A Case Study of a Best Value Manufacturer

12 May A Case Study of a Best Value Manufacturer

By Dean Kashiwagi, Jake Smithwick, Jacob Kashiwagi, Kenneth Sullivan

February 2010

Abstract
This is a case study of a construction product manufacturer’s effort to become a profitable manufacturer of roofing systems while providing a best value product to the client (best performance at the lowest cost.) The manufacturer was attempting to become successful with product performance in an industry where low performance of competing products brought a perceived high risk of nonperformance from clients. The manufacturer’s efforts included documentation of performance of their installed product, creating a risk management process, testing the risk management process and creating a supply chain structure which minimized the risk of both the manufacturer and the client. The key component of a best value manufacturer is the identification of the true buyer of their materials is the owner of the facility which buys their product and not the contractors. This paper documents the transformation from not having performance information to having documented performance on their product, developing a risk management program, and exercising their risk management program. This includes the formulation of a performance based contractor program and the application of the Performance. Information Risk Management System (PIRMS.)