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Performex Implantation Case Study
Economic Value of Improvement Objectives, Formulated by Participants in a Consulting Engineering Firm
| Corporate objectives | Economic value | Indicators of success |
|---|---|---|
FINANCIAL: We have reached 80% of projects with a profit margin of 20% for all projects. |
$4 million for all projects. |
Calculation of the profit margin for each project. |
CLIENT: To serve our loyal partners in a timely and diligent manner. |
$20,000 per client generating approximately $2 million for the organization. |
Number of hours of availability of each employee at work (hours not engaged in projects) and an index of 90% of clients who are very satisfied in the annual client survey. |
HOW IT WORKS: We have created standardized ways in which things are done to help prepare plans and specifications. |
$2,000 per project for 3,000 projects per year = $6 million per year. |
Costs of Preparation by Project for Each Plan and Specification |
IMPROVEMENTS: Reduced travel time. |
Approximately $15,000 per year per employee. |
ratio of travel time to invoiced time. |
Efficiency gains estimated by participants of about 1 month of work per year. Return on investment generally estimated at $10 for every $1 invested.
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