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To: Chris Field, Director of Human Resources
From: Daniel Youse
Subject: Proposal for Fitness Facility
Date: August 30, 2010
Proposal
I propose that we utilize the vacant space in building 1E to create a 2500 square foot gym and shower
facility. This facility will help increase our employee’s productivity, help attract new talent, and reduce
loss of work time due to health problems.
With the current climate at Cobham turning away from large increases of employees, we need to focus
on maximizing the productivity of the employees we currently have. Reports by The St. Louis Business
Journal and The Boston Globe both indicate that a fitness center in the work place can reduce
absenteeism and stress as well as boost morale and productivity.
In today’s competitive market there are several factors that lead to success but one is more important
than the rest, talent. According to the 2010 Global Manufacturing Competitiveness Index, talent is the
most important factor in making your company competitive. Several factors play into attracting and
keeping the best talent; location, work environment, and compensation. Cobham, more specifically
Sensor Systems Lansdale, needs to focus on upgrading our work environment. By adding a new gym
facility we can increase the appeal of our campus.
In a statement released by the President on May 12, 2009, titled “INNOVATIVE WORKPLACE PRACTICES:
A DISCUSSION WITH PRESIDENT OBAMA”, he called for corporations to explore new ideas to increase
employees health to offset growing health care costs. Obesity and stress are both major factors in
debilitating health problems and routine exercise can reduce these factors immensely.
Problem
Recently Cobham has focused on reducing cost company wide. While Sensor Systems Lansdale might be
meeting all of our financial goals we have been asked to do our part. We have participated in both the
recent voluntary and involuntary separations and all new hiring must undergo rigorous scrutiny. With
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these new limitations on our workforce we must find innovative ways to increase productivity while
continuing to reduce cost, to quote the leader of the business unit Chris Reil “A penny saved at Lansdale
is a penny saved for Cobham”. Our current production load at Lansdale is constantly increasing and this
is adding additional stress onto our employees. We need to find a way to adapt our current workforce
to ensure we can meet this rising demand. Currently we have a 370,000 square foot facility that houses
only 429 employees, this leaves a lot of wasted space we could utilize to overcome this problem. We
must try to find a solution that can reduce the stress on our current employees, ensure we attract top
notch candidates for our openings and increase our productivity to meet our rising demands.
Solution
I propose converting a section of vacant space in the lower level of building 1E to a 2500 square foot
gym and shower facility. This facility will allow employees to increase their quality of health before or
immediately after work. The facility will be broken down into three sections, the gym and two showers.
It will offer both female and male showering facilities and have a large variety of equipment to support
general fitness.
Layout
The areas marked in red will be new walls added during construction.
Storage
Gym Facility
Male Shower
Female Shower
Up
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Utilizing this layout the gym can be added without affecting any of the current production areas.
This location also has several other advantages. Located immediately to the left of the male
shower facility are bathrooms because of the plumbing already in place it will be easier to install
the new shower facility. Furthermore, there is a large entrance at the top of the storage section
that will make it easy to bring in the new fitness equipment. Finally, as the Cobham in Lansdale
continues to grow the storage section offers room for further expansion to accommodate more
employees.
Cost analysis
The cost for this facility can be broken down in to two major sections, construction and
equipment. Almost all of the costs are one time and short term; the only long term costs that
will occur are water, electricity, and replacement of worn equipment. Since the space is
currently continuously well-lit the electricity bill will only increase by the small amount used by
the exercise machines.
The average construction cost of similar facilities is $200 per square foot of space. With the
current layout of 2500 square feet the total construction cost is about $500,000. The other
major cost at construction is buying fitness equipment. Listed below is a basic equipment list
with the price break down.
Name
Multi Gym Cross Over
Upright Bike
Flat / Incline / Decline Bench
Treadmill Endurance
40" 3-Tier Dumbbell Rack
Rubber Hex Dumbbells - 3-50 lb. Set
4' International Chrome Curl Bar
255 lb. Rubber Olympic Plate Package
York A-Frame Standard Plate Tree
7 ft. Olympic Bar
Olympic Bench
Manufactur
Model
Dimentions
Magnum Fitness Systems
2024
W30" D53" H87"
Ironman Fitness
1615
W20.9" D 37.4" H 53.5"
BODY-SOLID
PFID130X
W28" D60" H20"
BODY-SOLID
T3I
W31" D63.5" H54"
BODY-SOLID
GDR363
W40" D20" H30"
TKO
814TXR-BK-3-50
HAMPTON
IB-49CE
BODY-SOLID
ORST-255
York
69035
W20" L29" H36"
BODY-SOLID
OB86C
IMPEX
MD-844
W44" L80" H55"
The total price to get the facility up and running would be about $512,941.
Price
# of units Unit Total
$3,245.00
1
$3,245.00
$349.00
2
$698.00
$169.00
2
$338.00
$1,299.00
4
$5,196.00
$159.00
1
$159.00
$1,159.00
1
$1,159.00
$114.00
1
$114.00
$559.00
2
$1,118.00
$99.00
2
$198.00
$119.00
2
$238.00
$239.00
2
$478.00
Total Price: $12,941.00
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Conclusion
There are several reasons Cobham Sensor Systems Lansdale should add this new facility. First, we need
to maximize the productivity of the talent we currently have to ensure we stay competitive in our
market. Second, we need to attract new talent to help us expand our business. Third, this facility has
mainly initial costs. The few long term costs can be offset by a $5 monthly fee on participating
employees but the benefits will be felt for years. Fourth, this focus on fitness keeps with our own
policies laid out in the Safety, Health, and Environment Management Standards issued in February 2010,
which states that Cobham “strives to enhance the well-being of its employees and local communities.”
Furthermore the focus on fitness also complies with government programs such as the President’s
Challenge program and the CDC’s Healthier Worksite Initiative. Since the government is the facility’s
largest customer compliance with these programs will encourage additional business being moved to
Cobham Sensor Systems Lansdale. Finally this facility will actually lower benefit cost of employees. This
cost saving has been seen at other companies including:

Prudential Insurance Company reported that the benefits costs for employees participating in
their program were $312, as opposed to $574 for non-participants (www.naturalhealthcare.ca)

Coca Cola report saving $500 every year per employee after implementing a fitness program,
with only 60% of their employees participating (www.naturalhealthcare.ca)

DuPont's Worksite Health Promotion pilot sites saw a saving of 11,726 disability days and a
return of U.S. $2.05 for every dollar invested by the end of the second year
(www.naturalhealthcare.ca)
With all the success seen by other companies and the obvious benefits to the employees at Cobham
Sensor Systems Lansdale the addition of a gym and shower facility is an excellent investment. A gym
and shower facility is a must if Cobham wishes to stay competitive in the current market. We must take
action soon to offer our customers excellent products at the low costs they expect and with this
investment we ensure a bright future for Cobham Sensor Systems Lansdale.
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References
“Benefits of Implementing a Workplace Wellness Program.” naturalhealthcare.ca. Natural Healthcare
Canada. Web. 20 Aug 2010.
Bushnell, Davis. “More companies find fitness programs raise productivity.” The Boston Globe. 2 June
2005. Web. 20 Aug. 2010.
“Global Manufacturing Competitiveness Index: Talent Seen as Key to Success.” foxbusiness.com. Fox
Business, 23 June 2010. Web. 20 Aug. 2010.
Ironcompany.com. Iron Company, 2010. Web. 20 Aug. 2010. <http://www.ironcompany.com>
Lemberg, Paul. “Attracting (and Keeping) Top Performers.” ezinearticles.com Web. 20 Aug. 2010.
McFadden, Joanne. “Fitness in the workplace boosts productivity, morale.” St. Louis Business Journal. 27
Dec. 2002. Web. 20 Aug. 2010.
“The Presidents Challenge” presidentschallenge.org. Web. 20 Aug. 2010.
Streater, James. “SHE Management Standards.” Cobham Safety, Health and Environment February 2010
2 (2010): 3. Web. 20 Aug. 2010.