What areas of my business will be analyzed?
We analyze all the applicable areas listed, and any other areas agreed upon by you in the opening conference, to appraise their effect on the revenue and profit of the business. Examples of what the Senior Business Analyst reviews include:
- Operations: How often do you receive operating statements and what key information is tracked and utilized to measure productivity?
- Administration: Is there a developed percentage basis budget? If so, how are the results tracked? Do administration systems and procedures meet current requirements? If not, what are the ramifications of non-compliance?
- Material Cost: What effects do waste and rejects have on material costs and how do these affect margin contribution? Who is responsible for negotiating material contracts, managing costs and overrun controls? How are these employees measured and held accountable in the performance of their jobs?
- Labor Cost: How does labor cost fluctuation affect production scheduling? How do you compensate for work center loading? What effect does overtime have on profitability and how does this factor in the decision to add or maintain personnel?
- Overhead: How is overhead application accounted for in the pricing matrix and what methodology is used to track and measure the implications of adding overhead costs to cash flow requirements and profitability?
- Incentives: Is there a productivity-based excess profit incentive plan? If not, how are employees rewarded and how is the effectiveness of those rewards measured in profit and productivity?
- Productivity: Are there established quantifiable productivity standards? How are productivity based performance standards measured?
- Cost Controls: Are costs measured and compared to predetermined standards? What systems or procedures are in place to control costs and quantify results?
- Material Flow: How is material throughput analyzed and what effect does it have on productivity and waste? Does a perpetual inventory record for raw materials, supplies, work-in-progress and finished goods exist and how is it maintained?
- Break-even Utilization: Is there break-even analysis by product group, sales personnel or service offering? How are break-even calculations used and how is it Utilized for bidding, pricing and market strategies?
- Cash Flow Management: Is there a system in place to forecast and manage payables and receivables to maximize current assets and increase vendor leverage?
- Tax Planning: Is after tax income maximized with proper planning? Is your estate plan structured to minimize estate taxes?
- Organization Re-engineering: Is the company set up on a functional basis and do all employees have a clear understanding of their role in the success of the business? Do you, as a business owner, have a clear understanding of your responsibilities to create a positive cash flow, generate a substantial profit and create a good quality of life for you and your employees?
- Sales and Marketing: Are you able to determine margin contribution and operating profit by salesperson, product product line and territory> Are you getting a reasonable return on your advertising and promotion investment? How do you quantify your return?
- Web Site: How does your Web presence enhance marketing objectives? How is the success of those efforts measured?
- Any Other Unique Concerns: What other issues impede your ability to create a good quality of life for yourself and your employees?