Agenda Item FA 18-02

Submitted by the Academic Programs Committee

Coggin College of Business (Graduate) – (Marketing & Logistics)

New Degree Program Request – Proposal for Master of Science – Logistics and Supply Chain Management Major (1 package) *The item was passed with the following notes.

01/11/18: Passed

The item was passed with amendment.

Log Number: 201708-69

New Degree Program Request:

Proposal for Master of Science -Logistics and Supply Chain Management Major  - Graduate


Summary of the Changes:
The Master of L&SCM will serve four target populations with a likely minimum of 3 (and as many as 15) years of L&SCM industry experience via a combination of face-to-face and asynchronous delivery. The first target population (the expected majority) will be drawn from the large working-professional L&SCM business community with business undergraduate degrees in Jacksonville (the Jacksonville MSA has 1.3 million people). The second target population would be similar managers from a larger, regional geographic area which would extend south to central Florida and north toward the Savannah, Georgia area. The third target population will be military veterans and/or active-duty military based in the northeast Florida region. UNF currently has approximately 1000 veterans already attending classes; many (156) of these are graduate students. Logistics and SCM is a major specialization in the military, thus there is a large number of potential graduate students who would interested in such a program. The fourth target population will be students transitioning directly from an undergraduate program (likely with a considerable amount of internship and/or part-time professional work experience in the L&SCM industry).
Given the relative lack of need for other types of expenditures (except for what is described below), the largest expense associated with the proposed Master in L&SCM is Faculty Salaries and Benefits: $85,069 in Year 1 and $389,413 in Year 5. A 3% annual cost of living adjustment is added each year, and the cumulative effect of this is reflected in the Year 5 figures. These figures include the salary and benefits (and aforementioned 3% annual cost of living adjustment) for the current faculty who will have teaching responsibilities in the proposed Master in L&SCM, as well as the two new Logistics faculty to be hired on a new line (Faculty Code C) after Year 1 but prior to Year 5. Because no new funds are requested in Year 1, salary dollars for faculty in both Marketing & Logistics ($118,430) and in Management ($10,297) will be shifted to support the new program. By Year 5, we anticipate that the continuing base, supported by graduate tuition, will cover program expenses. Using the conservative projected head count and FTE, tuition revenue in Year 5 of $457,007 would exceed E&G costs of $450,789. This calculation assumes $9,794.40 in tuition per graduate FTE across the five years, assumes 24 credit hours per FTE, and assumes conservatively that all students will be in-state and paying the in-state standard tuition rate of $408.10 per credit hour. These tuition revenue figures have been fully vetted and approved by Academic Affairs.
Academic Affairs has also estimated that when comparing the additional tuition revenue of the program to its truly net new additional costs – i.e., the two new faculty noted above, plus the USPS, GA, and ancillary expenses noted below – it will generate a positive net revenue of over $675,000 in the first five years combined, and more than $1 million over its first 10 years.
The addition of the two new Logistics faculty are critical to the successful implementation of the proposed Master program as there is no excess capacity with respect to the undergraduate T&L program. While two of the core/required TRA (Transportation & Logistics) courses in the proposed program currently exist in Coggin’s MBA program, the other three core/required TRA courses will be new offerings – and one of those three new course offerings is a Project/Thesis course which will require substantial time and effort to manage and thus is not practical to be assigned to only one faculty member. There is also one new elective TRA course in the proposed program, which is already designed and expected to be offered in the very near future - and it is expected to draw a substantial enrollment almost immediately. The sequenced course of study indicates that it is possible in Year 1 (with either an adjustment to one undergraduate TRA course capacity or the use of an Adjunct Faculty for that undergraduate TRA course) to begin the Master in L&SCM without a new Logistics faculty. However, by Year 2 of the first cohort, the proposed program will not be able to operate without the first new Logistics faculty. As the attached letter from Interim Provost Pam Chally states, Academic Affairs will conduct analytic assessment on program enrollments as the Master in L&SCM progresses; thus the hire of the second additional faculty member will be reconsidered should enrollments not be adequate to warrant it.
We have budgeted for a USPS administrative support person in Year 1 at $25,000 (fringed to $37,600 annually); a *3% annual cost of living adjustment is added each year and translates into $42,319 in Year 5. This position will be charged with the unique administrative tasks associated with the program, including the communication and record keeping associated with admissions, and the required thesis course. Hopefully, this position will also be able to assist the Coggin College of Business Director of Graduate Programs with marketing and recruiting to the professional business community. This position has also been vetted and approved by Academic Affairs.
However, having more graduate students will likely necessitate additional graduate assistantships, space and computer resources for their use. At minimum, with the addition of the requested two new faculty, there will be an additional cost of approximately $14,400 per year for those graduate assistants. Other expenses (office space, furnishing, computer, etc.) would be an additional $5000. These expenses have also been vetted and approved by Academic Affairs.
At this point we do not perceive additional library resources to be necessary as long as the library retains the databases that they currently hold.
*Notes; “The salary and budget figures above are pending approval based on available funding and in adherence to the Collective Bargaining Agreement.”   

(Master of Sciences in Logistics and Supply Chain Management Proposal Attachment)  

 

(Letter from Academic Affairs)


A Supportive Note from Dr. Pamela Chally, Interim Provost and Vice President of the Academic Affairs.

Date:   October 9, 2017

Re:       Academic Affairs Support for Proposed Masters of Logistics & Supply Chain Mgt.

 

This letter is to confirm support from Academic Affairs for the proposed Masters of Logistics and Supply Chain Management (MLSCM) program. AA believes that there is substantial student demand for such a program, that the program meets a long-standing stated need from employers in the region, and that tuition generated from enrollment in the program will exceed the net additional costs of program delivery.

Academic Affairs received a commitment from the university administration to fund one additional faculty noted in the proposal that is needed in year 2, should the program be approved and launched. This was done in large part because of the rationale described above. Moreover, it was done in order to be consistent with state legislative intent arising out of the 2017 session.

 

UNF received new recurring money from the state legislature for the 2017-18 fiscal year; a substantial portion of this new funding originally carried legislative provisos that it be used specifically to support graduate business education. Planning for such investment was a significant factor in the budget decision processes for 2017-18 and beyond within AA and across the university, and the proposed MLSCM program was a significant part of that plan.

 

The funding's provisos were part of a comprehensive piece of legislation that was ultimately vetoed at the eleventh hour by Governor Scott, even though the tranche of new funding survived the veto process. However, the university deemed it unwise to violate the original legislative intent that generated the new funding. Expenditure on a new graduate program of substantial need and importance to the state's economy is extremely consistent with the funding's original purpose, in addition to being in concert with the university's mission to meet the needs of the region. And as noted above, the MLSCM is expected to generate substantial tuition revenue that can be expended without external restriction by the university.

 

In order to assure that the program will generate sufficient net additional enrollment to cover its marginal costs, AA will conduct analytics on enrollments as the program progresses. The hire of the second additional faculty member slated for year 5 of the program will be reconsidered should enrollments not be adequate to warrant it.