1. Analysis of Michael Brandman Associates June 19, 2006

2. Introduction Michael Brandman Associates (MBA) is a comprehensive environmental planning services firm specializes in environmental documentation, planning, and natural resource management specializes in environmental documentation, planning, and natural resource management facilitates five regional offices in California facilitates five regional offices in California employs 125 associates 78 of which are billable staff. employs 125 associates 78 of which are billable staff.

3. Problem MBA is lacking the technical staff to meet the increased demand for services resulting from the current housing boom. MBA’s upper management has a hard time making decisions with capacity planning and forecasting for the future.

4. Objective The objective is to convince MBA to hire more staff members utilizing a quantitative analysis: To minimize overtime and to meet the current demands To minimize overtime and to meet the current demands To reduce augments and make expedient decisions To reduce augments and make expedient decisions

5. MBA 5 Year Historical Data MBA 5 Year Data Year0102030405 Current TS* Total Billable Staff Members >=40% Utilization Rate 364567627078 Total Labor $ Won* 8.210.315.314.216.1

6. Forecasting Method The forecasting method used on the MS software was trend projection. The forecasting method used on the MS software was trend projection. Values that were inputted into the software were total labor $ won based on historical data. Values that were inputted into the software were total labor $ won based on historical data.

7. Forecasting Solution To calculate the current and future demand we then input the raw data into the following formula: D = X/Y Z Where as: X = Total Labor $ Won Y = $110 hour bill rate Z = 2080 Hours worked annually D = 18.73/$110 = 170272.73 =170272/2080 = 82 82 Technical Staff needed for 2006

8. MBA 5 Year Forecast We were able to do a 5-year forecast We were able to do a 5-year forecast using these calculations. The total labor amount won per year is increasing at a steady rate of 1.97 annually. The total labor amount won per year is increasing at a steady rate of 1.97 annually. In order for MBA to meet the forecasted demand they will need to initially hire 4 technical staff at this time. In order for MBA to meet the forecasted demand they will need to initially hire 4 technical staff at this time. If MBA continues its upward trend they will need to hire between 8 and 9 technical staff annually to continue to meet future demand for services. If MBA continues its upward trend they will need to hire between 8 and 9 technical staff annually to continue to meet future demand for services. MBA 5 Year Forecast Year Forecasted Labor $ Won Total TS Needed Additional TS to Hire 200618.73824 200720.7908 200822.67999 200924.641078 201026.611169

9. Conclusion To make sound tactical and strategic decisions that impact profitability, decision makers must have better control over the planning function. To make sound tactical and strategic decisions that impact profitability, decision makers must have better control over the planning function. We believe that adding the necessary personnel, along with a forecasting and planning structure in place, MBA can yield significant results. We believe that adding the necessary personnel, along with a forecasting and planning structure in place, MBA can yield significant results.

10. Conclusion Our application illustrates that forecasting can be used in a wide variety of situations including HR management and capacity planning. Our application illustrates that forecasting can be used in a wide variety of situations including HR management and capacity planning. If MBA implements a good, systematic forecasting process, then it will set the foundation for a good sound capacity planning infrastructure. If MBA implements a good, systematic forecasting process, then it will set the foundation for a good sound capacity planning infrastructure.