For projects focussed on productivity gains and/or efficiency improvements, a performance-based arrangement can provide you with a number of valuable advantages, if the conditions for it are right.
- To start, we undertake a 'scoping analysis' to determine, for our benefit, the potential for improvement that is within your operation.
- If that potential for improvement is substantial, we work jointly with your staff to perform an in-depth analysis that precisely quantifies the present productivity and/or efficiency of your operations, working under the supervision of your financial managers.
- We then formalize our joint analysis findings in terms of an acceptably-worded 'base agreement' that clearly documents the present productivity and/or efficiency of your operations. This 'base agreement' also specifies how improvements will be assessed, and the percentage share of any realized improvements that will form our fees, the timing and duration of payments, etc.
- With a signed 'base agreement', we then research and develop a whole host of; method changes, process redesigns, job and systems reconfigurations, capacity realignments, material flow rationalizations, quality enhancements, machine, employee and contractor utilization gains, scrap and other expense reductions, training improvements, etc.; all geared to increase the operating performance of your organization in quantified and documented dollars and cents.
- We present our improvement proposals to you - usually one at a time - and if you can agree on the potential for tangible benefit; we will implement the specific improvements that we have identified.
- After implementation, using the agreed evaluation terms of our 'base agreement'; together we quantify the realized productivity and/or efficiency improvements to establish our fees.
- This means you bear zero risk, and it also means that we don't get paid until you get paid first.
- Very often, this means that you can receive substantial returns without making any up-front investment*.
*A modest retainer fee may be involved, to cover our initial expenses. For projects located outside of the Greater Toronto Area, travel expenses will be involved.