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Baystate Benefit Services | 22 River Street | Braintree, MA 02184 | Tel: 800-601-3570 | Fax: 781-356-7365 | Systematic Layout.

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Presentation on theme: "Baystate Benefit Services | 22 River Street | Braintree, MA 02184 | Tel: 800-601-3570 | Fax: 781-356-7365 | Systematic Layout."— Presentation transcript:

1 Baystate Benefit Services | 22 River Street | Braintree, MA | Tel: | Fax: | Systematic Layout Plan for Baystate Benefit Services Stephen Aiello, Adam O’Hara and Sokly Saing Advisor: Professor Cullinane Northeastern University Spring 2007

2 Company Background  Employee benefits brokerage in Braintree, MA  Started as a two person operation in 1993  Negotiate employee benefits and provide administrative services  Currently has a staff of 12 office employees and 5 brokers  Employees are cross-trained and capable of performing many functions  Services include:  COBRA – Consolidated Omnibus Budget Reconciliation Act  FSA - Flexible Spending Account  Customer Service

3 Problem Description  Lack of work flow design  Rapid expansion led to addition of new employees  Placed where there was room and not by function  Storage Concerns  Required to maintain files for ten years  Office used as file storage is unorganized, full  Files being stored in offices, hallway  Supply closet

4 Objectives  Improve the flow of information and work through Baystate  Identify capacities for each process and means of improvement  Address storage issues in both file storage and supply closet

5 Methodology  Before moving forward, 5S initiative was carried out.  5S was necessary to establish standardized organizational procedures  Sort, Set-in-Order, Shine, Standardize, Sustain  Systematic Layout Planning (SLP)  Developed by Richard Muther in 1973  Step-by-step procedure for planning facility layouts  Ideal for analyzing and designing work/information flow  Meant for industrial facilities but flexible for our use

6 Input Data & Activities  Design of interview questions  What are primary and secondary job functions?  What resources are required?  Where does work originate from?  Where is finished work stored?  Are there any constraints?  Interview response analysis  Defined main functions and activities  COBRA  FSA  Broker support  Identified flow of materials and information  Created initial flow diagram  Determined relationships between people and resources  Constructed activity relationship chart

7 Initial Flow of Work and Information COBRA FSA BROKER SUPPORT

8 Activity Relationship Chart  Record keeping tool to organize data  One of the most important tools for planning layouts  Rates importance of closeness between resources and people

9 Activity Relationship Chart  Broker, Broker assistant and Account Manager form main core of brokerage function.  Brokerage support staff includes Client Prospector and Client Materials Coordinator.  Office Manager is important to overall function of the business.  Two claims administrators (COBRA, FSA) must be located close to their support staff.

10 Activity Relationship Diagram  Departmental functions are visible  Supporting services are visible  Interoffice relationships identified  Next: Identify Space Requirements

11 Space Requirements  Two Methods  Converting Method  Empirical  Useful in non-production facilities  No constant work  Detailed calculations not warranted  Account for space currently existing and design accordingly  Office Layouts Requirements Table  Helpful in determining actual space required  Accounts for personnel, resources, and furniture

12 Space Requirements - Office Layout Requirements Data

13 Space Available  Finite  Leased space  Open and Closed Offices

14 Space Relationship Diagram

15 Modifying Constraints & Practical Limitations  For initial design concepts, three constraints were given  Office Manager must have private office  Broker must have private office  Cannot affect physical layout of building  Facility is not owned by Baystate  No additional space available for rent  Cannot simply add new resources  Not a feasible solution  Lack of space for new resources

16 Develop Layout Alternatives  Three initial designs  Create functional departments  Maintain relationships  Provide access to necessary resources  Bring designs to Baystate for feedback  Such as:  What is good about the designs?  What is bad about the designs?  What aspects do you wish were included?  Are there any relationships you see that have been violated?

17 Design 1 Supply Closet FSA Broker Broker Support Office Manager Resource Room COBRA FSA Admin File Storage Client Prospector

18 Design 2 Supply Closet COBRA Broker Broker Support Office Manager Account Manager File Storage FSA Admin FSA

19 Design 3 Supply Closet COBRA BrokerBroker Support Office Manager Account Manager File Storage FSA Admin FSA Utility Office

20 Company Feedback  Account Manager required private office  Keep majority of employees on main floor  Change arrangement of desks in FSA Department  Facilitate communication between Broker and Client Materials Coordinator

21 Final Design Supply Closet FSABroker Broker Support Office Manager Account Manager COBRA File Storage FSA Admin Utility Office

22 Evaluation – Work and Information Flow Improvements COBRA FSA BROKER SUPPORT FSA Broker Broker Support Office Manager Account Manager COBRA FSA Admin Utility Office File Storage

23 Evaluation – Capacity Information To/From FaxTo/From Office ManagerTo/From File Cabinet Employee Times/ dayDist (old)Dist (new) Times/ day Off. Mgr. (Old) Off. Mgr. (new) Times/ day Files (old) Files (new) FSA Claims Service Coord Website Maint Materials Coord COBRA Claims Dist. Diff (ft): 1188 Dist. Diff (ft): Dist. Diff (ft): 210 Time Saved (min): 6.6 Time Saved (min): Total Time Saved (min): Total Time/Day (min):14.77 Total Time/Year (hrs):59.07 Claims/Hour5.63 Additional Claims/Year: Additional Clients/Year:4.01

24 Evaluation – Storage Improvements  Offsite storage was acquired three miles from the office  Removed all files except those from most recent year  Able to remove all files from offices and hallways  Overflow of supply closet was addressed in 5S initiative  Supplies moved out of hallway and back into storage room  On hand inventory identified

25 Recommendations & Conclusions  Dedicated fax machine for FSA department  If processing capacity is reached, a new full time FSA employee would double capacity  9,466 claims per year  To add new employees, office would need to go paperless  Remove need for physical storage  Free up space for new employees  COBRA and customer service metrics should be tracked  Better look at how business is performing and growing

26 Baystate Benefit Services | 22 River Street | Braintree, MA | Tel: | Fax: | Questions? Company BackgroundCompany Background, Problem Description, Objectives, Methodology, Input Data & Activities, Initial Flow, Activity Relationship Chart, Activity Relationship Diagram, Space Requirements, Office Layout Requirements Data, Space Available, Space Relationship Diagram, Modifying Constraints & Practical Limitations, Develop Layout Alternatives, Designs, Company Feedback, Final Design, Evaluations, Recommendations & ConclusionsProblem DescriptionObjectivesMethodologyInput Data & ActivitiesInitial FlowActivity Relationship ChartActivity Relationship DiagramSpace RequirementsOffice Layout Requirements DataSpace AvailableSpace Relationship DiagramModifying Constraints & Practical LimitationsDevelop Layout AlternativesDesignsCompany FeedbackFinal DesignEvaluations Recommendations & Conclusions

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