ＭcKinsｅy

1sｔRｏund:

１)

Weareｂaｃｋinｔhｅ80ｓ，aｎdＤaewoｏwantｓtoentertｈeItaliaｎmａrket．Tｈeyapproachyｏｕandsaytｈatthｅｙwanttoｓell100,000carｓaｆtｅｒｏｎｅyeaｒ.Ｗｈａt(yī)doyｏuｔelｌtｈem?

ItsｏwnprodｕcｔiｖityaｎｄtheCapaciｔyｏfｔhelocaｌmarket

?2)

Asｔeelprｏｄｕcingcｏmpａｎｙwantstｏcｕtcosts.Itｃurｒｅntｌyopeｒａt(yī)ｅs2larｇｅmillsaｔ75%capａｃiｔyaｎdfoursmallｏｎｅsat10０%capacitｙ.Ｉｔisｅｘｐｅriencｉngprofitaｂiｌｉｔyｉssuｅｓ.Whａｔａｃtionwouldｙoｕrecomｍeｎditｔaｋｅs?

ComparｅｔheCｏｓt/Ｐroｆitｉndｅx－--

FixedＣost---

OｐerａｔingＣosｔ---

?3)

Ourcｌiｅntiｓaｒetailbｒokerage．Ｗehavｅseenouｒcustoｍerbａｓedeｃｌinｅoｖertｈepast18monthｓ.Ｗｈythisｈａｐpeninｇisａｎdwhａt(yī)canwｅdｏaboｕtit?

Why---ＭarketChange(NewSuｐplierｓ,NｅwPolｉciｅｓ,ＮewProdｕctsiｍｍerge)

Ｃompetiｔors(NewOne／Oｌｄoｎegｒｅwfａst)

ＩnｓidｅOpeｒation(Straｔegy/Procｅｓs/ｓtructuｒｅ/system/人員流失……)

?4)

Tｈeclienｔoｗnsmiｎｅstｈａt(yī)ｐroducehigｈandlowgｒadeｏreandｐｒocｅssesitinｔoanａlloythatisｔhensoldａsanａｄdｉtｉveｔosｔrengthenstｅｅl(solｄdirｅcｔｌyｔosteeｌmａｎufａctｕrｅrs）.Anewforeigncoｍpeｔitoｒhasshowｎｕpintｈemarketanｄthｅcｏmｐanyislosingpｒofitｓ.Ageｎeraｌmaｎagerｏｆoneofｔｈepｒocessiｎｇplantｓａｓkｓwhａｔhｅshｏulｄdotomａintaｉnprｏｆiｔs．

Fｉndourchaｒａcｔerｓanｄpositｉｏn

5)

ThepasｔｆewyearsaHealthＩｎsuｒancｅComｐaｎyhasbｅengrｏwiｎgatarａt(yī)eofａbｏut1５%ａyｅar.Tｈiｓpastｙeａriｔoｎｌygreｗby1%.Ｃostsarｅriｓｉnｇ１2%eaｃｈyear.Ｗｈaｔisｔheprｏｂlemandwhａt(yī)shｏuldthecompanｙdｏ？

6)

ＣｏmpａnyＸisachemicalmanufacturer.

TheymakｅaproducｔｔhａｔiｓｖｅrysimilartoＣｏｍpaｎyＹ’sｐrｏduct.

ＣompａnyＸandYarediｒeｃtcｏｍpｅｔitorｓｉnｍanygeogｒａphiｃmaｒkets,buteachａlsohaｓuniqueareasiｎｗhichｔhesalesｆｏrceｓdｏｎotfacｅdiｒectｃｏmpetitiｏｎ.

ＣompanyXbuysＣｏmpanyY.

Hｏwdoｙｏuintegｒａｔethesalesfoｒces??7）

ＹouａreworkｉnｇｆoｒaBrａzｉlｉanｓｏｄａmanufａcｔurertｈaｔisｅxpｅriencinｇdecliningprofitsovｅrtｈeｌasttwoyｅａｒｓ.Wｈyiｓthｉsoｃｃuｒriｎｇ?［competiｔｉonｆromgｅnerics]Whatisthesizeofthemaｒｋetforcanneｄcola?Whａｔａrｅthecompａnｙ'ｓｏptｉonｓｆoｒimproviｎgprofiｔabiｌiｔy?Whatareｔｈeｐossibleeｆfectｓofaｃｈangeinｔhecola'sｐｒice??8)

Ourclienｔｉｓａｍid-WｅstｅｒnＨMO．Theyhａvｅ300doｃtorsaｎd３00，０00subｓcribers.Theyhandlemoｓtlyｃhｅckupsａndｒoｕｔiｎｅviｓiｔs．TheHＭＯoutsｏurceｓsｐecｉｆiccａsestolocalｓpeｃialisｔs．ＯvertｈｅlａsttwｏyｅarｓtheHMOhａｓseｅntｈeｉrｐrofiｔｓdecrｅasｅ.They'ｖecalｌｅduｓintofiｎdoｕtwｈy.?2nｄRound

1)

AＥｕropｅaｎiｒｏnmｉningｃoｍｐanyboughtapｉｅｃeoflandinfｆice:ｓmaｒttags"/>Ａｕstrａliａwithaｈiｇhcoｎｔeｎtofiron.Shoｕｌdtheｙｐｒocｅedwithｅxtractioｎoftｈeoｒｅornｏt?/?２)

APCmａnufaｃtuｒerｗantstoａｄｄanｅｗｌiｎeofpockｅtＰCｓ.Shoｕldｔheydoｉt？WhatdoyoｕteｌltｈｅCＥO??３)

Ａheａlthaｎdfｉtnesｓcｅnｔer,achａinｏfgymｓ,ｌikeBally'sisｃｏnｓideringbuildiｎｇmorｅｔeｎnisｃｏurｔs．Thecostｏftｈelanｄdeｖelopmｅntis

ghoccupａnｃｙｒateｓaveｒaｇｅd80percｅnt.－chaｒtsgiven

3)aｍusｉｃｃｏmpａｎyisbringｉｎgｏutacdfoｒａｎewartisｔ．howwｏuldyoumarｋetａｎdpricｅ,ｋnoｗingthａｔyｏu＇'dlikｅtocｈａｒgeaｐreｍiumforｔhｅcd?

fiｎalrｏunｄ(nov.２0２3）

1)ｙouarecｏｎsultｉｎgｔothemａｎｕｆａcturerofairpｌaneｅngineｓ(2maineｎginｅｓ:forwiｄebodｙplanesaｎdnarroｗbodyplanes——>rｅgiｏnalanｄlowｃostａirlineｓ,ｗhicｈａｒegroｗiｎｇ，usethｅnａrrowｂodyplaｎｅs）．thｅclienｔisconsiderｉngeｎｔeringtｈｅairplaneleasinｇmａｒｋet,becausｅoneofitscoｍｐetｉｔorｓ(ｇe)isａlｒeadyｔｈｅｒe,andtｈｅｃlieｎthypothesiｚｅstｈatgｅ'＇spresｅnｃeinｌeasinｇhelpｓｉtｓengiｎesalｅｓ.ｗhatｄｏyouｔeｌlhim?

2)ｌasｔyｅar,lawsuitsｃoｓtｃｏrpｏｒatiｏｎｓ$２00ｂilｌioncｏmpａredwiｔｈ＄7０ｂilｌiｏnin1９90.hｏｗwouldyouadｖｉｓeａroundtａblｅofceｏstoａt(yī)tacktorｔrｅfｏrm?

3）theu．s.pｏstｏfｆiｃｅｌｏstmｉｌlionｓlａsｔyeaｒ.howｗouldｙouadｖisetｈenｅwceototurntheｐosｔoffｉcearoｕnd?

4)wehaｖebeenhirｅｄbｙamexｉcａｎcｏmpanythaｔhaｓaｄoｍｉnａｎtposｉtioninalloｆitsmarketｓｂuｔｏne:ketｃｈup.althoughitｓkeｔcｈｕpsaleshaｖebeenincreaｓiｎg,itsmaｒｋeｔsｈareisstagnａnt(10%)aｎｄitｓprofiｔmaｒginremainsbｅlowthatofｉｔscompetitors.whatdｏｙoutｈｉnkmightbehappｅniｎg？wｈatwｏuldyｏuｓuggestｔｈecｌｉｅｎｔdoinｏｒdeｒｔoｉncｒeaｓemａｒｋｅｔｓhaｒeａｎdprofitｓ?

asmallｐharｍacｅｕtｉcalreseａｒchcompaｎyisａbouｔtostartclinｉcａlｔrｉalｓfｏｒanｅwaｎdpｒomisingmoｌeculｅ.thｅｔrialpｒｏcesｓｈaｓthreephasｅs,ｗithｄiffeｒｅntassocｉatedcｏstsaｎｄｐrobabｉlitiｅsofｓucｃess:

cｏstｓ(ｍillｉoｎ)pr.suｃｃess

－phaｓe1$10．40

-phａｓe2＄５.2

-phase3$８0.１0５

ｉfｔheprocｅssｉssｕcｃｅssfｕｌａｎdthenewdrｕgisiｎtrodｕcediｎthemａrket，ｉtｗoulｄｇenｅｒateｔoｔａｌincｏmefloｗsoｆ$300ｍiｌｌion．

+ｄrawagrａphsｈowingtheinｃｏmeｓtreａmｆoｒtｈeｎｅxtｔenｙeａrs(assｕｍｅthatfuｌｌaｄoptionisreａcheｄinｙeａr7)

＋thephａｒmaceｕtiｃalcｏmpanyｉslｏokinｇfｏｒabuyeｒ.howmucｈsｈouldiｔasｋfor?

bｏoz

1stｒouｎd

1)ourｃliｅｎtisaｍagaziｎｅpubｌishｅr．tｈｅyareｃonｓideｒingaｎewpriciｎgproｇramwherｅthｅｐrｉcｅｆoｒｓubsｃｒipｔioｎsｗouldｉｎcreaseevｅrｙyeａr.eｖaluatehowsｕchadeｃisionwｏｕldimpacttheirbusｉｎess.ｗouｌdyouadviｓｅｔheydｏｉt?

bａｉn

1stround(noｖ.2０23）

1）oｕrｃｌieｎtiｓapｐleｐuｂlishing,ｔheｌargestpｕｂlisｈｅrｏfｃhｉldren’sfｉctionintheiｎｄuｓｔｒy.seｖｅnｙearsagｏtheｃｅｏbeｃaｍeconcｅrnedthａt(yī)ｃhiｌdｈoｏｄlｉteracyｒatesｗereｌｏwandｄecideｄtoｍakeadiｆfｅrenｃe.heeｎteredtｈｅtelｅmetrytextbookｍarket．hetｈinkstheyarｅtｈｅbestｎow,ｂuthasｎ’tbｅenrewarded.seｖenyearｓlateｒｈehas７０millｉondolｌarｓiｎsalesaｎd２0ｍiｌlioｎdoｌｌarsinlosｓes．theｙaｒelｅsstｈan5%ｏfthｅmarket,buttheｃeowantstostａyinｔheｍarket,howcａｎhedｏｉt?

2)ｏurcｌientprodｕcｅs2-incｈwrｅnｃhes.theｙseｌltｏｈｏmｅdｅpｏtanｄalsoｔoauto-ｍechanｉcsdirectly.ifyouweｒｅaｓtoremanaｇeraｔhomedｅｐｏt,hoｗmanyvariｅｔiesofwrencheswoulｄｙoudｉsｐlaytｏｓｅｌlanｄatwhatprｉcepoints？howａrethehomedepoｔwｒｅnｃｈｂuyｅrsdiffｅrｅntfｒomthｅauｔｏｍechaｎics?ifyｏuwａnteｄtｏproｖideｄiscountstothｅaｕｔｏmechanics,ｗhichofthｅmwouldyｏutaｒｇetandwhy?whatｉnformａt(yī)ｉｏｎwoulｄyouwantfrｏｍｔhemfｉrst?

３）univeｒsitｙtownhasapopulａt(yī)ioｎof40,００0ｓtuｄents．ｃuｒrentｌｙthｅreａreniｎereｓtaurａnts．you''reclｉentisthinｋingａbｏutoｐeninｇupｔhｅtｅｎｔh．istｈiｓagｏoｄideaandｓhoulｄsheoｐeｎupａfａｓtfoodｏｒaspecialｔyrestauraｎｔ？

４）ａmajorａirｌiｎeiｓtｈinkｉngaboｕtgｏｉngheadtoheadｗｉtｈthediscoｕntairliｎesbyｏfferｉｎg＂cｈｅａｐ＂farｅs.doesthｉsｍａｋesenｓe?eｓｔｉmatethesizeoftｈeeuｒopean＂discount"airｌinemarkeｔ．

５)yourclｉeｎtsellscｏffeｅonthefｉvejapａnesｅbullettrains(ｈighｓpｅedtraiｎs).estimaｔeｔhesiｚｅoｆｔｈemaｒｋeｔ.ｈowwouldyouａdvisethemtｏincreａsesaｌes?

6)ourclｉeｎｔ,aprivａt(yī)eeｑｕityfiｒm,ｉsｃonsiderinｇanｉnvestmｅntiｎamanuｆaｃtuｒeｒofｄigitaｌinkjetpｒｉntｅrs(ｐｒinｔｉnｇlargebillboaｒds）．thｅｍaｎufacturerwａｎtstoenｔerｔheｓｃreenｐrintiｎgmａrket（priｎｔinｇｓiｇnsanｄpoｉnt-ofpｕrchasepoｓｔers,e.ｇ.fｏrsupermａrketsaｌeｓ）.howbigisｔhｅscreｅｎｐrintingｍaｒｋet?whichpartiｃｕｌaｒsｅgmenｔistｈeｍostattractivｅ？

7）estimaｔeｔｈeｍarｋetｓizeofprinｔerｓiｎhongkong.aｕ．s.－basedpcmaｎｕｆactuｒｅrnowwantstogｅtｉｎtｏtｈeprｉntermaｒｋet.assｅssｔheoｐpｏrtuｎｉty．

8）ｗｅhavebeeｎhiredbyagｌｏbａlｗｅalthmanagｅmeｎtcｏmpａｎythathａｓ２diｖisiｏns：asｓｅtmanagemｅntandｐrivatebaｎking.ouraｓsetmａnaｇｅmentｐｒoｆitshavｅbeenｄecreasｉng,aｎdoｕrprivaｔebankinｇprofitshavebeenincreaｓing.wｅneedtohｅlpｏｕrｃlieｎtdetermiｎestｒategｙtoincｒeaseａllhisprofｉｔs.

9)ｗehavebｅeｎｈireｄbytheboardoｆacompanytｈatｉsloosingmoney．theboardhａsａskedｕｓtodetermiｎewｈetheranyｏfthisｌoｓscａnbeａt(yī)tｒｉbutｅdtoｔheleerjｅｔthaｔthemanagemenｔteａmusｅｓ.

１0)ｗehavebｅｅnhiｒedｂyaｃompaｎythathaｓjustfiｎishedmａkinｇthemillｅnｎiuｍeyｅ,alarｇeferriswhｅelｔｈatwiｌlbｅｐlaｃediｎthｅｍiddlｅｏflonｄoｎ.ouｒclieｎtwanｔstoknowhowbigｔｈemａrketisanｄhowmuchwesｈoｕｌdｃharｇepeｒｔicket.

a.t.kearｎey

1strｏund(oct.２023)

1)ｔhecfoofaｔop3retaｉlｅrwａntsｙｏuｔoｅvaｌuatetheviabilitｙｏfdｅvｅｌopingexcluｓivecontrａｃｔswithdｉstｒibｕtors.tｈｅthreequｅｓｔionsyousｈouldaｄｄressare:

1.pro''ｓandcｏn''sｏfpursｕｉｎgｅｘclｕｓｉvecontrａcts

2.identｉfｙtｈecategｏrｉestｈａt(yī)shouｌｄbeexplｏredforexcluｓiｖecontｒacｔs

3.howwｏｕldｙouoｐｅraｔｉonaliｚethｅsecontraｃts?

2)casesetup（ｆaｃtsofｆeredｂｙｉnterviewer）:

yoｕrclｉentisaｕ．s.bａｓedqoilｒｅｆinery.therｅfｉneryhａsａsiｎｇleｌocａt(yī)ionａndisaｓｍaｌｌtomedium-siｚeｄrｅfinｅｒy.ｙourcｌｉent,alｔhouｇhproｆiｔａble，ｂeliｅｖeｓitisｌａgｇｉｎgbｅhindtｈｅcｏmpｅtitioｎandｃouldiｍｐrovｅ.yｏuaｒebroughｔinaspａrｔoｆaｊointconsuｌtant－clientteaｍthatwｉlｌｒｅvieｗoverallopeｒatiｏnｓａndmaｋerｅcommendａt(yī)ｉonsonwaystoimｐｒｏｖeｔheｂoｔtｏmline．yｏｕｈavｅbeenassiｇnedtoｗorｋwiｔｈtｈemainｔenａncedivision．theｍaintenanceｄepartment’sprｉmarｙobjectｉveｉsｔopreveｎteｑｕipmeｎtｆａilurｅandtorｅｐaｉreｑuiｐmentwheniｔdoesfａil．ｕnｄerｓtandinｇofｉtsｏrganizａt(yī)iｏnisｉmｐortant.ｉtｃｏnsistｓｏｆtｈreepriｍａryareaｓ:ｎineassetsareａs,oｎeｃentrａlｍａintenaｎcｅaｒeaanｄonegrｏｕｐofcoｎtraｃtors．thefirsttwoaｒｅａsareempｌoyeｅｓoftheclｉeｎt,ｔｈethirdａneｘtｅrnalsourceoｆlaboｒ.aｎaｓseｔisａphｙｓicaｌａreaoｆthｅpｌａntthatｃontａｉnsvariｏuspiｅcｅｓofeｑuｉpｍent（pumps,hｅａt(yī)ｅxｃhａngers，eｔc．)．theｒeaｒeｎineasｓets.eachａssｅｔｈasaｍaintenanｃｅsuperｖisｏrwhｏiｓrｅsｐonsiblefｏraｌlmainｔenancetｏbepeｒｆｏrmediｎｈｉｓ／heraｓset.worｋｉngfｏrtheｍaｉntｅnancesｕpｅrｖisorｉneachaｓsetｉs,onaveragｅ,eleｖen“craftｓmen”.ｔｈｅｃraftｓmｅnaｒetｈeaｃtualｗoｒkｅrsthatpｅｒformthemaintenａnce.theｃrａftｓｍenaｒeunｉonｉzｅdanddｉvideiｎｔotwｅlvedｉfｆerentｃraftdｅsiｇｎationｓ(ｅ．ｇ．eｌecｔriciaｎs,piｐefitｔｅｒs，wｅldｅｒs,etc.)．ｅaｃhcraftdesiｇnａt(yī)ioｎhａsadefinedｓeｔｏfsｋｉllｓｔhｅyareqｕaliｆiedtopeｒｆorm.tｈeyareｎotａlｌowedｔoperｆormsｋillｓｏｕｔsｉｄｅｏftheirdefｉneｄcrafｔ,orhelpinｔｈepｅrformancｅofacｔivｉtｉeｓinvolｖinｇsｋiｌlｓbeｙｏnｄtｈeiｒcｒaft.coｌlectivｅｌythetwelvedifferentｃraftｓcanｐerfｏrmanymaintenancｅjobthａt(yī)miｇhｔariｓeａt(yī)therefinｅry.tｈｅmａinｔenanceｓuperｖisoraｎｄhｉｓ/hｅｒａｓsignedcrａｆtsmeｎare“ｈaｒdwiｒed”tｏtheiｒaｓｓｅt.thatis,thｅyworkｏｎlyoｎeｑuipmｅntinｔheｉrgｉｖenasset.

centｒａlｍａｉnｔｅnａｎｃｅiｓacentｒalizedpoｏlｏfｍainteｎancesuｐervｉsoｒsａndcraｆtsmen,whoaredisｐatchedtｏsupｐortthedｉfｆerｅntasｓｅtsｄurｉnｇtimesofhighwｏrklｏａｄ.theｙａrｅemｐlｏyeesofｙourcliｅntanｄfiｔtｈedesｃriｐtioｎcontaiｎedintheaｂｏveaｓseｔｅｘplａnation．tｈeonｌydiffｅｒenceisthａｔtheyｍａywｏrkｉnanyofｔｈｅdiｆfeｒentassetsasdeterｍｉnedbyworｋloaｄ．ｔｈeｒeareaｔotａｌof11maｉntｅｎanｃeｓｕpervisorsａnｄ１00craftsmentｈatｃomprisecentｒalmaｉntenanｃe

coｎtrａctorsａrｅａgｒoupofoｕtsideｓuperｖｉsorｓaｎdcｒaｆtsmｅnwhｏsupporｔyourclientdurinｇtimesoｆｈiｇｈｗoｒklｏad.theyalsoaｒecapaｂleofｐeｒfｏｒminganymａiｎｔenａncejobｔhatｍayarise,butｄiｆｆｅrfｒoｍyourcliｅnt’scraftsmeｎintｈaｔtheｙdividetｈecolleｃtivesｋiｌlsreｑｕireｄｉntofivedesignaｔｉonsratherｔhantｗelve．thus，thecraftsmenofｔｈｅconｔracｔoｒarecaｐａｂlｅofperformｉngａｂｒｏadeｒsｅtｏfｓkｉllｓ.ｔheｙ，lｉkeyｏuｒcｌｉeｎt’scraｆtsmｅn，don’tperfoｒmskiｌｌsoｕｔsiｄｅoftheirdefｉnedｃrａftｂutdoａllｏwdifferentcrafｔdesiｇｎatiｏnstoｈelpｅacｈothｅr.thereａｒeａｎaｖｅrageof７contrａctoｒｍａintenancesｕpｅrviｓoｒsａｎd1４０ｃoｎtracｔorcraｆｔsmenａｔthｅrｅfiｎｅrｙｏnanyｇiveｎday.

question：

wｈatqoｐportuniｔｉesｅxisｔtoinｃrｅａsepｒｏfits?

ｗhatｒｅｃoｍmendatｉonscａｎyｏumaｋeｔocaptｕreｓａｖingsｒelａt(yī)edtotheｉｄenｔifieｄopportunitiｅs?

whaｔisｔhｅcoｓtsavinｇsassocｉateｄwｉthyoｕｒrecommendatioｎs?

sｕｇｇestedsolutions:

tｈefｉrｓｔquesｔionｉnvoｌｖesidｅnｔｉfyｉngopporｔunitiｅstoimprovｅｐｒoｆits.tｈeｃaｎdｉdatemusｔｓtartwitｈeitheｒrｅvenuｅsoｒcostｓ．a(chǎn)lｔhouｇhonｅｃoｕldmａkeｔheａrgumentｔｈ

atmａｉntenaｎｃｅsｕpportsｒevｅnuｅbｙmaximizingtheoperaｔingtimeｏftｈerefinｅryequipmeｎt,mａintenａnｃeshouldｂeseｅntoｂeasuppoｒtfunｃtion.thｕｓ，iｔismｏｒeappropｒiaｔetofocｕｓｏｎcoｓtsａndcosｔreduction.thefｏllｏｗingqueｓｔiｏnswiｌlhelｐthecaｎｄｉdａt(yī)egaininsｉghｔintocｏｓtreductionoppoｒtuniｔiｅs．

ｈoｗdoｅsｔheｍaiｎｔeｎanｃｅdeｐaｒtmenttrackitscｏsｔｓ?

ｉftheｃandidａt(yī)epｈrａsｅsthequｅstｉonabｏuｔｍateriaｌorｏvｅrheadcosts,ｔhｅinteｒviewerwouｌｄinfoｒmtheｃandiｄatethatdｅtaiｌeｄｒｅviewｅdshｏｗｅdnomajoｒopportunitiｅs.thecaｎdｉdateｗｏｕlｄbｅsteｅredtowardlaｂoｒcoｓｔsandgiｖeｎｔheｆｏllowingｔａｂlesregardingmaｉｎtenanｃelaｂorcostsｆoｒthepａstyear.

tosuｐｐｏrtunderｓtａndingoftｈefollｏｗiｎgtablｅs,tuｒnarｏｕnｄworkiｓlｏｎgtermｐｒeｖeｎtiｖｅmaintenａncｅ(e.g.comｐlｅtｅrｅｂｕiｌｄingoｆabｏｉｌer）tｈatmaybeperformedoｎcｅeveryfeｗyeａｒs.allotheｒwork（ｓhorｔtermemeｒｇeｎcyｒepairs,ｓmａlｌｓcaｌｅpｒeｖenｔivemaiｎteｎaｎce,oｔｈｅｒｒｏutineworｋ，etc.)ｆｉtｓｉntｏthecａｔegｏryofdailｙworｋ

crａftｓmendaｉlyworｋturｎａroｕndtotａｌ

cｌｉent＄8mｍ＄2mm$１0ｍm

cｏｎtractor$5mm$9mm＄14mm

totaｌ$13ｍm$11mm$2４mm

suｐeｒvｉsortotａｌ

cｌient$1mm

conｔraｃtｏr$0.５mm

total＄1．5mm

ｓinｃｅthecrafｔｓmｅnｔabｌerｅpresｅｎtｓalargｅrdollaｒaｍouｎtthaｎthesuperviｓoｒtaｂlｅ,itisｌogicaltｏｐursｕｅcostsavingsｏpportｕnitieｓｉnthiｓaｒeaｆirst．

whatｉsｔheuｔiliｚatiｏnofcraｆtｓmeninｔheａssｅts?

ｉnｃｅntrａｌmainteｎａnｃe?

andfｏrcｏntｒaｃｔors？

ａｓsumｅeaｃｈareａisutilｉzeｄ1０0％ofthetimｅ,50ｗeeｋspeｒｙear，40houｒsｐerweek.

howdoｅsｔhelaborｃostｏｆcraftsmen（$2４mm)onarefinｅrｙ－sizeｄbasis(i.e.,$cosｔ/pｅrｂarｒeｌofｃｒｕdeoilpｒocｅssed）comparewｉthｉndustryaverages?

cｏnsultingyｏｕrindｕstryｄatabaseshｏｗｓtｈatcostsａｐpeartｏｂeaｂout２０%abｏvetheaｖeragｅofpeｅrｒefineｒies.

thisｉsanimｐｏrtaｎｔquestｉｏntｏdeｔeｒmiｎeifthereｉsａpｒoblemwithcｏsｔｓ(ｄon’tasｓuｍethereiｓ，theclieｎｔｍaybeperforｍingbeｔｔerｔhanｉnｄustｒyaveraｇe！)

isthereaｎyｐａrｔicularｒeasonwｈｙturｎaｒoundworkiｓsoheavilysｋeweｄtoｗardconｔracｔors?

tuｒｎaroｕndworktｅndstobｅｍoｒecｙclｉｃal.anexｔｅrｎalwｏｒkfoｒｃeｉsｕsedｔoaｂsoｒｂsｏmeofthiｓaddｉtiｏnalｗoｒk.ｋeeｐinmiｎdtｈatbｏthｃlieｎｔandcoｎｔractorcｒaｆtsmｅnarｅcapａbｌeofperfｏrmｉｎｇaｎyｍａｉntenancｅjobａt(yī)thｅｐlant．

afteｒfurthｅrａnalysisoｆthetａbleｓｔｈekeｙfacｔｔｈaｔshｏｕｌdbecomeappｅaroddisthelａrgediｆferencｅinｔhecostpｅｒunｉtoflaboｒbｅtｗeｅnyourcｌient’scrａftｓmenaｎdtheouｔsiｄecoｎtｒactｏｒ’sｃraftsmen．oｆtencａndｉｄaｔeswｉllaｓkｆortｈｅhourlywagｅratesofｔｈeseｔwogrｏupｓ.thereiｓsuffiｃｉeｎtdataｔｏcalculaｔeｔhesenuｍbers.theｃalculationｉｓ:

aｎnｕalｃｏｓｔofclientcｒａftsmen=$10mｍ/(１1craftsmen/aｓsetx９assets＋100craｆtsmｅnincentralmaintｅｎaｎｃｅ）=$50,０0０/year

ａnnuａlcosｔofcoｎｔrａctorcraｆtsｍen=$14mｍ/140contraｃtorcraftsmeｎ=$10０,０00/year

aｇaiｎ,thisｄｉfferｅｎｃｅｓhoｕldprｏvoｋeａserｉesofquesｔioｎstｏｕnderｓtａndthediffereｎｃe．

istｈereａnｙdiffeｒenｃeinthewoｒkperforｍedbytheclientaｎdcontraｃｔorcｒaftsｍen？

ｎｏ,othｅrthantｈｅdiｆfｅrenｔlｅｖｅlsofｔurnaroｕndwoｒｋvs.daiｌywｏｒkｐerｆormedａsnoｔeｄiｎthepreｖiouｓｔabｌe.boｔｈgroupｓａrecapablｅｏｆdoinganyjobwiｔhroughlｙequalleveｌｓofqｕａlity．

ｉｓｔheｒｅanydiｆｆerｅnceiｎeｆfiｃiencｙbeｔwｅｅnthetwｏgｒoupsoｆcrａftsｍeｎ？

theｃaｎdｉdaｔewouldatthｉｓｐointbeａsｋeｄｈｏwtｈeyｗoｕｌｄmｅasurethis．

afterreacｈｉｎgａnuｎderｓｔaｎdingoｆtheｄｉffｉcultｙinvolveｄiｎmeａsuriｎgｔhｅefｆiｃiencｙｏｆawｏrkforce(eｓpｅciallyaｕｎiｏniｚedworｋfoｒce)，thecａndidatewouldbetolｄtｈaｔｔhrｏuｇｈaｓeriesofinterｖｉewｓwitｈｍａintenanceｓupｅrvisors，thereisaconseｎsｕstｈatconｔｒacｔorcraftsmeｎａｒeroｕghlytwicｅaｓｐroductiveaｓclieｎtcraｆtsｍｅn．

tｈisisaｃriticalpoｉntiｎthｅcasｅ.thecanｄidaｔeｍusｔrecｏｇnizｅthatintheｐｒesｅnｔenvｉroｎmenttheｃliｅntislaｒgelyiｎｄｉffeｒｅntaboｕｔunitsｏflabor．youcanｈaveaｃｌｉｅnｔｗorkeｒwhoishalfaｓeｆfｉciｅntoracontractoｒworkerｗhｏiｓｔｗｉｃeaｓexpensive.theｋeynｏwiｓtoｄeｔｅrmineifｔherearewaｙｓtocrｅaｔeaｎopｐｏrtｕnitｙwhｅretｈeclientwouldnolｏｎgｅrｂeindifｆｅrenｔ.

whatiｓcausinｇｔｈｅinefficienciｅsaｓsｏciaｔedwitｈｔhｅclient’slabｏr?

ａgａiｎ，ｔｈecａnｄidatewoulｄbｅencｏurａgedtｏｏffｅrｔhｅｉrowｎｉｄeas.

ａftersomediscｕssｉｏnthecandiｄaｔｅwouldbeｔoldthaｔmanyoｆthｅmaiｎｔenaｎcesuｐeｒｖｉｓoｒsｃomplaｉnendleｓslｙaｂoｕｔrestｒictionsplacedontheｍbyｔheexistinｇunioｎｌaborｃonｔrａcｔａnｄｔhetiｇｈtnessoｆcｒaftdeｓignaｔions.

theinｔeｒviewｅrwouldpｒoｂetoenｓurｅthecａndidａt(yī)eｕｎdｅrstaｎｄｓwｈｙｔｈepresｅntcraｆtdｅsｉgｎatｉoｎｃreatesthｅineffiｃｉeｎcies．esｓenｔialｌyｗｏｒkｉstoｏfineｌydiｖｉｄed.itmakesplanningandｓｕpervｉｓiｏnextrｅmelycuｍberｓome．ａｓaneｘａｍple，ifoneｏｆsiｘcraｆtｓreqｕiredtｏｐerfoｒｍajobｉsａbseｎｔorｌate,tｈｅentirejoｂｍｕsｔｓhｕtｄｏwn,ascrafｔdｅsｉgnatioｎｓareｎoｔａllowｅdｔoｓuｐportｏｔhercrａfｔdesignａt(yī)ｉoｎs.

ｉsitpｏssｉbletochanｇetｈeeｘisｔingｕniｏncontract?

thepresｅntlａｂoｒcｏntraｃtｉsathreｅyｅaｒｃontrａcｔthatisｄuｅtoberenegoｔiatｅd/ｒeneｗedｉnsｉxmｏnthｓ.

wｉｌltheuｎioｎｒeｓistchangeｓtotheexｉｓｔｉnｇｃontract？

iｎdｅeｄ！!

ａt(yī)tｈiｓpoint,thecandidatｅshoｕldrecoｇｎｉｚeamａjoｒ（albeitdｉffiｃulｔ)oｐｐortunitytorｅdｕcｅlaborcosts．theclｉeｎtｗoｕldessentｉallｙliketohａｖeｉｔsｏwnemplｏyeeslookａndfｕnctiｏｎｌikeitscｏnｔractoｒs,butcoｎtiｎｕetｏgetpaｉdaｔpresenｔｒaｔes．ｉnｒeaｌity，maｎageｍenｔwillnｅedtomakｅwａｇeconcｅssionsinordｅrtochａnｇｅｐresentworkprａctｉcｅs．however,tｈｒｏugｈplannedneｇotiaｔioｎsasceｎａriocaｎbecreateｄwhicｈpresentｓａfavorableopportunityfｏryｏｕrｃｌｉｅnｔtoｂegｉｎtｏｒepｌaceouｔsidecontrａctorswiｔhｉtｓoｗncraftsmeｎ.

tｈｅreａｒeｓeｖｅraｌｗaystoａddreｓsｔhｅｔｈirdqueｓｔiｏnoftｈｅｃase,theaｃtuaｌｓavinｇｓtｈatmiｇhtbｅacｈiｅｖed．onequiｃｋmetｈodiｓtoassumetｈattｈesecｈangeｓwouｌdｂｒingmaintenancecostｓbaｃkinliｎｅwiｔhindusｔryaverage．ｕtｉlizｉngthecostbeｎｃhmａrｋmenｔiｏｎedearliｅr,ｏnｅｃoｕｌdaｓsｕmeｃostscoｕldbeｒedｕceｄto$24ｍm／1.２０=＄20mm,ａ$４mmｓaviｎgs．

ａｓecoｎｄ,andmｏrｅdetａileｄ,methodｗoｕldbetoｔａkeｔheeｘtremeｓceｎariowhereｔheclient’scrａfｔsｍenｉspaiｄitspreseｎtrａt(yī)e,buｔiｓmadｅａsefｆｉcienｔastｈeｃonｔracｔor’s