Knar's Value-Based Contract Control Model

KVB-C2M®: Protecting value interphases associated to contracting and purchases

An immense part of what is executed inside and industrial asset is done by external services or depends on supplies. Such external parties may be your best allies or a permanent sink of business profit.  

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Aligning interests 

..and focus completely and responsibly on the technologies and technical matters at hand

Contracts on Industrial Asset are, by definition, referring to technical matters, so there's a need to deeply understand their nature. Throwing stuff over the fence, back and forth, never has produce value, or harmony, or a quality relationship. Knar services allow you to evolve in Contracting and Purchasing practices, as it should has always been. Based on the reality of the technologies involved in the purchase or service at hand. 

For a successful technology, reality must take precedence over public relations, for Nature cannot be fooled.

Richard Feynman 

Richard Feynman 1984 

KVB-C2M®  Making explicit what is know and ignored in the search for a clear value goal. 

KVB-C2M® allows you to:

  1. Develop documents associated to technical responsibility inside the service or supply contract, from the scratch (no magic forms for it all), and 100% aligned to your business value and its link to specific performance figures. 
  2. Make explicit all the cost elements present in the service,  and helps to define what makes sense for controlling them for each party. This includes, off course direct and consequential  losses. 
  3. Map financial performance for the parties involved, aligned to the technical performance obtained. 
  4. Define explicitly what part of business value: a) Must be assured,  b) Is agreed to be gained from current status, or c) may be at risk (as per the current unknowns and external uncontrollable influences). This, so each party is clear in  sensitive value zones, but also on what still unknown to business owners and service providers.
  5. Minimize KPIs and other measures when they are not directly related to business value.
  6. Make evident authority vs responsibility mismatches

KVB-C2M® Is strongly based in modeling, simulation and forecast on the life cycle cost and technical performance on value drivers. Minds where and why deviations are produced along the contract, to enable soon action.  Also offers, beforehand, a complete infrastructure to analyze performance deviations and losses so learnings can be integrated in the structure of the contract, and associated services and supplies.

Want to learn more?  Use the left pane and let us know what are your main interests on improving your capacity to control value losses associated to purchase and service contracts. 

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