Is your management missing key information vital to successful decisions also known as KPI?
This could result from
Not enough time to identify and deliver this KPI
As a finance or operations executive with constant deadlines to meet, you can’t find the time to assist your management to obtain the key financial information to support their business decisions. This may be a major reason behind your company’s missed earnings targets.
Your management is not receiving its KPI.
As a result, your management’s decisions are based on guesswork.
Your management’s responsibilities can involve decisions as to:
- production levels
- marketing spend on activities including trade shows, Internet and print media, and product pricing
The success of each of these decisions depends on whether or not your decision makers have timely access to the right financial information.
Without access to sales levels, how can your production management purchase the right quantity of raw materials and schedule right staffing levels? How effectively could your marketing department set product sales prices unaware of how it impacts the quantity sold?
Your management is not receiving the right KPI.
The recent movie and book Moneyball clearly illustrates how relying on the right information in making financial decisions can be a real game changer.
In Moneyball, in a single season and with only one third of the recruiting budget, the Oakland Athletics proved their ability to compete with the league champion New York Yankees. Through statistical models, the Athletics identified how new measures of player performance delivered higher game scores. Using new performance metrics, the Athletics gained a huge advantage by targeted their recruiting toward players who demonstrated high performance levels in lesser known areas including on-base and slugging percentages to the traditional metrics of stolen bases, runs batted in, and player batting averages.
Can providing your company’s decision makers timely access to the right KPI be a game changer for your company’s profitability?
Do any of the following challenges sound familiar?
- Meeting your company’s commitment to on-time delivery results in too little downtime for routine equipment maintenance
- Your company’s emphasis on lean production means excess raw material costs
- Your manufacturing management is not receiving sales information in time to permit respond with efficient tooling set up or design changes
- Your company is constantly in react mode to overdue project deadlines, a new governmental regulations, spikes in shipment delays, or rework of a defect in a key product component purchased from an overseas supplier?
How can providing the right KPI to your management boost your company’s profitability?
- Production management can determine how much additional product can be manufactured on existing equipment while still meeting on-time delivery commitments by knowing the costs of:
- routine equipment maintenance
- inadequately maintained equipment, including increased materials spoilage and production delays from unscheduled equipment outages.
- Purchasing management responsible for raw materials inventory can more precisely calculate economic purchase quantities for inventory with large upward price trends.
- Marketing management can assess the impact of a decision to discontinue an unprofitable product on the overall impact of lost sales of of other products purchased by these same customers.
We can help you select the best technology for delivering your KPI
- We focus on total cost of ownership including elements such as the best data storage solution to fit your company (whether on site or cloud based)
- Other factors addressed include scalability, quantity and quality of user training, and third party vendor support.
- If your company’s decision makers need a single source of factual information, we evaluate the best fit technology to address your company’s operational and organizational structure including shop floor, supply chain, and marketing.