Success Stories
Financial Evaluation Tools
View Financial Evaluation Tools Service PageEnergy
A business heavily invested in the energy market discovered their internal reporting procedures were providing an incomplete picture of project profitability, making it difficult to price properly and manage operating costs. Given the price volatility of energy markets, the lack of accurate information put the entire business at risk.
Understanding that a problem existed, the client asked Harmonic Systems Consulting (HSC) to evaluate existing reporting procedures, with the goal of improving financial controls and reporting accuracy.
The HSC partners began by interviewing departmental managers and supporting personnel. Based upon information obtained in the interviews it was determined that new control procedures were required and Financial Evaluation Tools had to be both expanded and improved.
We worked directly with the individuals responsible for asset management and financial reporting to define, develop and implement changes where necessary. New purchasing controls were introduced; inventory management procedures were improved, process costing tools were refined and customer specific profitability information was made available on a job specific basis.
By the time our engagement was complete the client was in a much better position to improve the overall economic return on assets employed.
Return to top of page.Manufacturing
A manufacturer of electronic equipment needed to support a sales initiative to win back customer confidence by carefully managing a short term inventory build until necessary process improvements could be introduced and anchored into place. The proposed inventory build faced normal organizational hurdles such as financial concerns and production scheduling constraints.
Harmonic Systems Consulting (HSC) partners worked with an internal project team comprised of representatives from sales, order entry, production planning, engineering and operations (the Team) to develop and present an inventory build proposal for approval by leadership.
The Team developed a method for identifying the proper product components for the build, created a legitimate financial case, defined the initial build process, addressed short-term replenishment practices and outlined procedures for ongoing inventory management. The proposal presented to leadership included specific dates, specific tasks, personal accountabilities and a Financial Evaluation of the potential margin impact.
After the Team presentation the inventory build was approved by leadership.
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