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Margin improvement: more than a notion.
- Article from:
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Industrial Management
- Article date:
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July 1, 2005
- Author:
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Copyright informationCOPYRIGHT 2005 Institute of Industrial Engineers, Inc. (IIE). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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EXECUTIVE SUMMARY
Improving operating margins and cash flow is on the minds of most managers, yet the tools and language used to meet these goals are constraining, resulting in billions of dollars spent without promised returns. Capacity mapping allows companies to see exactly how processes perform and provides much more precise margin-related data, The impact? Dramatically increased ability improves margins resulting from a clear understanding of capacity and cost dynamics.
Cost reduction and margin improvement are simple notions that for many companies are difficult to execute.
Consider Oracle, which in 1999, announced that it would use its own software ...
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