Using Budgets and Pro-Forma Statements to Plan Funding:
The pro forma statements and budgets were instrumental in determining what additional measures needed to be taken to ensure progress within the company. By reviewing the pro-forma statements I was able to determine that I needed to raise the price of my product due to the fact that the target markets had indicated what they would pay for such product and the cost of production was over whelming the income received from sales. After the first quarter I was able to decide that changes needed to be made to not only the price of each product but additional products needed to be added to meet the needs of specific target areas. I was also able to determine by analyzing the budget and pro forma statements that I was missing out on key sales by not producing enough units. In the beginning I was concerned with keeping production costs minimal by having little staff and low inventory. The statements were able to indicate to me that by increasing production, and spending the extra money to do so, I would better be able to meet the supply and maximize profits. The pro forma and budget statements were extremely instrumental in the success and continued growth of my company. I saw the bottom line change significantly as I changed my process based on the statements provided. Improving Operating Efficiency Using Just-in-Time and Lean Operations:
Just In Time:
The Just In Time approach to manufacturing emphasizes forced problem solving. It is a powerful strategy for improving operations. With the JIT process materials arrive only when and where they are needed. In my mock company this would have effectively reduced costs and inventory as well. The JIT process would have cut company waste by not having excess inventory. Also, in the same respect, using the JIT process would empower cross trained employees and allowed for less inventory in smaller spaces. All of these processes allows for quality...
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