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Chapter 9 Notes ENG 303 9-34 A government agency is planning a new office building close to its current headquarters. Four proposed sites are to be evaluated. Any of these sites will save the agency $700,000 per year, since two of its current satellite offices will no longer need to be rented. The agency uses a 6% interest rate and assumes that the building and its benefits will last for 40 years. Based on a benefit-cost analysis what should the agency do? Site B C $8.1M $7.5M 0.155M0.2M A $8.6M 0.12M D $6.8M 0.3M Initial Cost Annual O&M replanning. For these ii be spent annually planning or replanning. planned or replanned indi- As stated previous continuous improvement in the design a key design criterion, is evidenced by the ever-increasino purchased facilities, which are modified each year and require replanning reasons, it seems reasonable to suggest that over $300 billion will be spent in the United States alone on facilities that will require planning or replanni Although the annual dollar volume of the facilities planned or replan cates the scope of facilities planning, it does not appear that adequate planning being performed. Based on our collective experience, it appears that there exi significant opportunity to improve the facilities planning process as practiced today To stimulate your thoughts on the breadth of the facilities planning opportuni ties, consider the following questions: 1. What impact does facilities planning have on handling and maintenance costs? 2. What impact does facilities planning have on employee morale, and how does employee morale impact operating costs? In what do organizations invest the majority of their capital, and how liquid is their capital once invested? 5. What impact does facilities planning have on the management of a facility What impact does facilities planning have on a facility’s capability to adia change and satisfy future requirements? 6. What impact does facilities planning have on a facility’s resilience, mental impact, energy efficiency, and sustainability? Although these questions are not easily anen facility’s resilience, environ imnortance of of

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