5. Confidential and Proprietary A Cost Center incurs costs (and expenses) directly but does not generate revenues The Basics of Cost A division of an organization that provides quantified value in terms of cost savings or increased revenue is a Value Center
6. Confidential and Proprietary FM Ownership Of Costs Electricity Charges Water Supply Power Transportation Communication DG Hiring Charges Diesel Travel Electrical Materials Hospitality Tea/Coffee Consumption Drinking Water Manpower - Electrical Maintenance HK Material Management Snacks Manpower - House keeping Manpower - Security Petty cash expenses Plants & Miscellaneous Courier charges Printed Stationary Stationery material Photocopy Web Printer Equipment Hiring Charges Repairs & Maintenance Mobile Phone Charges Telephone Bills Space management Hotel Stay Airfare- Domestic Airfare- International Infrastructure Rent AMC & Contracts
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13. Increase Revenue Increase potential savings Reduce unwarranted spend Increase Competitive Advantage in Business Aids in canalizing funds in priority sectors Savings Increase financial stability Confidential and Proprietary FM = Planners Set Standards Best Policies & Costs & Drive Practices Procedures Controls Business FM is the Best in Business
14. Confidential and Proprietary Case Study - 1 Organization A: A leading BPO in the year 2000 : Operating out of a total super built area – 210,000 sq ft single unit; Original built out capacity – 1200 seats for proposed future business ran in to full capacity production by the year 2003 Renovated its capacity in 2003 - to accommodate 1400 seats in the same space by altering the working conditions. Strategy: Resizing work space and furniture. Impact: Increase in Production capacity by 16%
15. Confidential and Proprietary Case Study - 2 Organization B: A mid sized software firm till 2004 Operating out of 32,000 sq ft in 4 separate facilities, comprising of 300 seats Consolidated in to a single unit of 35, 000 sq ft and enhanced their capacity to 600 seats. Strategy: Change in Technology and resizing work space. Impact: Reduce overheads, Logistics & Operational costs. increase in profitability due to volume of delivery.
16. Case study 3 Snapshot of Monthly Costs vs. Savings # Parameters Unit 1 Unit 2 Unit 3 Unit 4 Total Single Unit Savings 1 Area in Sft 18760 18090 21380 18360 76590 60,000 16,590 2 Monthly rent /sft 27.00 11.64 62.67 24.37 31.42 45 (13.58) 3 Rent Outflow 506594 210576 1339957 447462 2504589 2,700,000 (195,411) 4 Total no of Seats 250 236 318 232 1036 1,400 364 5 Employee Capacity 320 540 280 275 1415 2,500 1085 6 Transport cost/person/month 4200 3,800 260000 7 AMC Costs 373482.00 0 373482 8 Contractual expenses 822896.00 662,896 160000 9 Admin Operated Costs 3374087.00 2,715,066 659021 Projected Savings 1,275,117 1 Technology investments 28,150,143 2 Projected Savings 1,422,507 3 Breakeven on Investments 19.8 months GROSS MONTHLY SAVINGS - 18% 2,697,624
This presentation relates workplace to business performance, key tools, and examples of organizations that have achieved value add through innovative workplace strategies.
Space planning means, ensuring appropriate use of intended space of growth.