Spring 2013 issue of Horizons

Other metrics that can help you track your progress include:

These metrics should be viewed over a period of time to monitor trends and improvements. Sharing this information should have an immediate impact on your organization. Employees will ultimately better understand the company’s value proposition and will begin to view costs and processes from your customers’ perspective.

∙ Sales per Person tracks improvement in productivity as you began to take advantage of capacity generated by process improvement events. Alternatives to this metric include Units per Employee which may be more appropriate where products are similar in terms of production, price and costs, or Sales per Machine Hour when operations are driven by machining. ∙ Average Product Cost is the total cost of producing a product (including direct and indirect costs) divided by the number of units shipped. This measures improvement in cost of producing the product as you continuously strive to reduce the amount of resources required to make and sell products.

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RubinBrown’s Manufacturing & Distribution Services Group RubinBrown’s Manufacturing & Distribution Services Group is nationally recognized for superior assurance, tax and consulting expertise coupled with solid international business knowledge, exceptional inventory management and process improvement services.

Jim Mather, CPA – Saint Louis Partner-In-Charge Manufacturing & Distribution Services Group 314.290.3470 jim.mather@rubinbrown.com

Todd Pleimann, CPA – Kansas City Managing Partner, Kansas City Office 913.499.4411 todd.pleimann@rubinbrown.com

Rick Feldt, CPA – Saint Louis Partner Manufacturing & Distribution Services Group 314.290.3220 rick.feldt@rubinbrown.com

Russ White, CPA – Denver Partner Manufacturing & Distribution Services Group 303.952.1247 russ.white@rubinbrown.com

Mike Lewis, CPA – Saint Louis Partner Manufacturing & Distribution Services Group 314.290.3391 mike.lewis@rubinbrown.com

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