From the Inside Flap
Operational Profitability, Second Edition helps CPA firms and CEOs use management audits to provide valuable new client services, add substantial value to current services, and greatly expand their revenue base and earnings potential.
Properly executed, the management audit provides the best overview available of how a business works as a single entity. It may also be used to evaluate specific functions within the organization to determine their performance efficiency. The management audit takes into account the unique characteristics of each company, adjusts its standard of measurement accordingly, and reflects the specific nature of its corporate culture. In today's hypercompetitive business environment, the management audit could mean the difference between business success and failure.
This manual helps CPAs and their clients, as well as CEOs, understand and regulate the health of businesses by systematically identifying areas that affect profitability most and by offering experience-based solutions for improving efficiency. This new Second Edition has been updated and revised to place a greater emphasis on companywide profit analysis and improvement strategies. Most of the chapters have been substantially reworked to provide more up-to-date coverage in these important areas:
* Operations strategy
* Product and service design
* Capacity and purchasing
* Business planning, analysis, and profit improvement
* Inventory management
* Material requirements planning
* Quality management
* Conversion to JIT systems
Operational Profitability, Second Edition shows how a professional management audit gives clients the information they need to remain competitive, increase efficiency, and improve profitability. It provides step-by-step guidance on setting up a management audit, establishing standards of effectiveness, and defining goals and expectations. It supplies the analytical tools for evaluating client operations and explains how to develop carefully targeted action plans and reduce operating costs throughout the company.
For CEOs and CPA firms with clients in manufacturing and distribution, Operational Profitability, Second Edition provides a blueprint for services that benefit clients, increase firm revenues, and strengthen firm-client relationships.
From the Back Cover
Add value to services and increase revenue while giving your clients more of what they need
Operational Profitability, Second Edition explains in complete detail how to conduct a management audit that will give clients the essential information they need in today's fiercely competitive marketplace. At the same time, it enables CPA firms and CEOs to expand their range of services, strengthen business relationships, and increase profits. This newly updated and revised Second Edition walks you through all the steps of a management audit and explains:
* The basic techniques of the management audit, what it involves, how to set it up, and how to establish a clear set of organizational goals
* How to rethink and rebuild an organization from the bottom up
* How to use a full range of analytical tools for identifying problem areas throughout the company
* How to assess the way a firm manages inventory, purchasing, production planning, and operations
* How to evaluate and reduce operating costs
Praise for the First Edition of Operational Profitability...
"A great operating manual for general managers and vice presidents . . . A complete how-to program."
-William Hoban, CEO, Green Bay Drop Forge, Green Bay, Wisconsin
"The most complete profitability program I've seen. The examples and checklists are excellent. It has saved my clients millions."
-Chuck Wadowski, CEO, TMQ Consultants, Detroit, Michigan
"[An] outstanding reference source for the modern manager; very impressive."
-Arnold Bradburd, CEO, Interstate Steel Company, Philadelphia, Pennsylvania
"[Operational Profitability] provides valuable data on operational efficiency and additional service opportunity beyond the usual audit . . . [It] provides the basis of helpful recommendations [and] provides much useful reading guidance for the performance of a management audit."
-Alexander A. H. Bohtling, CPA, CPA Journal
