Selective Compression

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When developing costing models, we balance performance against absolute precision.  A very precise model may take too long to program in order to provide exacting results, compared to a model that has been streamlined to provide effective results within acceptable margins of accuracy in a timely manner.  LCA is experienced in analyzing employee groups and labor contracts to determine appropriate areas for streamlining. We then test such models to confirm that they meet accuracy measures and performance expectations.

An example of this process often occurs when a labor contract has defined an inordinate number of job classifications, many of which are rarely used or slightly differ in wage structure rates than major job classifications.  Although LCA can easily build a costing model with numerous job classifications, such a model may prove unwieldy when programming a cost scenario due to the sheer number of operator inputs into the model.  A streamlined version of this model would eliminate minor job classifications cutting down considerably on the number of operator inputs without sacrificing accuracy.  In most instances, such simplification is not even noticed in the costings as it is within the accepted margins of accuracy.  If it is not, we will often adjust the resulting costings on an ad hoc basis outside of the model results, providing the client with the expected level of precision.