how management of SMEs can be in total control of enterprise's performance at all times
course contents and main topics
- Do you know what Industrial Performance is and which are its main components? and which ones are the most essential to know and monitor? do you know how to measure and attach an index to a quantifiable component, and how to measure un-quantifiable components (for instance: "reputation on the market") of your enterprise's Performance? do you know how to create internal questionnaires and scoring methods? Learn how to measure the main parameters of your enterprise Performance, and how to monitor them at a glance through a radar chart. (--> read more about)
- Economical Performance: Do you know your enterprise's costs? do you know them all? in sufficient details? do you know them in real time, or only when the books of accounts are closed? do you take into consideration all your costs when preparing prices and discount structures? and when preparing offers or quotations for special contracts or services? do you normally "assume" that the way you mark-up your costs will cover overhead and general expenses and cater somehow for your profit? do you know your profits? when? at each sale, at each transaction, for every invoice you issue, for any product or line of products or for any service you provide, or for any contract you enter into, and in real time? or only when your Balance Sheet will be produced? and if you happen to grant a discount to a customer, do you know then and with sufficient accuracy how much of your profit you are doing without? should your enterprise be "turnover" oriented or "profit" oriented? Modern Industrial Cost Control systems give all the answers to the previous questions, and enable enterprise people to operate with total consciousness and peace of mind.
- How to conceive, personalise and set-up a basic Industrial Cost Control system: forget cost centres, start considering profit centres associated with your vital processes - how should all direct costs (materials, labour, consumables, etc.) be monitored and recorded - when and how to take into consideration the impact of general expenses on costing and pricing - how to establish a working and continuous correlation between budgets and forecasts and the Industrial Cost Control system - how to set up simple but effective schemes to prepare price lists, offers and quotations. The final target: know your profitability in real time at any time. How should a cost reduction program be conceived and implemented.
- How to use simply and effectively IT and readily available software to keep the overall costing/pricing structure under close control at all times - practical applications of MS Office software for costing and pricing.
- Is your enterprise sufficiently productive? How do you know? Productivity and its main composing parameters can and must be understood and measured. How to establish the gap between your ideal and your present productivity index. How to start conceiving corrective measures to reduce the gap. Understanding value-added in your processes and waste inherent in them. Understanding the link between Quality and Productivity. How to associate a Productivity monitoring system to an Industrial Cost Control system for full control of the enterprise's operational aspects.
- How to measure and monitor all Quality-related parameters, in a simple and non-bureaucratic way. Understanding Costs of non-Quality (CNQ). Setting up a CNQ monitoring system. (--> read more about)
- Enterprise's operational Performance: now it's in your hands. What other components of your enterprise's Performance should you beneficially measure and control? How to use simple, basic software to keep all Performance Indices under continuous control.
- Now you are ready to identify the gap and set the targets. Is it better to use an absolute method or a relative method (like Benchmarking)? Pro's and con's. (--> read more about)
course duration
Duration: 16 hours (typical)
course objectives
Nothing will happen in those enterprises that do not know where they stand. No real improvement can take place...
Because they stand in soft, loose ground, or even quicksand.... so that any attempt to improve will most probably make them sink even more...
Knowing the present level of performance by measuring it creates a solid launch pad and an associated tension from which subsequent improvement initiatives can get powered and take-off.
This course is designed to enable participating enterprises to learn how to "measure".
Specific objectives of this course include (but are not limited to) the following ones:
- to provide participating delegates with simple, basic techniques and tools to understand, assess and measure (enterprise's) Performance and its main short, medium and long term components (value-added, productivity, output quality, profitability.... climate, image, reputation, culture....)
- to supply participants with simple and basic Indexing Methods and graphic tools, suited to monitor "at a glance" the essential parameters of an enterprise's Performance
- to enable participants to understand, measure and control the main parameters of their industrial costs in real time and in as great details as required/beneficial - and consequently,
- to allow participants to be in total and conscious control of their enterprise costing/pricing system at any given time, particularly when preparing offers and quotations, negotiating new contracts, or offering special discounts to customers
- to allow participants to know in real-time the "real" profitability inherent in any transaction or in any sale, for any period of time (week/month/year), for any product or line of products or service or contract (or for the whole business) - besides,
- to allow participants to conceive, initiate and implement real, valid programs of cost reduction and profitability enhancement, and to monitor their effectiveness over time
- to show participants practical and simple methods to put into strict relationship the Value being generated by the enterprise (or one of its section, or a business line, or a product line, or a service line, or a contract...) with the associated overall costs, supplying basic hints for maximising the former and minimising the latter
- to show participants how to measure productivity and improve it, by understanding first its mechanisms and by controlling at all times all its parameters (besides the obvious ones: labour, materials...)
- and to provide basic tools to monitor all productivity parameters in real-time at all times
- to illustrate the Costs of non-Quality method to measure and assess efficiency and effectiveness of a Total Quality Management program or any other Quality System
- to show ways and methods to measure and assess any (apparently) un-quantifiable Performance component
- to illustrate when it is adequate to utilise IT for valid assistance in the various aspects of Performance monitoring, and which (basic) software programs are most suited - participants will be shown several practical applications of MS Office software (Excel, Access) for Industrial Cost Control, for setting up Costing/Pricing structures and preparation of Offers and Quotations, and for Index-based Performance monitoring.
- to show the main steps of a subsequent path to Performance improvement
This course is very interactive and supplemented with abundant practical exercises and case studies
target audience
Senior and Middle Management Personnel from all Industrial and Commercial Enterprises.
The very small enterprise (up to 20 employees) will particularly benefit from participating in this course.
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