Cost of Over and Under Stocking
In a manufacturing or retail environment, having too much inventory of products your customers don’t want and/or too little inventory on hand of what products your customers do want will cost you money and, consequently, profit. Many service businesses also have inventory even if it is items like stationary incidental to their main operation. This article shows you why under and over stocking costs and how to reduce the damage.
C4.3.3 Sell Surplus Inventory
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Dice Games Simulate Profit Game
READY TO PLAY A GAME? SIMULATE YOUR PROFIT GAINS. Throughout 12Faces we talk about several different Workflow and Inventory Models. The Simulation Dice Game will quickly give you an impression of HOW these models work in practice. Think that YOUR business doesn’t have a Production Line? That this doesn’t apply to YOUR business? Restaurant – raw […]
How to Reduce Variable Costs for Better Profit
Summary Especially in a manufacturing business, the variable cost of parts, resources and energy etc are likely to be a substantial part of your overall costs. This 12Faces Menu is a collection of distilled business wisdom relating to managing and reducing these costs. Variable costs are those that are directly tied to your level of production. If you produce more of an item, […]
SM4.0 Business Efficiency: Waste Reduction Introduction
Eight Types of Waste Business efficiency relies upon managing and reducing waste Here are 8 tested ways for doing this What is Waste? A straight forward explanation of waste is that it is anything that adds no value to the final product or service. This is something that the customer is not willing to pay […]
Mastering Financial Success: A Step-by-Step Guide to Calculating Your Break-Even Point
In the pursuit of financial success, one of the most crucial skills you can master is calculating your break-even point. Whether you’re an aspiring entrepreneur, a small business owner, or simply someone eager to understand the financial dynamics of your projects, knowing how to determine when your revenues cover your costs is essential. The break-even […]
Efficiency of Labour
The efficiency of labour and therefore the costs of labour, in your production cycle, may be due to two factors. Wage Increases Have your salaries to casual staff increased between time periods? Yes: Have you passed this cost along to your customers as an increase in price to compensate? It will take a while for […]
Inventory Re-order Management for Profit and Productivity
A good Inventory Management System can dramatically improve the profitability of the business by streamlining production. This applies to not only a manufacturing business but any business that has a workflow process.
Importance of Small Batches Tool
There are merits to reducing the size of the batches you manufacture and/or hold in stock at any point in time. This might sound counter-intuitive because of the oft-quoted ‘economies of scale’ and the time cost of pulling down tool set-ups and changing them to manufacture another project. But, in the words of the song; “it ain’t necessarily so!” Learn the importance of small batches.
How to Tune Buffer Management
Buffers, used strategically, will enable you to “smooth” out the flow of work through your system. This is important to maximise production.