Purpose
This seminar will show how Total Asset Utilization (TAU) and Customer Product Rationalization (CPR) can improve your company's profits by 25% or more as well as providing a project-selection criterion. TAU measures how well you are using assets to make saleable products and/or services. But maximizing TAU can be a bad business move. By tying TAU to true costs stratified by customer, product, region, etc., a model of the true profitability of products and services is built that shows the contribution to profit across these stratifiers, as well as the trade-offs between them. In turn, this tells you what to sell to which customers and leads to an input into the strategic plan to maximize profit at the business. Past CPR implementations have improved profit at companies by 25% of revenues or more, all without capital improvements.
The seminar focuses on the metric of TAU and the output of CPR presented as case studies.
Time Requirement
0.5 day
Number of Participants
75 participants maximum
Prerequisites
None
Primary Resource Materials
Total Asset Utilization/Customer Product Rationalization Overview Slide Guide