An insight to effective Facility management and Cost control.

1. Confidential and Proprietary COST SAVINGS IT’S CRUCIAL STRATEGIC FACILITY MANAGEMENT Sanjay Chaudhuri Associate Vice President Administration, Facility Management, Infrastructure & Procurement

2. Confidential and Proprietary THIS…IS NOT A MAGICAL TRANSFORMATION

5. Confidential and Proprietary A Cost Center incurs costs (and expenses) directly but does not generate revenues The Basics of Cost A division of an organization that provides quantified value in terms of cost savings or increased revenue is a Value Center

6. Confidential and Proprietary FM Ownership Of 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 Equipment Hiring Charges Repairs & Maintenance Mobile Phone Charges Telephone Bills Space management Hotel Stay Airfare- Domestic Airfare- International Infrastructure Rent AMC & Contracts

13. Increase Revenue Increase potential savings Reduce unwarranted spend Increase Competitive Advantage in Business Aids in canalizing funds in priority sectors Savings Increase financial stability Confidential and Proprietary FM = Planners Set Standards Best Policies & Costs & Drive Practices Procedures Controls Business FM is the Best in Business

14. 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%

15. 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.

16. 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 (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

18. Confidential and Proprietary Thank you