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Executive Summary:

It is the conclusion of this report that theconsolidation of the A/R department at an off sitecommercial location will be extremely beneficial to thehospital. Within this report are many of thesebenefits. Additionally, this report addresses thefeasibility of the move. The answer being, yes, A/Rwill be able to meet all of its present needs at an offsite commercial location. Enclosed in this report aremany of the needs of AIR (with respect to therelocation), that we foresee. Specifically, we projecta net space requirement of 20,686 to 26,774 sq ft (seeAppendix E for a further breakdown). Additionally, weestimate a cost range incured by AIR in the first yearof the relocation of $412,448 to $897,672 (see AppendixE for further cost breakdown and estimations)

Introduction:

• The origin of this project was the desire of theAccounts Receivables department to improve customerservicing of billingslcollections through theconsolidation of Accounts Receivable functions within asingle commercial location. With respect to thisobjective, our group (in conjunction with I.O.E. 481,professor Richard Coffey) has conducted a study toprovide the necessary information, plans, and desiredoutcomes of this effort.

Purpose of Study:

Determine the Feasibility, Reasoning, SpaceRequired, and a gross Cost estimate, for theconsolidation of the Accounts Receivables departmentwithin a single, contiguous, commercial location.

Background:

Presently, the Accounts Receivables department islocated in two separate general locations. PatientAccounts is located in the Main Hospital outside MottsChildren’s Hospital. Billings and Third PartyCollections is located on the 7th floor of the NorthIngalls building. Because of the distance between thefunctions of this department, problems have occurred.The excessive mailing time between divisions hashampered the ability to work together. Neededinteraction (between functions) is lost in the timerequired to communicate. This defines the presentsituation.

Scope of the Project

The scope of this project was first generally stated tobe determining the feasibility of the consolidation and moveto a new, commercial location of Accounts Receivable. Thiswas further narrowed down so that the concentration would beon:

• Developing a space and cost estimate for aconsolidated division at a commercial location within afive mile radius of the UMH.

• The assessment of workstation configurations ofmodular furniture in regards to gross space and costrequirements and the additional benefits associated withimplementing modular furniture into the AccountsReceivable environment.

• Determining if the present mail requirements can bemet at an off—site commercial location, and alsopossible alternatives or improvements to the presentsystem in order to decrease the length of time recordsand other materials spend in the mail.

• Determining if the division’s computer operations willbe affected (adversely) by moving to an off—sitecommercial location

Beyond the Scope of This Project

Additional considerations needing to be addressed beforethe move takes place, which have already been acknowledged asfuture studies, but are beyond the scope of this project are:

• Job analysis or job redesign within the AccountsReceivable division, for instance, creating work teamsthat process a record from beginning to end.

• Determination of relationships between AccountsReceivable functions in regards to priorityrelationships (i.e. Function A needs to work closely orcommunicate frequently with Function B) in order todesign a layout that considers this flow of informationand processing. (For both the new location and the 18Patient Accounts employees staying at the UniversityHospital.)

• The aid of a computer consultant for determination andcoordination of exactly what are Accounts Receivable’soff site computer needs.

• The cost and time plan for the physical move of thedivision. -

• The commercial space should be open to bidding by allRealtors.

• Before commitment to an identical workstationconfiguration for all functions, consult with an expertsuch as an Industrial Engineer or an ergonomist (aperson who specializes in determining the exact spacerequirements of people performing specific functions,for example, what they need at an arms length away orhow much counter space they need for the particular typeof terminal they use) for specifically tailoredworkstations in regards to the workstations functionaluse.

• A study of employee acceptance to the consolidation,the move, and the new environment.

APPROACH AND METHODOLOGY

• We approached this project by generating a set ofcriteria based on the idea of creating an environmentwhich serves to open communications.

• This criteria was used for the evaluation andcomparison of alternative factors involved in theconsolidation of Accounts Receivables.

• Criteria for evaluating factors to promote anenvironment which opens communication

— The smaller the size of the area in which thedivision operates, the more open communicationswill be; although the size can be determined tobe too small.

— The more open and barrier free the area that thedivision and specific functions are located in,the more direct the lines of communication canbe, encouraging more open communication.

— The better the transfer of information betweenindividuals and or functions, the more opencommunications can become. It is made up of thefollowing factors:

•

accuracy • formality • speed• availability • method • type• disinformation • privacy

— The relationship between the functions shoulddirectly influence the layout. The layout shouldbe used to promote open communications byproviding an interface and increasing proximitybetween interacting departments, and beconstructed so that a direct line ofcommunications will be obtained.

• •*•

• By the consolidation and relocation of the AccountsReceivable Department the following benefits couldoccur:

— Cost considerations and cost incurredcompared to the cost reductions of the move.

— Better customer service and customer relationshipwould occur.

— Increase employee production.

• The relationship between the functions should directlyinfluence the layout. The layout should be used topromote open communications by providing an interfaceand increasing proximity between interactingdepartments, and be constructed so that a direct line ofcommunications will be attained.

•Mailing and Deliveries

Current Situation

One of the most important facets involved in therelocation and consolidation of the A/R department isMail. Approximately 75% of all mail related to A/R isshuffled between it’s current two locations.Approximately 14% of the 670,000 transactions initiallyremitted and/or acted upon by Finance results ininterfile transfer, write—off or B/AR adjustment. Aloss of at least 1 working day is incurred for 11% ofbillings. (* These figures are a result of a study doneby Neal E. Gilbert, Senior Management Engineer, Subject:Incoming Accounts Receivable—Related Mail ManagementPost Script, February 7, 1989)

Through the relocation and consolidation of A/Rthese problems will be overcome. The main focus of thisstudy was to determine if relocation will cause anyother problems with mailing and deliveries.

Alternatives

• Suggested possible flow charts for the A/R mailingsystem are presented in Appendix A.

• Types of Delivery Modes which may be utilized:— Finance Messenger Runner— Finance Mail Tray Service— Finance Bank Box Service— Material Management Messenger— The Mail Shop— Pony (or Federal) Express

• In coordination with other off site U.M.H.departments, it may be cost effective for materialmangement to begin deliveries to the new A/R area.

• Do to the large decrease in mail produced by theconsolidation, it may be possible for an employee onhis/her way to work to become involved in the A/R mailacquisition.

• With the possible proposed renovation of the A/Rcomputer system E—mail may be utilized to its fullestextent, reducing written mail demands further.

Conclusions

• A/R will greatly cut down on its present mailingvolume by moving to a consolidated location and greatlyreduce its processing times.

• Mail delivery to an off site A/R department willnot be a problem.

• The cost incurred, with respect to mailing anddeliveries, by moving to an off site location will beminimal in comparison to the benefit.

Computers:

Findings

HIS Network Connection:

Connection to the HIS Network will not be a problemat an off site commercial location. Although it willtake longer to exchange data with the HIS Network due tothe reduced Baud capacity (increased uploading anddownloading times) when going through phone ports,Accounts Receivable has adapted to this disadvantage inthe past.

Recommended Alternatives

• Employment of a computer specialist consultant toanalysis the situation and present solutions beforeconsolidation occurs. This would cost approximately$100,000 for a local consultant and $150—$200,000 for abig 8 firm.

• A possible suggestion a computer consultant wouldmake, would be the utilization of an A/R mini computerto upload and download information.

• Moving to a P.C. oriented system would be anotherpossible recommendation. This would help A/R move to apaperless environment. This would cost approximately$3,000 per workstation, with 118 terminals this wouldproduce a cost of $354,000. Additional costconsiderations would include employee training,(changing File clerks into Data Staff).

• For the immediate future, A/R should look intopaying for the cost of getting an off site location hardwired (as they recently had N.I.)to the HIS Network.This option could produce the same computer datarequisition and entry that A/R presently has.Additionally, the cost could be justified bycoordination of other Hospital Departments (i.e in theBriarwood area) into the same facility, and thusproviding the Computer Benefits for multipledepartments.

Layout:

Findings

Layout is a key issue in the consolidation ofAccounts Receivables. The right layout can have atremendous impact on creating a desired environment.By consolidating at a new, less restricted location,inherent barriers (such as the ones that exists in NIB)will be eliminated.

Recommendations

In order to get the right environment for you andyour staff, we recommend you do the following:

• Create a relationship table. This will determinethe present relations between various A/R functions.The use of work flow charts will be especially helpfulin accomplishing this

• Through analytical evaluation, numerous layoutswith different advantages will be created.Reorganization of function groupings and work flowredesigns will also be beneficial alternatives presentedby this process

Benefits

• Better customer service, thru the consolidationand possible job redesign in conjunction with layout,A/R will be able to provide

— quicker service— improved handling of customer problems

(trouble shooting)— more personalized care

better access to client history

• Increased employee productivity, layout will makeemployee’s jobs easier with an environment tailored totheir needs

• Increased employee productivity could allow forstaff reduction through attrition.

• Through the increase in speed of A/R functionslarge cost benefits can be obtained through the hospitalgetting its money faster, and thus getting otherwiselost interest.

Benefits Continued

If an open office configuration is chosen, therewill be significant improvement in flexibility (if a jobredesign takes place after the initial move) and reduction inrenovation costs. Additionally open offices also have thefollowing benefits:

— Improved Communications— Improved Supervision— Better access to common files and equipment- Easier to light, heat, air condition, and

ventilate— Reduced maintenance costs— Because there are fewer obstructions, space

requirements are less than for closed offices.

MODULAR FURNITUREIt was requested that a study be done on integrating

modular furniture into the workplace of the consolidateddivision. The alternatives looked into were:

Alternatives

1. A rectangular configuration of four workstations,which is presently being proposed to Billings and ThirdParty Collections by the Interior Design department ofUMH;

2. Workstations interconnected by other than 90 degree(right) angles, which will be referred to as multi—angular workstations.

Findings

1. Rectilinear (Rectangular) Configuration

• As was alluded to above, Billings and Third PartyCollections, which makes up 62 of the 104 staff membersthat would be in these workstations, will most likely beimplementing a configuration proposed by InteriorDesign.

• The rectilinear configuration costs $3500 perworkstation, of which there are four per configuration.This price is available through a discount that the UNHreceives on Steelcase furniture.

• Because 62 of the 104 workstations will have beenpurchased already, only an additional 42 workstationswould have to be purchased for Patient Accounts (if itis desired they all use the same furniture) for theconso1idation. The total cost would be $147,000.

• The net area per configuration is 203 sq.ft., and thegross area is 213.87 sq.ft.

• The total net area for 26 configurations (104workstations) is 5,278 sq.ft. and the total gross areais 5,560.67 sq.ft.

• This configuration requires 1,230 sq.ft. less than iscurrently used by the staff.

• A diagram of the purposed workstation can be found inAppendix D. It is important to note that the top,center chair represents a third computer terminallocation and is only a transient workstation. Theactual workstations are located in each of corners ofthe configuration. Also important to note is

the fact that the perimeter walls of the configurationare 4’ high.

2. Multi—angular Configuration

• Through use of an example of multi—angularconfigurations (DYNAMIX, by Rosemount) it was determinedthat, on average, 14% more workstations will fit in thesame gross area than a rectilinear set up.

• The total gross area required for 104 multi—angularworkstations is 4,859 sq.ft. (approx.) . Thecalculations performed to determine this area can befound in Appendix D.

• The average cost of a DYNAMIX multi—angularworkstation was estimated by Coordinated Industries Inc.to be $6000.

• The total cost of providing 104 workstations of thistype would be $624,000.

• For a general example of a layout using DYNAMIXfurniture, refer to Appendix D.

Conclusions

• Because of the”sunk” cost of the purchased rectilinearfurniture, the rectilinear furniture will be 76% lessexpensive to provide in the consolidated location thanthe multi—angular. The savings would be $477,000.

• Because the multi—angular furniture takes up 700.70sq.ft less than the rectilinear, its implementationwould save $11,211 per year in leased space (assumingrent is $16/sq.ft./year)

• Therefore, the break—even point between the savings ofthe rectilinear furniture over the multi—angularfurniture is 42.5 years, indicating that in 42.5 yearsthe savings by using multi—angular modular furniturewill equal that of the rectilinear.

• Note: The break—even point was calculated assumingthat rent for the leased space is $16 and does notchange over the course of time. Since it would beunreasonable to make this assumption, the break—evenpoint will actually be earlier than 42.5 years,depending on the price of leased space.

Recommendation

We recommend the implementation of the rectilinearconfiguration, or unit, proposed by Interior Design for

the consolidation of the division. In addition to itscost advantages and benefits, it also provides benefitssuch as promoting better customer service and increasedemployee productivity.

Benefits

The layout of the individual rectilinearconfigurations promotes an open communicationsenvironment between teams of four staff members. Thisshould enable employees to solve problems easier andquicker than currently since everyone will be in closerproximity, and in turn will increase the employeeproductivity.

• Each rectilinear unit can be easily fit adjacent tothe next unit, thus enabling the overall layout to beeasily fit together.

• With each rectilinear unit fitting easily to the nextand the division between the two being a short, 4’ wall,functions can easily be placed in relation to each otherin order to provide an open communication environmentthat will increase the productivity and in turn providebetter customer service due to the quicker servicebecause of increased proximity and better accuracy ofinformation transferred.

• The layout of the division can achieve a sense offormality, if desired, due to ability to form functionalblocks with the rectilinear units. The functions canstill be somewhat separate from the others yet still beclose enough for easy interaction.

Each unit, although promoting open communications,also allows some individual privacy because the backs ofth employees are all to the center of the unit. Thisa1]ows for phone conversations with patients to remainprivate if necessary.

• Information can travel faster because there is lessspace to cover in the retrieval of it and there will notbe the need for inter—divisional written mail

• The space created using the rectilinear units can alsoserve as an are for small meetings between employees andthe supervisor and/or manager, thus decreasing the needfor conference room space. It also provides a settingfor spontaneous information sharing between groups sincethe need for getting a conference room is decreased.

The multi—angular configurations provide most of thesame benefits as the rectilinear, with the addition ofwork teams as large as six members around one of the

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Space Requirements

Space Requirements are dependent variables based onthe layout configuration you choose to utilize. In thescope of this project they are very important, as mostof the cost incurred by A/R in the consolidation andrelocation will be for renting space. Because yourspacial needs will vary depending on many decisionsyou make, were going to try to make it easier for you.In determining your space needs we faced manyalternatives. These alternatives are presented here.They were factored into our cost estimates, thusproducing a cost range (Table 1).

Conference Rooms: Will they be needed?

Alternatives

• Conference rooms are an important venue fortransferal of information. However, in an openenvironment this form of information exchange may notbe necessary, because conferences could be held inthe open areas of the office.

• Since the form of a conference meeting is alwaysavailable the need for conference rooms is reduced.

• For private communications dealing with smallnumbers of employees, conferences can be held in youand your managers offices.

• If an all hands meeting is necessary (i.e trainingpurposes), renting an area is a possibility in certainlocations.

• If you do decide to have conference rooms you havequite a few options:

—> 2, 400 sq ft rooms that could be divided viamovable walls, into 4, 200 sq ft rooms

—> 1, 400 sq ft room and an additional 200 sq ftroom once again utilizing movable walls(curtain walls)

—> 2, 200 sq ft rooms, curtain walls arebeneficial for any decision

Benefits

By having a department conference room(s) groupmeetings can be held at anytime without interception,scheduling problems, renting cost or travel time.

• Better control over information access (i.e. whoyou invite to the meeting)

• Dual Purpose:—> By utilizing conference rooms as breakrooms,

two needs can be fulfilled at the same time—> Reduction of disinformation (i e employees on

break have somewhere to congregate and notdisrupt working employees

—> Provides an atmosphere where productiveinformation exchange may take place whileemployees are on break (i e posting orprojecting A/R information in the breakroom)

Conclusions

• In the final analysis the decision of conferenceroom space allocation will come down to you.

• We have accounted for various alternatives in ourspace estimates (Table 1), 0—800 sq ft.

• The decision may become easier after certain layoutdecisions are made.

Additional Space RequirementsIj - • Computer Room (0—350 sq ft)

A computer room may be needed at your new locationbased on decisions you make in the near future on yourcomputer system. A computer room will require specialenvironmental controls (i.e temperature, static freefloors) . A computer room will cut back on spaceneeded for business records, however, hardcopybackups will always be needed for some things.

Business Records (0—1131 sq ft, gross)Immediate reductions in space requirements for

records will occur with the consolidation. Unnecessary,duplicate records can be eliminated, combined with theuse of space savers will bring about reductions.Alternatives regarding record location will also affectspace (i.e will a specific file room be needed)

Alternatives

• Centralized Records+ Reduced time through better organization+ Better accessibility through organization+ Employee adaptability will be high, (i.e.

its a standard system and thereforeeasier to learn)

+ Proximity of files would be optimized byhaving the files centralized, the samedistance from everyone

+ Forces more employee interaction, thusincreasing information exchange

— An inconveince for an employee who needslimited access to records

Departmental Records+ Reduced time through having necessary

records for specific functions located intheir respective areas

+1— People within departments will befamiliar with the location of theirrecords, therefore it won’t be toodifficult for other functions to gainaccess (not as good as centralized in theaspect of access but better thanindividual).

Individual Records+ Information would be processed much

quicker by having necessary records rightat the workstation. (i.e. employeedealing with accounts A—C records locatedat workstation)

— Less interaction among AIR employees (i.ethe right hand doesn1t know what the lefthand is doing)

— Makes it difficult for employees to getinformation from other employees, due tothe format

Recommendations

• It depends on if you decide to restructure A/R ornot. Additionally the type of employees you have (i.e.work better in teams, extroverted, introverted)

• Centralized Records have the best advantages foropening communications within your department.

• Mail Room (possible 75% reduction from presentbased on estimated mail reduction)

The mail room can be reduced in size at your newlocation due to the elimination of much inner officemail. It too should be centralized for optimaldistribution.

• Office Supplies (0—300 sq ft)—> Through the use of modular furniture, most

office supplies can be stored right at theworkstation

—> A small storage area that is frequentlystocked could accommodate A/R needs

—> Additional cabinet storage could be used inhalls thus utilizing otherwise wasted space(must stay in fire code)

Reception Area/Information Desk (0-297 sq ft)This will provide better availability of

information to customers/clients, and aid in thedirection of A/R calls to representatives, thusimproving customer service. Additionally, with theconsolidation, separate reception areas may no beneeded.

• Copy Room(s) (126—240 sq ft)Copy rooms will grow at the new location with the

addition of such things as fax machines, laser printers,and multi—function copiers.

• Corridors (variable)Corridors will be greatly reduced due to the

incredibly effective, optimal, and beneficial layout Iam sure you will create.

COMMERCIAL LEASING

In order for a consolidation and relocation of AccountsReceivables Department, a thorough study on off—sitecommercial leasing opportunities was done to accommodatetheir needs, the following criteria needed to be met:

Criteria for new building

1. Amount of floor space

• The new location must have enough open space on thesame floor for the entire department. If this does notoccur, a barrier could arise, thus ineffective opencommunications would result.

2. Shape of the floor

• As a general rule, the more direct the lines are, thebetter the open communications will be. If the shape ofthe floor does not provide direct lines betweenemployees requiring it, open communications will behampered. For example, if two employees have tocommunicate, a barrier in the shape of the building,such as a wall, would effect it. On the other hand, ifyour work flow function are as such as only a fewemployees need to communicate with each other, thanbarriers do not have to be considered. These employeescan be accommodate by having work stations next to eachother.

3. Windows

• Many people would like them, and they seem to beplentiful on buildings, however they create glare oncoMputer screens, which would slow down communications.Anti—glare screens do not work very effectively, soshades or window treatment will be needed Of thebuildings I looked at, shades were provided, but thisdefeats the purpose of having windows Window treatment(i e window tinting) costs money, but allows the use ofwindows

4. Expansion

• When looking for a new commercial location, consider aplace which gives you an option to lease additionalspace. Thus, if expansion should be needed, thenAccounts Receivable will be able to accommodate theadditional employees.

Alternatives

1. 777 Eisenhower Plaza, which is located at 1—94 andState Street on Eisenhower Parkway.

2. 1000 Campus Drive, which is located in the Briarwoodarea.

3. Research has been done by Mr.McKenney, in which hehas currently found at least eight buildings in AnnArbor that could meet the needs of Accounts Receivable.In addition, he also mentioned the possibility that adeveloper would be willing to build a buildingexclusively for Accounts Receivable, or with AccountsReceivable as an anchor tenant.

Findings

1. 777 Building

) • More than enough free parking was available.

• 24 hour access to security.

• Handicap facilities were available.

• 26,000 square feet, which would be able to put all ofyour employees on one single contiguous floor.

It is in a U shape form.

• Windows are located all around the building.

• Cafeteria was available.

• A mail dock was provided.

• Conference rooms were attainable through rent$15.00/hour)

• The price for leasing for one year was$16.50/square foot + electric.

2. 1000 Campus Drive Building

• Ample free parking.

• 24 hour access to security.

• Handicap facilities were available.

• Approximately 14,000 square foot per floor.

• The design is in a curve (phone) form.

• Windows primarily facing the East.

• The cost per square foot is $16.50 ÷ electric.

3. The eight locations researched by Mr. McKenney

• Price range quoted was as follows:

— $16.60 + electric with a $6 expense stop.

— $17.95 Gross (all other expenses paid by landlord.)

— $18.50 + electric with a $5.00 expense stop.

Recoramenda t ion

Some realtors will want to suggest construction of anew building with a developer either as an anchortenant or personal building. Although an appealingdeal may be negotiated, now is not the time toconsider a move this drastic. Accounts ReceivableDepartment needs to adjust to a place which willhave the flexibility in shape and size to satisfyfuture needs along with finding the optimal work flowfuntion that will best utilize open communications.In summary, a leased space will give more flexibilityto move to different locations to meet required sizesand shapes for the desired communication environment.

• When looking for a lease, put your best negotiator onthe deal, this will ensure you are. getting the mostfor your money.

• Look for a location similar to the environment of 777Building.

• Look for a single contiguous barrier free locationthat will accommodate all your employees on onefloor, this is one of the most important criteria inpromoting effective open communications.

• Look for commercial location which will fulfillpurrent needs, as well as future needs.

• When looking for the most optimal shape, find alocation with as few barriers as possible, in thatway a more direct line of communication will bepossible.

• Look for an area which has the most benefits foremployees ( i.e. cafeteria, adequate storage space,close to other commercial stores) this will increaseemployee morale which would enhance productivity.

• When analyzing the frequency of using spacei.e. conference rooms), look over other options,

such as renting a conference room in the building,this way you are not paying for wasted space.

C

• Keep handicap facilities in mind when locking for newlocation.

• Look for a location that will provide 24 hour accessto security.

• Look for a location that provides free parking, thiswill also increase the morale of the workers.

Benefits

• 777 Building has 26,000 square feet per floor, whichwould be more than enough space to locate all of youremployees in one single location, thus increasingcommunications. This building has windows located allaround the building, which the employees would enjoy.This building also provides a cafeteria, mail dock,and rentable conference rooms. This location is inthe other commercial locations, which will provideemployees access to commercial stores(i.e. Meijers), which your employees would like.This location is near the highway, which wouldincrease employee satisfaction, because they couldavoid Ann Arbor’s downtown traffic.

• 1000 Campus Drive Building has a curved (phone) shapedesign to it. This design would increase opencommunications better than any other type of design.

• Both locations provide the following:

— Ample free parking.

— 24 hour security access.

— Handicap considerations.

• By building a new location (though not recommended)many of the above needs would also be attainable.

• As a side note, an additional benefit to therelocation will be the space made available in theN.I. building.

ALTERNATIVE 1

0

00

MAIL DELIVERED BETWEEN UMH AND NEW LOCATIONTHROUGH AN E-MAIL SYSTEM, FAX MACHINES AND

- EITHER AN OUTSIDE COURIER OR AN EMPLOYEE OFFINANCIAL SERVICES.

- MAIL DELIVERED BY AN OUTSIDE COURIER (eg. MAIL SHOPPE)

- MAIL DELIVERED BY MATERIEL MANAGEMENT

POST OFFICE

MAIL SORTED HERE

0 0

NEW LOCATIO UMH

0-

ALTERNATIVE 2

MAIL DELIVERED BY MATERIEL MANAGEMENT

0MAIL DELIVERED BETWEEN UMH AND NEW LOCATIONTHROUGH AN E-MAIL SYSTEM, FAX MACHINES ANDEITHER AN OUTSIDE COURIER OR AN EMPLOYEE OFFINANCIAL SERVICES.

POST OFFICE UMH

MAIL SORTED HERE

NEW LOCATIO

0

0

ALTERNATIVE 3

MAIL DELIVERED BY AN OUTSIDE COURIER

MAIL DELIVERED BETWEEN UMH AND NEW LOCATIONTHROUSH AN E-MAIL SYSTEM, FAX MACHINES ANDEITHER AN OUTSIDE COURIER OR AN EMPLOYEE OFFINANCIAL SERVICES.

POST OFFICE UMH

0 0

NEW LOCATIO

MAIL SORTED HERE

RECOMMENDATION FOR MAIL SYSTEM

00

- MAIL SHOPPE

- MAIL DELIVERED BETWEEN NEW LOCATION AND UMH WILL BEDONE THROUGH AN E-MAIL SYSTEM, FAX MACHINES AND BY AFINANCIAL SERVICES WORKER

POST OFFICE

10MAIL SHOPPE

SORTS MAIL HERE

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0/NEW LOCATION 0 UMH

APPENDIX B

(COMPUTERS)

The following is a list of people Consultedduring this Study in con nction with Computers

However, the two local Computer consultants listed canbe used as starting Points but not for bidding purposesuntil more contractors have been Considered.

• Northern Telecom Inc. Meridian SL—lBox 202048 Integrat TerminalsDallas, TX 75220 & Digi Phonesph: l—800_328_gsOO

• Jim Bigwoo (HIS) in conjuncj0 withGary DeanTaudmen Center B1240ph: 9364900

• Elan Systems Inc.Computer ConsultantLeo Dijulisph: 668—6738

• Heney Systems Inc.Computer ConsultantMichael Heneyph: 95—4014

APPENDIX C(LAYOUT)

In this Appendix are some examples ofquestionnaires that will be helpful in generating arelationship chart.It is additionally recommended thatthis be done as a future I.E team project, or possiblyby a starving I.E intern.

Text:Facilities PlanningJames A. Tompkins John A. White1984

COMMUNICATIONS SURVEY

Name Department Title Phone Location Date

Instructions: Please complete the above information. Record the persons, departments, and activitieseither within or outside of the office with which you often communicate down the left-hand column. Answer each of the following six questions for personal, written, ortelephone communications and record one of the following answers:

Questions AnswersI. Rate the importance of your communications with this person, department, or 1. Low

activity.2. Rate the level of interaction with this person, department or activity.3. Rate the amount of control you have over this person, department, or activity.4. Rate the amount of control this person, department, or activity has over you.5. Rate the criticality to your job that you communicate with this person, depart

ment, or activity.6. Rate the criticality to the job of this person, department, or activity of your

communications.

L

List the persons, departments, and Quest. 1 Quest. 2 Quest. 3 Quest. 4 Quest. S Quest. 6activities with which you often o i i o i i o i i o i I 0 I 1 0communicaten n n n n n n n n n n n n n n n n npwp pwp pwp pwp pwp pwper h er h er h er h er h er hrio rio rio rio rio riost fl St n st n St fl St n St floi e oi e oi e oi e oi e oi enn nfl nn nn nfl nn

g g g g g g

Figure 12.1 A questionnaire used to determine the interaction between an employee and others.

2. Very low3. Average4. High5. Very high

F.G.H.

J.K.

Name

SPACE REQUIREMENTS SURVEY

Department

Questions

Title Phone Dat

1.

Instructions: Please complete the above information and answer the folquestions.

AiWhat percentage of your time during an average week do youspend doing the following:A. Writing on 8’/, x 11” paperB. Writing on ledgers or computer printoutsC. Drawing on large charts, maps, or printsD. Preparing reports from several reference documentsE. Reading 8’/z X 11” reportsF. Reading from ledgers or computer printouts

G. Reading large charts, maps, or printsH. Using a calculator

I. Using a typewriterJ. Sorting or collating papers

K. Talking on the telephoneL. Talking with one person sitting at your desk

M. Talking with two persons sitting at your deskN. Talking with more than two person sitting at your desk0. Being away from your deskP. Other—please stateQ. Other—please stateR. Other—please state

2.

B.

10

C.

D.

Record the answers to the following questions for the requirementswithin your work area.A. How many standard file drawers for material frequently

referred to?How many legal-sized file drawers for material frequentlyreferred to?How many standard file drawers for material which is seldomreferred to?How many legal-sized file drawers for material which isseldom referred to?How many feet from the floor is the height of computerprintouts?How many boxes of computer cards need to be stored?How many linear feet of bookshelves are required?How many standard-sized desk drawers do you fully utilize?

E.

Other—please state.—

Other—please stare.—

Other—please state.

Figure 12.2 A questionnaire used to determine the space requirements for eemployee.

426

DEVELOPING ALTERNATIVES: FUNCTIONS

MANAGERIAL INTERVIEW QUESTIONNAIRE

Person Interviewed Title Department Phone Location

Interviewer Date

1. ‘Who is your direct supervisor? ‘What is the supervisor’s title?

2. Who do you supervise? ‘What are their titles?

3. Whatdoyoudo?4. What do the people you supervise do?

5. What is your opinion of the area requirements sent to you based on the space

requirements survey? Are the figures accurate?

6. What is your opinion of the interrelationships sent to you based on the

communications survey? Are there any relationships that are incorrect or

missing?7. What is your department’s need for additional storage space?

8. What is your department’s need for additional office equipment?

9. What changes are going to take place in your department in the next year? Three

years? Five years?10. What clerical services or other general services does your department or should

your department utilize?

11. If you could make changes in the existing office facility, what would they be?

12. What else should be known about your department or for that matter, the entire

office facility that should be known when planning the new facility?

Figure 12.4 A managerial interview questionnaire that may be useful in structuring

management reviews of data collected from employee questionnaires.

ofiedion.iedionpenforfor

ility

APPENDIX D

Most of the information regarding modular furniture wascollected and coordinated by Jeneen Hill. If there are anyquestions regarding this section of the project, pleasedirect them to Jeneen, at #665—9456 until July 1990, or toone of the following references.

References

The references used to collect information regarding themodular furniture were:

• Helen Bennett, Interior Design Department, UMH— Interacted through phone conversations; provided therectilinear diagram and a budget estimate for that

project; involved in the NIB Finance Project.

• John Ballew, Interior Design Department, UMH— Spoke with him in person once to clarify the numberof workstations per configuration; involved in the NIBFinance project.

• Coordinated Industries Inc., Business Interiors30625 West Eight Mile RoadLivonia, MI 48152313/476—0396— Contacted by phone requesting information on multi—angular modular furniture; they sent informationincluding the DYNAMIX brochure; contacted again forpricing of the average DYNAMIX workstation (by CharlesWebb).

Estimation of Gross Area for DYNAMIX Workstations

• DYNAMIX can provide 14% more workstations than arectilinear set up in the same gross area. This was takenfrom the brochure by:

Total number of Square Feet: 6,997Total number of Rectilinear Workstations: 55Total number of DYNAMIX Workstations: 64

[1 — (55 workstations/64 workstations)] x 100% = 14%

• 104 rectilinear workstations in 5,561 sq.ft.= [104 x 114% = 1 119 (118.56) workstations in

5,561 sq.ft.

• Average Gross Area/ DYNAMIX workstation =

119 workstations/5,561 sq.ft. = 46.73 sq. ft

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Table 1. a Total Estimated Cost for a Three Year Lease at$1 6Isq.ft./year.

Leased Space(25,778 sq.ft. total)

Per Month$34,370

12,250

368133467320

19,6678,333

7

Per 1st Year$412,448

147,000

4,4161,6005,6003,840

236,000100,000

9

Per 3 Years$1,237,344

147,000

13,2484,800

13,28411,520

236,000100,000

7

LESS: Modular Furniture 1,640 19,680 59,040(space savings)

*Conference Room 699 8,384 25,152Office Supplies 400 4,800 14,400Reception Area 396 4,752 14,256Business Records 697 8,368 25,104Salaries ?

PLUS: Modular Furniture(purchase)

*Conference RoomCoat RoomComputer RoomCopier RoomPersonal ComputersComputer ConsultantMini Computer1 Tt 1 t’c. 2.196 26.352 79.056

TOTALS 74,806 897,672 1,723,500

* An average cost for conference rooms used in computation.

Space Requirements:

Table 1. Estimates of the Range of Gross AreaRequired by Accounts Receivable.

VariablesConf. Rm./Brk. Rm.Office SuppliesReception AreaCoat RoomComputer RoomCopier RoomBusiness RecordsCorridorsStairwellsFinal Range* Present gross spacefurniture.** Present gross space

LOW*28229

-524 to +276-300 to 0-297 to 00 to +1000 to +350+126 to +240-1131 to 0

• -1209 to 0-592

24302

HIGH**32669

-524 to +276-300 to 0-297 to 00 to +1000 to +350

+126 to +240-1131 to 0-1209 to 0

-592

33.043in square feet minus recommended modular

in square feet with additional 10% expansion.

Space Requirements, cont’d

Table 2.required

Estimates of the Range of Net Areaby Accounts Receivable.

VariablesConf. Rm./Brk. Rm.Office SuppliesReception AreaCoat RoomComnuter Room

-524 to +276-300 to 0-297 to 00 to +1000 to +350

HIGH**25778

-524 to +276-300 to 0-297 to 00 to +100o to +350

Project: Space Planning and Cost Estimate for

the Consolidation of Accounts Receivable

Staff: Mike Cantrell, Jeneen Hill, Mark Steffes,

Charles Webb, Scott WellensDate: May 1, 1990

LOW*

10...:

2220

- -

---

Copier Room +126 to +240 +126 to +240Business Records -523 to 0 -523 to 0

Final Range 20686 26774* Present net space in** Present net space in

square feet minus recommended modular furniture.square feet with additional 10% expansion.

APPENDIX F

Most of the information regarding off—site leasing wascollected and coordinated by Chuck Webb. If there are anyquestions regarding this section of the project, pleasedirect them to Chuck, at #996—4188 until July 1990, or to oneof the following references:

References

The references used to collect information regarding themodular furniture were

Frank E. McKenney, Commercial RealtorGroup Four, Inc.,400 E. Eisenhower Pkwy.,Suite LWilliamsburg SquareAnn Arbor, MI 48108(313) 994—4444

— Contacted by phone requesting information oncommercial leasing in Ann Arbor. Frank sent mecost estimates on at least five buildings in AnnArbor that could accommodate Accounts Receivablesneeds.

Eric Yale Lutz & Associates77 Eisenhower PlazaSuite 130Ann Arbor, MI 48108(313) 994—7000(313) 540—8444

— Contacted by phone and in person requestinginformation on 777 Eisenhower Plaza. They sent abrochure regarding information on the 777 EisenhowerPlaza.