Topic > Basic Research Techniques - 578

Basic Research TechniquesData Analytics 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, waste and recycling services, security, cleaning, taxes, electricity, water and sewer, insurance, gas and printed materials. These costs could be reduced if the business were to consolidate into one facility .000 Cleaning $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 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 $5.16Number of Employees 80 40 120 117Total m2. Foot. 26,000 19,500 45,500 38,000 As shown in Table 1, the total operating cost for the consolidated facility would be $196,000 per year. Each employee requires at least 200 square feet (real cost), but the need for public spaces such as hallways, kitchen area, restrooms, etc. would be reduced, so SSB can operate with less total square footage than the two separate buildings. Combining the facilities could save $60,100 a year in operating costs. Additionally, the costs of office supplies and printed materials may decrease. The company could also eliminate three positions, which represents one of the largest savings an organization can achieve (real cost). Table 1 includes this reduction in force. Consolidation would bring some of the same functions under one roof, creating some duplicity in duties, and the company could choose to eliminate these three positions: a receptionist, a mail clerk and a custodian. Savings for the company would include wages, benefits and the cost per square foot of its 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 were allocated 200 square feet (Dess), the annual cost savings from eliminating just three positions it would be worth $1,800. Their salaries and benefits total nearly $150,000 between the three of them; therefore, the overall savings from eliminating these three positions could amount to $151,800 per year. As observed in a random survey of 70 employees, nearly all respondents agreed that the distance between buildings created productivity problems for them. 87% responded that they spent more than 1 hour per week traveling between the two buildings.