New tech impacts ATM installation
Check 21 is impacting ATM installations. One expert shares know-how.
August 18, 2008 by Tracy Kitten — Editor, AMC
Ken Rogers is the president and GM of Golden Eagle Nationwide Implementation Solutions, a California-based ATM-deployment company. To submit a comment about this submission, pleasee-mail the editor.ATM replacements and upgrades to make existing ATMs Check-21 compliant with deposit-automation features is top of mind for banking executives in the United States. With tight margins and growing compliancy demands, financial institutions have to carefully plan out ATM installations and upgrades.
Whether you're an FI that is planning a few ATM additions or a nationwide rollout, you need to get the best value for the dollars you invest. The following information will help.
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And while it's important to note that installation costs can vary greatly, depending the deployment plan, the key factors in determining installation prices (in order of importance) are always the same: scope of work, schedule, geographic density and volume.Let's look at these factors in depth.
Scope of work
Bring your installation partner into the planning process early so that the installation company can help you identify all the tasks that should be part of the deployment plan. The installation partner can help you "time-line" all the events into a cost-effective plan.
A site survey for each location also should be a part of through-the-wall and island-walk-up deployments. Surveys also may be necessary for lobby cash dispensers or remote island-walk-up ATMs as well.
For site surveys, you need to:
- Identify each site location and provide a spreadsheet that includes the terminal ID number, the location name and the address.
- Identify which make model and style of ATM is to be removed from each site.
- What will happen with removed products? Defining this early could save money in storage fees.
- Define the make, model and style of each ATM to be installed.
- If deposit-automation features are being installed, remember that new service-clearance footprints may require ATM room and opening modifications to accommodate the new specifications. The site survey can capture all the important dimensions and identify the construction tasks that should be included for each site.
- Does the location have proper electrical power for the ATM to support your new products? A new ATM requires a dedicated 20 AMP or dedicated 30 AMP circuit. Peripherals that require power and surround lighting should have separate power available. If new or additional source of electricity is required, build it into the scope of work document.
- Is your existing communication cabling sufficient? If you are planning a communications upgrade at the same time, the site survey can capture the run-length and path of the new cables.
- Is there an existing surround or topper that will be used, or will new signage be ordered. (Suggestion: When ordering replacement surrounds, try to order the same perimeter size as your existing signage, if possible. That way you will cut down on additional construction or patch-and-paint issues that may be exposed once the old surround is removed.)
- Are there existing cameras in your ATM or surround/topper? If so, will they be re-used or will new cameras be installed?
- Will your new ATMs have alarms? Do you have an alarm company that will be responsible for installing the alarms?
- What about ADA compliance. Many existing ATMs still do not meet ADA compliance. As site surveys are completed, the surveyor will identify if opening modifications or any other construction tasks are required to install your new ATMs at the proper legal ADA compliance height.
During the site-survey process, the surveyor also will look for out-of-scope tasks, such as construction, access issues, obstructions, lighting, parking and other unique issues that need to be known before to the scheduled installation date. Out-of-scope tasks should be identified by site and approved before work begins.
Schedule
Aside from the scope of work, the schedule can greatly impact installation costs. The more stipulations on the schedule, the more difficult it becomes for the installer to operate efficiently. Try to avoid blackout days, short work weeks, after-hours or early start times, and predetermined routing. It's best to allow your installation partner to define the schedule based on resource allocations, geographic densities and the receiving schedules of all products to be installed.Geographic densities
Grouping deployments or rollouts with high geographic densities allow the installation partner to get maximum use from their resources. For instance, reduced drive times may allow the installer to increase the amount of locations and installations that can be accomplished in one day. Those efficiencies can lead to discounts for you.
Volume
Surprisingly, volume does not contribute much to cost, at least relative to the other considerations. Most of the installation company's costs start fresh everyday. Unlike manufacturing, an installation company cannot run its resources 24 hours a day. Volume can be a positive factor, when coupled with good geographic density, efficient scheduling and a well-defined scope of work.
Deployment budget
- Include all the relevant tasks associated with the installation in your deployment plan.
- Exclude all tasks that are not associated with the installation and that can be performed at other times by less expensive vendors.
- Whenever possible, minimize the amount of resources you have onsite by using the same vendor to handle the ATM and the surround/topper installations.
- Allow enough time to perform a quality site survey and enough time to review the survey.
- Minimize the amount of onsite meets that are required for survey and installation access.
- Reschedules and cancellations are costly and destroy the schedule. Take every step to confirm that all gating items are on schedule.
- Look for a vendor that can manage your inventory effectively.
- Vendors with multiple-warehouse locations can save transportation costs.
- Never transport ATMs until you have a firm plan.
- Find out if your installation vendor is using his own employees to perform installation work or if he is subcontracting some of the work out to others. Subcontracting can diminish control and quality.
- Select a vendor with an experienced project-management team.
- Try to avoid over-communication with the field. Hourly updates with installation progress can significantly slow the process.
- Use the tools that your installation partner may have available for you, such as online photo management and review, and online inventory management.