Cost Of Sale (COS) is often utilized as a means of determining not only the efficiency of Production Management, but most importantly the amount of revenue it generates for your enterprise. There should be firm COS targets that are specific to each service offered, as well as management systems that ensure those targets are met. Many small businesses overlook common actions, policies and practices when evaluating COS. Here is just a sampling of what CMC assesses when reviewing a companies COS:
- Initial and on-going training programs
- Job planning process/management systems
- Planning process for equipment/supplies
- Technician readiness
- Communication processes
- Management involvement
- Change Order & Purchase Order systems
At CMC, during the assessment process we have routinely seen COS averages 10% over that of what they should be, with proper management systems in place. Let CMC bring that money back into your company, which would allow you to hire a consultant to guide you to the next level.