Net Income
Formula for Net Income?
Sales - Expenses
OR
Sales - Cost of Goods Sold - Operating Expenses
Net Income
What is the type of expense that have costs directly tied to orders?
COGS - Cost of Goods Sold
How can you help us increase net income in your day to day role?
(up to person running this thing)
Formula for Gross Profit?
Revenue - Cost of Goods Sold (COGS)
If we hit the bottom tier goals in Net Income what % of salary will get paid out over the year?
5%
What type of expense is rent for the building?
Operating Expense
What's one example of how OPS can help decrease Cost of Goods Sold (COGS)?
•Limiting Mistakes
•Using Drop / Maximizing Yield
•Effective/Accurate Inventory (receiving, not damaging material, etc.)
Document that measures Net Income?
Income Statement
How often do we get paid for hitting the goals?
Quarterly
Fabricator's salary is what type of expense?
Cost of Good Sold
What's one example of how OPS can increase revenue?
Potential Answers:
-Hitting Due Dates & Lowering Lead Times
-Focus/Processes around Customer Strat
-Increasing Operational Capabilities (fab capabilities, space, quality, etc.)
When does stocked inventory affect net income?
It doesn't affect net income until we sell the material.
What % of your bonus is available for the year if you only hit the bottom tier goal the first quarter
Full 20%
What type of expense is freight cost of material coming into your branch?
Cost of Goods Sold - COGS
What's one example of how OPS can help decrease Operating Expenses?
•Effective Labor / Cross Training
•Preventative Maintenance
•Limit supplies used/purchased
About how many weeks worth of pay is the top tier goal equivalent to?
Around 10 weeks! (10.4 is answer but 10 or 11 weeks work)
We have to buy a new Saw/Slitter for the branch - what type of expense is this and when does it affect net income?
Fixed Asset - through depreciation over the lifespan of the saw/slitter
How can you help us increase revenue/sales in your day to day role?
(up to the person running this thing)