Tight budgets have led many companies to hire a simulation consultant for specialized, critical projects rather than develop the expertise in-house. This article offers practical guidelines for selecting the right consultant for your project.
Define the problem
John Dewey’s famous line, “A problem well stated is a problem half solved,” captures why you should define a problem clearly before reaching for a solution. It is especially true in business, where a lack of clarity wastes time, resources, and money. To get everyone on the same page, write a requirements document.
A requirements document lays out the problem along with the desired outcomes and any constraints that must be considered. Have every stakeholder review and agree to it before any work begins. With that shared understanding in place, the team can work together toward an effective solution.
Resist the temptation to hire a consultant too early. Without a clear understanding of the problem, a consultant cannot give you the best possible solution. Take the time to define the problem and write the requirements document first. Any consultant you then bring in can be more effective and efficient, which leads to a better outcome for everyone.
Determine the goal
A model that will answer every question takes an infinite time to build, so document exactly what you want the model to answer. What is the scope of the system to be modeled? What level of detail is expected? Scope and detail are driven mainly by the questions the model has to answer. If you have not defined the goal, it is impossible to estimate the cost of the project.
For help capturing the right information up front, see how to gather the right information in a flash.
Outline the consultant’s responsibility
State the consultant’s responsibilities clearly. Define what you will do and what the consultant will complete. For example, do you want written documentation of the model’s functionality from the consultant, or will you document the model yourself? Will the consultant collect data, or will internal resources gather it? Will you run experiments with the model, or should the consultant run them all? If you have not defined the consultant’s responsibilities, you cannot get an accurate price.
Develop the criteria to test the model
What tests will validate the operation of the model? Successful completion of those tests becomes the acceptance criteria for the project. You can use the consultant to guide you through defining the validation tests. This pre-work actually speeds development, because it extends the goal and helps avoid disagreements in later phases.
Decide on the attributes of the consultant
“A man who carries a cat by the tail, learns something he can learn in no other way.” That line from Mark Twain fits here, because there are huge differences between consultants.
You will find wide variation in experience, cost, and availability. Academics, whether professors or graduate students, are generally less expensive, but they tend to work on their own schedule rather than yours, since consulting is not their primary business. A consultant without prior simulation experience can offer a bargain initial price, then get mired in the complexities of unfamiliar techniques and model development.
Considerations in selecting a simulation consultant might include:
- How many years of simulation experience do they have?
- Do they have the necessary technical resources (people) and software?
- Have they completed similar projects?
- Can they provide references you can contact?
- Who will actually do the work? You will want to meet the project people, not just the salesperson.
- Do they have a well-defined project methodology?
Related experience often comes with higher daily rates but lower overall cost. An experienced consultant draws on past projects, which shortens the timeline and can surface useful suggestions from earlier work.
Obtain a written proposal
Require a written proposal that includes a statement of the problem, the goal to be achieved, responsibilities, the criteria for validation and acceptance, the project methodology, and the cost. Some consultants work on an hourly basis. An experienced one should be able to provide a fixed price after interviews over the phone and online meetings.
Some consultants will offer an unqualified guarantee on their work, such as, “If you are not completely satisfied with our work, you do not pay.” Check how confident the consultant is in the quality of what they deliver.
Finally, a project often sparks new questions the original scope did not cover, since most projects evolve as the simulation work produces insight. How will that evolution be handled in scope, responsibility, and pricing? The proposal should address project changes, so get the cost of updates beyond the original scope in writing. If you would like to talk through a project, get in touch.
