Are you a customer having the
following issues:
Having issues with large value of slow moving inventory
Have issues with cash flow cycles
Do not have clarity regarding product profitability
Our product
Turbodata can help your firm with resolving the above issues. The product is
inspired by philosophy of The Goal by
Eliyahu Goldratt and Profit Beyond
Measure by Thomas Johnson and Ander Brohms(please
see the appendix 1 for a summary of the philosophies)
Both the philosophies
imply that the end client should use the order line profitability instead of
using the periodic calculations. Only then would the end client get complete
visibility into its operations and profitability by customer, region etc.
What is
required for determining the orderline profitability?
For
determining the same the end client needs to have valuations of inventory using
perpetual method instead of the periodic method.
As a case
to the point, consider the following:
In the
attached scenario of an item, the valuation using weighted average/FIFO has
been done on periodic basis. Hence the end client looses the orderline
profitability details by using the same.
However in
the snapshot below using Turbodata, the weighted average calculations are done
on a daily basis(as in the attached
snapshot)
This enables the end client to
calculate orderline profitability.
Issues with calculating the orderline profitability:
v In some of the software, negative stock is allowed. Because of the same orderline profitability
calculations might be impacted. The sample below gives the first instance of
negative stock for an item.
Sample attached
below:
v The physical stock entries valued at
0(zero) value can create discrepancies in the stock valuations.
v Data consolidation from multiple
systems could be required for calculating the same.
v Data transformation in terms of
business logic of the end client needs to be done so that the required
calculations come into force.
By using Turbodata, the end clients
shall be able to achieve the following:
v Go towards orderline profitability by
getting an estimate of cost of goods sold based on perpetual FIFO and weighted
average calculations.
v Achieve the following activities
o
Data profiling: find the first instance when the
closing stock of an item turned negative at godown or consolidated level.
Data analytics: have consolidated dashboards along with predictive analytics facilities at economical costs.
v Better management of inventories: by
finding the profitability of the sale of items at the orderline level for a
given set of customers.
Interested in moving towards orderline profitability:
v Deployment of Turbodata solution(for
testing sample data): USD 3000/-(USD Three thousand only)+taxes as
applicable. Contact us for a sample demo
v Buy our standard book based on
Turbodata project experiences: USD 5/-(five)
dollars
Please contact the following for the
above for a demo
Name: Apoorv
Chaturvedi
Email: support@turbodatatool.com;support@mndatasolutions.com
Phone:+91-8802466356
Appendix 1
What
do the above management philosophies say?
The Goal:
The Goal is
inspired by the theory of constraints. This implies that there are 3 parameters
that are critical for any firm:
v Throughput:
the rate at which the system generates the sales(our definition of cash sales)
v Inventory: the
input material required to convert the inputs material to final product for
generating throughput.
v Labor: The
manpower required for converting inventory to throughput.
The protagonist Jonah in ‘Goal’ also insisted on standard
deviations and variations to be part of the process. The variations to be
detected on a close to real time basis so that any errors are caught
beforehand.
Profit Beyond Measure:
Profit Beyond Measure is inspired by the Toyota Production system.
It emphasizes that the manufacturing company should function like a human body.
The functional managers should account for self sustainability(standard cycle
times), diversity and interdependence( the manufacturing managers need to look
at the whole system like a human body and not just a single component).
The book emphasizes that there should be a reduction in
inventory by reducing a changeover times at each of the working station. That
is the manufacturing process should start once the customer order has come into
the system. The book further looks at ‘Design to order’ by designing multiple
configurable modules to offer the end clients multiple types of products.
FOR FREE MICROSOFT POWERBI DASHBOARDS: please do one of the following:
Email: support@mndatasolutions.com;support@turbodatatool.com
