10 Ideas for Making Manufacturing Profitable


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Maintaining and increasing profitability is key to business survival. Best-in-class manufacturers seem to be one step ahead of their competition, year after year. This infographic identifies 10 ideas these manufacturers are using to increase their profitability.

It includes strategies you might not consider such as:

- Use profitability to prioritize projects
- Make contract management a competitive advantage
- Minimize the impact of engineering change notice (ECN)

For more information, visit dynamics.cincom.com.

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10 Ideas for Making Manufacturing Profitable

  1. 1. Manufacturing Products Insights By: Louis Columbus Best Practices from Best-in-Class Project-Based Manufacturers Use Profit to Best Practices in Analytics and Reporting Strategies Prioritize Projects Earned Value ManagementBuild out your own benchmarks of how you evaluate projects Take a critical look deal-by-deal over the year. It could be thatby taking into account the time on the production floor as smaller deals executed with greater precision were actuallywell as any constraints around overall resources. more profitable than bigger deals. More Fewer smaller projects, larger projects, more profitable less profitable time on production overall resources Determine actual profitability by breaking down profitability in terms of: Unleash Your Companys Expertise • Time-based cost on Each Project–Now • Cost of materials • Opportunity cost ofBuild out the enabling systems around your expertise. Be other areasable to capture expertise and exclusive knowledge anddrive it into the overall process. Companies that really excelon project management have this nailed. Quality is an obses-sion for them, with knowledge capture as a core strength. 18% Gross Profit per Project 30% Manage Projects Globally for Results Information becomes the accel- erator that delivers precise dataTwo-tier ERP strategies enable companies to drill deep into on a market-by-market basis andthe different regions that they serve. This gives them very really frees companies to excel.precise metrics for those specific markets and the ability toincorporate those different aspects of that supply chain inthat manufacturing process specific to that region. Collaborate Share Project Data with CustomersExecuting projects profitably requires a great deal of orches- There is a fundamental shift in the behavior - now the expec-tration, but it also requires the ability to share project data. tations are real time data. Its an interactive exchange, withShared project management up and down the supply chain the expectation that its going to be personal, fast, accurate.is a trend we see more and more. 150 Million conversations occur online each day with customersparts in Minimize Engineering Change Notice Cost and Time Delaysa project are ECNs can be a signal that something is wrong in a processoutsourced or they could be a signal that you are doing an incredible amount of customization work for a given customer. Make Contract Management a Competitive AdvantageDont just use contract management as a repository for differ-ent files. Think about how you can use contract managementto drive financial analysis off of them and take advantage of Drill into contracts. Get to the clause level.those discounts. Get the financials Drive financial Take advantage anywhere, anytime. analysis from them. of discounts. Make Quality Pay and Capture Project Requirements Differentiate Your Company Right the 1 Time stAllocate the time to build in quality and develop an approach Capture all of your project requirements through a centralizedaround quality management. That gives quality an integral office. This will enable you to drive that information throughrole of the overall project from the very beginning. all divisions with consistency across the enterprise. estimating product project configuration Make time to make quality pay pricing bidding quoting Free Webinar Hear firsthand how companies have put these ten ideas into practice in this on-demand webinar. Louis Columbus, Senior Manager, Enterprise Systems at Cincom Systems, shares his experience and insight to provide Form: CMUS1301013 clarity to real-world business problems. Check out the Webinar here: ©2012 Cincom Systems, Inc. All Rights Reserved Cincom and the Quadrant Logo are Watch Webinar registered trademarks of Cincom Systems, Inc. All other trademarks belong to their respective companies.