Manufacture Smarter Blog

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Increase Revenue vs. Reduce Costs – Which is Right for Your Company?

9/18/2020 - BY: ROGER TOMLINSON
In the ongoing pursuit of improving profitability, is it more important for a company to reduce costs or increase revenue? The answer to this complex question likely depends on many factors, including the type of company in question, industry trends and market conditions. Each strategy has its own benefits and drawbacks – but which is best for your company?


How Profitable is Your Business - Really?

8/28/2020 - BY: GEORGE SINGOS
I have met with many business leaders who believe they are more profitable than they really are. In evaluating gross margin, they assume all their parts or assemblies are more profitable than reality. However, this perspective fails to account for overhead costs that are not properly utilized. This gives managers an inaccurate idea of how their business is performing.


Are You Confident in Your Quoting?

4/28/2020 - BY: RON QUINKERT
Throughout my many years of working with manufacturers around Michigan, I have witnessed companies miss out on great business opportunities because of their inability to submit competitive quotes. How many times has this happened to your company? Have you ever wondered why? This may indicate that it is time to look at how projects are quoted.


Getting to the Bottom of Your Bottom Line Issues

11/9/2018 - BY: GEORGE SINGOS & ROB STAUFFER
Do you really know how profitable your business is? Do you find that revenue is going up, but profits are going down or staying the same? To keep your business operating into the future, it is essential to understand why this is happening.


Is Your Business Performing as Well as It Could Be?

8/17/2018 - BY: GEORGE SINGOS
While company-wide alignment is essential to realizing strategic goals, progress cannot be made without maintaining a strong sense of how well the business is performing. This is where Key Performance Indicators (KPIs) come into play. By establishing, monitoring and analyzing KPIs, such as on-time delivery, changeover time or schedule bumping, companies will be equipped with the data and guidance necessary to align their business toward success.


Revenue Going Up, Profits Going… Down?

4/27/2018 - BY: GEORGE SINGOS
Your company is working harder than ever before, with higher sales and faster production leading to the largest increase in revenue you’ve seen so far. Yet somehow profits are less than they were last year. How could this be?


How Manufacturers are Improving Cost Identification and Management Estimates

2/17/2017 - BY: ROB STAUFFER, MBA, PMP
Improving cost identification is one of the most crucial elements involved in driving your organization towards operational excellence and success. With the manufacturing sector evolving to a whole new level of functionality, manufacturers now are finding themselves under pressure to optimize budgets, quality and efficiency, while keeping up with the latest technological trends and adapting to market conditions.


R&D: Sparking Innovation to Improve and Create Products

11/6/2015 - THE CENTER
Companies can achieve significant results from innovation driven by solid research and development (R&D). From the proof of concepts to the actual commercialization of ideas, the R&D process can spark new innovations, lead to new efficiencies and develop your workforce. It also helps organizations enhance or create products and diversify offerings.


Understanding Purchase Price Variance and Total Cost of Ownership

4/10/2015 - ROGER TOMLINSON
Many manufacturers determine a standard cost for their goods, services, and the production components they purchase throughout the year. Purchase Price Variance (PPV) is used to show the difference between the standard cost and actual cost in accounting.


Understanding True Costs: What You Risk Missing

6/28/2013 - THE CENTER
Many manufacturing companies use absorption costing methodologies that simply add up all costs and divide by the number of hours worked in a given year. This equation typically yields an average cost per hour for each department, or a blanket cost per hour (i.e. everything in the shop costs $120 per hour). This approach is quite easy to calculate and it provides a safe way to make sure all costs are ‘covered’ in terms of determining costing rates.


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