Reports to Bank On –Dickeson

Since offering my book, Monday Morning Manager, free to anyone requesting it by dropping me an e-mail, I’ve sent out 237 copies. This makes me think that there are quite a number of printers giving serious thought to a better way of making decisions for their business. There’s really a concerned minority who are thinking about liquidity, productivity and tomorrow. Several have requested that I spell out, in some detail, what I’d consider an ideal set of reports as a basis for decisions.

First, let’s be clear about the main contention. We must have weekly reporting. Ideally, 13 weeks (a quarter of a year) should be reported in a rolling fashion. Each week, add the latest week and drop the oldest. Show the average week. Project that average by multiplying by 4 to equal a year. This is saying that if we continued on as we’ve been doing for the latest quarter, this is where we’d wind up for a year.

Cash with Break Even Bogey
Week Ending Balance Usage DCOH
29 7/23/2004 $25,055 $52,481 3.34
30 7/30/2004 $45,887 $49,388 6.50
31 8/6/2004 $34,113 $58,976 4.05
32 8/13/2004 $29,203 $51,147 4.00
33 8/20/2004 $24,733 $42,357 4.09
34 8/27/2004 $27,842 $23,546 8.28
35 9/3/2004 $31,281 $55,698 3.93
36 9/10/2004 $16,246 $66,218 1.72
37 9/17/2004 $18,373 $63,947 2.01
38 9/24/2004 $54,970 $62,487 6.16
39 10/1/2004 $11,260 $73,254 1.08
40 10/8/2004 $13,319 $63,251 1.47
41 10/15/2004 $1,378 $48,554 0.20
Totals   $304,266 $711,304  
Average   $23,405 $54,716 3.34
B-E-B     $54,241  
Variance     $475  
Annualized     $24,684  

The report changes a bit each week depending on the decisions we make during each of the seven ensuing days. These reports, each on a separate page, should be available every Monday morning for the week just ended.

Each report is accompanied by a simple, clean, line graph of the decision element being reported. Each line graph has an overlay of a straight trend line to show the direction it’s heading. First, look at the big picture on the graph, then look at the detailed numbers as needed. Make decisions for the coming week. See the result of decisions next Monday.

It’s a cash out to cash in idea. In printing, it’s cash out to cash in when the account’s collected. Follow the prime raw material through the plant. The speed of that movement—the throughput—including the speed of collecting, is critical to the degree of success of the business. Any impediments to the cash out to cash in throughput are constraints that must be alleviated by decisions. Attack those constraints one-by-one.

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