Recent Articles

Production Control

This is where the rubber meets the road.  Production makes the money for the company.  Implement production control systems to monitor production efficiency and effectiveness, create a process flow to minimize labor needs, and deliver the product.  There are techniques, systems, and even some good ol common sense that maximizes production with the least amount of resources.

Remember, this is an educational based site to help entrepreneurs understand their business operations.  These articles are in-depth and do take some time to read and understand.  So if you are looking for a quick fix; it is NOT HERE! 

As always, if you have any questions or concerns, go to the ‘About the Author’ page (button is in the lower right section of the footer), send me an e-mail.  I’ll respond in a relatively short period of time.  Thanks and as always, Act on Knowledge.

FEATURE ARTICLES:

  • Production – Where the Rubber Meets the Road

    TireThere is no other way to say this other than to outright say it directly:  All the rest of the business issues I write about mean zilch unless you have great production.  This is the one area that you as the business owner need to devote your energy towards over any other.  I’m an administration ...
  • A Story About Great Production

    Air MoverWhen I started out in accounting I had a job as a controller at a restoration contractor.  They would provide emergency mitigation for water damage jobs, mostly residential damage.  Every now and then we would get a call for a larger commercial job.  For those, the insurance company (who paid the bill) required a Certified ...
  • Find the Bottleneck

    In every business no matter production or service, there exists a bottleneck.  Your job as the owner or manager is to find it and fix the problem.  Once this one is found and resolved; move onto the next one.  There is always a bottleneck to find and fix.  What is important is to find the ...
  • Operate Within Your Range of Production

    One of the basic business concepts is range of production.  It means maximizing the capacity (range) of the assets in your operation.  When the business operation goes beyond the maximum production range, costs associated with the marginal production generally exceed the revenue generated with the marginal increase.  So to maximize profit in any business, operate within ...
  • Operating Control Reports in Business

    A part of any information feedback loop is the operating control reports in business.  Depending on the nature and financial impact involved, these reports can be daily (Daily Operating Controls or DOC), weekly (Weekly Operating Controls or WOC) and/or monthly (Monthly Operating Controls or MOC) in management reporting.  Their value is to inform management of ...
  • Throughput – Business Definition and Identification

    When a business can maximize the product or service delivered within a given period of time, it has reached maximum throughput.  This is the basis of maximizing earnings and therefore profits for a company.  This article will examine the definition more thoroughly and illustrate to the reader how to identify issues associated with the throughput ...
  • Cost Drivers in Small Business

    Cost Drivers in BusinessThe textbook answer defines cost drivers as those factors that determine the overall cost of operations.  As an example, in manufacturing the cost drivers may be processing time or number of steps to produce the product.  In service, the cost drivers could be the actual ratio of billable to non-billable time.  Or it may simply ...
  • Up Time – Business Concept

    Up Time in business refers to maximizing opportunity to generate profit.  There is one key modifier.  If the marginal costs to generate revenue exceeds the revenue generated, the business is no longer maximizing profit. This article will explain the basic business concept of up time.  I’ll continue to explain the concept of ‘Optimal Up-Time’ and another ...
  • Project Reports – Introduction

    There are basically three groups of financial based project reports.  Each set has its own priorities and purposes.  Project reports are a function of production reporting with the exception of the balance sheet set (commonly used for cash flow purposes).  When used properly and in conjunction with each other, a reader will have full understanding ...