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Overview of Business Result Reporting


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Overview of Business Result Reporting

  1. 1. ABC Company Business Review August 2005 A sample for Business Result Reporting
  2. 2. Contents <ul><li>xQ Hits & Misses </li></ul><ul><li>xQ0x Outlook </li></ul><ul><li>Commercial: Sales, Price, New Product Introduction </li></ul><ul><li>Supply Chain : Safety, VCP </li></ul><ul><li>- Strategic Imperatives </li></ul><ul><ul><li>PCTO Initiative </li></ul></ul><ul><ul><li>Sales growth – Big / Channel/ Distributor / International </li></ul></ul><ul><ul><li>Engagement </li></ul></ul><ul><ul><li>Community </li></ul></ul><ul><li>xQ0x and x00g Outlook </li></ul>
  3. 3. Hits and Misses- xQ x00x Hits Misses Orders Growth g% Price x% Orders Growth xx% Base Costs Down to Plan xg.g% New Product Sales – Say Do Ratio x00% $x.xMM Price xx of Mat’l Inflation Safety – xx% Material Price Index (x.0) % Variable Cost Productivity (x.x)%. Variable Cost Out (x.x)% CM (x.x) pts Sales Conversion Flat x EHS N.O.V. ($ MM’s )
  4. 4. <ul><li>Price = Material Inflation </li></ul><ul><ul><li>ss </li></ul></ul><ul><li>VCP Offsetting Other Inflation … $x.xMM, x.gpt. VCP Improvement from xQ0x </li></ul><ul><ul><li>Material: rrrrr </li></ul></ul><ul><ul><li>Labor: OT ffff </li></ul></ul><ul><ul><li>OVC: ffffff </li></ul></ul>   <ul><li>Restructuring Business For Success </li></ul><ul><ul><li>A </li></ul></ul><ul><ul><li>S </li></ul></ul><ul><ul><li>D </li></ul></ul>Year Over Year Op Profit Walk xQ Run Rate Improvements xQ0x xQ0x Sales V% (x.x%) x% Mat’l VCP (x%) x% Labor VCP (x%) x% OVC VCP (x0%) (.x%) Total VCP (x%) x% xQ w/o Rest. xQ0x Base Mix/ Inv Chg Labor, OVC/ Inf Mat’l Infl Price xQ0x Transf. Expense M&S Volume Labor, OVC VCP Mat’l VCP A&SP C&B 0.x x.x) x.x (0.x) 0.x (x.x) (x.g) $yy (0.x) $0.g x x.x (0.g) (0.x) $xx Business Restructuring XXX Company June xQ0x v 0x
  5. 5. XXX Company - xQ Performance Update Sales / Orders Sales CM CM% Base Cost Program RTS OM OM% Op. Profit Aug. Est. $s $t xx.x% y v.0 vv vv v.0% c.c VOP ($s) ($v) (s)     f (0.g) 0.h   (g) (f) (ff) V% gg% (x.0) (x.x)     dd fff (ff)   (ff) (gg) (gg) Summary of Operations pts pts pts pts Output Rate/Day OP Plan $aaa JE $bb QTD $ccc ( x.x days behind schedule ) CW $rrr LW $sss To Go $ttt Order/Sales Rate Op Plan $qqq July Est. $vvv Orders QTD $ccc Orders To Go $ddd Sales QTD $eee Sales To Go $fff xQ Daily Averages Opportunities/Risks <ul><li>Risks Probability </li></ul><ul><li>P M ($0.) </li></ul><ul><li>M H ($0.) </li></ul><ul><li>M H ($0.) </li></ul><ul><li>O H ($0.) </li></ul><ul><li>La H ($0.) </li></ul><ul><li>v M TBD </li></ul><ul><li>Opportunities </li></ul><ul><li>Sc M $0. </li></ul><ul><li>Va M $0. </li></ul><ul><li>Ord M $0. </li></ul>
  6. 6. XXX Company- Jul ‘0x QTD Summary of Operations ($MM) (gxg) CM Pts Walk YOY July % Price $0.x x.0% DMI-VCP ($0.x) (g.x)% VCP (Business) (x.x) (xg.x)% Key Metrics Mix Price Infl* Lab M&S Outs-rng ’ 0x ’ 0x xg.x x.0 (x.x) (x0.x) (x.0) (x.0) $x.x Financial Inv Chg (x.x) (x.0) (x.x) * Mat x.x;Lab x.0;Ovhx.x VOP Act V% Sales xx.x $ (g.0) (x.g) CM$ 0.x (gx.x) (x.x) % x.x % (xx.g) pts (xx.x) pts Base Cost x.x (g.x) (0.x) OM $ (x.0) (xxx.g) (x.x) % (xg.x) % (xx.x) pts (xg.x) pts OP Profit (x.0) (xx0.x) (x.x) EBT x.0 (xg0) (xx) Net Income (x.x) $ (x.x) $
  7. 7. Historical Trends Competition – xQ & Half Results x00x x00x x00x x00x x00x x00g x00g x,000 x,000 x,x00 (000) Commercial Walmart Canadar Forecast x00x x00g a x.g% x.g% b (x.g)% x.0% c x.x% x.g% d (0.x)% (x.x)% (Elec. xx.x%; Mag. (xx.g)%) r (0.g)% (x.x)% (Elec. g.x%; Mag. (xg.g)%) ’ 0x YOY Growth AAA (a Inc. - Size $x.xB) - Record Qtr results…YOY sales increased xx% . Driven by mkt growth, higher selling prices and new products. BBB ( Size $x.xB) – Electrical products segment YOY increased g% CCC (Size $x.xB) – Record xnd Qtr results…YOY sales increased xx.g%. DDD (Size $x.0B) – Electrical Segment YOY sales increased xx% eee (Size $0.xxB) – Lighting segment YOY sales increased xx% Forecast External Environment x.g% x.g% g.0%
  8. 8. XXX Company July xQTD Sales JUL EST OP Channel Act V% VOP TO GO TO GO Comments Big $x.g (xx) $(x.0) $xx.g $xx.x • Orders VPY +x % ( Ind +xx,Walmart (x), Europe +xx, Wesco +g) • Strategic D focus thru year-end Industrial x.g xg (0.x) g.x g.x • Orders growth remains strong +xx% V • ggg Far East 0.g (xx) (0.x) x.x x.0 • jj • hhh Asia 0.x (xx) (0.x) 0.g 0.g • Orders rate: VPY +xx%, VPM +xx% • sss Canada x.0 x - x.g x.g • Orders remain strong xx%V • eee Total $xx.x (g)% $(x.g) $xx.x $xg.0 Notes : XXX Company SM at xx% on track to OP
  9. 10. Price xQ ‘0x Next Steps <ul><li>Execute announced June price increase </li></ul><ul><li>Implement revised Overage policy to be consistent with new commission matrix. </li></ul>Validating xH May estimate xQ ‘0x Price Actions <ul><li>Announced xx% June action selectively </li></ul><ul><li>Negotiated w/major cust. </li></ul>Customer % Inc. ’0x Sales A x.0% $x.0MM S x.0% $x.xMM ($MM’s) F / (U) <ul><li>Executed canada price increase ~ x%, effective May xx </li></ul><ul><li>Restructured Commission payment matrix compressing span between levels </li></ul>xQ ‘0x Next Steps <ul><li>Walmart price increase ~ x% effective Dec x. </li></ul>Next Qtr Actual
  10. 11. Safety <ul><li>EHS Report Card with “Bite” </li></ul><ul><li>Quarterly </li></ul><ul><li>Merit- </li></ul>x00x gx% Closed <xx Days x00x xx% Closed <xx Days <ul><li>Stronger “Find-it, Fix-it” Mentality </li></ul><ul><li>Measure quantity & closure average </li></ul><ul><li>Weekly </li></ul><ul><li>Job Safety Analysis Program </li></ul><ul><li>All </li></ul><ul><li>All </li></ul><ul><li>H&S Improvement Not Fast Enough </li></ul><ul><li>Positive traction on OSHA Rate </li></ul><ul><li>Leverage </li></ul>gx 0.xx xg x x.gx xx YTD x00x -xg% 0.gx Lost Time Rate -xx% x.gx OSHA Rate -g% gx First Aid -xx% gg Lost Time (Days) -xx% x Lost Time # -xx% x0 OSHA Recordables %V YTD x00x x00x-x00x Review
  11. 12. Weekly Production Performance FW 28 FW 29 FW 30 FW 31 FW 32 FW 33 FW 34 FW 35 FW 36 FW 37 FW 38 FW 39 Actual/Target SPC $ $1,6 $1, $1 $1 $2, $2,9 $2,2 $2,5 $1, $2,2 $2,2 $2,2 Actual SPC $ Per Hour Act/Target SPC/Per Hour $71.34 $66.63 $73.14 $68.51 $78.15 $89.20 $85.00 $89.22 $90.66 $90.47 $90.05 $87.21 Actual OT % Act/Target OT % 5.35% 10.18% 10.41% 11.53% 10.60% 11.10% 13.50% 9.00% 7.00% 7.00% 7.50% 12.50% Actual Labor Cost Act/Target Labor Cost $71 $74 $73 $72 $74 $76 $82 $71 $5 $69 $70 $74 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 FW 28 FW 29 FW 30 FW 31 FW 32 FW 33 FW 34 FW 35 FW 36 FW 37 FW 38 FW 39 Target SPC Actual SPC $ Per Hour Actual SPC sourced saturday output Miss Drivers: D hhhhh Manpower issues Miss Drivers: Machine issues 4 shifts Paint Downtime MP Issue Miss Drivers: Saturday Output 250M Parts Sync aa Downtime Avalability of outsourced Parts
  12. 13. VCP% VOP% VOP$ Mat'l x.g% x.x% $0.g Labor x.x% (xx.x%) ($x.x) OVC (x.g%) (xx.x%) ( $0.g) Total VCP x.x% (x.x%) ($x.0) Mat’l Inflation (g.g%) (g.g%) ($x.0) Total VCO (x.x%) (x0.g%) ($x.x) Variable Cost Out Fav/(Unfav) Manufacturing VCP- xQ Aug. Est . <ul><li>Material Cost …. Projects Lagging </li></ul><ul><ul><li>MCTO ff </li></ul></ul><ul><ul><li>Inflation ($x.xMM) </li></ul></ul><ul><ul><li>fhdhfhfhfh </li></ul></ul><ul><li>Inventory </li></ul><ul><ul><li>FG dddd ($0.xMM), China ($0.xMM) </li></ul></ul><ul><ul><li>Raw ($0.xMM) </li></ul></ul><ul><ul><li>WIP –plant throughput ($0.xMM) </li></ul></ul><ul><li>Labor Cost …. Challenges </li></ul><ul><ul><li>ggg </li></ul></ul><ul><ul><li>ff </li></ul></ul><ul><ul><li>OP Plan nskksks not in JE </li></ul></ul><ul><ul><li>Cost Structure/Profile </li></ul></ul><ul><ul><li>dd </li></ul></ul>Inventory xQ0x VOP$ Finished Goods x.x ($0.x) Raw/WIP g.g ($0.x) Total $xx.x ($0.x) Slow Moving $x.x - <ul><li>OVC … Pressure building in EHS and MRO </li></ul><ul><ul><li>MRO  gg </li></ul></ul><ul><ul><li>CCCC repairs ($xx0M),RRRRR ($xxM), machine repairs ($xxxM), </li></ul></ul><ul><ul><li>EHS  ($g </li></ul></ul><ul><ul><li>Utilities  ($ggM) - Inflation </li></ul></ul>($MM’s)
  13. 14. XXX Company Material Infla tion Deflation Summary (000$s) (Inflation) Qx O P <ul><li>x Q Inflation Drivers </li></ul><ul><li>Commodities biggest drivers </li></ul><ul><ul><li>Copper: $x.xx/lb above OPPLAN (xg%) </li></ul></ul><ul><ul><li>Cable/Wire: $gxM above OPPLAN (xx%) </li></ul></ul><ul><ul><li>Aluminum: $0.xx/lb above OPPLAN (xx%) </li></ul></ul><ul><li>Plastic driven by x time xQ0Actions: </li></ul><ul><ul><li>$xxM in additional deflation projects </li></ul></ul><ul><ul><ul><li>Steel </li></ul></ul></ul><ul><ul><ul><li>ddd </li></ul></ul></ul><ul><ul><ul><li>sss </li></ul></ul></ul><ul><ul><li>Refill project Deck </li></ul></ul>Aluminum Copper Steel Plastic Total XXX Company ($gx) ($xg) $xx $(xxx) ($xx0) ($xgg) / (xx%) ($xgx) / (xg%) $xx / g% $(x0x) / x% ($x,0gx) / (x%) Qx est /ytd% TY x00x MM % Gross Inflation x.x xx.0 Hedge Inflation (x.x) (x.g) Net Inflation x.x g.x x00x Hedge Benefit - $x.g MM
  14. 15. Goal gx% gx% gx% gx% gx% Improving But Below Goal Declining Below Goal xQ Actual Met Goal gx% gx% gx% gx% gx% gx% gx% gx% gx% Actions Taken to Improve Weekly PD Tracking hhhhh QMI Pulse Weekly Staff Quarterly Stock Quarterly Sf Review Claims/Bill Back Weekly f Pulse Mfg. Customer Quarterly jsjjss Visits NPS x rd party x rd Quarter ddjdjdj Survey Started xQ Actual xx% gg% gx% gx% gx% xQ To-date Customer Satisfaction Score Card Metric Fill rate OTS Promises Kept Invoice Errors One Invoice per PO x0%
  15. 16. xQ0x July Est VOP V% Comments TOTAL PROGRAM EXPENSES x,xxg (x0g) xg Program Expense Credits (gx) (g) (xg.x) Program C&B g0x (xxx) (x.x) Operating Expenses xx0 (gg) g0.x A xgg x RTS-CONTROLLABLE x,xxx xxx xx.x C&B x,ggx xg xx.g Purchased Services xxx xx (g.x) Travel And Living xxx (xx) xx.x Transfer Expense xxg xxg Communications gx x0 xx.g Maint/supplies xgx (g) (xx.0) Insurance xx xx Receivable Losses x0 (x0) Other Fixed Expenses xx (xx) (g.g) Other Expenses gx g0 RTS-NON CONTROLLABLE x,gxg (xxx) (xx.x) Exchange Variation x 0 (gg.x) Rent xx (xxx) (gx.x) Taxes x0g (xx) (xx.x) Depreciation x,ggx x (x.g) Assessed RTS (gx) x xg.x TOTAL TOTAL BASE COST g,xxg gg x.x xQ0x Base Cost A A A A d d d Dd R E E E E E E E E E E ee
  16. 17. Strategic Imperatives <ul><li>PCTO Initiative </li></ul><ul><li>Sales Growth </li></ul><ul><ul><li>Walmart / Canada/ Distributor / International </li></ul></ul><ul><li>Engagement </li></ul><ul><li>Community </li></ul>
  17. 18. Historical Process PCTO VCP Project Benefit (M) M $x00 A $x0 V $x0 Mxxfff $x0 gg $x0 T $x,x00 M s $xx OV x to x0 Mat .x% VCP Range Maj xx% Buy From LCR Mainly Parts & Components Not Leverage at F/G Level LCR Current Process… <ul><li>Problems / Challenges </li></ul><ul><li>ssss </li></ul><ul><li>Process Changes </li></ul>Concentrate on High Volume and Low CM % Sku fff Like Grade & Quality (LGQ) ddd Mfg Core Competency Rationalization Long term/Hard…..Short term/Easy x.x% ‘0x & (0.x%) ‘0x VCP Targeting x.x% In x00g XXX Company Cost-Out Process
  18. 19. Step x: Identify Low CM, High Volume And Low Complexity Sku’s Step x: Reprioritize Current NPI Deck & Reallocate Resources Comp Ann Ann Individual Project I/E Date Sales CM Proposal w a xxx/xx g/0x $x00 $xx0 Continue q d x0/xxx g/0x $gxg $xgx Continue a a xxg/x0x g/0g $x,xxg $gxx On Hold s s xg/gx g/0g $x00 $xx0 Resource Now a x00/x0 g/0g $x,0xx $xg 0 Resource Now Mike Utility Mxx0 gx/xx g/0g N/A $xg0 Resource Now s s xg/xgx g/0g $ggx $xg0 Next Yr s s xx0/x0x g/0g $x00 $xg0 Next Yr s s g0/xxg g/0g $x00 $x00 Next Yr ’ 0x Programs ’ 0g Programs CM% Annual Quantity (M) <ul><li>Step x: Implementation </li></ul><ul><li>aaa </li></ul><ul><li>sss </li></ul><ul><li>ddd </li></ul><ul><li>f Underway </li></ul><ul><li>x nd Level Verification … Underway </li></ul>Part Count Labor Content (%) 0 xx 0 x00 xx Mxx0 SAM (x0) xx TC PFx DS T Mxx0 0 xx0 PFIk SAM TC PFx DT Sbm Low CM Product Strategy xH0x PCTO Target/ CM Family Sales Qty CM% Matl% Labor% Unit Benefit a $x,xgx gx xx.g xg.g x0.g $x $xg0 S $x,xgx g0 (g.0) xg.g xx.x $x $xxx P $x,xxx xx xx.0 xx.x xx.g $xg $xxx T $x,0gx xx x.x xg.g xx.g $g $x0g P $x,ggx xx g.0 xg.g x0.x $xx $xgx D $x,xxx x xx.g x0.0 x0.x $x0 $gx *S $gxg g g.0 xx.g xx.x $x0 $g0 *
  19. 20. Demand x0,000 – x0,000 Pieces per week ~ x00 SKU’s x00 Ton – x Machine xg Years old g00 Ton – xx Machines: xx to xx years old xx00 Ton – x Machines: xx to xx years old OEE% - x0% (Yield, Unscheduled Down Time and Rate) Investment $x,xgg Two xx00 $x,000 Automatic $x0x Aa $x00 Replacement $xx0 Mono $xxx Cost Savings – Estimated Impact (per/Yr) $x,xxx $x00 Outsource $g00 Yie $gx .x0 P $xxx Ce Simple Pay Back Ratio x.g New Mach – Reinvest in x,x00 Cap Area Summary Investment Cost Savings ($000’s)
  20. 21. Product Line Strategy Core Product “Holes & Gaps” SSS ttt NPI Programs…Game Changers fff ggg hhh Sales…x Year Outlook Commercialization Strategy Literature/Specification Tools gggg Resource Strategy <ul><li>Commercial Support </li></ul><ul><li>hhh </li></ul><ul><li>Canada </li></ul><ul><li>hhh </li></ul>Next Steps Supply Chain jjj Industrial – Growth
  21. 22. Current Conditions <ul><li>A </li></ul><ul><li>F </li></ul><ul><li>C </li></ul><ul><li>D </li></ul>Channel Performance YTD <ul><li>A </li></ul><ul><li>S </li></ul><ul><li>D </li></ul><ul><li>R </li></ul>Sales Orders CM Jul YTD VOP V% $xg.x xg.x xg.x% $(x.x) $(0.x) x.xpts g.x xx.g x.xpts $MM Growth Actions
  22. 23. HxE HxC HxU DxI HxA HQx DxC HxW HxT HxI HxF PY V% YTD V% PY V% YTD V% HxE HxC DxI DxC HQx HxU HxT HxW HxA HxF HxI Orders Sales Note: Bubble size represents July YTD dollars Rep Vitality Matrix - ccc c Replace? Fix Grow Legend
  23. 24. Global Growth Mexico Orders $gx.0M YTD V% -xx.x% PY V% xx.g% Actions dddd Inddd dddddddd Caribbean Orders $x,xxx.xM YTD V% -xx.x% PY V% -x0.x% Actions Evaluate Buy/Sell dddd. ddddPrepa) Canada Orders $x,0xx.xM YTD V% x.x% PY V% -xx.g% Actions RSM Reddd Rep ddd Distrib. Focus MEA Orders $x,xgg.xM YTD V% xg.x% PY V% xx.g% Actions Pooled Sales Force Project Focus ddd Note: Dollars are as of July ’0x YTD
  24. 25. Business Update- Next quarter Qx Outlook… xQ0x Outlook xQ0x VOP V% Indexes SPI x.g% MPI x0.x% VCP g.g% Estimate V % x00g Outlook Indexes SPI x.x% MPI x0.0% VCP x.x% ( Total Business ) <ul><li>Opportunity/-Risks </li></ul><ul><li>+ Inflation Relief </li></ul><ul><li>Price attainment </li></ul><ul><li>Volume </li></ul>$xxx.g $xx.x xx.x% $xg.0 $x.x $x.x x.g% g.x% x.g% x.x% -0.g% x0.x% x0.g% x.x% pts pts Sales CM CM% Base OM Op Profit Op Profit % Target $xxx.xx $xg.xg xx.x% $xg.xx $xx.xg $ x.g% $xx.g $g.x xx% $g.x $x.g $x.g x.x% (x.x) (x.x) (x.x) (0.x) (x.x) (x.x) (x.0) pts pts Sales CM CM% Base OM Op Profit Op Profit % x.x% (x.x)% (x.0) x.x% (xx.x)% (xx.x) (x.x) pts pts Opportunity/-Risks + Inflation Relief + New Growth Timing - VCP Turnaround timing
  25. 26. Appendix
  26. 27. XXX Company Reinvestment Ratio
  27. 28. XXX Company Cost take out Activity x00x Projects: Annual Benefit AAA xxx FFF xx0 DDD x00 WWW xxx Misses: XXX x00 ZZZ xg0
  28. 29. XXX Company - Cost of Quality (COQ) Scrap YTD (x nd Qtr) $xxx,gxx .xx% of sales Warranty YTD (x nd Qtr) $xxx,xg0 0.xx% of sales <ul><ul><li>Total COQ </li></ul></ul><ul><ul><li>$ gxg,x00 </li></ul></ul><ul><ul><li>x.0g% of sales </li></ul></ul>
  29. 30. ($MM) Next . Estimate – xQ0x Sales CM CM% Base Cost Program RTS OM OM% Op. Profit Price x.x% Mat’l Inflation g.g% Business VCP 0.x% Manf. VCP 0.x% Aug. Est. $xx.g $g.x xx.0% g.x x.0 x.x 0.g x.g% 0.g VOP ($x.x) ($x.g) (g.x)     0.x (0.x) 0.x   (x.g) (g.x) (x.0) V% x.x% (x.x) (x.0)     x.x xx.x (0.x)   (xx.x) (x.0) (xx.x) Summary of Operations Opportunity <ul><li>A </li></ul><ul><li>W </li></ul><ul><li>W </li></ul>pts pts pts Risks <ul><li>Recovering Walmart Order Rate … gpts V% xQ0x Assumed </li></ul><ul><li>Price Realization </li></ul><ul><li>x.x% Labor VCP Realization … $0.gMM/ g.xpts Better Then ’xQ </li></ul>Strategic Resource Redeployment <ul><li>A </li></ul><ul><li>A </li></ul><ul><li>A </li></ul><ul><li>a </li></ul>pts TOW (0.x) Tech 0.x Transfer 0.x A&SP (0.x) Pur Serv 0.x