Service line 03
Knowing what it costs to operate, and how much is being lost unseen.
We work inside the operation — a plant, a terminal, a road corridor, a utility network — with the operations, maintenance, quality and cost teams, to put figures on what is estimated today and to make the operation deliver what the cost says it delivers.
- Cost Analysis
- Process Restructuring
- Metrology
- Loss, Backlog and Waste
- Operations Audit and Evaluation
Situations we solve
If any of this sounds familiar, it's time to look into it.
The unit cost is an average nobody can defend
Cost per ton, per container, per kilometer, per cubic meter or per customer served: calculated once a year with inherited assumptions. When margin falls, there is no way to know in which unit, shift or section it was lost.
Losses are accepted as part of the operation
Product that does not reach the end of the line, non-revenue water or energy, cargo with excessive dwell time, idle equipment, stranded inventory. They are recorded as "normal" because nobody ever measured what they are worth.
Operations audits happen after the problem
There is no review routine with defined criteria. Each audit depends on who performs it, and findings are not comparable over time or across units.
Services and deliverables
What exactly you receive.
Each component can be contracted alone or combined. Deliverables are concrete documents and models, not reports of general recommendations.
We build the real cost per operating unit, process and service from consumption, times and capacity measured in the field, not from outdated standards. We separate fixed and variable cost and show where margin is created or lost: by line, terminal, road section, network or customer type.
Deliverables:
- Costing model by operating unit, service and cost center
- Fixed and variable cost structure with break-even points and capacity
- Margin report by service or SKU with tariff, pricing or mix recommendations
We map the operating flow as it actually happens — receiving, dispatch, customer service, maintenance, collection — measure times, waits and bottlenecks, and redesign sequences, responsibilities and control points with the team that runs it.
Deliverables:
- Current and redesigned flow map with measured times
- Procedures, work instructions and responsibility matrix by station, shift or work front
- Implementation plan with process indicators
We assess the operation's measurement system: scales, meters, counters, flow gauges, laboratory and control instruments; their calibration, uncertainty and direct effect on cost, billing, rejection and regulatory compliance. We cost what measuring badly costs and what measuring well would cost.
Deliverables:
- Inventory and assessment of measuring equipment and calibration status
- Uncertainty analysis and impact on cost, billing and compliance
- Calibration, replacement and metrological control plan and budget
We measure and cost what the operation loses: product on the line, inputs and materials, non-revenue water or energy, unused installed capacity, equipment downtime and stranded cargo or inventory. We identify causes by stage and evaluate reuse, recovery or sale alternatives.
Deliverables:
- Loss balance by stage, quantified in physical units and currency
- Backlog, immobilized inventory or idle capacity analysis with a clearance or utilization plan
- Technical and economic evaluation of reuse or recovery
We review and evaluate operating units — production lines, terminals, yards, road corridors, treatment plants, networks, service centers — against defined criteria of efficiency, quality, safety, contractual compliance and cost. We also help the organization structure its own internal audit program so that review does not depend on us.
Deliverables:
- Evaluation report per operating unit with prioritized findings
- Internal audit program: criteria, checklists, frequency and owners
- Internal auditor training and findings tracking dashboard
How we do it
The operations and costs project, step by step.
- 01
Field survey
Walk-through of the operation, review of production, consumption, maintenance and quality records, and interviews with supervisors, operators and control staff.
- 02
Measurement
We take times, consumption, losses and measurement data in the field over a representative period of shifts, work fronts or services.
- 03
Costing and analysis
We build the cost model and the loss balance, and contrast what was measured with what the organization believed.
- 04
Redesign and plan
We prioritize interventions by margin impact and effort, and quantify them with the finance function.
- 05
Implementation and audit
We support the changes in the operation and install the internal audit routine with its owners.
- 06
Follow-up
At 30, 60 and 90 days we measure that losses went down and that the cost holds with the real operation.
Expected outcomes
Unit cost per service and operating unit that management can defend to the board, the regulator or the grantor
Operating losses quantified, with causes and a reduction plan
A reliable, budgeted measurement system, defensible in billing and compliance
An internal audit program the organization runs on its own
Book a consultationInitial session of 45 to 60 minutes, free of charge, with a written preliminary scope.Frequently asked questions
About operations and costs.
Let's talk
Tell us about your operations and costs case.
Initial session of 45 to 60 minutes, free of charge, with a written preliminary scope.