In the past, firms retained sufficient in-house engineering and project management resources to complete product development internally. However, due to economic and competitive issues, many companies have reduced their in-house capabilities and now capitalize on third parties for a range of services. even with the utilization of third party companies for these services, there is still a requirement or the product development project to be managed. Project management whether internal or external is a configuration of roles, relationships, responsibilities, and sequences on a project.
Various Project Management methodologies exist and Patronus Laboratories can help you determine the most appropriate method as it relates to your critical factors:
- Cash Flow,
- Project complexity,
- Risk mitigation,
- Team composition,
- Project goals.
Patronus Laboratories can serve as an external entity contracted to manage the development of a product. There are two primary project delivery models we engage in, but are open to negotiating a contract that works for all parties.
The Design-Build (DB) project delivery model is best suited for clients that require fast-track project delivery and want a single external point of contact for project management. The DB contractor is hired by the owner to manage and deliver a complete project.
The owner would engage Patronus Laboratories after an initial design concept has been co-developed to meet the product functional requirements. The initial design concept would typically include rough order of magnitude costs for development process and estimated production cost per unit. Once engaged by the owner Patronus Laboratories would retain the expertise required to fully architect, design, engineer, build and prototype the product. Post prototyping, Patronus Laboratories can turn over the design details to the owner from them to put out to bid for production themselves, alternately; the owner can contract Patronus Laboratories to build-up a managed manufacturing capability or turn over the key to the owner for management.
DB method contracts are typically negotiated on a cost plus basis due to the simple fact that engineering is being completed within the scope of the contract therefore the total effort is undefinable at the beginning of the project.
DB is utilized to reduce the project delivery schedule. DB is typically used for projects where the final deliverable is not fully engineered or defined from the outset. The DB concept typically results in enhanced communication among the project team and a higher degree of accountability. While this is a complex delivery method, the compressed schedule and value engineering approach often result in quicker time to market and an overall cost savings for the owner. The DB approach is well-suited for complicated yet time-sensitive projects where the owners vision is not fully vetted.
The Engineer-Bid-Build (EBB) project model is best suited for clients with time to conduct each phase of the project (design, engineering, construction, and prototyping) in an analytical serial process. Each step in the execution process follows the other sequentially with minimal overlap. Under the EBB approach to project delivery, Patronus Laboratories functions as the overall project manager to the external engineers, consultants, and contractors to deliver the project.
Patronus Laboratories is typically engaged by the owner early to architect a program, develop a scope of work, develop the project plan and product specifications. Patronus Laboratories generally prepares a preliminary cost estimates to assist the owner in budget development. These estimates are typically historically or empirically based.
Each phase of the EBB is individually bid and contracted, then completed prior to the next phase being bid and contracted. Patronus Laboratories as management for each phase can paid on a cost plus basis or a firm fixed price. Each contract for each phase is typically a firm fixed price, subject to change as a result of change orders. Since each phase is independent of the previous or the next this method is significantly more rigid and more difficult to incorporate changes to the design along the way, but the cost per phase is know and definable.