M&A Spotlight: Buy-Side Due Diligence for Manufacturing Fixer Uppers

  • On 12/06/2019
With a fixer upper, the need to understand the target company’s prospects for realistically making tangible operating improvements takes on a special significance   While buy-side due diligence can and should be comprehensive and multi-disciplinary, operational due diligence takes on a special significance when contemplating the acquisition of a manufacturing fixer upper.  A finance-oriented view […]
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Do Your Underperforming Suppliers Need an Intervention?

  • On 11/29/2019
There are practical steps you can take to improve critical suppliers' delivery performance   Let me be blunt:  Sometimes it takes two to tango when it comes to maintaining the health and performance of your supply chain.  This is particularly true for larger companies that have smaller suppliers who can be dramatically affected by the […]
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Inventory Optimization: Have Your Cake and Eat it Too

  • On 11/19/2019
Reduce Inventory while simultaneously reducing shortages?  Yes. For manufacturers, distributors, and retailers, the goal for inventory is to not have too much or too little. As with every goal, you need a plan … and preferably, a good one. Unfortunately, inventory planning is an area where there are common misconceptions as to how to appropriately decide […]
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What Kind of Direction is Your APS Production Scheduling Providing Your Supply Chain?

  • On 10/11/2019
We examine how an APS-generated schedule can be better used to connect your supply chain to customers’ requirements to achieve improved on-time performance ERP-based Advanced planning and scheduling (APS) functionality provides manufacturers the important ability to manage material purchase orders and shop floor production orders subject to finite capacity resource constraints.  This enables a practical […]
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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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