PV Accelerator’s most immediate benefit to any manufacturer is the sudden, large profit gains that typically flow from even modest adjustments to the sales mix. But over the long haul, far greater gains come from PV Accelerator’s ability to support an iterative, highly effective, three step process of continuous profit improvement.
Step 1: Analyze Profitability
Improvement always starts with a detailed understanding of the current situation. So the first step is quantify which products, customers, and equipment are truly driving the profits (and losses) in the business.
Business analysts, managers, and executives use the charts and data tables of PV Accelerator™ to dig down into the historical data to understand exactly how shifting trends have been impacting profitability. With the unique PV Profit Topo Map™, it’s remarkably easy for people in marketing, sales, production and operations, as well as finance, to get an exact understanding of the relative profitability of all the various products, customers, plants, distribution channels, sales people, and market segments.
Step 2: Plan Improved Profitability
The PV Accelerator™ takes “What-if” modeling to an entirely new level to help complex manufacturing enterprises gain the mastery over planning that leads directly to higher profitability.
Leveraging the insights gained by analyzing profitability with the Profit Velocity metric, managers can quickly simulate the profit impacts of changes in mix, prices, costs, volume, productivity, utilizations, and capacity. Instant onscreen updating shows how much more or less money the manufacturer will make as the key variables are refined during a planning cycle.
Step 3: Control Profitability Improvement
The crux of any improvement process comes when planned results are compared—in appropriate detail—with actual results. Managers can use PV Accelerator™ to “close the loop” and gain an in-depth understanding of precisely what caused the gaps between plan and actual profit.