Factory Systems is a company located in Columbia, South Carolina
specializing in statistical Process control (SPC) software and hardware.
IQ was engaged to develop tools to help in the transformation process
from a small business to a corporate platform that could form the basis
for significant growth.
Budgeting and Planning
In this effort, IQ first developed an Integrated Planning Model that
articulated the relationships between the various sales/product thrusts
and the resources required to generate any given level of sales and
profit. Such a model is ideal for examining and managing the many
factors that influence success in any area of the enterprise. The
challenge is to begin to capture the information necessary to tighten up
the level of knowledge about the business.
As a result of the development of the Integrated Planning Model, it
became clear that the current chart of accounts was not adequate to
reflect the detail of sales and operational costs to determine the
sources of threats and opportunities. IQ made recommendations regarding
these changes which were implemented. The power of the IPM to clarify
inadequacies in the chart of accounts as well as related accounting
procedures is one of its most important aspects.
IQ also developed a sales effort pipeline model designed to show that
the ultimate sales of the organization as a function of a constantly
changing portfolio of sales opportunities., each of which can be
represented by an estimate of the potential dollar amount of the sale
and the probability of closing the sale. Such a program, which is more
and more a part of all top-line sales management programs, encourages
management to recognize that the total of all sales projects must be
considerably greater than the ultimate sales realized be that effort. It
also encourages management to explicitly manage the factors that
influence the probability of closing the sale.
Development of Sales Tools
In an attempt to demonstrate the value of statistical
process control to new potential customers, IQ developed a “lean”
manufacturing simulator that interfaced with the Factory Systems SPC
software. In such a way that a manufacturing facility could could be
designed and run and the statistical output captured. Then the
statistical parameters could be changed, ostensibly as a result of a
process improvement activity, resulting in a direct measure of improved
profitability. Such a tool not only serves as a sales tool, but also a
training tool with which manufacturing managers can get a direct feel
for the meaning of the various statistical parameters typically utilized
by SPC programs
IMS Quantum specializes in the marriage of operational factors
with financial considerations to create Integrated Planning Tools
that allow management to appreciate and optimize a variety of
tradeoffs inherent in complex management situations.