Counting #5 – Counting Production

In the past 21 years Business Navigators has worked in over 37 different industries and while the first four divisions of business do have very strong similarities at the first blush the fifth division, Production, would seem to be radically different

The product that a governmental agency “Children’s Services” provides would seem to be quite intangible while the product of a manufacturing plant certainly could be more easily weighted and measured.

Product that is installed or delivered might be counted by statistical means, but how can “Children’s Services” enumerate their production?

in every business I have encountered for the ultimate success of the business, counting production must take place.

Some of the assets, which incorporate all production, are: People, Time, Materials (raw or finished), dollars and quality.

PEOPLE

Measurement of people can include:

  • How often do they miss or attend work?
  • How many times does their work need to be redone?
  • Is their attitude toward what they do positive?
  • Have they added ideas or actions, which improved production


TIME

Evaluation of time can focus on:

  • Is the time allocated to a part of all of production sufficient to allow the work to be completed? Should more time be allotted?
  • Can the time be reduced without losing quality?

MATERIALS

Counting of materials can be directed toward:

  • Do we have a sufficient supply of materials to complete the work anticipated?
  • Can we reduce the amount of inventory without losing production?


DOLLARS

The observation of money needed for production could concentrate on:

  • Will our current cash flow provide us with the revenue needed to support both Cost of Sale and Overhead requirements?
  • Do we have resources outside of current and anticipated revenue?


QUALITY

The assessment of quality conditions might include:

  • Are our quality standards clearly defined and are they measurable?
  • Is the impact of decisions made in the other six areas supporting our quality standards?


The simple questions I have recounted will have an impact on the types and methods used in counting production.

Production is what you sell and your focus on measuring company success has to include this element. Counting Production will guide you toward success. Ignoring it will help failure.


Next: Physical Plant Also Counts

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