System for comparing Quoted, Planned and Actual data!
At Intertwine we recognize that every company really has three sets of books:
- Quoted = the customer version of the story, based on the RFQ received and corresponding quote submitted.
- Planned = what would be put into the official "Business Plan" based on the best information and estimates available.
- Actual = reality, based on the actual results, for example: How many pieces per hour were actually produced? What was the actual scrap rate? When was the quote actually submitted? How many parts were actually sold?
Why this matters is because it’s the key to improving data integrity and uncovering the underlying risks and opportunities for your business.
Let’s say you’re the new person at Company X and you need to know how many parts per hour a particular job runs at to make a fairly important decision quickly. You ask the Cost Estimator and put the proposal together with the information you were given, but when you review it with the Controller she questions the conclusion because she has some different numbers. You both want to make the right decision, so you agree to chase down the correct information and return. However, when you ask the Operations Manager you’re given a different number again. What are you going to do?
It's not too difficult to grasp the concept of a quoted, planned and actual set of books, but most people don't think in these terms, they might just dismiss it as poor data integrity and take the average, or maybe go off on a wild goose chase. The fact is, the Cost Estimator is referring to what the company "Quoted" to the Customer; the Controller to what is in the Business "Plan" and the Operations Manager to what "Actual" results were from the prior production run.
Distinguishing the difference between the quoted, planned and actual data sets is important for several reasons: First, it improves the trust people have in the information they're given. Second, it prevents people from making poor decision as the result of using the wrong information. Additionally, it's possible that the difference between making and losing money is the quoted versus actual data; and the answer to whether or not to aggressively pursue a new business opportunity should be based on what's planned, not what's quoted. Those are good reasons to make sure you and your team are in a position to make the right decisions with the ability to compare, contrast and analyze these different data sets. You can also use the insight to make sure your targeting the right sales opportunities and prioritizing the most important improvement projects.
To learn more, please fill out the form on the right to schedule a no cost, no obligation Introduction Meeting and demo.
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