Process and Service Accountability and Accounting
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Budget performance analysis in manufacturing plants tends to be a “post-mortem” affair. The budgets were put together with historical performance data, standards and schedules. So more than likely a plant that doesn’t experience unusual events will generally spend close to the amount that was planned. But, you can do much better than that with the Process and Service Accountability system.
How? Here’s an example: For one reason or another someone in the purchasing department failed to order enough of a solvent used in several of the production lines. Perhaps it was because the amount on hand was not reported on time. Perhaps the paper work just got misplaced. Now the lines will be down for at least a day-and-a-half. By the time the solvent arrives by rush freight you are behind schedule. Overtime is used, sometimes with less than qualified personnel. The rush results in scrap and rework. Then finally the shipment goes out on premium freight.
This scenario would have been avoided. Why? Because with Process and Service Accountability people pay much closer attention to their tasks.
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