Production Control

Of all the aspects of business, producing the goods or providing the services is the most critical of all. Without this function, the company would have no revenue to operate. Every busienss owner entreperneur should dedicate themselves to this aspect of business as their primary function each day.

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...

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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...

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Cost Drivers in Small Business

Cost Drivers in Business

The 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...

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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...

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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...

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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...

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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...

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A Story About Great Production

Air Mover

When 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...

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Production – Where the Rubber Meets the Road

Tire

There 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...

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