1. Confidential and Proprietary CONVERTING A COST CENTER TO A VALUE CENTER… FACILITY MANAGEMENT

2. Confidential and Proprietary … IS NO MAGIC Sanjay Chaudhuri Associate Vice President Administration, Facility Management, Infrastructure & Procurement

5. Confidential and Proprietary A Cost Center incurs costs (and expenses) directly but does not generate revenues Cost Center – The basics

6. Confidential and Proprietary A division of an organization that provides quantified value in terms of cost savings or increased revenue is a Value Center Value Center – The basics

7. Confidential and Proprietary ADMIN OPERATED 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 LCD Hiring Charges Repairs & Maintenance Mobile Phone Charges Telephone Bills Space management Hotel Stay Airfare- Domestic Airfare- International Infrastructure rent

9. Confidential and Proprietary Space planning A conjunction of workplace environment and workplace ethics ‘TRANSFORMS’ business houses and the quality of work that the people do. Appropriate use of intended space

10. Confidential and Proprietary Capacity Planning Determining the production capacity needed by an organization to meet changing demands of its products or services

13. Confidential and Proprietary Capacity Planning Strategies Lead strategy Adding capacity in anticipation of an increase in demand. It is an aggressive strategy. The possible disadvantage is often results in excess inventory Lag strategy Adding capacity only after the organization is running at full capacity or beyond due to increase in demand. This is a more conservative strategy. It decreases the risk of wastage Match strategy Adding capacity in small amounts in response to changing demand in the market. This is a more moderate strategy.

14. Confidential and Proprietary FM = Planners Standards Best Policies & Costs & Practices Procedures Controls Addition Relocation Reconfiguration Optimum facility utilization & Space Inventory by function & use FM Planning

20. Confidential and Proprietary Deriving the best results – ABC approach A gility : Action-oriented approach E mpowering and encouraging professionals Create innovative ideas is the mantra to success B usiness Objective : Business Performance measured by its longevity . Profits vs. sales vs. ROI achievement C oaching : Indoctrination Strategize the “aim” Define the details of the project D efining work place costs : Increase productivity at lower costs C ommon needs of the customer S trategy to pitch in for new customers Differentiate from our competitors E lasticity : Adaptability and flexibility Achieve maximum return on investment High-performance workplace is key to survival F lexibility : Understanding of project flexibility , Internal and external project flexibility

21. 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%

22. 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.

23. 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 45.00 (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

24. Confidential and Proprietary Thank you