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How operational decisions become financial results. A practical 41-page guide for operations and finance teams.
Manufacturing finance is a specialist field, and very few people are ever taught it. Most learn on the job, through experience and mistakes. This booklet gives operations and finance people a shared language, and the arithmetic to go with it.
It follows one fictional business through a full year: a Scottish apple juice, cider and compote maker. It contracts fruit in spring, presses it in three autumn months, and sells all year round. Every idea is worked through with real numbers, charts and diagrams, so you can see how a decision on the factory floor reaches profit and cash.
Inside you’ll find:
Why manufacturing finance is complicated, and what you are trying to achieve
How to cost a bill of materials step by step, with loss allowances and a standard cost card
Overhead absorption, and why seasonal businesses plan to lose money in some months
Contribution, break-even and pricing a one-off order
Capacity, bottlenecks, OEE and what they are worth in pounds
Inventory, working capital and funding the seasonal peaks
Variance reporting: a bridge from budget to actual profit, and how to put each variance in the right place
A page on what is different about manufacturing accounts, for finance readers
A glossary of over 60 terms and a worksheet for your own business
Who it is for: operations, production, supply chain and engineering managers who want to understand the numbers. Also for finance people new to manufacturing, and for managing directors and business owners who need both sides to work together. No finance qualification is needed.
About the author: Heather Ogilvie is a former Group CFO, Chartered Accountant and international turnaround specialist. She has more than thirty years’ experience helping organisations improve commercial performance.
Format: 41-page A4 PDF, delivered as an instant download.
The booklet is based on The Ogilvie Business School’s two-day programme, Manufacturing Finance for Operations Leaders. Find out about the programme →
How operational decisions become financial results. A practical 41-page guide for operations and finance teams.
Manufacturing finance is a specialist field, and very few people are ever taught it. Most learn on the job, through experience and mistakes. This booklet gives operations and finance people a shared language, and the arithmetic to go with it.
It follows one fictional business through a full year: a Scottish apple juice, cider and compote maker. It contracts fruit in spring, presses it in three autumn months, and sells all year round. Every idea is worked through with real numbers, charts and diagrams, so you can see how a decision on the factory floor reaches profit and cash.
Inside you’ll find:
Why manufacturing finance is complicated, and what you are trying to achieve
How to cost a bill of materials step by step, with loss allowances and a standard cost card
Overhead absorption, and why seasonal businesses plan to lose money in some months
Contribution, break-even and pricing a one-off order
Capacity, bottlenecks, OEE and what they are worth in pounds
Inventory, working capital and funding the seasonal peaks
Variance reporting: a bridge from budget to actual profit, and how to put each variance in the right place
A page on what is different about manufacturing accounts, for finance readers
A glossary of over 60 terms and a worksheet for your own business
Who it is for: operations, production, supply chain and engineering managers who want to understand the numbers. Also for finance people new to manufacturing, and for managing directors and business owners who need both sides to work together. No finance qualification is needed.
About the author: Heather Ogilvie is a former Group CFO, Chartered Accountant and international turnaround specialist. She has more than thirty years’ experience helping organisations improve commercial performance.
Format: 41-page A4 PDF, delivered as an instant download.
The booklet is based on The Ogilvie Business School’s two-day programme, Manufacturing Finance for Operations Leaders. Find out about the programme →