Home >> Solutions >> SCM/Thru-Put >> Better Visibility


Spotlight

Stay in Touch!
Register and receive periodic information  and updates that help you become a World-Class Manufacturer.




We will never share your information with anyone, period.
SCM - Thru-Put
Better Visibility
Fine-tune the product mix that will offer the greatest revenue

Our Supply Chain Management solution helps world-class manufacturers get the most from their resources by analyzing each product by its throughput contribution per time spent on the constraint. This information is essential in efforts to fine-tune the product mix that will offer the greatest revenue based on plant capability. Marketing and sales efforts can be focused on these more profitable items, or on any proposed new products, marketing programs or other anticipated change in demand. Engineering uses this same information to focus its activities to redesign products to spend less time on constraints, thus increasing total plant capacity and revenue potential. An interactive, what-if analysis provides operations with information regarding the impact on the plant's capability for any proposed new equipment, work rules, scheduled maintenance, etc. The manufacturer is now able to pinpoint where to invest in new equipment that will truly increase company throughput or decrease cycletimes.

The variable portion of the sales compensation plan can be fine-tuned to reflect manufacturing capability. For example, a part that sells for $10,000 with a material cost of $5,000 typically yields a higher commission than a product that sells for $7,500 with a raw material cost of $5,000. However, if the $10,000 item spends 10 hours on the plant's constraint, the plant only makes $500 per hour that the constraint works. If the $7,500 item spends only one hour on the constraint, the plant makes $2,500 per hour that the constraint works. The company will make more money by selling more of the $7,500 item, and the salesperson is incented to sell more of it; thus increasing the market share of the most profitable items.