IPS Takes Mystery out of Document Production

As a client of a business support service, you are well served by a concept you may not know about or understand - Industry Production Standards. In the industry, they are called ''IPS.'' So what, you ask.  So... IPS exists to protect you and save you money!

What exactly is IPS?

Industry Production Standards is the methodology used by the business support services industry to compute time for all levels of document production. Suppose, for instance, you had to write a proposal for one of your clients. Finally, your greatest, most creative ideas are all together - some on paper, some on disk. Now it's time to spin straw into gold - and get your creation produced by a professional word processor/desktop publisher.

So you look at the service provider's price list and it may say something like, ''Word processing, $30.00 per hour, Desktop Publishing $40.00 per hour.'' The problem is, you don't know whether you will end up paying for one hour of work or four!

Industry Production Standards are published to solve that very problem: calculate ''standard'' time to complete the work.

The IPS Concept

The basic concept is best illustrated by using the example of the auto repair shop:

If you take your car to get the brakes fixed, you might say, ''How much will it cost?'' The auto repair industry knows how long it takes the average qualified mechanic to fix the brakes on your make of car. If the shop's hourly rate is $35, and their guidelines book shows that it takes the average mechanic three hours to fix the brakes on your make of car, the shop guarantees you a price of $105 for the job.

If a trainee mechanic works on your car, and it takes all day to fix the brakes, you are still charged only $105 (or three hours). If they put an expert (very fast) mechanic on the project who fixes the brakes in only one hour, you still pay $105 (for three hours work).

Production Standards in our industry, simply stated, provide business support services owners with a Guide and methodology to compute time for document production as if all work had been produced by the ''model operator'' i.e., ''average qualified operator (mechanic).'' Incoming projects are classified according to degree of difficulty (five possible classifications). Elements evaluated are readability and audibility, grammar and sentence structure, organization, format, and technical content. Then, using PLUC Charts*, IPS standard production time is calculated to determine the number of time units (in tenths of hours) it would take the model operator to produce the finished document.

Your invoice for production of your document is determined by multiplying that IPS time unit by the local service provider's appropriate hourly rate for that level of service; then adding any additional actual time or charges for editing the document, comprehensive proofreading, extra printouts, photocopies, postage, supplies, etc.

Built-in Ways to Save You Money

By presenting easier-to-produce source material to the provider, it is given a higher classification. This can save you money! Examples of ways to present better source material are typed (or on disk) instead of handwritten and randomly annotated, having the material better organized, clearly defining the format, etc.

Another way to save money is to offer to proofread the document yourself. Spell check and light proofing on the computer screen are included in the production process you pay for in the basic IPS time unit. Comprehensive proofing and editing by provider involves additional billable time.

Believe it or not, your service provider wants to help you save money, and will work with you to learn more about how Industry Production Standards can help you do just that. Just ask!

It’s a Win-Win Situation

Industry Production Standards protect you against overbilling if your work is performed by a trainee (or slow) operator. The business support service is protected against what is called the ''penalty for efficiency syndrome.” This, for years, was a problem in our industry. When billing actual time, operators with excellent skills and the latest in contemporary software, found that the faster they worked, the less time they could bill! The best and only fair solution to all parties is Industry Production Standards!

Actual time (also calculated in tenths of hours) is billed for non-keyboard and administrative activities that don't fall under the purview of the PLUC charts (for keyboard and computer activities). Examples are clerical, administrative or concierge services like errands, phone calls, making photocopies, faxing, filing etc.

Remember, IPS is not about pricing, but about computing time. Once the standard time for project completion is computed, the local service provider's appropriate hourly billing rate(s) is/ are applied to determine a selling price. Hourly rates for document production and non-keyboard services are based on the costs for the provider to deliver services at a fair profit and will vary from city to city. The skill level required of the operator and sophistication of equipment and technology needed to complete a project are also part of this equation.

The Industry Production Standards Guide is compiled and published by the Association of Business Support Services International, Inc. (ABSSI) and Executive Suite Association (ESA).
 

*Production Level Unit Classification Charts
 

Copyright © 1998 by Executive Suite Association and Association of Business Support Services International, Inc.
Reprinted by permission. All rights reserved.