ENCE422 Term Project Report

Dr. Qingbin Cui

Section 0101
May 5, 2021

Group 2
Josie Kaufman
Roshni Patel
Lilia Yousefian
 Table of Contents

Title Page …………………………………………………………………………..1

Table of Contents …………………………………………………………………. 2
Introduction ………………………………………………………………………..
Project Background and Purpose ………………………………………………………...
Building selection ………………………………………………………………………..
Approach Selection ……………………………………………………………………….
Technical Feasibility ………………………………………………………………..
Feasibility Analysis ……………………………………………………………………...
Assumptions ……………………………………………………………………………...
Benefits …………………………………………………………………………………….
How these benefits will be measured ……………………………………………………..
Cost Estimation …………………………………………………………………………….
Supplementary Product Research …………………………………………………….
Key Parameters …………………………………………………………………..
Analysis, Sensitivity, and Conclusions …………………………………………..
Cash Flow Analysis ………………………………………………………………..
NPV Analysis ………………………………………………………………………
Sensitivity Analysis ……………………………………………………………….
Depreciation Analysis ……………………………………………………………..
Conclusions ……………………………………………………………………….
References ……………………………………………………………………………….
Appendix …………………………………………………………………………….
Sources and Links ……………………………………………………………………
Project Background and Purpose
The COVID-19 pandemic has left the UMD campus scrambling to make safe adjustments for students to
return to campus. After a period of online learning, the UMD community is ready to make a transition to
many in-person classes in the fall. As exciting as this is, the pandemic is far from over, and there are
many safety guidelines to consider in order to safely run in-person classes. A lot of changes will be made
to campus to accommodate safety guidelines and ensure the community a safe, healthy, and effective
transition back to school.

In order to formulate a solution to a healthier campus for post- COVID-19 learning, we have considered
aspects such as floor plans for various buildings on campus (how much area is used by students) as well
as how easily/difficult it is to make changes to certain buildings due to their infrastructure. The proposed
solution will need to be consistent with CDC guidelines which are expected to include social distancing,
the wearing of masks, and limits on the number of people in rooms of buildings. As technical
specifications of solution options are gathered, economic feasibility must be analyzed to assure the best
value solution is presented to the university. The University of Maryland has created a “4 Maryland”
campaign to combat the spread of COVID-19 and have an allocated budget for this effort that needs to be
unutilized to the fullest.

Building Selection
The chosen building for this proposal is the STAMP Student Union. STAMP is a very popular building on
campus that houses the school store, eating establishments, event spaces, offices, and study centers.
Therefore, it’s imperative that the university allocates funds to reduce the spread of COVID-19 in such a
high traffic area.

Figure 1: Images of STAMP Student Union and its floor plans

Approach Selection:
All buildings on campus currently have hand sanitizer stations, social distancing stickers, wipe dispensers.
It is very important for these solutions to remain in place, but as the STAMP Student Union is a high
traffic area, additional safety measures must be introduced. One important aspect to having a safe campus
is assuring that all students, staff, and faculty have access to personal protection equipment (PPE). On top
of being provided this upon initial arrival to the university, the campus can implement
“PPE Vending Machines” in order to create an easy way for campus personnel to obtain protection
equipment. These machines often include products such as reusable and disposable face masks, hand
sanitizer, gloves, wipes, etc. In addition, air ventilation systems should be installed in the grand ballroom
event space to assure that areas holding larger crowds have proper air flow. The incorporation of these
technologies will provide easy access to PPE equipment as well as additional circulation of clean air.

Technical feasibility:
In order to determine the technical feasibility of these solutions it is important to consider time, space, and
disruption of implementing and maintaining such solutions. As seen in Figure 2, there are several ideal
locations for the PPE Vending machines that will be easy to find and not in obstruction to other regular
building functions. The vending machines have a short installation process that can take less than a day. In
addition, the ventilation units are wall plug-ins that do not take any installation time nor would take up too
much space in the ballroom as they could discreetly be put in the corners of the room. The only
maintenance needed for the system is the filter changes, which is a simple process of removing the old
filter and placing a new one in the unit and would take a miniscule amount of time.

Figure 2: Potential Vending Machine Locations

Feasibility Analysis
Scope of the project: This project is addressing the issue of covid transmission on campus when students
return to UMD.
Current Market Analysis: There is already funding allocated to deal with this issue. Our solutions will
also be providing a source of revenue to make up for the many changes being made on campus.

Requirements: Funding, advertisement of changes, vaccination mandate, staff to attend to changes

Approach: The addition of air purifiers in the stamp ballroom will help UMD transition back to having
campus events. The ballroom has rental fees which will help generate revenue. In addition to this, we will
incorporate personal protection equipment vending machines in the stamp to encourage safe practices
among students. This will also help make UMD money and keep the transmission of covid low.

Assumptions:
-CDC guidelines remain as strict as they are now (April 2021).
-Stamp is still open and operational.
-Grand Ballroom is allowed to be rented out for events.
-COVID-19 testing will be moved to the University Health Center.
-The quantity of products sold in the vending machines will decrease over time as the state of the
pandemic gets better.
-The price to produce the products stays the same throughout time and the price we sell them for
will stay the same.
-5% of the “4 Maryland” Budget for building renovations will be used for this project
A major assumption we are making is that the grand ballroom will not be used for covid testing anymore.
This would mean that the ballroom would start to be rented by non-university organizations, university
departments, and student organizations again. This revenue will compensate for the cost of the air
purifiers and filter changes. Below are the rates and prorated versions of renting the Grand Ballroom out.

Project benefits:
The proposed solutions would provide significant benefits to the health and safety of the campus. Making
these changes will improve air quality, health standards, and the quality of STAMP as a whole. In
addition, the solutions will result in a higher level of customer service. Accommodating visitors and staff
of STAMP is important to maintaining an inviting and safe atmosphere in the hub on the university’s
campus. Installing air purifier systems in places like the Grand Ballroom could bring in more revenue as
people would be more willing to rent it out if it was healthier and safer. These benefits will be measured
using the following procedures:
- Quality improvement will be measured by periodic air particle tests to test if the air filtration
system is working or not.
- Customer service will be measured by periodically surveying students and staff about their recent
experiences with Stamp Student Union.
- Customer retention rate will be measured by recording how many dates are booked out of the
total available dates for booking the Grand ballroom. A high percentage of bookings means more
people who feel safe renting out the ballroom for events.
Key Parameters:
Costs
Supplementary Product Research
Ballroom Air Purifier Options: Vending Machine Options:

MA-40 Air Purifier (Medify Air)
To put in STAMP Ballroom:
Purchase 11 units - (11x$270) =
$2970
Replacement Filter cost: $58.50
after 8 months of use
Selectivend® Electronic Countertop Vending Machines; Bill Changer
Cost: $2,299.99
Size: 25"H x 33-1/2"W x 27"D
Accepts $1 and $5 bills, as well as coins
Total capacity: 150 items
LED lighting illuminates product display and provides energy efficiency
Rigid all-steel construction; tempered scratch-resistant glass window and
secure threaded lock

EJ120 Air Purifier (Oransi)
To put in STAMP Ballroom:
Purchase 7 units - (7x$899) =
$6293
Replacement Main Filter cost: $95
after 12 months of use
Replacement Carbon Filter cost:
$79 after 8-12 months of use
Selectivend® Snack Machine; ADA Glass Front, 40 Selection
Cost: $4899.99
Dimensions: 72"H x 41.1"W x 34.75"D
Total capacity: 550 items
6 pull-out, tilting trays for easy loading and assured product rotation
Individual electronic pricing of product from $0 through $99.95
Money back impact sensor delivery system
Americans with Disabilities Act Ready
Delivers Plug in ready - Just set prices and operate
1 year parts warranty - Outdoor use will void the warranty
Free inside delivery
Financing Available - Pays for itself with 14 vends per day

Mod HEPA Air Purifier (Oransi) Selectivend® Combo Vending Machine

To put in STAMP Ballroom:
Purchase 7 units - (7x$599) =
$4193
Replacement Filter cost: $75 after
6-12 months of use
Cost: $6,399.99
Dimensions: 72"H x 29.5"W x 38"D
Environmentally conscious design that ensures minimal power consumption
All-Steel construction made in the USA
Money back impact sensor delivery system
Americans with Disabilities Act Ready
Individual electronic pricing of product from $0 through $99.95
1 year parts warranty - Outdoor use will void the warranty
Free inside delivery
Financing Available - Pays for itself with 17 vends per day

Grand Ballroom Rental Prices

Non-University University Department Student Organization
Full Day** / Half Day* Full Day / Half Day Hourly
$4000 / $2400 $1600 / $960 $86

PPE Vending Machine Product Options:

Products being sold inside vending machines:
Disposable mask bulk cost: $119/2000 pcs = $0.06 each
Reusable cloth mask bulk cost: $19/20 pcs = $0.95 each
Glove bulk cost: $199/1000 pcs = $0.20 each
Wipes bulk cost: $104/1000 pcs = $0.10 each
Tissue packs bulk cost: $18/100 = $0.18 each
Other parameters include:
● Cost of goods
● Predicted return rate on investment
● Stamp Student Union Grand Ballroom dimensions:
Dimensions: 125' by 70'
Size: 8750 sq. ft.
This tells us how many air purifiers we need to purchase for this space to allow events to start
again in a safe manner.
● Stamp Student Union has 3 Floors (allows multiple vending machine locations for convenience)

NPV Analysis:
Machine Number NPV

Machine 1 $9,222.52

Machine 2 $11,668.29

Machine 3 $20,244.14

Cash Flow Analysis:

Depreciation Analysis:

Note: Salvage values determined from used machines on sale

Sensitivity Analysis:
Results:
Air Purifier chosen: Mod HEPA Air Purifier (Oransi)
Purchase cost per unit x amount of units bought: $599 x 7
Replacement filter cost for one year x amount of units bought: $75 x 7

Vending Machine chosen: Selectivend Combo Vending Machine

Purchase cost per unit x amount of units bought: $6,399.99 x 2 = $12,799.98

Cost from Air Purifier System: $4,718

Cost from Vending Machines: $12,799.98
Overall Cost: $16,992.98
Our plan does include sources of revenue to accommodate this cost.

Time Needed to Make up Cost of Air Purifiers Chosen:

Air Purifier chosen: Mod HEPA Air Purifier (Oransi)
Total Cost for one Year: $4718

People Renting the Ballroom Time to Break Even with Costs

Non-University Full Day - $4000

Half Day - $2400
Cost would be made up in a day and a half.

University Department Full Day - $1600

Half Day - $960
Cost would be made up in 3 days.

Student Organization Hourly - $96

Cost would be made up in 50 booked hours.

Conclusions:
We chose the Mod HEPA Air Purifier (Oransi), with a single unit cost of $599 based on technical
specifications such as how many purifiers needed to fill the Grand Ballroom while having effective
filtration. We have opted to purchase 7 of these purifiers, for a total price of $4,193 before taxes. For the
PPE Vending machine, we chose the Selectivend® Combo Vending Machine, with a single unit cost of
$6400 because it had the highest net present value of $20,244.14 and highest total profit out of all the
options. We have opted to purchase 2 of these vending machines, one for each of the 1st and 2nd floors,
for a total price of $12,800. As the Covid-19 pandemic continues and as more people get vaccinated,
guidance from the CDC suggests that experts are hopeful there will be a lifting of many safety restrictions
that are currently in place, including mask mandates and social distancing. We recognize that our PPE
vending machines’ purpose might become phased out with these relaxations of restrictions. Therefore, we
expect for the PPE vending machines to be converted into normal vending machines containing snacks
and drinks, rather than PPE gear. This transition to products with more longevity will still allow the
University to gain revenue.

References
Appendix:
a. A table or spreadsheet of feasibility analysis data sheet (one page only)
b. Others (if any)
1. The project report should be in 11 font, single spaced and is limited up to 8 pages (excluding
appendix, title/TOC page if any).
2. Grading will be based on the quality analysis, content, effort, and writing.

NPV Analysis
Sources:

PPE Vending Machines

Endowment fund requires 5% rate of return to an opportunity to be feasible
https://myppedistributor.com/getting-started/startup-cost-estimates/
https://www.quill.com/selectivend-electronic-countertop-vending-machines-bill-changer/cbs/226199.html
https://www.quill.com/selectivend-snack-machine-ada-glass-front-40-selection/cbs/50081234.html
https://www.quill.com/Selectivend-Combo-Vending-Machine-13-Snack-12-Beverage-Selection/cbs/5008
1232.html

Air Purifiers
https://medifyair.com/products/medify-ma-40?variant=31056475553859&currency=USD&utm_medium
=product_sync&utm_source=google&utm_content=sag_organic&utm_campaign=sag_organic&gclid=Cj
wKCAjw7J6EBhBDEiwA5UUM2g-ZksEVLR5Am8OGixOInDPhSSDmarmID-fLMuzwwM4MS3Tgj98
wlxoCnMcQAvD_BwE
https://oransi.com/products/oransi-ej-air-purifier?variant=37157370790069
https://oransi.com/products/mod-hepa-air-purifier?variant=37157381996725

Ballroom Project
https://stamp.umd.edu/event_guest_services/rooms/grand_ballroom

CDC Information
https://www.cdc.gov/coronavirus/2019-ncov/community/ventilation.html
https://www.cdc.gov/coronavirus/2019-ncov/prevent-getting-sick/prevention.html
https://www.cdc.gov/coronavirus/2019-ncov/community/ventilation.html