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• April 19, 2021 at 10:42 am #582 Reply
  
  Jeremie

  Guest

  Hi,

  Which performance analysis methods and tools do you recommend, in particular for a manufacturing business? I’ve heard about Activity-Based Costing, Balanced Scorecards, etc…

  Thanks.

• Creator
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• Performance analysis methods

  Benoit updated 3 years, 8 months ago 2 Members · 1 Reply

  Financial Planning & Analysis
• 

  Benoit

  Administrator

  April 19, 2021 at 9:57 pm

  Hi,

  Activity Based Costing works in theory but at my level I always struggled to implement it. Also happy to get feedback on this one. For what types of companies is it fit?

  Balanced Scorecard I believe is closer to what I have seen working. In manufacturing environments. KPIs that I have been tracking for manufacturing companies are:

  Internal – days of inventory based on prospective sales, quality inspection issues

  Customer – backlog of orders, customer returns, customer satisfaction (eg. online star ratings, CS tickets), market share

  Shareholder: Cash, Working Capital, Gross Margin, Net Profit

  Found this article, a bit dated but clear and detailled: https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-performance-2

  Cheers.

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