Revenue Maximization is a major component of Sustainable Profit Growth Framework (SPGF). Generating Sales is primary responsibility of Sales & Marketing Heads , however Finance Heads , as a part of Corporate Management has also to play an important part in this. Finance function arranges funds from Banks and Institutions on basis of some Revenue Projections. Hence Finance Head is an important stakeholder in ensuring that Revenue is Maximized.
Revenue Maximization involves following steps :
Realistic Sales Plans : It is observed that Sales Plans are made with optimistic mindset. This is the reason that most of the times Sales Targets are not met. Finance Head should ensure from an independent view that Sales Plans are based on ground realities.
Alignment with Production and Supply Chain : Finance Head as a key part of Annual Budget Team has to see that Sales Plan is properly aligned with Production , Manpower and Material availability.
Funds Availability : Finance has to ensure that sufficient funds are available for Long Term and Short Term Capital .
Control over Discounts, Credits and Price Cuts : Finance Head has to ensure that there is adequate due diligence given to discount and price cuts policy advocated by marketing department.
Achievement of Targets : Finance function has to keep watch on Achievement of Revenue Targets set for Month and Quarter. Any shortfall on targets has to be escalated by Finance to Top Management.
Production Management deals with entire gamut of operational controls at the level of production. It involves a complex coordination of production resources like machines, manpower, material, sales orders, maintenance , quality routine etc. This also requires coordination with funds managers, vendors and dealers. Production Management function is part of wider Factory Management function and also includes Quality , Engineering and Maintenance function. The key MIS reports which should be generated as part of Production MIS are as below :
Capacity Utilization Report : This report analyzes Capacity Utilization of different machines and production system as a whole. Reasons for variance are analyzed.
New Technology Report : This report analyzes New Technology which have come in market – local as well as global. This report also lists Technologies which are in trial stage and likely to come in future. Cost – Benefit analysis is done for all new technologies and decision if any to be taken for introduction.
Plant Performance Report : This report reviews performance of plant as it stands in present. Future revenues and costs are estimated. This is compared with Gains from replacement of new equipment.
Process Improvement Report : This report compares Standard and Actuals performance in terms of Time spent and Cost incurred in different processes and sub processes.
Production Planning & Control MIS : This report analyzes gaps in resource availability in terms of man, machine and material for a specific Production Plan.
Production Bottlenecks Report : This report analyzes Production Bottlenecks in terms of man, machine, material, utilities and others issues. Reasons of same are analyzed and action decided.
Standards Review MIS : This report reviews standards of Machine Hours, Labor Hours, Material Consumption Rate, Consumables Consumption Rate, Power Consumption etc. Present standards are compared with national and global standards. Target Improvements are listed and action decided upon.
Shop Floor Rejections Report : This report analyzes Shop Floor Rejections in different processes. Cost of such rejections are estimated. Reasons are analyzed and actions decided upon.
Production Loss Report – Reason Wise: This report analyzes Reasons of Production Losses. Frequency of reasons are analyzed and corrective actions taken.
Machine Productivity Report : This report analyzed productivity of machines in terms of hours run as well as production units per hour. Comparison is made between standard and actuals.
Power Losses MIS : This report analyzes power utilization and compares with standards.
Boiler Efficiency Report : This report analyzes efficiency of Boiler in terms of cost per unit of steam.
Generator Efficiency Report : This report analyzes efficiency of generator in terms of cost per unit of power generated.
Machine Hour Rate MIS : This reports computes Machine Hour Rates for a period and compares with Standards. This report is also useful for Job and Process Costing purposes.
Labour Hour Rate MIS : This report computes Cost of Labour per hour and compares with Standards.
Process Costing MIS: This report analyzes Standard and Actuals costing of different processes in terms of material, machining, labor, power and overheads
Job Costing MIS : This report analyzes Standard and Actuals costing of different jobs in terms of material, machining, labor, power and overheads.
Safety Management MIS : This report lists compliance of safety measures in different segments. Levels of compliance are indicated. Reasons of noncompliance are analyzed and corrective actions decided upon.
Accident Control MIS : This report analyzes incidents of accidents, their frequency & costs. Reasons of same should be analyzes and corrective actions taken.
Maintenance Efficiency Reports : This report compares actual hours spent on maintenance jobs with standard hours for same.
Maintenance Effectiveness Report : This report indicates effectiveness of maintenance in terms of saving in lost production time. The purpose of maintenance is to prevent loss in production time due to breakdown of equipment.
Production Loss Report – Incident Wise : This report analyzes incidents of Production Losses. Reasons are analyzed and corrective actions taken.
Maintenance Man Power Report : This report indicates utilization of maintenance man power. Comparison can be made over a period of time. This shall indicate any underutilization & can help to avoid wide fluctuations by shifting peak man hour time slot to those with less load time slots.
Repairs MIS : This report lists incidents of Repair of equipment. It analyzes frequency, reasons and costs involved.
Rework Cost MIS : This report analyzes Cost of Rework of rejected material. This shall help to decide whether rejections needed to be reworked or sold as scrap.
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Developing Dynamic Financial & Accounting MIS Framework
Finance is core to any business organization. Its involvement starts with arrangement of Funds to start the business and continues till its closure. Any Financial MIS framework should originate from Key Functions of Finance which are as follows :
Strategic Finance
Investment Evaluation – Utilization of Capital in right projects.
Finance Arrangement for Long Term Assets & Working Capital Finance.
Risk Management – Managing Risk in business and environment.
Stakeholder Communication – Shareholders, Bankers, Investors.
Financial Value Creation – Maximization of Business Valuation
Accounting & Statutory
Accounting of Transactions of business.
Statutory & Taxation compliances
Financial Efficiency
Profit Maximization from operations. – Revenue Maximization and Cost Minimization.
Financial Hygiene – Fraud & Mistakes Prevention.
Treasury Management
Keeping above functions in mind, following Financial MIS Reports can be generated :
Investment Efficiency MIS
Every business starts with introduction of financial capital. This capital could also have been invested in alternate investment opportunities. Apart from own Capital every business also arranges for loans from different sources. This Loan has to be repaid by promoters irrespective of profitability of business. Hence it is desirable that MIS should be generated to check returns and health of financial capital deployed in business. Following MIS may be generated to this effect.
Finance Macro Environment Report
Financial Value Creation Report
Investment Efficiency Report – Liabilities Based
Investment Efficiency Report – Assets Based
Investment Efficiency Report – Future Incomes
Investment Entry Report
Investment Exit Report
Credit Rating Report
Capital Expenditure MIS
Capital Expenditure Control is a vital element of Financial Management functions. Capital Expenditure generally involves large sum of expenditure. Further capital expenditure has a long term impact on profitability of company. Hence its finds an important place in Financial Management MIS. Some of key capital expenditure and assets related reports are as follows:
Capital Expenditure Analysis
Assets Disposed Off Report
List of Assets Not Authorized for Acquisition /Disposal
Fixed Assets Verification Analysis
List of Assets Pending Disposal
Reconciliation between Fixed Assets Register and Nominal Ledger
Project Progress MIS
Project MIS is a combination of Technical and Financial aspects of management. Every project has multiple components of cost and funding. It is essential that all these components progress as per schedule. This shall ensure that project is completed in time which in turn shall save Time & Cost Over runs. From Finance Angle two types of reports should be generated:
Project Progress Report: Expenditure Incurred
Project Progress Report: Means of Finance
Risk Management MIS
Risk Management MIS
Risk Coverage MIS
Insurance Adequacy Analysis: Market Value:
Premium Paid Analysis
Pending Claims Analysis
Exchange Fluctuation MIS
Regulatory MIS
Management of regulatory matters covered under different acts such as Income Tax, GST, Company Law, SEBI, RBI etc. are handled by Finance department in most organizations. A proper M.I.S shall help the Finance Manager to keep tab on all important aspects of this area of his responsibility. He should develop checks & systems to come to know about any deficiency in time and take necessary action. Broadly M.I.S for Taxation Compliances has to be patterned around following reports:
Statutory Laws Compliance Report
Statutory Laws Deficiency Report
Statutory Returns Compliance Report
Statutory Penalties Report
Forms Not Received
Financial Records MIS
Financial Records MIS
Accounts Master MIS
Reconciliation MIS
Debit Balance Confirmation MIS
Financial Analysis & Cost Management
Balance Sheet Analysis:
Profitability Analysis: Total Cost approach:
Profitability Analysis: Marginal Cost Approach:
Cash Flow Analysis:
Cost Minimization MIS:
Working Capital MIS
Working Capital Analysis
Debtors Analysis
Legal Debtors Analysis
Creditors Analysis
Vendor Advances MIS
Funds Management MIS
Deposit Float Report:
Payment Float Analysis
Bank Movement Plan:
Idle Funds Analysis:
Employee Accounts Analysis
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Developing dynamic Sales & Marketing MIS Framework
Developing Strategic Sales & Marketing MIS
Sales & Marketing is a critical function essential to achieve objectives of organization An effective Sales & Marketing function is vital to success of an organization.
MIS is system to ensure that goals to business are achieved in acceptable quality and cost norms. Strategic MIS ensures that activities of business are aligned to core Strategy of organization. SMIS helps in identifying the bottlenecks of business which prevent achievement of goals. It also helps to judge effectiveness of Strategy adopted and to make changes if required.
Developing a Strategic Information System involves following steps :
a) Goal Setting : Goals Of Organization at Macro & Micro Level.
b) Bottleneck Identification : Identifying bottlenecks which prevent achievement of goals.
c) Identifying Information required to help achieve goals and solve bottlenecks.
d) Identifying Inputs required to compile this information
e) Designing Formats to collect these information
f) Assigning responsibility to collect and compile this information
g) Analyzing the information received and applying to decision making.
h) Evaluation and Audit of Information System.
SMIS for Sales & Marketing Function :
Strategic MIS for Sales & Marketing function primarily measures synergy between Marketing and Core Strategic Objectives of organization. Marketing MIS starts from Demand Projection and extends to Marketing function performance from different parameters such as Sales Target Achievement, Sales Profitability, Sales Promotion Efficiency, Receivables Management etc. Key Sales & Marketing MIS reports which should be generated in every organization are indicated below :
A. Strategic Marketing MIS
Macro Environment Analysis – Marketing MIS
Competition Intelligence MIS
Market Needs Analysis
Sales & Marketing Objectives MIS
Product Life Cycle MIS
Market Segmentation MIS
Brand Management MIS
Market Size Report
B. Customer Relationship MIS
Customer Orientation MIS
Customer Grievances MIS – Detailed
Customer Grievances MIS – Summary
Customer Grievance Frequency Report
C. Sales Price MIS
Product Pricing Report
Sales Price Revisions MIS
Sales Price Verifications MIS
Price Verification Frequency
Price Composition Trend Analysis
Price Discount Efficiency MIS
Foreign Exchange Fluctuation Impact MIS
D.Market Communication MIS
Call Centre Effectiveness MIS
Public Relations Effectiveness MIS
Advertising Marketing Efficiency MIS
Mobile SMS Marketing Efficiency MIS
Email Marketing Efficiency MIS
E. Sales Revenue MIS
Revenue Maximization MIS
Sales Analysis Report :
New Market Sales MIS
New Product Sales MIS
Channel Sales / Performance Report
Tender Sales MIS
Sales Loss Analysis MIS
Product Despatch Loss Analysis
Pending Disputed Sales Report
Sales Return Notes Not Prepared MIS
F. Sales Order MIS
Sales Order Report
Pending Sales Order MIS
New Sales Order MIS
Orders Cancelled MIS
Customer Order Rejections MIS
G. Sales Expenses MIS
Selling & Distribution Overheads MIS
Sales Expenses Reduction MIS
Freight Cost Analysis
Demurrage Cost
Brokerage / Discount Control MIS
H. Sales Process MIS
Sales Order Issue Time MIS
Sales Order to Despatch MIS
Time Taken from Despatch to Payment Report
Emergency Sales MIS
Sales Authorization MIS
Sales Function Automation MIS
Sales Records Management MIS
Sales Process Time & Cost Standards MIS
Debtors Management
Customer Credit Worthiness MIS
Receivable Analysis MIS
Legal Debtors MIS
Customer Advances Analysis MIS
Customer Balance Confirmation MIS
J. Sales Team MIS
Sales Team Productivity Report
Sales Team Performance Report
Sales Team Performance MIS – KRA Analysis
Sales Team Performance MIS – Summary
Sales Team Development Report
Sales Team Deficiency Report
K. After Sales Service MIS
After Sales Service Efficiency MIS
After Sales Service Profitability MIS
Warranty MIS – Replacements
Warrant Management MIS – Product Wise
Warranty Management MIS – Invoice Wise
Service Material Return MIS
L. Miscellaneous S&M MIS
Goods Lost MIS
Stocks Not booked MIS
Slow & Non Moving Stock Analysis
Sales Employee Imperest MIS
Earnest Money / Security Deposit Report
Deposit Float Report
Deposit Float Report – Region Wise
Post Dated Cheque Register
Deduction Made From Invoice by Customer MIS
Debit / Credit Note Control MIS
Balance Sheet Analysis for Sales & Marketing
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Material is an important cost in any business organization. However, in Manufacturing organizations it is prime cost where it can go up to 90% of total cost. Material Control is important function for any MIS. It has primarily four objectives:
Improving
Material Quality and Customer Satisfaction
Reducing
Material Cost
Ease
of Material Availability
Improving
overall Material Management System
Keeping
above objectives in mind following Class of MIS Reports are generated for Material:
Material Cost Reports: Purpose of these reports is to Plan, Collect and analyze information on Material Cost factors.
Material Quality Reports: Purpose of these reports is to analyze impact of Material Quality on Final Product.
Material Availability Reports: These reports analyze parameters to ensure timely and adequate availability of material for production.
Material Storage Reports: These Reports analyze parameters to check smooth and efficient working of material stores & warehouse.
Procurement Process Efficiency Reports: These reports analyze efficiency of procurement process.
Based on above classifications, key Material MIS Reports which should be generated in any organization are as below:
A. Strategic Material MIS
Macro Analysis for Material Management
Bottleneck Analysis for Materials
Material Content Improvement MIS
Material Cost Reduction MIS
Material Planning Report
B. Material Quality MIS
Material Quality Improvement Report
Materials Quality Related Rejections Trend
Customer Quality Grievances Report
Production Rejections Analysis Report
Vendor Rejections Analysis Report
Vendors with high Rejections Report
Rejections Cost Performance Report
C. Material Storage MIS
Stock Verification Discrepancy Report
Physical Verification Frequency Report
Stores Physical Condition MIS
SRNS NOT PREPARED
SRN not Accounted For
Material not Returned
Returnable Gate Passes Report
Ageing Analysis
Slow Moving Items Report
Stock Loss at Stores
D. Material Lead Time MIS
Indent & Purchase Order Gap Report
Purchase Order to Supply Time Gap Report
Time Gap for Inspection of Goods Report
Time taken from gate to stores Report
Time taken for issue of material Report
Time taken for release of payment Report
Vendor Wise Supply Delays Report
Item Wise Delays Report
E. Material Price MIS
Price Verification Analysis
Price Composition Trend Report
Foreign Exchange Fluctuation Impact MIS
Price Discounts Efficiency MIS
Price Reduction MIS
Freight Cost Analysis MIS
Demurrage Cost Analysis MIS
Material Price Verification Frequency Report
Adequacy of Quotations Report
F. Purchase MIS Reports
Pending Purchase Orders MIS
Purchase Orders Cancellation MIS
Purchase Orders Revision MIS
Purchase Authority Variation MIS
Vendor Database MIS
New Vendor Development
Vendor Advances Blocked
Material Vendors Ageing MIS
Vendors Balance Confirmations MIS
Legal Vendor Cases Status
Purchase not with lowest bidder’s report
Emergency Purchases MIS
Pending Purchase Requisition MIS
Purchase Order Variation MIS
Pending Disputed Purchases
Stock loss at Material Receipt
Material Return MIS
G. Special Material MIS Reports
Balance Sheet Analysis for Materials
Material Reconciliation MIS
Material Management Process Automation MIS
Production Loss due to Material Availability
Purchase Expenses Analysis
Material Working Capital MIS
Consumables & Packing Cost Analysis
Goods Lost MIS
Insurance Coverage of Stocks MIS
Empty Containers / Bags MIS
Scrap Treatment MIS
Material Shortage Analysis Report
Material Standards & Ratios Analysis MIS
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