Reports to Bank On --Dickeson
6) Days Throughput on Hand. Add the days on hand of Raw Material, Materials in Process, Finished Goods and Receivables. This is the total of days throughput required for processing to cash in the drawer. Report totals, averages, projections and plot total days throughput.
7) Total Waste Recoverable. Divide the dollars of paper in goods invoiced or shipped during the week by the dollars of paper used to produce those same jobs to obtain the waste ratio. This is the limit of total waste dollars recoverable. Report totals, averages, projections and plot ratios weekly.
8) Proposals and Closings. Divide the value added by booked sales commitments during that week by value-added in all outstanding sales proposals to get the ratio of value-added closings to proposals during the week. Report totals, averages, projections and plot weekly ratios.
Except for the annual projections—kind of a throw-away value—there are no predictions, budgeted hourly rates and no complex of profit assumptions for general ledger reporting.
You may not keep a finished goods inventory. You need to. You've got to have some way of knowing the time lag in getting invoices out. You also need a break-even bogey to give you perspective and a variance on the cash statement.
Think you could run a printing company with these eight rolling weekly reports—make sound decisions? Try it. You'll like it.
About the Author
Roger Dickeson is a printing consultant in Sylmar, CA. He can be reached at rogervd@verizon.net. You can have a free copy of his book Monday Morning Manager by requesting a copy by e-mailing him at that address.
