The Hostage Effect, Protect your Project
If you’re a project manager or business owner, perhaps this scenario sounds familiar: you’re a part of a utility company in need of poles or towers. You place an order with a vendor in expectation of a high quality product. You have all the specifics laid out for the exact product you need on the exact date you need it to complete a larger project.
And as the adage goes, the best laid plans often go awry. The vendor you’ve contracted doesn’t deliver on their end, completely derailing the project you so carefully curated.
Whether it is the quality/fabrication of the product or simply non-conformance, this blunder on the part of your supplier is what is known as the “hostage effect.”
What to Know About the Hostage Effect
Dangers of the Hostage Effect
Ultimately, the hostage effect is an issue because it leaves you with two equally frustrating options: 1) You can settle for a lesser-quality product than you agreed on, which may cost you more further down the line and hinder the rest of the project’s quality or 2) You can wait until the issues are remedied by the vendor, slowing down the completion of your project.
In the case of either option, you lose valuable resources and put the quality of your project at risk.
This is precisely where Exo Inc. comes in. Our reliable programs help to keep you from finding yourself a victim of the hostage effect and protect your project from the beginning.
The Pillars of Quality Assurance
Project protection begins with quality assurance methods like these three vital practices:
- Spec Reviews: To ensure that your project goes off without a hitch, your product inspection should check for optimal product specifications. These spec reviews should strike a balance between holding firm quality standards and not belaboring your vendor and the timeline of the project.
- Vendor Audits: Make sure that you start your project with a quality product by verifying the quality of your vendor. A simple ISO audit is insufficient in this case. You will want to conduct a robust audit to thoroughly vet the fabrication practices of your vendor.
- Vendor Surveillance: Third party monitoring of your vendor’s production process is paramount for a number of reasons– third parties ensure full transparency about both the schedule and quality of the manufacturing process; a third party monitoring the process is extra insurance to protect the interests of your utilities more fully; and surveillance could help uncover potential issues in quality and non-conformance early on so it doesn’t become a major issue later.
The “hostage effect” has such an ominous title because of the serious risk it can put you in, not to mention the feelings of powerlessness you might experience being caught between a rock and a hard place.
That is why asset management is so important: prevent these issues before they can put your company and your project at risk.
Quality assurance is a complex task that requires dedicated professionals who work with integrity from a project’s inception all the way to its completion. Don’t leave this process up to anyone; trust the experienced professionals at Exo Inc. Exo Inc’s programs, such as Ex Tend lifecycle management, help to ensure that your assets are protected from construction to replacement.
A company of integrity, Exo Inc. will work to ensure that you are receiving the highest quality services without breaking the bank. Our trusted technicians are happy to help you protect the long-term value of your assets and save you money holistically without sacrificing quality.