Relocation

ChallengeIT division operating costs are at high levels

Relocation Move operations to location were costs are lower

Assets

Resources – Office, Furniture Staffing – Employees, Salaries Technology – Equipment,

Hardware, Software, Applications

Division Analysis

Assessment Comparison Identification Presentation

Time Line

Demographics

450 Employees Offices in 14 States Technology Support Operations

Office Locations

Arizona California Delaware Florida Illinois Indiana Louisiana

Michigan New Jersey New York Ohio Oregon Pennsylvania Texas

FinanceInformationTechnology

Human Resources

Real Estate

Groups

REAL ESTATE TEAM

Brent Kelley – Project Manager Amit Atrey - DBA Kavita Ahuja – Business Analyst Chris Francia - Architect

Calculation

Four sites in each location Price = Average of four (single) Price = Average of four

(combined) Cubicle size 8x8 manager Cubicle size 8x6 non manager Additional 5%

State Individual Combined New York $6,689

$81,312 Arizona $2,639

$29,948 California $2,358 $53,187 Florida $2,096 $20,457 Delaware $1,865

$24,387 Texas $1,803 $23,893 Louisiana $1,704 $22,584 Michigan $1,544 $23,239 New Jersey $1,525

$18,539 Oregon $1,420

$18,820 Illinois $1,284 $17,020 Indiana $1,025

$13,583 Ohio $827 $10,965 Pennsylvania $790 $10,474

Office Furniture

Management Furniture Cost$ 90,000

Non-Management Furniture Cost

$ 321,300

Individual Office Location

Combined Office Location

HUMAN RESOURCE TEAM Paul Roethele – Project Manager William Maw - DBA Abdulkadir Moallin – Business

Analyst Jerry Mudd - Architect

Challenges

Employee relocation Salary commensurate with

location Incentive relocating New employee acquisition Calculate cost savings

Compare Salary/ Position analysis from 14 states

Employee survey Factor potential impact to other

departments Relocation costs

Requirements

Four Top Positions By Location

IT TEAM

Josh Huber – Project Manager Dustin Lutz – Network Architect Joe Baldwin – Business Analyst Clayton Deringer – Database

Admin

Challenges

Research and Develop a comprehensive database that will track all IT assets.

Track location and cost at a granular level for all IT assets.

Solution

IT group developed an excel spreadsheet that analyzed all the states separately.

A summary sheet delivers an overall cost for IT assets at all fourteen locations.

Asset Locations

PrductID ProductName ProductType ProductCategory CostPerUnit

1 DL 580 (HP) Server Server Hardware 7680

2 DL 380 (HP) Server Server Hardware 2149

3 D63012 Dell Laptop Computer Hardware 830

4 19" Widescreen LCD Monitor Hardware 165

5 Docking Station Docking Hardware 196

6 Blackberry Phone Phone Hardware 100

7 i265 by Motorola Phone Hardware 25

8 Cisco 7975 G Phone Hardware 650

9 Cisco 7906 G Phone Hardware 150

10 Cisco CallManager Service Software 12000

11 Cisco Catalyst 3750 Switch Hardware 7500

12 Cisco catalyst 6500 series Switch Hardware 9000

13 Enterprise Server 2003 Service software 10000

14 Ethernet cable Data Transfer Hardware 0.25

15 T1 Lines Data Transfer Hardware 359

16 Fiber Optics OC3 Data Transfer Hardware 5425

17 HP Laserjet P2015dn B\W Printer Hardware 250

18 HP Laserjet 3600n Color Printer Hardware 550

19 HP 4345 MFP Multifunction Printer Hardware 1800

20 Xerox 232 Multifunction Printer Hardware 5700

Location Cost Analysis

State Per Month Per Person

New Jersey $7018.54$360.80

Delaware $7018.54$360.80

New York $7018.54$360.80

Pennsylvania $7018.54$360.80

Florida $6672.04 $385.75 Louisiana $6672.04

$385.75 Texas $6672.04 $385.75 Michigan $6563.71 $382.25 Illinois $6563.71 $382.25 Indiana $6563.71 $382.25 Ohio $6563.71

$382.25 Arizona $6563.71 $382.25 California $6563.71

$382.25 Oregon $6563.71 $382.25

IT Asset Summary $94,036.28/mo

Item Quantity Unit Cost Total CostLife(mo

) LocationsMonthly Rate Paid By All

Locations

DL 580 (HP) Server 35 $7,680 $268,800 36 2 $7,466.67

DL 380 (HP) Server 40 $2,149 $85,960 36 2 $2,387.78

D63012 Dell Laptop 450 $830 $373,500 36 450 $10,375.00

19" Widescreen LCD 450 $165 $74,250 36 450 $2,062.50

Docking Station 450 $196 $88,200 36 450 $2,450.00

Blackberry Phone 140 $100 $14,000 24 140 $9,683.33

i265 by Motorola 72 $25 $1,800 24 14 $3,675.00

Cisco 7975 G 154 $650 $100,100 60 154 $1,668.33

Cisco 7906 G 310 $150 $46,500 60 310 $775.00

Cisco Call Manager Service $12,000   60 450 $200.00

Cisco Catalyst 3750 16 $7,500 $120,000 60 450 $2,000.00

Cisco catalyst 6500 series 2 $9,000 $18,000 60 450 $300.00

Server 2003 150 $10,000$1,500,00

0      

Ethernet cable 133000 $0.25 $33,250 36   $33,250.00

T1 Lines 14 $359     14 $5,026.00

Fiber Optics OC3 2 $5,425     2 $10,850.00

HP LaserJet P2015dn B\W 28 $250 $7,000 36 14 $194.44

HP LaserJet 3600n Color 14 $550 $7,700 36 14 $213.89

HP 4345 MFP 7 $1,800 $12,600 36 7 $350.00

Xerox 232 7 $5,700 $39,900 36 7 $1,108.33

FINANCE TEAM

Ryan Mendoza - Project Mgr Yusuf Abdulkarim - DBA Pete Silon – Business Analyst Mark Osei - Architect

Challenges

What data is relevant to finance?

How do we present this data?

How can we assist management in the decision making process?

Solutions

Selected informative data.

Examined what is valuable to management.

Compiled relevant spreadsheets & charts.

Real Estate Cost By State

State

Cost

IT Cost By State

State

Cost

Salary Cost By State

State

Cost

Total Cost By State

(Total Cost = Salary + IT + Real Estate) State

Cost

Example Recommendation

Savings of $2.9 Million over 3 years!

• NJ closed, all employees and equipment moved to LA

Q & A Session