Organization of 30 years old, dedicated to commercialization and installation projects of fully customized metal cladding, with a size of 15 workers. Thanks to its technical specialization and product knowledge in a niche market, it remains in the market despite its lack of professionalization.
The company lacks a work planning methodology, not even the owner or the founder plans the work or does formal monitoring of the commercial activity. The times of the productive cycle are not known, nor are their objective criteria to determine the duration of activities, nor can the level of use of real productive capacity be determined.
Consequently, in the absence of information for decision making, management is based on sensations instead of reliable numerical data. The costs are calculated approximately, the offers and the pre-visual budgets do not contain reliable data and their result is not consistent, which causes unforeseen discoveries or losses in certain projects.
The decisions are made by the owner without consulting anyone or reporting properly, the teams have no autonomy and the criteria for decision making is erratic. There is no system that allows documentation traceability, which causes multiple documents and time losses for the search of all the information related to a single client or project.
We start with the calculation of production costs. Although each project is different, an exhaustive analysis is carried out, standardizing activities by scaling up in order to have a reliable guide to control costs and forecast the duration of activities.
Cost control system per order, we detail the process by which all costs will be associated with your corresponding project, including supplies and labor. This requires a systematization of the planning to record the dedication of the personnel.
Creation and implementation of Indicators to track and control key activities, beyond financial results include quality KPI indicators, customer satisfaction, production improvements, personnel training and business activity monitoring. Classification of products and customers in ABC list, according to criteria of profit margin and rotation.
The modifications for the management control are complemented by the implementation of a simple ERP modular software and training for all those involved in planning and using the software. With all the information organized, we collaborate in the analysis of the added value of each activity to provide a subcontracting criterion of the processes that contribute less value to the organization.
The consultant carries out an integral implementation of all these tasks, being during the entire implementation period the person in charge of the operational areas and being responsible at all times for the results obtained.
The company now has a simple and reliable planning method. Commercial tracking and the ABC classification of customers and products allows the preparation of social security budgets and the commercial monitoring of projects in the portfolio from the initial phases.
The Scorecard and the Indicators allow to have an updated and realistic idea of the state of the company, to elaborate pre-visual budgets, to carry out the follow-up, to check the contribution of each initiative and the one of each person responsible for the results of the company.
The implementation of a simple modular ERP tool allows immediate savings in management times, documentation is available at all times, and traceability is complete. Significant cost reductions are achieved, measured in administrative times.
Cost control has proven itself useful in planning support, now it is simple to budget a project and follow objective data. The owner still has control, but the workers feel able to propose changes in prices, work methods, and management improvements, adding value and making it visible in the results.