OPERATIONS ANALYSIS
If you know the enemy and know yourself,
you need not fear the result of a hundred battles.
– Sun Tzu
Having a sound and objective understanding of your current business, its competitive position, deep insight as to what your products and services actually cost (as opposed to what is reported), and which products and customers are profitable and which are not so profitable, is essential to creating and executing successful strategies and in directing operational actions and investments that will achieve desired results.
Achieve profitability insight and improvement
Profitability Analysis
- Understand true costs and cash contribution by product, customer, and business unit versus fully allocated or reported
- Understand customer/product profitability mix – where is the company making money and where not. Determine underlying causes and options to address.
- Identify real impact to margins, cash and bottom line from changes in mix, volume, and operational actions and initiatives including investments, promotions, reductions or elimination.
Operational and Financial Performance
- Evaluate production throughput constraints and the potential for improvement
- Analyze whether capital assets are being efficiently leveraged
Product and Service Delivery and Logistics
- Analyze full and incremental cost of customer delivery
- Evaluate product delivery tactical design, route design and potential value of restructuring