Cpsp asset utilisation
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The document discusses the critical issue of poor asset utilization as a leading cause of profit problems for firms. It highlights how better capacity utilization and productivity can significantly enhance profits, suggesting solutions such as 24/7 operation and using internet resources. Additionally, it emphasizes the importance of efficient investment strategies and addressing asset utilization challenges to improve competitive positioning.
Cpsp asset utilisation
- 1. Asset Utilisation B.2.6. Creating and Presenting Strategic Plans
- 2. •The biggest cause of profit problems in all firms •A major driver of Internet transformed businesses Poor Asset Utilisation
- 3. 0 10 20 30 40 50 100 150200 40 28 20 18 8 ROCE(%) Investment/Value Added (%) How Fixed Investments Can Kill Profits
- 4. 0.0 7.0 14.0 21.0 28.0 62 72 81 90 15 21 22 25 28 ROCE(%) Capacity Utliisation How Great Capacity Utilisation Boosts Profits
- 5. 0.0 6.5 13.0 19.5 26.0 62 72 81 90 19 20 24 24 26ROCE(%) Value Added/Employees (%) Personal Productivity Boosts Profits
- 6. 23 29 37 20 19 25 7 10 15 Investment/ Value Added Value added/Employee Low High25% 60% High Low -10% 10% ROC E(%) High Productivity Cures Investment Intensity Implication?
- 7. Poor capacity utilisation: Solution: use 24/7 - Internet universities Poor personal productivity: Solution: relentless drives - Internet agglomeration Very high spend on buildings and equipment: Solution: rent don’t buy - Use Internet - Cloud Poor Asset Utilisation: Causes and Solutions
- 8. Year 201X 201Y 201Z % change Strategy Plant & Equip Sales/Total Assets Number employees Sales/Employees Capacity utilisation Measuring Asset Utilisation
- 9. The End
- 10. The End
- 11. Competitive position Asset utilisation Investment intensity: lowest Productivity, people + assets: # 1 Fixed Vs Liquid assets: lowest Capacity utilisation: # 1 Markets addressed Leadership