How Deep is Your Data Pool?
In the Analysis phase of the Plan Execute Monitor and Analyze (PEMA) progressive improvement cycle, we look for insight that could require a course correction or perhaps full steam ahead. The pool needs to be deep enough to get to root causes and the identification of opportunities that fuel the planning cycle.
In previous posts, we introduced the Plan Execute Monitor and Analyze (PEMA) concept as an iterative cycle for progressive improvement. PEMA also provides a relevant framework for the challenges faced by financial professionals in manufacturing operations.
In this post we dig further into the system capabilities that finance professionals rely on to help meet the challenges of the Analysis phase of the cycle.
Deep and Accurate Data Pool
The data generated from your transactions and activities is a deep well of information that can be used for analysis and decision making. No leaks allowed!
Your ERP system should track and provide insight into the following areas:
- Win loss quoting ratios with loss reasons
- Customer Attrition rates with loss reasons
- Variances on purchased and manufactured supply
- Supply interruptions – timeframe and impact
- Margin analysis – price, volume and mix analysis
- Reject rates – both inbound and outbound
- Efficiency and utilization rates
- Cost of quality
Faster Period Closes
Shortening the time to publish financial results means less pressure on meeting reporting deadlines and more runway for those using the numbers to make decisions. The integration of data, innate validation and reduction of manual entry all add up to a reduction in the time to reconcile and close financial periods.
Go From Analysis to Action Plan
Your ERP must have the analysis tools that take full advantage of that deep data pool. Analysis tools allow you to go deep into the impacts of Price, Volume and Mix on bottom line. Manufacturing and Purchase Price variances can pinpoint areas of risk.
But identifying the source of variance or risk is not enough. Your system should support the deployment of changes back into the planning phase of the cycle. This feedback into the next iteration of progressive improvement should not require a trek through the spreadsheet jungle.
If you would like to share some of your Analysis challenges or hear how similar companies are addressing their challenges, please reach out to us at sales@industrios.com and Let’s Talk Shop.
