to Setup for Profitability and Control Your Shop 

Job Shops

SALES

• Have you expanded your market by using SIC lists and marketing manuals?
• Do you use target selling methods to produce consistent results?
• Do you critique your advertising design to capture the customer?
• Have you evaluated your return on advertising costs?

OPERATIONS

• Have you evaluated your machine layout and work flow to reduce “bottle-necks”?
• Have you reduced set-up time and increased running productivity through usage of ratio delay studies?
• Do you have quality control procedures and specifications?

• Do you use work cells to reduce labor costs and inventory costs?

FINANCIAL

• Have you developed flexible budgets at various levels for sales and fixed costs?
• Have you determined break-even levels and how to lower them through cost controls?
• Have you calculated overhead costs by category type?

• Do you have cash flow forecasting and cash flow management systems?

PERFORMANCE

• Are your shop  personnel motivated through performance standards?
• Have you developed group labor and spoilage incentive plans designed to reduce costs?
• Do you use “The Share Plan” to give key personnel a piece of the action?

• Do you use standards to control spoilage and yield costs?

INVENTORY

• Do you plan and establish inventory levels for seasonal variations?
• Have you developed procedures to prevent capital tie-ups through accumulation of obsolete and slow moving items?

• Have you evaluated your space utilization for maximum storage capacity and for use in more profitable operations?

ADMINISTRATION

• Is the authority and responsibility of key people clearly defined?

• Do you have a management information system to measure and control key operations?

• Do you have an accounts receivable collections procedure and computerized file tracking system?

• Do you use organization charts to minimize line and staff head count?