Process for Delivering Our Best

Our Two-tier Process

Phase I – Needs Analysis.  –  Perform a Needs Analysis to determine status of cost accounting and shop floor reporting.  The Needs Analysis includes a proposed Implementation.

Phase II – Implementation.  –  Develop and implement improved cost accounting metrics, enhanced shop floor reporting procedures and/or document production procedures based on Needs Analysis.

Top Six Tasks Performed in Phase II

    1.  Basic tune-up of existing cost accounting

    2.  Major tune-up of existing estimating protocol

    3.  Overhaul existing cost accounting

    4.  Enhance daily shop floor reporting

    5.  Manufacturing/shop floor software procedure documentation

    6.  Develop and Implement an Economic Value Added (EVA)™ model

Typical Considerations for Improving Cost Accounting Metrics

  • Chart of Accounts
  • Realized yield measurement
  • Overhead expense categorization
  • Overhead rate allocation design
  • Cost of sales determination
  • Cost of manufacturing determination
  • RM, WIP & FGDS inventory valuation
  • Indirect expenses identification & measurement
  • Identification, tracking & measurement of Direct Labor (DL)
  • Identification, tracking & measurement of Direct Material (DM)

Typical Questions for Enhancing Shop Floor Reporting

  • Who sets operator targets?
  • How are production operator targets set?
  • Current status of operator reporting?  
  • Production operation documentation?
  • Inventory levels and capacity?
  • Is there an accurate daily scrap report?
  • Daily operator efficiency reporting?    
  • Optimum level for operator reporting detail?
  • Management intervention feedback loop status?

Shop Floor Software Procedure Documentation Elements & Issues

  • Status of daily transactions in & out of software system
  • Level of computer literacy & system training among employees
  • Status of software use for RM, WIP & FGDS inventory valuation
  • Status & usage of RFQ forms, formats, sophistication, documentation
  • Identification/documentation of when/who does which critical task