Archive for February 2012
Controlling Overhead Production Costs
A manufacturing organization with United States and Mexican production plants hired us to analyze the production cost of two comparable plants to determine if consolidation would save money and improve quality. The initial plan was to consolidate US to Mexico.
action
We worked closely with the VP of Manufacturing operations to build a model to report and analyze product costing inputs, labor time, and other variables including the impact of currency exchange and trucking.
result
Our analysis demonstrated that consolidating operations to the United States would reduce waste by 13%, overhead costs by 21%, and delivery time by 18%. In the end consolidating to Mexico proved to increase overall costs, reduce quality and complicate delivery even with the NAFAT, which at the point of this project still encompassed restrictions that added delivery costs.
“sometimes what appear to be logical initial conclusions prove to be incorrect and the only way to know is to do the investigative work”
Posted in 
Building a Profitable Business
Window blind and treatment design and installation company needed assistance with problems related to high expenses, excess inventory, and poor profitable model.
“Letting things get out of hand before trying to put the fire out is a risky and costly approach to managing a business.”"
action
Analyzed and sorted through expense information, past due bills, and a manual check register to arrive at conclusions about revenue and expense. Reviewed catalog and web site initiatives to ensure appropriate steps and material were being addressed and delivered.
result
Empowered and focused business owner on design functions of business. Determined that owner was actually storing expensive product with limited resale potential in an effort to save money in the near term. Suggested order only 10% more than required and price jobs accordingly. Identified that the commercial market was a profitable target segment.
“Knowing target market, price sensitivity, and competition are key components to building a more profitable enterprise.”
QuickBooks Optimization Key to Success
Owner of a multi-site chiropractic and sports clinic required assistance in QuickBooks setup and process optimization.
action
We quickly learned business needs requirement, included high value expense categories to implement new company setup and drive ongoing attention to key factors. Discussed internal processes with owner and the created a SWOT analysis for the client. We worked with owner on decision making in regards to hiring staff to handle admin roles while owner focused on customer care.
result
Reduced administrative time by an estimated 12% and delivered information for decision making around accounting and business performance management.
“It is important to realize strengthens and weaknesses in business management. Hiring the right staff or out sourcing the activities are essential to aligning owner skill set with the right activities.”