Project Analysis

For

January 2009

Project Scope•136,000 sq. ft. •550 stations of existing remanufactured Steelcase Avenir •800 remanufactured Steelcase chairs

Challenges New York Life re-signed their lease at Corporate Oakes and wanted to make a significant interior upgrade to their

campus that required a phased restack. How to order furniture correctly and on time while departments continued to make changes to their requirements. How to match manufacturers delivery schedule with the phases to avoid unnecessary storage charges and ordering the

correct furniture.

Solution Plan was to buy new Steelcase Answer workstations and ROF was brought in to buy and remove

all of the old furniture. During the initial meeting and walk through with New York Life’s facility department we suggested

that the problem was not the furniture (Steelcase Avenir), but the fabric (mauve) and paint color (red).

ROF designed a new color palete for the panels and bid the entire project re-using the workstation components in 2 days. Built mock up in 2 days and delivered with the bid. Bid accepted and new order cancelled.

Solution Con’t Began 1st phase with re-manufactured panels from our inventory. Because of

departmental changes and new requirements we added 50 stations of re-manufactured components in 3 weeks.

New York Life was able to make changes to their master plan as the project unfolded. Because ROF controlled the manufacturing and delivery schedule we were able rearrange product delivery to match changed plans.

Savings Initial product savings $500,000 * Change order savings (est 5%) 40,000 Wasted product savings (est 10%) $80,000 Project delay savings $ ????*based on 1st phase only 250 workstations,

ContactMr. Thomas Toomey thomas_toomey@nylaarp.com 813-288-5528

•The NYL saved 56 tractor trailers of furniture from landfill •energy savings from remanufacturing these stations and chairs could power 25 homes for 365 days, •40% of furniture used in this project was remanufactured •60% was re-used

New York LifeTampa

Jackson National LifeDenver

Project Scope•118,000 sq. ft. 600 pre-owned work stations of Plieon •240 stations of remanufactured Steelcase Avenir•80 Stations of remanufactured Herman Miller Ethospace •1000 remanufactured Steelcase chairs

Challenges Jackson National’s 800 employees were scattered in 2 buildings and when a stand alone building was found the

decision to consolidate & move was approved. The 118,000 sq. ft. building had 600 existing 8x8 Pleon workstations and 80 private offices, but the building needed to

be renovated Jackson National needed to increase the buildings head count from 680 to 1000 to accommodate a fast growing division. As the planning, programming & bidding phase began it became clear the architect could not keep pace.

Solution Because of a shortened schedule ROF had only 2 days to submit it’s bid.

ROF management, project managers and sales worked 48 hours to prepare and deliver the comprehensive bid. ROF was awarded the project.

ROF selects an allied OFR dealer to work under its project managers to handle all labor and storage in Denver

Solution ROF inventoried all furniture in the new building, removed and stored it. ROF modified the existing stations from 8x8’s to 6x8’ and space planned

the new building to fit 1000 workspaces. ROF re-manufactured 80 stations of Herman Miller Ethospace for the

executive floor and 240 stations of Steelcase Avenir for the 4 th floor. ROF remanufactures 1000 existing Steelcase Criterion chairs in Denver ROF project managers work with Jackson National to identify existing

furniture that can be used in the new building. As floors in the new building become ready ROF blends the existing

inventory from the new building that is in storage, with the re-manufactured workstations, and the re-manufactured seating to complete the floors.

As departments were moved in ROF project managers moved in furniture from the old buildings to complete the floors.

Finally, ROF brokers a deal to have the left over furniture removed from the 3 old buildings at no cost to Jackson National. (550 Haworth Race stations)

Savings

Jackson National LifeDenver

•JNL saved 50 tractor trailers of furniture from landfill •The energy savings from remanufacturing these stations and chairs could power 25 homes for 365 days•40% of furniture used in this project was remanufactured•60% was pre-owned

Project Scope•5 buildings & 388,000 sq. ft. campus move•2000 existing stations of remanufactured Steelcase Context & Answer•500 stations of remanufactured Avenir•2000 remanufactured Steelcase chairs

Challenge Move 1000 Wellcare employees out of a very cramped office park into the old Capital One

campus. The campus was full of furniture and it had to be determine how that furniture could be laid

out to fit Wellcare requirements All of the floors had to emptied so the construction process could begin Wellcare hired a

local architectual firm to produce construction drawings, program the furniture, and do the final space plans. As the project unfolded the it became clear the furniture installation was not going to be complete by the move in date

Solution The Wellcare facility team hired ROF to work beside the existing

installation crew to ensure the work would completed on time. The installation team was let go by Wellcare and ROF completed the initial

project. After the installation Wellcare with the help of ROF found that it had

purchased too many additional parts

Solution The architect was fired and a new a new one hired. From here ROF project managers handled the rest of the campus

expansion. ROF carefully inventoried all existing furniture and working with the new architect completed the 388,000 sq. ft expansion.

All existing seating on the campus was re-manufactured after the initial project was complete.

Savings Wellcare saved well over 4 million dollars by buying re-manufactured

components to add to their existing furniture assets during this project.

Do to the projects eventual success Wellcare brought ROF and the new architect into planning for it’s national expansion .

•Wellcare has saved 100 tractor trailers of furniture from landfill•The energy savings from remanufacturing these stations and chairs could power 70 homes for 365 days. •20% of furniture used in this project was remanufactured•80% was re-used

National Expansion With the new team in place, Wellcare designed and furnished 69 outer offices

in 3 years. During this US expansion Wellcare’s facility team consisted of one person the

“facility manager”. They are very lean and rely on their vendors to wear multiple hats on the projects they work.

Weekly meetings to manage this multiple city expansion consist of only a few key people. Those include: the ROF project manager, the architect’s PM, Wellcare’s telecom manager, the facility manager and the local area manager.

The office furniture in these locations is very consistent. Wellcare has two footprints for it’s workstations and 2 standard private office set ups. ROF blends pre-owned workstations by Steelcase or Herman Miller with re-manufactured Steelcase seating and new private offices.

All workstations for the outer offices are pre-owned and purchased in advance. All are the same size in order to keep the Wellcare standard in all offices. ROF stores the purchased workstations in it’s facility at no charge for one year and pulls the components for each city as needed. When the inventory is depleted ROF recycles the unused balance at no charge.

WellcareCleveland Herman Miller • Steelcase

•14,000 sq. ft.•50 AS IS Herman Miller AO2 cubicles, •100 remanufactured Steelcase Criterion chairs, •20 private offices with new furniture.

Remanufactured

•Wellcare saved 3 tractor trailers of furniture from landfill •The energy savings from remanufacturing these stations, files and chairs could power 2 homes for 365 days•20% of furniture used in this project was remanufactured •60% was re-used•20% was new

WellcareCleveland

WellcareManhattan Herman Miller • Steelcase

•30,000 sq. ft.•180 remanufactured Steelcase Avenir workstations•250 remanufactured Steelcase Criterion chairs•20 private offices with new furniture

Remanufactured

•Wellcare saved 5 tractor trailers of furniture from landfill •The energy savings from remanufacturing these stations, files and chairs could power 6 homes for 365 days•70% of furniture used in this project was remanufactured •5% was re-used•25% was new •Returned existing stations to Tampa for redeployment

WellcareManhattan

WellcareHawaii Allsteel

•30,000 sq. ft.•180 re-used Allsteel workstations•230 remanufactured Steelcase Criterion chairs•20 private offices with new furniture

Reused

WellcareHawaii

•Wellcare saved 4 tractor trailers of furniture from landfill •The energy savings from remanufacturing these stations, files and chairs could power 5 homes for 365 days•70% of furniture used in this project was re-used •15% was new•15% was remanufactured •Returned existing stations to Tampa for redeployment

In Conclusion

Refurbished Office Furniture’s mission is to help it’s customers think outside the traditional FF&E box in order save money on their projects. Each project has a different set variables and our goal is to find a combination of those variables that provide a cost efficient solution for that project. All of this, while maintaining the highest standards for quality, aesthetics and efficiency.