Profit Planning - Machine Hour Rates
 Make the Earnings You Estimate

Using Yogi's logic, we might also ask, why bother to know what your costs are? You only use them when you need to know how low you can go to compete on price. The short answer is that knowing your costs makes available a whole host of management tools to help you run faster, lower waste and maximize order profitability. We would be happy to discuss our philosophy in depth with you at your convenience.

If the Profit Plan is a snapshot of the entire fiscal year, Machine Hour Rates (MHRs) are the per hour translation of those annual goals. TMG will assist you in creating a true out-of-pocket (OOP) hourly cost for each production center in your facility. These rates tie precisely back to the Profit Plan, as does every budget which supports the original plan.

Combined with fair and plant-accepted production standards, the MHRs help create an estimate which is accurate and, because of TMG's systematic approach to profit planning, has inherent market intelligence which can be used to help set target pricing.

Call us and we will show you how it's done.

For additional information, contact Howie Herbitter.