Presentation on theme: "Systematic Layout Plan for Baystate Benefit Services"— Presentation transcript:
1 Systematic Layout Plan for Baystate Benefit Services Stephen Aiello, Adam O’Hara and Sokly SaingAdvisor: Professor CullinaneNortheastern University Spring 2007Baystate Benefit Services | 22 River Street | Braintree, MA | Tel: | Fax: |
2 Company Background Employee benefits brokerage in Braintree, MA Started as a two person operation in 1993Negotiate employee benefits and provide administrative servicesCurrently has a staff of 12 office employees and 5 brokersEmployees are cross-trained and capable of performing many functionsServices include:COBRA – Consolidated Omnibus Budget Reconciliation ActFSA - Flexible Spending AccountCustomer ServiceI’d just like to quickly go over the company background for everybody. It started as a two person operation in 1993 and over the past 14 years they’ve grown into one of the regions most successful employee benefits brokerages. They negotiate employee benefits and provide administrative services for their clients. They currently have 12 office employees and 5 brokers. Because of the small size of the company, all employee are cross-trained to provide flexibility.
3 Problem Description Lack of work flow design Storage Concerns Rapid expansion led to addition of new employeesPlaced where there was room and not by functionStorage ConcernsRequired to maintain files for ten yearsOffice used as file storage is unorganized, fullFiles being stored in offices, hallwaySupply closetBaystate’s success required them to add new employees over the years to handle the increased workload. As more people came into the company, they were seated wherever there was room available. People with similar functions were located no where near each other and this caused an unorganized flow of work and information throughout the company.Another problem they have is storage. The nature of their business requires them to store documents for up to ten years at a time depending on the type of document. Space has become so limited, storage started spilling into the main hallways and any spare space has turned into piles of bankers boxes. Their supply closet is experiencing the same problem with excess material clutter and over spillage into the main office.
4 Objectives Improve the flow of information and work through Baystate Identify capacities for each process and means of improvementAddress storage issues in both file storage and supply closetOur objectives were to improve the flow of information through the offices while identifying their capacities for each function within Baystate. We are also addressing the storage issues for their claims documents and the supply closet.
5 Methodology Before moving forward, 5S initiative was carried out. 5S was necessary to establish standardized organizational proceduresSort, Set-in-Order, Shine, Standardize, SustainSystematic Layout Planning (SLP)Developed by Richard Muther in 1973Step-by-step procedure for planning facility layoutsIdeal for analyzing and designing work/information flowMeant for industrial facilities but flexible for our useOur first step was to carry out a 5S initiative to remove excess material from the office.
6 Input Data & Activities Design of interview questionsWhat 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 analysisDefined main functions and activitiesCOBRAFSABroker supportIdentified flow of materials and informationCreated initial flow diagramDetermined relationships between people and resourcesConstructed activity relationship chart
7 Initial Flow of Work and Information 123COBRAFSABROKER SUPPORT456
8 Activity Relationship Chart Record keeping tool to organize dataOne of the most important tools for planning layoutsRates 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 visibleSupporting services are visibleInteroffice relationships identifiedNext: Identify Space Requirements
11 Space Requirements Two Methods Converting Method EmpiricalUseful in non-production facilitiesNo constant workDetailed calculations not warrantedAccount for space currently existing and design accordinglyOffice Layouts Requirements TableHelpful in determining actual space requiredAccounts for personnel, resources, and furnitureOne of the first steps in generating alternatives is to determine how much space each attribute requires. We used two methods to determine these requirements. The first is the converting method where you establish what space is being occupied and what will be required. This method is very empirical and has a strong correspondence to Baystate’s operational situation due to the nature of the work and the unpredictable arrival rates – which rule out the calculation methods. In this application the space that will be required is any additional space that can be freed up as Baystate wished to make room for future expansion.The second method was to create a space requirements table which will give us a better, quantifiable, idea of the actual space needed. This documents….TRANSFER
12 Space Requirements - Office Layout Requirements Data all aspects of the facility. Each resource and item was measured and accounted for. Additionally, we needed to make sure each person had enough space between their desk and wall for mobility. In the left most column, you’ll find each person listed by function. Included with this information is the square footage of their office as well as whether or not their office is private or open. CLICK…the middle column contains information on the standard items included in most offices, such as a table, desk, chair, telephone, and/or a computer. Here the size of every desk was noted as well. CLICK….and finally, in the right column, is the size of every other item found in each office…including filing cabinets, bookshelves, and printers. This information is imperative for logging space requirements and determining proper layouts. CLIIIIICK
13 Space Available Finite Leased space Open and Closed Offices After documenting the space required, we take a look at the space available. Baystate’s available space is limited to what they already have…as all other space within the facility is occupied. Furthermore, they can not change any of the permanent structures in the space they occupy. This is not the ordinary situation, however the only down side is that it limits the alternative design phase. As a whole Baystate is a closed office – which indicates the space is separated by permanent structures. However these offices…CLICK…are the open offices which contain multiple employees with no or only temporary movable partitions dividing the space. Conversely, these offices…CLICK…are the ones which are smaller and contain permanent partitions.
14 Space Relationship Diagram A space relationship diagram combines...
15 Modifying Constraints & Practical Limitations For initial design concepts, three constraints were givenOffice Manager must have private officeBroker must have private officeCannot affect physical layout of buildingFacility is not owned by BaystateNo additional space available for rentCannot simply add new resourcesNot a feasible solutionLack of space for new resourcesBefore generating any realistic alternative designs, constraints and limitations had to be considered. Baystate’s initial constraints were that the office manager and broker needed private offices and again, we could not alter the physical layout of the offices because they lease the space. Revisiting another previously mentioned constraint, it was not possible to acquire more office space because the facility is at rental capacity.
16 Develop Layout Alternatives Three initial designsCreate functional departmentsMaintain relationshipsProvide access to necessary resourcesBring designs to Baystate for feedbackSuch 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?In developing design alternatives, our primary focus was to create departments with employees that share similar functions and job responsibilities. While creating these departments, we tried to maintain the established relationships and allocate the required resources that was necessary for each employee to do their job. These resources being things like brochure printers, scanners, and stamping machines.These alternatives were then to be brought back to the company for their interpretations of the plus and minus’ as well as general evaluation
20 Company Feedback Account Manager required private office Keep majority of employees on main floorChange arrangement of desks in FSA DepartmentFacilitate communication between Broker and Client Materials Coordinator
21 Final Design Supply Closet Broker Support FSA Broker Office Manager Account ManagerCOBRAUtility OfficeFSA AdminFile Storage
22 Evaluation – Work and Information Flow Improvements Broker SupportBrokerFSACOBRAFSABROKER SUPPORTOffice ManagerAccount ManagerCOBRAFSA AdminUtility OfficeFile Storage
24 Evaluation – Storage Improvements Offsite storage was acquired three miles from the officeRemoved all files except those from most recent yearAble to remove all files from offices and hallwaysOverflow of supply closet was addressed in 5S initiativeSupplies moved out of hallway and back into storage roomOn hand inventory identified
25 Recommendations & Conclusions Dedicated fax machine for FSA departmentIf processing capacity is reached, a new full time FSA employee would double capacity9,466 claims per yearTo add new employees, office would need to go paperlessRemove need for physical storageFree up space for new employeesCOBRA and customer service metrics should be trackedBetter look at how business is performing and growing
26 Questions?Company 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 & ConclusionsBaystate Benefit Services | 22 River Street | Braintree, MA | Tel: | Fax: |