“Rob came in and assisted WCS as we were struggling to identify specific costs in today’s data driven manufacturing. He did so in a professional as well as personal manner, showing results that gave us the information to make real and positive change”
Winamac Coil Spring – Manufacturer
Business Opportunity: WCS produces a wide variety of springs for a wide variety of customers. REL 65 performed an assessment and identified 3 major opportunities. 1) Recast the financials for “throughput accounting”, 2) perform a robust analysis of sales to understand what is driving profits, 3) map the information flow for the ERP system and associated custom applications.
Throughput accounting clearly identifies 3rd party pass-through costs, value add (labor), and the various types of overhead. It allows clarity for management and pricing decisions and helps drive business results.
Analysis of sales by customers and items with various groupings of each clearly identified the profit drivers and those that needed a price adjustment. As a side benefit, costing issues and data hygiene issues were cleaned up as a part of the process. Trained WCS personnel on the update process and they continue to monitor & update quarterly.
The existing information system has been in place for many years and served the company well. The high level system flow identified opportunities for improvement. A project is now underway with guidance from REL 65 to modernize this critical piece of the business.