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Essay / Basic Research Techniques - 578
Basic Research TechniquesData Analysis and Research TechniquesCurrently, the organization operates two buildings approximately 3 miles apart with a combined operating cost of $256,100 per year. These operating costs include rental fees, garbage and recycling services, security, housekeeping, taxes, electricity, water and sewer, insurance, gas and prints. These costs could be reduced if the company consolidated into a single facility. Concierge $6,000 $6,000 $12,000 $8,000 Taxes $8,000 $8,000 $16,000 $8,000 Electricity $52,000 $41,000 $93,000 $70,000 Water and sewer $16,000 $12,500 28,500 $22,000 Insurance $5,000 $5,000 $10,000 $7,000 Gas $13,000 $11.00 0 $24,000 $23,000 Printed materials $3,800 $3,800 $7,600 $5,000 Totals 147,800 108 300 $256,100 $196,000 cost per square foot (month) $5.68 $5.55 $5.63 $5.16 Number of Workforce 80 40 120 117M² total. Strong. 26,000 19,500 45,500 38,000 As shown in Table 1, the total operating cost of the consolidated facility would be $196,000 per year. Each employee needs at least 200 square feet (actual cost), but the need for public spaces such as hallways, kitchen, restrooms, etc. would be reduced, so that SSB could operate with less total area than with the two separate buildings. Unifying facilities could save $60,100 per year in operating costs. Additionally, the costs of office supplies and printed materials could decrease. The company could also eliminate three positions, which is one of the biggest savings an organization can make (True Cost). Table 1 includes this reduction in force. The consolidation would bring together some of the same functions under one roof, creating some duplicity of tasks, and the company could choose to eliminate these three positions: a receptionist, a mailroom clerk and a janitor. The company's savings would include salaries, benefits, and the cost per square foot of their personal space. This study shows that the cost per square foot will decrease from $5.63 to $5.16 per month, so if each employee was assigned 200 square feet (Dess), then the annual savings from eliminating three positions alone would be worth $1,800. Their salaries and benefits total nearly $150,000 between the three of them; therefore, the cumulative savings from eliminating these three positions could total $151,800 per year. As observed in a random survey of 70 employees, almost all employees surveyed agreed that the distance between buildings created productivity problems for them. Eighty-seven percent responded that they spend more than an hour per week traveling between the two buildings..