanetJessup/ECIFurniture Restoration MatHallLaneTextiles/ECI LiaisonThomas SeltzerGraphics REGIONAL MANAGERSJim ClusterCentral WarehouseDerek HadleyREGIONHagerstown WarehouseRicky RoweWesternRon BrownJessup/ECI Furniture RestorationMat HallTextiles/ECI Liason (Acting)Tom SeltzerGraphicsJim ClusterCentral WarehouseDerek HadleyHagerstown WarehouseRicky Rowe6
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Maryland Correctional EnterprisesMaryland Correctional EnterprisesFiscalYears20212023FiscalYears2021 –– 2023Goals,Objectives, StrategiesStrategiesGoals,Objectives,Goal 1.1 To maintain self-supporting status to support existing operations and future expansion.Objective 1.1.1 To achieve a 3% net operating income level every fiscal year through June 2022.Strategy 1.1.1.1 Analyze revenues and expenditures, including agency wide control of costs, on amonthly basis and take corrective action when necessary to ensure the objective.Performance MeasureNet operating income level achieved in each fiscal year.ChairpersonChief Executive OfficerMembersChief Operating Officer, Chief Administrative Officer, ChiefFinancial Officer, Regional Managers, Senior Accountant,Operations Manager, Inventory Manager, Invited Guest MembersSummaryStrategy 6FY2017FY2018FY2019FY2020Net Operating Income2.2%2.3%5.3%6.9%6.9%2.93%0.11Adjusted Net OperatingIncome (after s:AdjustmentsFY2014( 1,800,000) transfer to State’s General Fund in FY2014.FY2015( 1,000,000) transfer to State’s General Fund in FY2015.FY2017( 2,500,000) transfer to State’s General Fund in FY2017.1st Quarter2nd Quarter3rd Quarter4th QuarterFiscal Year 2021The Chief Executive Officer conducts Gross Profit meetings with the Committee Members each month except forJuly, August, and September when financial data is not available due to the annual financial audit of MCE.1MCE incurred increased, unexpected expenses as a result of the COVID-19 Pandemic beginning in March 2020.8
Strategy 1.1.1.2Evaluate the purchasing practices of our customers to determine trends and analyzedata.Performance MeasureAnnual review of top 10 customer’s data to be compared to datafrom three prior FYs (2018, 2019, 2020).ChairpersonDirector of SalesMembersIT Manager, Sales Manager, Director of MarketingSummary ofResultsSummaryofStrategyStrategyResults FYs 18, 19, and 20 top 10 customer’s analyzation and distribute of the information will be distributed in thefirst quarter of FY21.Continually Evaluating Waiver Requests / BID opportunitieso Pursuing opportunities for interior signage (Brail). MVA and DJS potential.UMCP / UMBC is working with a new EProcurement platform:o Once our website contact is finalized, we will address the capabilities of linking into theseprocurement platforms.In May we launched COVID19 protective equipment products.In May we joined the Maryland Manufacturing Network.Monitoring Monthly Quick Ship Sales.- 94th Quarter*494k89k-82%YTD1.5M1.1M-26%4th Quarter*65k23.6k-64%YTD194k79k-60%Monitoring County K-12 Sales- FY20 Target Goal: 1.6M1st Quarter2nd Quarter3rd QuarterFY 19377k310k360kFY 20426k290k336kDifference 13%-7%-7%*Dramatic 4th quarter decrease attributed to COVID-19 PandemicFY20 Target Goal: 2% Increase1st Quarter2nd Quarter3rd QuarterFY 1949k23k57kFY 2020k29k15kDifference-58% 21%-74%*Dramatic 4th quarter decrease attributed to COVID-19 PandemicMonitoring Monthly Graphics Sales- Utilizing report to pursue customers that have purchased from us in the past or ones that are not utilizingour graphic capabilities.Monitoring Weekly Open Order Reports:- Account reps continually review/analyze on a monthly basis.Monitoring Protective Equipment Sales.Monitoring Sales from the MD Manufacturing Network
FY18/19/20K-12 SALESSALESFY18/19/20 COUNTYCOUNTY K-12County K-12 SalesFY 18FY 19FY 20% Comp. 0.000% 58,770.00 173.06-99.71% 2,669.83 7,672.50 54.40-99.29% 10,054.00 13,473.50 19,083.0042%Calvert County 734.40 0.00 0.000%Carroll County 2,397.80 3,132.12 800.55-74%Caroline County 0.00 0.00 0.000%Cecil County 0.00 0.00 0.000%Charles County 0.00 0.00 0.000% 15,532.15 14,655.30 3,871.05-74% 516.00 0.00 0.000%Garrett County 0.00 0.00 0.000%Harford County 2,157.00 2,525.00 0.00-100%Howard County 69,198.00 44,528.00 31,078.00-30% 0.00 0.00 525.00100% 2,877.67 773.50 843.509%Prince Georges County 0.00 18,101.00 6,637.00-63%Queen Anne’s County 0.00 0.00 0.000%Somerset County 0.00 0.00 0.000%St. Mary’s County 0.00 0.00 0.000%Talbot County 0.00 525.00 0.00-100% 719.10 362.30 324.95-10%Wicomico County 0.00 0.00 0.000%Worchester County 0.00 594.00 913.8054%Sub Total: 149,400.95 165,112.22 78,763.71-52%Allegany County 0.00 0.00Anne Arundel County 42,545.00Baltimore CityBaltimore CountyDorchester CountyFrederick CountyKent CountyMontgomery CountyWashington CountyMD State Dept. of Education HQSMSDE-Library for theBlind & Physically HandicappedMSDE-Division of Rehab Services(Timonium)MSDE-Division of Rehab Services(Baltimore)MD School for the Deaf (Frederick) 402,165.22 348,213.55 165,221.49-53% 881.48 129.90 0.00-100% 5,298.00 133.00 1,793.001248% 309,176.28 160,033.94 1,202,356.18651% 23,929.92 19,967.47MD School for the Deaf (Columbia) 9,975.36 9,358.40 7,374.46 6,756.85-63%-28%Grand Total: 900,827.21 702,948.48 1,462,265.69108%Note: % comparison is based on FY 19/20 numbers10
Strategy 1.1.1.3Identify, share and implement quality improvements and cost reduction/avoidanceprograms each year.Performance MeasureImplement, share, document cost reduction/ avoidance and reportquality assurance programs quarterly.ChairpersonOperations ManagerMembersChief Operating Officer, Director of Sales, IT Manager, RegionalManagers, Plant ManagersSummary ofofStrategyResultsSummaryStrategyResults Quality improvement follow-up:o Metal Plant #124 has improved the process of installation of security cages into the DPSCStransport vehicles. MCE has eliminated the use of welding to attach the panels to the interior ofthe vans, using an alternative, yet secure method. Quality control checks are performed toensure consistency. Final installation Quality Checks are performed by MCE staff, before thevehicles are released resulting in a professional, durable defect free installation.o Plant #112 received a quality control issue identified by Morgan State University, where fabricwas coming off panels. Upon investigation, it was discovered that the plant was not utilizingenough fabric and the backing of the double-sided tape. A Five Step Problem Solving Reporthas been requested and new quality control checks will be implemented. Cost reduction: Follow-up:o MCE Meat Plant #125. Since adjusting the work span for this Plant from a four-day, ten hour perday schedule for a five-day, eight hour a day schedule, the need for daily overtime on Friday waseliminated. The work schedule is based on the capacity of the freezer, which coincides more withan eight hour day. Cost reduction and efficiency:o Graphics Plant #132 to 6:00am start, corresponding with the other Graphics Plants within MCIJ.The plant will continue to wok five days per week, eight hours per day, but by matching the otherGraphics Plants the DOC will only require one movement for Plant start up thus reducing thecost and the need for additional manpower.o At the close of quarter three, MCE dramatically reduced operations as a result of the COVID-19pandemic to enhance operational safety. The only shops continuing a full-scheduled dedicatedresources to manufacturing PPE and rotating staff when possible. All MCE purchases are beingreviewed by CEO and CAO to reduce unnecessary spending during the COVID-19 pandemic.o ECI plants have reduced operation to four days a week and work ten-hour shifts. As we haveseen in other shops on the same schedule, this decreases idle time spent on shop opening andclosing. Cost reduction through standardization:o At the request of the Department, MCE Graphics has standardized the form used for inmatevouchers, across all prisons. This will reduce the cost for the Department of Public Safety andimprove the voucher process focusing on the SID number.11
Strategy 1.1.1.4Annually review and audit business unit standard costs and selling prices forprofitability.Performance MeasureAnnually review and audit business unit standard costs and sellingprices for profitability.ChairpersonChief Financial OfficerMembersCost Accountant, Director of Sales, Chief Operating Officer,Director of Marketing, Senior Accountant, Purchasing ManagerSummary ofofStrategyResultsSummaryStrategyResults The Finance Department completed the following standard costs analyses:o Shop 140§ 4-Part Carbonless Form - White Canary-Pink & Goldenrod Item numbers 140134-A, 140135-A, 140135-B, 140135-C and 140136.§ The resulting analysis showed that manufacturing costs have increased in the range of79.0 -106.0% over the previous standard costs.o Shop 122§ The following series of chairs supplied by OEI were reviewed due to vendor priceincreases. Item numbers: 122017, 122018, 122013, 122014, 12274JR39XXX, and12278JR39XXX.§ The resulting analysis showed that manufacturing costs have increased in the range of 3.8-28.4% over the previous standard costs. The results were forwarded to the marketingdepartment for market studies.o Shop 115§ Annapolis II series of executive desks and credenzas Item numbers: 115A2EDR231, 115A2EDR113, 115A2STCFLF13 and115A2STFCBB234.§ The resulting analysis showed that manufacturing costs have increased in the range of2.1 - 18.4% over the previous standard costs. The results were forwarded to themarketing department for market studies.§ Canton Office Suite Item numbers: 115LDRB33, 115VFGS11, 115LF4B33, and 115RDT36B52§ The results of this analysis indicted an increase in the current selling prices. All study results were forwarded to the marketing department for market studies.12
Strategy 1.1.1.5Network with other state correctional industries to identify best practices & additionalventure opportunities.Performance MeasureCompile an annual FY report identifying relevant best practices &additional venture opportunities.ChairpersonChief Development OfficerMembersOperations Manager, Chief Operating Officer, Chief AdministrativeOfficer, Regional Managers, Director of Marketing, Plant ManagersDirector of Sales, Staff Development Director, Projects Consultant,Guest (Other state ts MCE Staff attended multiple NCIA Webinars focusing on becoming “LEAN” and Maintaining Self-Sufficiency.Both provided valuable information and additional training opportunities will be investigated.An annual report of best practice research was submitted to the CEO on August 26, 2019MCE submitted NCIA Directory information on August 30, 2019NCIA held two conference calls overviewing best practices during COVID-19 crisis, one focused on theproduction of hand sanitizer. Continued information on production of COVID-19 supplies by CI are being sharedby NCIA.MCE’s Staff Development Director and Policies and Procedure Manager participated in the NCIA PIECPwebinar on 3/26/2020. MCE will undergo a BJA audit of the Metal PIE program in late 2020. Documents for apreliminary desk audit were submitted prior to the May due date.Due to COVID-19, many initiatives have been placed on hold.Objective 1.2.1 Continue to achieve annual sales of at least 50,000,000.Strategy 1.2.1.1 A minimum of biennially review and update the Marketing and Sales Plan.A. Evaluate sales trends that have resulted from the COVID-19 pandemic.B. Evaluate marketing using existing resources to track the impact of newproducts resulting from the pandemic which has shifted operations.Performance MeasureSales achieved in each fiscal year.Chairpersons Director of Sales & Director of MarketingMembersChief Executive Officer, Chief Operating Officer, Sales ManagerOperations Manager, MCE StaffSummary of Strategy ResultsSalesFY2014FY2015FY2016 51,799,493 54,049,268 61,442,4911.9%4.3%13.7%Cumulative TotalsFiscal Year 2021131st QuarterFY2017FY2018FY2019 58,951,233 55,003,182 52,457,137(4.3%)(6.7%)(4.6%)2nd Quarter3rd Quarter4th QuarterFY2020 55,772,2186.3%
1st Quarter2nd Quarter3rd Quarter4th QuarterYTD 11.5 million 13.7 million 10.9 million 16.4 million 52.5 million 14.9 million 14.4 million 13.4 million 12.6 million 55.8 millionFY19 12.7 million 11.8 million 14.6 million 13.6 million 52.7 millionFY20 12.6 million 14.4 million 14.9 million 9.6 million 51.5 millionFY19 170 thousand 139 thousand 158 thousand 272 thousand 739 thousandFY20 182 thousand 191 thousand 175 thousand 64 thousand 612 thousandSALESFY19(FY 20 figures takenfrom All tracking measures decreased in the fourth quarter due to negative impacts of the COVID-19 pandemic 2020-21 Marketing and Sales Plan, distributed in early 2020: Three goals/objectives for sales:Ø Goal 1: Increase Sales (2% goal) Incoming orders Calendar Year 2020 (Jan-June): 24.5M Incoming orders Calendar Year 2019 (Jan-June): 28.1Mo 12.8% decrease (due to pandemic) Customer Analysis: FYs :18, 19, 20 top 10 customer’s analyzation and distributeof the information will be distributed in FY21 1st qtr. Relocation of the Sales Dept. to the new showroom was in the beginning stagesto implement the move in April; however, delayed due to pandemic, looking tostart in 1st quarter of FY21. In May Provided Sales/Design/
Design, Sign, PATX Furn. Manufact., JCI Sew, JCI Courier Service Upholstery, MCIH Partition, MCTC MCIW Graphics I, MCIJ Tag, JCI Sew, MCIW Textile Coordinator Metal I & II, MCIH Furniture, WCI Graphics II, MCIJ Mailing/Dist., MCI-W Textiles, ECI Moving and Labor Meat, MCIH Brush/Carton, MCT
