Operational Profitability : Systematic Approaches for Continuous Improvement

Operational Profitability, Second Edition helps CPA firms and CEOs use management audits to provide valuable new client services, add substantial value to current services, and greatly expand their revenue base and earnings potential. Properly executed, the management audit provides the best overview available of how a business works as a single entity. It may also be used to evaluate specific functions within the organization to determine their performance efficiency. The management audit takes into account the unique characteristics of each company, adjusts its standard of measurement accordingly, and reflects the specific nature of its corporate culture. In today s hypercompetitive business environment, the management audit could mean the difference between business success and failure. This manual helps CPAs and their clients, as well as CEOs, understand and regulate the health of businesses by systematically identifying areas that affect profitability most and by offering experience based solutions for improving efficiency. This new Second Edition has been updated and revised to place a greater emphasis on companywide profit analysis and improvement strategies. Most of the chapters have been substantially reworked to provide more up to date coverage in these important areas: Operations strategy Product and service design Capacity and purchasing Business planning, analysis, and profit improvement Inventory management Material requirements planning Quality management Conversion to JIT systems Operational Profitability, Second Edition shows how a professional management audit gives clients the information they need to remain competitive, increase efficiency, and improve profitability. It provides step by step guidance on setting up a management audit, establishing standards of effectiveness, and defining goals and expectations. It supplies the analytical tools for evaluating client operations and explains how to develop carefully targeted action plans and reduce operating costs throughout the company. For CEOs and CPA firms with clients in manufacturing and distribution, Operational Profitability, Second Edition provides a blueprint for services that benefit clients, increase firm revenues, and strengthen firm client relationships.