A System Without a Name --Dickeson
a.) Discloses in weight, or other units of measure, the quantity of materials delivered to the customer and the non-deliverable units wasted for each job—convertible to monetary values. The non-deliverable material is a throughput constraint—a reduction of contribution and profit.
b.) States, in hourly units, the time expended in each activity in each production center for both deliverable and non-deliverable product. Activity time preparing non-deliverable product is a constraint on throughput, wasting capacity otherwise available for sales revenues.
c.) Ranks the monetary contribution of each job, account, period of time, product type, unit of raw materials, shaft revolutions and deliverable product hours. This enables identification of core competencies, preferred accounts, jobs, products, etc.
d.) Establishes specific control limitations for processes, loading/scheduling, and for many sales and administrative functions and reports. The controls provide an objective focus for remedial action, identify and evaluate process constraints, establish scheduling buffers and foster continuous process improvement.
e.) Measures the rate of materials inventory throughput.
f.) Measures the rate of collection of accounts receivable.
g.) Validates time and materials application, using the zero balance technique of general ledger accounting.
h.) Establishes the weekly contribution required for the enterprise to break even and prosper.
i.) Monitors cash receipts and disbursements by week.
Printrol II provides common-sense information that's readily understandable. Prediction, as they say, is the essence of management and Printrol II provides a base for credible prediction. It won't increase profits or save money for the business. Only decreasing period costs or increasing contribution will do that. Nor will it forecast a set of costs for a prospective job that can be marked up to establish a price. The model provides support for operating and business decisions made by manufacturing, sales and administrative people. People make the decisions and people must take the actions.