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contact : 877-856-8588 • [email protected]

Category Archives: Cost and Efficiency

Testimonials

One of the best ways to communicate what WMEP is and what we do is to share real-world testimonials. Direct quotes from those we’ve been privileged to work shoulder-to-shoulder with solving challenges unique to them but shared by many. Here are […]

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TPI – Transformational Productivity Initiative

    Increasing the productivity of Wisconsin manufacturers The goal of the Total Productivity Initiative is to increase productivity at the company level, and to bring these improvements to scale where the aggregate gains drive economic expansion in the state of […]

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Transformational Productivity Initiative seeks to transform manufacturing in Wisconsin

Guest Blog by Kelly Armstrong, Sector Development Director; Wisconsin Economic Development Corporation Productivity is the engine of economic growth and prosperity. In its simplest form, productivity is a measure of the efficiency of a person, machine, factory or system, among other […]

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An Unexpected Requirement: “Become ISO 9001:2015 Certified”

Industrial Nameplate faced a major dilemma when its largest customer, Oshkosh Corp., suddenly required all its suppliers to become ISO 9001:2015 certified. The small Fox Valley manufacturer of industrial signs and labels had to decide whether to invest the time […]

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Lean Six Sigma Green and Black Belt Certification

  With WMEP’s Six Sigma Certification you can dramatically improve quality throughout your business. Benefits of WMEP’s Six Sigma Certification Series include: Results in an immediate and high ROI Uses a unique blended learning model featuring one-on-one mentoring from Master […]

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Changing Company Culture in Order to Succeed

Klement Sausage Co. has been undergoing a significant cultural transformation with continuous improvement and leadership development at its core. “Those are the two keys in any manufacturing environment. Creating that mindset is critical,” Klement Chief Operating Officer Ray Deeter said. […]

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The Business Building Benefits of ISO 9001

The ISO 9001 standard is all about common sense in managing small and midsize manufacturers. The standard ensures overall excellence in how the business is run, a highly important factor in the quality of a manufacturer’s products. Written by customers to ensure that their […]

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Food and Beverage Services

Thank you for participating in the February 14th webinar on Creating a Food Safety Culture & Competencies. You can find a copy of the slides used in the presentation here. A recording of the live presentation will be found here: WMEP […]

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“Game Changer – Zero Waste and Box Re-Use”

by Lisa Geason-Bauer Many U.S. based corporations along with their global counterparts over the last five to seven years have put programs in place to reduce waste and increase re-use of materials while striving to meet rigorous zero waste business […]

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Meeting Customer Sustainability Expectations

Original equipment manufacturers, distributors and large retailers alike are keeping a watchful eye on the sustainability practices of their suppliers. Supply chain sustainability is becoming an increasingly important factor for small and mid-size manufacturers, said Mark McDermid, senior manufacturing specialist […]

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Featured Sidebar Content

Congratulations to WMEP ExporTech client

Lucigen Genomics Award Acceptance

Lucigen Genomics wins the 2017Wisconsin Governor’s Export Award

Winner of the 2017 Wisconsin Governor’s Export Award!

 

 

A primary role of a top-level manufacturing executive is to protect the value of their enterprise.

Businesses are typically valued with a multiplier of earnings before interest, taxes, depreciation and amortization, commonly known as EBITDA. The multiplier is driven by the industries in which a manufacturing firm operates, its current and past levels of profitability and how well it manages the risks that could affect the future profitability of the business.

But EBITDA and other factors, such as gross profit, are lagging indicators, making it important to look behind the numbers to get a crystal-clear view of the factors that can affect the value of a business.

The Wisconsin Manufacturing Extension Partnership’s proprietary PRA™ (Profit Risk Assessment) defines the factors that drive profitability and valuation for an organization while helping to identify and proactively manage the risks. It also helps a company’s leadership team come to consensus on areas of greatest opportunity and risk while identifying specific actions that can be taken to improve profitability and value.

Best of all, the low-cost, high-value evaluation is quick and easy to complete.

Several external factors can affect an organization’s profitability and value, including how it matches up with its competitors and whether the competitive environment is becoming more intense.

It’s also important to examine the overall health of the market in which the business competes and defining its key players.

Is a business too concentrated? Is there too high of a stake in a single area?

It’s not uncommon for manufacturers to have a single customer account for 30 percent or more of their overall sales. That points to risk, in a big way. Markets can dry up and customers can change directions or shift their loyalties, potentially leaving your business in peril.

Assessing the value of a company’s brand is also crucial, as is determining whether its products are positioned as a commodity.

Looking behind the numbers at internal factors also figures into the equation. Is the leadership team engaged and do employees understand the company’s vision? Productivity and efficiency of manufacturing operations plays a significant role.

We often get so engrossed in the day-to-day aspects of our businesses that we don’t connect all the dots. It sometimes takes an “aha” moment for our vision to become clear.

The WMEP’s PRA™- Profit Risk Assessment tool is highly objective and examines one dimension at a time. We will probe and prod to get the truth about the factors affecting a company’s profitability and value and reach a consensus on a follow-up plan of action.

It’s vitally important to take a look at what drives the crucial numbers for your business.

For more information on how you can benefit from WMEP’s PRA™, contact George Bureau at [email protected] or 920-450-7185.

Feel free to download and share our info-sheets on PRA™ PLUS and PRA™.


Get to know George Bureau, Director of Growth & Certification Services, North Region

“What drew me to the WMEP is its excellent reputation, the opportunity to work with great people and most importantly the vision and commitment to make a real difference in growing Wisconsin manufacturing through a range of consulting services,” – George Bureau