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Every organisation, large or small, must continuously reduce costs, to remain competitive.
Most Owner / Managers know this but are too busy with the day-to-day management of their business. Even if they are able and willing to tackle the costs head on, there just isn?t the time for a systematic approach to this all-important challenge. This is where an Operations and Management consultant comes in.
It is important to understand the difference between financial analysis and O&M consulting.
? O&M consulting is a larger version of financial checks and controls and a specialised function, which gets associated with processes and internal controls built therein.
? O&M consulting is of proactive nature. Here we study the business processes through which the transactions pass, assess the controls and weaknesses built therein and accordingly suggest :
-to either build the process, if there does not exist any
-to correct or strengthen the process, if it exists but found weak
-to locate deviations, if the process is adequate and correct but there is a problem of adherence
As such in O&M consulting we move along with the Organisation and not after the events have happened. This results into value addition to the organisation.
? The canvas of O&M consulting is very large. It covers direct and indirect costs, incomes, assets and liabilities, business decisions, risks and its review. The organisation is benefited directly from O&M consulting in following ways : |
| Improvement in bottomline : |
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-due to cost reduction arising out of process refinement and strengthening of internal controls in the field of material buying, conversion costs, direct and indirect overheads
-due to better realisation of prices arising out of study of contribution analysis and other costing techniques
-due to better workingcapital management arising out of focus on non-performing current assets (like receivables and inventory)
? The O&M consulting does not end with submission of report. The consultant participates in implementation of the same. |
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