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nGROUP Performance Blog

What Does It Cost: nGROUP Performance Partners

Posted by Jim Zimmerman on Feb 13, 2019 9:37:00 AM

nGROUP delivers a fixed cost per unit program for clients looking for performance improvements in cost, quality, and throughput in a world-class operation. The program is built on comprehensive engineering studies that evaluate current processes, performance, and design.


Our engineering and solutions teams assess existing protocols, work content, management requirements, constraints, volume, and build a business case for the areas reviewed. The CPU is inclusive to the direct and indirect labor involved in the process to be managed by nGROUP, to include the costs of recruiting, retaining, and managing the labor.


A thorough analysis of local labor markets is completed to understand wage rates to be competitive. Recruiting strategies are identified to include the transition of existing staff, utilization of outside recruiters/staffing, nGROUP managed recruiting, and any other options that may be available to ensure the required labor is ready and available to meet customer demands.Get Your Free Productivity Study

Our engineering team also makes operational observations to understand the potential performance in the area. Utilizing the historical data, the observational engineering analysis, wage, and labor studies, nGROUP builds a pricing structure that will enhance performance for the client and the staff. All clients have very different operational aspects that impact overall pricing.


Different challenges also impact pricing and timing of the nGROUP program. In addition, all clients have their own conventions on how they track and report labor costs and performance. nGROUP will work to review and align costs that are included in the program with the client specific reporting so all costs are accounted for, both in the historical baseline and the nGROUP CPU.


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This important step aligns the scope of the program to the costs included and provides an understanding of what tasks, staff, management, and responsibilities are included in the program. Additionally, the nGROUP program can include scrap, yield, or other costs when appropriate data is available for a baseline. In these instances, the program can develop a gain-share in the improvement of these critical areas of your operation.

CPU Model

Due to the many variables associated with numerous types of operations, it is impossible to provide a CPU on the fly. However, if you find your operation to be lacking in certain disciplines such as management expertise at the floor level, training, consistent processes, recruiting and retention, reporting, and incentive structures, nGROUP can develop a program to address your concerns.

Reduce Costs

Return On Investment

Our typical results provide a 10 to 15% hard savings from the baseline costs while improving overall performance in quality and throughput, all while reducing employment risk and other related costs of doing business.

nGROUP is dedicated to being a valued partner and trusted advisor to companies seeking operational improvement and world-class performance in their facilities.


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Topics: nGROUP, performance partners, Business, Cost, reduce labor costs, labor costs, Insourcing, Improving Production Yields