No, not that simple norming from team development model. The other one – which is also called predetermined time standards, automated microelements projecting and work norming, estimates, stop motion analysis and similar. Yes, buyers have to be a little bit of everything – operations or manufacturing specialists including. And yes, this is how you bring benefits to your company.
Time, cost and quality are three primary factors to determine overall budget. The number, that procurement specialists aim to reduce. Very frequently, when you are dealing with low cost tasks (cleaning, maintenance), hourly cost is protected by laws and there is not much you can do. So where do we find benefits?
Option 1. Challenge “quality”. If you are looking into cleaning contract – you will most likely review areas to be cleaned, frequency of works, potentially – procedures, which are offered to you by the supplier. And that is a very strong tool to be used. I have seen contracts, where simple management staff chairs are beeing “deep-cleaned” off staines three times a week. Would you not have doubts about such assumptions?
Option 2. Challenge “time”. How many times have you checked all seventeen (or however many) pages of the contract and analysed it line by line? And I cannot blame you – especially if those contracts are worth £100k a year while you have other things burning which are multimillion deals. However, there are differences. Some suppliers will tell you very precisely all the numbers. Area to clean; norm of area, cleanable in one hour; and a calculation of manhours needed to do full cleaning according to the agreed SLA’s. Others will not. Others will just give you the round number of FTE’s (full time equivalents), that you “need”. Do not take it for granted, challenge, if you can. This is where understanding about work norming comes to help. Many times it is not difficult to do a common sense check to understand, that “desk wiping” takes 1 minute instead of 15.
This post is not here to make you think that you now need a sophisticated system to check your contracts. Companies are different. A solution, which is good for company A, will be completely useless for company B. And it is our call to choose the right tool.
If you are in services based area, you might want to google ANABES, MTM-1, MTW-1, MODAPTS PLUS. Especially, if you are looking to acquire a lot of repetitive, low value work. Think about IT systems, where a “small” part of testing can be valued in several millions. If you are not – expert judgement will always be good enough.
And don’t get me wrong – option 3 is always there: If you notice, that you are being charged unreasonable fees or prices – that is the first and fastest thing to go for.
Again – thanks for reading! Please do comment if you have different views or find this useful!