Why Profit Point can provide good value with fixed price projects

March 19th, 2009 10:34 am Category: Optimization, by: Mark Rockey

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Uncertainty can be a tremendous challenge when it comes to managing a project. How much will a project cost? How long will it take to complete it? As a client, wouldn’t you like to know exactly what a project will cost and when it will be completed to be able to determine whether a project will achieve what you intend with a satisfactory return before you commit to it?

For most of our projects, we work with our clients to develop a project scope and commit to delivering that scope at a fixed price with a fixed timeline. Our customers appreciate this approach because it gives them a good understanding of what the project will entail and they know the cost up front. Our approach takes time and effort before the project starts but in the end our clients and Profit Point benefit.

How does this happen?

We rigorously develop a scope to the point that we are comfortable in understanding what the client wants and the client is comfortable with what we will deliver. The scope is detailed enough such that we are both confident of a successful project but not so detailed that we can’t change course somewhat as the project enfolds. Our customers appreciate our collaborative approach and being flexible when assumptions that we were made up front don’t pan out exactly the way we both expected.

Then we very carefully manage the scope of the project to ensure that the deliverables are met. For minor changes we typically just take care of them without any additional cost to the client. For more major scope changes we will develop a separate scope for them with a separate fixed price.

Our average 20 years experience allows us to operate this way. Our supply chain consultants have been completing successful projects for many years. We know not only the technical details of our consulting practice but how to deliver those technical details that ultimately delivers what the client wants in a way where both the client and Profit Point benefit. How can we do this for you today?

This article was written by Mark Rockey, Profit Point’s Production Scheduling Practice Leader.

To learn more about our supply chain optimization services, contact us.

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