What is Cost of Goods Sold?
Cost of Goods Sold (COGS) is the same as Production Costs and Operating Costs. Reduce these by improving productivity as discovered by Henry Ford and later improved by Toyota.
All Businesses Have a Production or Operations Element
It is crucial for your business to learn skills to prioritise tasks, motivate staff, reduce waste, manage inventory to create operational efficiency. Note that all improvements here go straight to Profit.
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Learn to use the 12Faces Diagnostic Process to best advantage, click More Info.
Choices to Reduce Cost of Goods Sold and Improve Productivity
Learn about the best inventory management tools; monitor Inventory performance; the sensitivity of Profit to change in Inventory price. Then manage your business Inventory and Work in Progress (WIP).
Improve costs and productivity and these improvements will go directly to your Profit. Now learn how Toyota improved its operational efficiency. Then work on labour efficiency, waste reduction and variable costs amongst others.
The Gross Margin ratio is a window into one of the most common reasons businesses experience a fall in profit. Learn more about why your Gross Margin% needs your attention and how to find and fix problems.
Learn how to reduce production waste and increase Profit. Furthermore, waste applies to all industries, even offices and service. This covers Lean Management; Kaizen; capturing waste in the wild; prioritising waste removal; waste reduction (Muda) as Toyota identified.
Manage yourself, staff, suppliers and others. This is crucial to your business. Covers all areas related to staff management; organisational charts; Peter Principle; Parkinson’s Law;
Where do you start? After all, monitoring operational efficiency does not only relate to Cost of Goods Sold. It also relates to Revenue creation; business finances; Inventory management; cash flow and liquidity. Click this heading to find out more.
How do you determine what are the most important issues? Here, you will find the tools for brainstorming, business planning and problem solving. Also, learn about the 80/20 Rule, 5 whys problem solving technique, weights and scores amongst others.
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