What Is The Profit Improvement Process (PiP)? PiP challenges existing business practices and the rationale for utilising resources in particular and the different ways to achieve future profit objectives PiP helps to determine strategies in relation to 5 key methods of improving profit and 6 business resources PiP will produce a profit improvement plan The 5 Methods Reduce costs Reduce capital employed Improve gross margin Improve product mix Increase turnover The 6 Resources People Money Materials Machinery Time The market

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What Is The Process?

There are three phases:

Phase 1

• Completion of a questionnaire by MD/CEO with an MCG consultant
• Completion of a questionnaire by the senior management team/board of directors with an MCG consultant
• Answers fed into the computer

A matrix, based on the 5 methods and the 6 resources, will highlight strengths and weaknesses and also the different perceptions of senior managers.

The PiP Matrix (example only)

High scores: strengths
Low scores: weaknesses

• Analysis of the matrix by an MCG consultant
• Five highest and three lowest scores identified: i.e. strengths and weaknesses
• Production and presentation of interim report which includes:

Phase 2

• Phase 1 based on perceptions
• Phase 2 consists of factual data gathering and analysis about perceived strengths and weaknesses
• Comparison of perceptions with the actual situation
• Production and presentation of final report which includes:

Phase 3

• Hands-on assistance to help you to develop strategies to increase profit
• Development of profit improvement plan

The Benefits of PiP

• The objective identification of problem areas/challenges
• A rationalisation and better use of resources
• The identification of different perceptions amongst senior managers
• An improvement in internal communication
• The identification of cost-effective strategies - solutions
• The ownership and effective implementation of strategies
• An improvement in profit