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Security
The current Burke Engineering security operation was limited to one security officer with
six security guards on a 24 hour basis, costing € 35,000 per annum. You are aware that of
problems with this such as high levels of theft and damage to possessions and equipment
throughout the factory and administration block.
Part of this was due to the poor physical security on the site. This was also the view of a
firm of security consultants which had been brought into advise on safety aspects (memo
provided in previous chapter). The poor physical security meant that Burke Engineering
had to employ large numbers of security staff, even though some of these staff were used
to meet staff shortfalls in certain key areas, such as local (deliveries and collections.
There were a large number of alternative security firms in the area, three of which had
provided quotations.
Dagmar Security. DS was one of the small operators in the area. They offered a mobile
security service throughout the site on a 24 hour basis for around € 15,000 per annum.
These mobile patrols would include dog handlers during the night to reduce the potential
for theft throughout the site. They suggested that a two hour patrol would be adequate
throughout the day and night.
Prestige Security. Prestige Security was one of the large regional firms which had been
established for over 20 years. They quoted for a fixed security presence during the day to
monitor movements in and out of the plant, combined with a mobile patrol during the night.
To meet the requirements they considered that the annual cost would be of the region of €
25,000.
Alpha Guards. Alpha Guards was one of the largest national firms. They suggested that a
combined team of security guards at fixed points to monitor the movements of goods in
and out of the plant, together with a roving patrol over the 24 hour period. Cost would be
around € 32,000 per annum.
Cleaning
Currently the company employed around 10 part time cleaning ladies. Because of the
elderly nature of much of the plant they had not been able to make much of an impact on
much of the company, but they kept the administration block extremely clean and neat.
The costs of cleaning were € 20,000 per year. You have received a number of quotes
which are all surprisingly similar. All the main three cleaning companies have quoted €
15,000 per annum to provide a comprehensive cleaning service.
Action
Which of the areas that you as J Franklin has considered should be subcontracted? What
problems do you think that the company is likely to encounter in subcontracting?
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