Productivity/Efficiency Improvement Clause Samples
Productivity/Efficiency Improvement. Lonza shall use commercially reasonable efforts to improve productivity in respect of the Services. Upon identification of an opportunity for improved productivity by either Party, a proposal will be submitted to the JPT for consideration. The Parties will mutually discuss any productivity efficiency improvement and possible financial impact prior to implementation. The decision to implement productivity efficiency improvements, including structure and timing, shall be at Vaxcyte’s discretion, taking into consideration that such improvements are intended to be implemented after stable production has been established on a Product-by-Product basis. The Parties will jointly define the baseline [***] at the execution of this CMSA, which may be adjusted by the JSC, up or down, after stable production is established. If operations improve after stable production is established over the then-current baseline, the saving from efficiencies will be shared between Vaxcyte and Lonza as follows: [***]. The baseline will be revised accordingly for the upcoming year.
Productivity/Efficiency Improvement. 7.5.1 It is agreed by the parties to this Agreement that the costs associated with this Agreement be off set by at least a commensurate improvement in productivity/efficiency across RIC.
7.5.2 Without limiting the scope of this clause, such improvements may include:
i) the more flexible acquisition and utilisation of skills and more flexible work practices;
ii) more streamlined management and supervisory structures;
iii) better management and control of overtime;
iv) improved attendance at work;
v) improved safety performance; and
vi) the introduction of shared business services.
7.5.3 Where sufficient improvement in productivity/efficiency is not being achieved, RIC may utilise the provisions of clause 7.1 - Continuous Improvement and Benchmarking, to achieve the improvement required. Agreement to any improvements sort by ▇▇▇ will not be unreasonably withheld. Where an improvement is disputed, the matter can be referred to the dispute settlement procedures (DSP)(clause 12.0).
7.5.4 It is acknowledged by the parties that improved productivity as demonstrated by the 'balanced scorecard', will enable RIC to minimise its usage of external resources. ▇▇▇ will ensure ongoing consultation with Employee Representatives to review the extent to which productivity enhancement has enabled reduced reliance on external resources.