Baseline and options Final scheme resulting in savings estimated to be over $400,000 per month.

First National Bank of Chicago
Check Processing
Chicago, IL

Project: Consolidate all check sorting operations and support functions for First Chicago Corporation in one location.
Focus: The primary goal for the project is to achieve operational efficiencies through consolidation and elimination of redundancies. Resulting savings are estimated to be over $400,000 per month. The project will expand the central sorter operation from 5 IBM 3890's to 15.

The initial design, strategy suggested by the client, would have expanded the existing Check Sorting Room in place. Our analysis revealed that the resulting work flows were unacceptable. Another method had to be found to expand capacity. We came up with two. Both were counter-intuitive. 

The first was to totally abandon the existing facility and build a new sorter room. This allowed excellent work flows, eliminated possible interruptions of ongoing sorting operations during construction, and actually reduced construction costs. Furthermore, it could be completed 2 1/2 months sooner. These improvements yielded nearly a million dollars in total savings. 

The second alternative strategy was to leave the existing sorter room as it was without any change, and to build a new sorter room to accommodate the expanded capacity. The primary benefit was to reduce costs with only minimal operational costs. Subsequently it was determined that several newly planned Data Center projects needed cooling and electrical power which was now being used in the existing Sorter Room. Replacement of these utilities eliminated the bulk of the savings in construction costs. The first alternative was selected for implementation.

Accomplishments: Project costs and time were reduced significantly. A clear approach which will deliver a highly efficient and effective work flows was accepted for implementation by all participants.

Project size: 40,000 sf
Headcount: 120 max shift

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