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SpectrumWebsite.com



Manufacturing and Business Process Efficiency Consulting
This offering looks for ways to improve your efficiency

Figure 1:  Computer Automation

Spectrum derives its recommendations from just-in-time (JIT), kaizen (continuous improvement), total quality management (TQM), world-class manufacturing (WCM), and statistical process control (SPC).  We put this understanding to work in analyzing and updating your processes.  We can help you streamline computer and manual processes.  We have helped companies set up manual processes more efficiently.  We have helped companies leverage computers and technology to increase speed and accuracy!

 
Figure 2:  Timer and Stopwatch

With this offering Spectrum observes and analyzes your business processes at no cost.  We observe tasks that are significant parts of your company's daily routine.  We also look at any additional tasks that are time-sensitive, require accuracy, or are time-consuming on a less frequent basis.  You control which processes Spectrum observes.  During our observations we note the steps involved and how much time each step consumes.  This gives us some of the information needed to compute 3 possible outcomes for each process.  The 3 possible outcomes are:

To qualify for either of the last two, the process changes need to mutually benefit your company and Spectrum.  The methods used to compute fees for both of these outcomes are structured to simplify your ability to provide go-ahead approval.

 Processes That Are Improved In-House 

Improved processes that stay in-house incur a one-time fee.  Usually the one-time fee for each process improvement is equal to the dollarized estimated time savings over 1 year.  For instance, if a process currently takes 80 man-hours over the course of 1 year and Spectrum shows you how to do this in 20 man-hours, the one-time fee is 60 dollarized man-hours.  The process' labor cost is used to dollarize it.  Therefore, if your labor cost for this process is $30 per hour, this makes the one-time fee $1800 (= 60 hours x $30/hour).  Sometimes clients want to make an improvement but the improvement fee is too small for Spectrum to agree to perform the work.  Often this will be an improvement that addresses time-sensitive issues or accuracy issues.  In this situation we may be able to mutually agree to a higher fee.

Before showing your people how to make a process more efficient, Spectrum requires a brief "process improvement agreement" that specifies the method used to compute the one-time fee.

 Processes That Are Outsourced 

Processes that are outsourced to Spectrum incur recurring fees.  Usually the recurring fee for each outsourced process is equal to half of the dollarized time it currently takes you to run the process; usually we equally split the savings with you.  For instance, if the process currently takes you 10 man-hours per occurrence, Spectrum performs the process for you and the fee is 5 dollarized man-hours per occurrence.  The process' labor cost is used to dollarize it.  Therefore, if your labor cost is $30 per hour, this makes the recurring fee $150 (= 5 hours x $30/hour) per occurrence.  Sometimes clients want to outsource a process but the recurring outsourcing fee is too small for Spectrum to agree to perform the work.  Often this will be outsourcing that addresses time-sensitive issues or accuracy issues.  In this situation we may be able to find a higher mutually agreeable fee.

Before outsourcing a process, Spectrum requires a brief "outsourcing agreement" that specifies the service level guarantee, recurring fee, a minimum number of occurrences, and a minimum number of months that the process will be outsourced for.




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