Articles

Earned Value Creation for Manufacturing Businesses Preparing for Sale

  • On 07/14/2019
As we discussed in a previous article, profitability measured as adjusted earnings before interest, taxes, depreciation, and amortization (i.e., adjusted EBITDA) is the biggest determinant of a business’ sale price. The challenge for many manufacturers who are contemplating a sale is to quickly improve profitability so they can achieve a higher business valuation without delaying […]
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Seeking FDA De Novo Classification for Innovative Medical Devices

  • On 04/23/2019
Medical device manufacturers that develop novel new products may face a challenge when seeking FDA regulatory compliance   If a new device represents a significant innovation, then it may not be seen as substantially equivalent to any pre-existing products.  Creating a groundbreaking new technology is great, except when it comes to assessing its potential risk […]
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ERP Optimization as a Pathway to a Future System Upgrade

  • On 02/08/2019
Many manufacturers and distributors reach a point where they wonder whether they should invest in a new ERP system or simply improve the utilization of their current system.  We present a practical strategy to facilitate this decision. Businesses that have undergone a management change or have reached an inflection point in their growth may be […]
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Trivia Question: Should You Reschedule Production Whenever Machines Go Down or Workers Call in Sick?

  • On 01/13/2019
We examine the circumstances under which production rescheduling can either be helpful or hurtful in driving on-time performance.  The answer may surprise you. I suspect that the majority of manufacturing and production control managers believe that their ERP shop floor calendars should ideally be updated whenever unplanned events occur in order to keep the production […]
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Poor Inventory Accuracy and How to Effectively Correct it

  • On 01/04/2019
Poor inventory accuracy can wreak havoc on operations and financial accounting.  Organizations often make up for inaccurate inventory by purchasing or manufacturing more stock than is necessary.  The implications of ineffective inventory management practices can include low customer order fill rates, backorders, long lead times, work stoppages, underutilized labor, frequent wall-to-wall physical inventory counting, inaccurate […]
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