ROI-Based Projects
Profit-Sharing Model
When the project has a measurable financial outcome, reduced scrap, recovered throughput,
avoided downtime, reallocated labor, we take an agreed share of the value generated
instead of a large fee up front.
Baseline
→
Deploy
→
Measured Gain
→
Shared Upside
- Lower capital risk on your side, since we are funded by results rather than a line item
- Baseline and measurement methodology agreed jointly before kickoff
- We stay engaged after deployment because our return depends on it holding up
Data Acquisition Projects
Fixed-Rate Model
Instrumentation, sensor integration, and data infrastructure rarely carry a directly
attributable profit number on their own. They are what later projects stand on, so we
scope them and bill a fixed, predictable rate.
Scope
→
Fixed Quote
→
Delivery
→
Clean Handoff
- Transparent scope and cost agreed before work begins
- No invented attribution where there is no revenue line to share against
- Often the phase-one work that makes a later profit-share project possible
How the baseline gets set
A profit-share only works if both sides trust the number. That trust is built before
deployment, not argued about afterward. Before we start, we agree in writing on:
- What is being measured, in your units: scrap rate by part number, cycle time at the constrained station, unplanned downtime hours, containment labor
- The measurement window before and after, long enough to cover normal mix and seasonality rather than a favorable week
- The data source, drawn from your systems rather than ours, so the number is not ours to shade
- What is excluded, so gains from unrelated changes, a new supplier, a line rebuild, a demand shift, do not get counted as ours
- The share and the term, agreed up front, whether that runs for a set period or for as long as the system keeps producing the gain
The exclusions clause matters more than people expect. It is what keeps the arrangement
credible when something good happens on the line for reasons that have nothing to do with us.
What qualifies
The test is simple: can we point at a number in your systems, before and after, and agree
on what caused the difference? Work that usually passes that test:
- Defect inspection that reduces scrap or prevents escapes, where the cost per defect is known
- Part differentiation and recipe selection that removes manual changeover and recovers throughput on a high-mix line
- Predictive quality models that flag drift before it produces a bad lot
- Downtime avoidance where failures are logged and the cost per hour is established
- Labor reallocation where a repetitive inspection or sorting task is currently a staffed position
Work that usually does not, and gets quoted fixed-rate instead: instrumenting a line that
has no reliable data today, building the historian and labeling infrastructure, and
exploratory studies where the answer might legitimately be "automation will not pay here."
Why we would rather be paid this way
A fixed fee gets paid whether or not the system survives contact with your floor. That
creates a real incentive to declare victory at handover and move on. A profit share does
the opposite: if the system drifts, gets bypassed by operators, or quietly stops being used
after three months, we feel it.
It also changes what we are willing to tell you. When our return depends on a measured
gain, we have every reason to say early that a project will not pay for itself, rather
than selling it anyway. That conversation is cheaper for both of us in week one.
Common questions
What if the gain never materializes?
Then our share is small or nothing, which is the point of the structure. That risk is
priced into the share we agree on, and it is why we are selective about which projects we
take on this basis.
Does this mean no cost at all up front?
Not always. Hardware still has to be bought, and some engagements carry a reduced fee
alongside a smaller share. What the model removes is a large fee paid before anyone knows
whether the automation works.
How long does the share run?
For whatever term we agree on at the outset. Some engagements run for a set number of
years, some run for as long as the system stays in production and keeps generating the
gain. Both are reasonable structures, and which one fits depends on the size of the
investment, the share, and how long the improvement can be expected to hold. It is a
conversation we have before anyone signs anything, not a surprise later.
Can we adjust the system ourselves afterward?
That is the intent. Tolerance bands, recipes, and process settings are meant to be changed
by your engineers in the course of normal operation, without a call to us and without
touching model code.