Business performance and RIOS

Résumé du document

The concept of business performance is based on the torque value / cost, the goal being to optimize the ratio between the two (Minimizing costs, maximizing the value produced). The goal is to ultimately increase production and lower costs. (A financial value is not sufficient by itself to account for the richness and potential business)

Before trying to improve business performance we must first understand what is happening, to seek to measure it. The performance of a company can be measured in different ways:
- Benchmarking: This tool is to compare the performance and working practices between firms in the sector. This allows a company to position itself in function of the competition.
- The quality indicators: Indicators relevant sets are based on the activity of the company and its objectives and help to monitor and evaluate the characteristics of the company.
- Social indicators: This indicator measures the performance of company.

These tools will help establish a diagnosis and thus a strategy to optimize the performance of the company will be clearer and more precise.
The costs of a company are varied: there are fixed costs and variable costs. As its name suggests, fixed costs do not change (or few) from one period to another (they are mainly labor costs, depreciation, amortization ...), actions to reduce costs will therefore variable costs. Variable costs on which we can play mainly costs related to purchases of raw materials (cost of purchase, transport ...) and storage costs.

Extraits

[...] Manage stocks have thus requires a certain extent, a look at the consumer market to predict and anticipate shortages. This problem can be partly solved by the establishment of a panel. For certain classes or categories of items, preventing a possible shortage, is summarized by the 1 establishment of a safety stock. Obviously, this creates a financial asset inventory and maintenance costs that we can meet in the cost of safety stock. (However this measure is sometimes necessary in view of the possible heavy financial loss to the stock). [...]

[...] The need to assign the management of a product to the store must be justified. Stocks too high, which is also higher values of materials, capital assets, bigger stores, so ownership costs, operating costs, depreciation costs of obsolescence or higher. Stocks are low because of the shortage and loss of stock with all the consequences, the number of replenishment order higher, thus increasing the cost of control; delivery delays downstream, lost sales and customers . Regarding the increase of production it has to be agreed with the request, as we have seen, for reasons of storage costs should not be too occur if no additional request market. [...]

[...] The costs of a company are varied: there are fixed costs and variable costs. As its name suggests, fixed costs do not change (or few) from one period to another (they are mainly labor costs, depreciation, amortization . actions to reduce costs will therefore variable costs. Variable costs on which we can play mainly costs related to purchases of raw materials (cost of purchase, transport . ) and storage costs. To reduce our costs we can balance the costs of inventory management, that is to say: The cost of acquisition: It is the purchase price of raw materials, including customs duties and taxes are not recoverable, net of discounts, rebates and trade cash discounts. [...]

[...] Before trying to improve business performance we must first understand what is happening, to seek to measure it. The performance of a company can be measured in different ways: Benchmarking: This tool is to compare the performance and working practices between firms in the sector. This allows a company to position itself in function of the competition. The quality indicators: Indicators relevant sets are based on the activity of the company and its objectives and help to monitor and evaluate the characteristics of the company. [...]

[...] Other solutions for improving business performance are also possible such as business performance management. Business Performance Management refers to a set of methods, metrics and technology solutions to monitor the performance of the business and craft a business, both on purely financial and operational indirectly. Thus, the Business Performance Management aims to assist policymakers in developing their strategy development and process optimization. New approaches made by the Business Performance Management software, such as theories of decision or options and the Balanced ScoreCard, allowing systems to business intelligence to achieve several scenarios of development activity, weighted by probabilities of occurrence, the objective being to identify possible consequences of decisions made today on the financial performance of the company "The Balanced Scorecard was not a mere instrument of measurement. [...]