VIEW/POINT

"When you

can measure

what you

are speaking about,

you know

something about it;

but when you,

cannot express

it in numbers,

your knowledge

is of a meager

and unsatisfactory kind."

Lord William Kelvin

CASE STUDIES

FACILITY DESIGN ANALYSIS

Client: Hewlett-Packard
HP's Roseville, CA site had a total campus size of approximately 850,000 SF, plus several additional buildings in planning.  Applying its "Guerin Prism" methodology, GA helped HP improve a new building plan by nearly 10%, deferring construction and increasing utilization, valued by HP (based on internal rent) at $690,000 per year.  

FACILITY DESIGN ANALYSIS

Client: International Chemicals Company
GA applied the "Guerin Prism" to design and occupancy strategies for this regional corporate headquarters.  Results in most areas were better than average.  One area, however, revealed an improvement opportunity of over 40%.  Based on these findings, the client  created a corporate-wide task force to re-evaluate and possibly redesign its workplace.  Corporate Treasury estimated potential 12-year, after-tax cash flow at $106 Million.
 

FACILITY DESIGN ANALYSIS

Client: U.S. Pharmaceuticals Company
A major pharmaceuticals company needed to dramatically reduce operating costs for its New Jersey headquarters and area facilities.  Among its concerns were office spaces, the costs of satisfying user requirements, and capital investment in new facilities.  Office demands were rising, and rental space was unavailable in sufficient quantities.  The "Guerin Prism" method was applied to analyze the existing facilities.  As a direct result, the client was able to defer over $50 Million in new construction.  

REAL ESTATE ANALYSIS

Client: International Manufacturing Company
Estimated long term costs of ownership and operation were developed, comparing five major metropolitan areas in different regions of the US.  Analysis included:

  • Land and construction costs
  • Real estate / personal property taxes
  • Assessed / appraised values
  • Lease costs (by type) / TI allowances
  • Labor costs, utilities, incentives, etc.

GA found differentials of nearly 50%, representing potential 10-year savings of over $40 Million.  

FACILITIES BENCHMARKING

Client: U.S. Semiconductor Company
Detailed cost comparisons and Key Performance Indicators were applied in each area, to assess the relative value of performance versus costs. Workshops were held with staffing groups to evaluate internal and external cost differentials, and review "best practices" to improve performance in each function.  Scope included:

  • Maintenance & Operations
  • Custodial, Roads & Grounds
  • Utilities & Energy Management
  • Space Planning & Move Management
  • Capital Renewal / Project Management
  • Corporate Services (Security, Mail, Repro, etc.)
  • Employee Services (Food, Fitness, Stores, etc.)

Potential savings, based on identified cost gaps, exceed $2 Million per year.  

MOVE MANAGEMENT ANALYSIS

Client: U.S. Computer Components Company
GA was asked to evaluate overall process costs and effectiveness, to assist the client in major upcoming contract decisions.  GA compared detailed cost breakdowns, cycle times and similar service quality metrics with peer companies and facilities in its own database.  GA also reviewed the organization's processes, technologies and systems, and assisted with RFP development.
Actual realized annual savings were estimated at $1.22 Million.  

CAPITAL PROJECT PROCESS REDESIGN

Client: International Foods Company
The client wished to accelerate implementation of capital projects totaling $140+ million annually by reducing approval times.  An initial survey was conducted to assess cycle times and approval processes, and identify major reasons for delays, including both business and cultural issues.  The existing process was documented, from local projects up to those requiring board approval.  An international team was organized to redesign processes, and the number of process steps (and time to market) was reduced by 25%.  Based on its margin and cost of capital, potential profit was increased by approximately $700,000 annually.  

MANUFACTURING BENCHMARKING PROGRAM

Client: International Foods Company
Manufacturing results were compared for seven, then seventeen, and ultimately 40 plants worldwide over a three-year period.  Over $5 Million in waste reduction and improved productivity was achieved in the first year's pilot program.  Monthly and quarterly reporting, analysis and progress tracking, combined with planning and "best practices" workshops held in NJ and Brazil, generated multi-year savings estimated at over $20 Million.