Profit contribution mapping

Abstract

Profit Contribution Mapping. This paper introduces an enhanced financial technique to proactively identify and display operating costs and profits so operations and senior management can make decisions that deliver the best use of plant and equipment assets. Maximising profit from a business requires both efficiency and effectiveness from the production operation. An effective production process makes and delivers what the customer wants. An efficient production process delivers the profit the business shareholders want. Profit Contribution Mapping extends the value stream mapping concept and introduces financial measures to identify where profits are made during production and where they are lost. It combines accountancy, economics, engineering, maintenance, operations management and asset management to create a powerful management tool for effective control at the 'global' production process level and also efficient control at the 'local' process step level.