What is 1 Percentage Point Worth on YOUR Project?

Potential Saving Opportunity Tool

Many clients who are considering using PER (or any firm for that matter) for the first time wonder if they will get an acceptable return on their investment. In this case, it’s difficult for PER to estimate that return before a project is studied as there is no way to know how efficiently, or inefficiently, a project is currently utilizing its craft resources before a study is actually completed. What can be done is to estimate, based on actual project variables, what 1% point of Direct Activity (“wrench time”) is worth for that project.

PER has developed the following calculator which allows the user to easily calculate that value based on the target project’s specific variables. When the user also considers that the historical ranges of PER projects are from 5% (% not percentage points) to 20% improvement over the initial baseline (for projects with follow-ups focused on the same or similar scope of work), and that each project’s results is driven both by what the opportunities were to improve, and also how effectively that project attacked their respective inefficiencies. Together, this information can offer the user with some meaningful perspective on the potential value of a PER engagement.

Select a scenario with pre-defined variables or choose the "Customize" option to enter the variables that most accurately represent your project. When you are finished, click on "Calculate 1% Direct Activity Value” to quantify what 1 percentage point of Direct Activity is worth on your project.

Scenarios: Pre-defined or custom variable group

Direct Activity: Level of observed time on tools

Craft Population: Size of observed worker sample

Hours/Day: Number of hours in one or more shifts

Hourly Rate: Typically, the project all-in rate

Multiplier: Period of time used to calculate savings