Richard E Murphy MBA, SCPM, PMP, CSM

 
 
Another Success Story
 

 

Logging Operation Up a Tree - Needs Help


Performed "due diligence" forensic analysis of the company's finances, operations and human resources procedures for the purpose of determing the annual cost of inefficiently managing the business.

  • Manufacturing: Examined labor costs, materials costs, plant layout, overhead, production control and other major factors.
  • Service: Studied the managements' requirements and evaluated management plan, giving particular attention to service procedures, expense control, profit structure, accounting methods, employee compensation and productivity. Also reviewed purchasing, inventory and other control factors.
  • Quality: Examined quality assurance systems and management to help keep the company committed to quality processes and procedures.  Special attention was given to documentation, procedures, training, quality review and management awareness.


It was determined that the deficiencies required a major overhaul of virtually every aspect of operations.  At the conclusion of his investigations and analysis, Mr. Murphy recommended the following tasks be undertaken by the consulting team:
 

  • Profit & Expense Module
    Accounting Process Evaluation:
    -Review existing system of reports   and financial records.
    -Review/Revise existing Chart of   Accounts
    -Historical Financial Performance   Analysis
    -Computer Software System  Analysis
    -Accounts Receivable Analysis
    Zero Based Budgeting
    Variance Analysis
    Break Even Analysis
    Flexible Budget
    Cash Flow Management
  • Inventory Management Module
    Review inventory software package
    Review and revise as necessary the procedures for entering supply inventory into the computer system.
    Inventory Control program
    Review and adjust the current supply ordering procedure
  • Job/Product Costing & Pricing Module
    Labor Burden Factor
    Develop an understanding of Overhead Absorption.
    Business Activity Process Flow Charts
    Identify areas for control checks
    Improve process flow
    Job planning/scheduling and procedure control forms
    Job Tracking System
    Process documentation and documentation control procedures