Profit improvement

Because of the high cost of new units and the importance of the FCC on refinery profitability, improvements should be made to the existing units to maximize their performance. These performance indices are ... 

Treated wastewater salinity and the high cost of hydraulic facilities are other constraints in the development of the sector and limit project profitability. Improving quality of treated wastewater is still one important challenge for the government that could improve the reuse rate. While any quality of treated wastewater can be produced, the degree of treatment must be addressed what constituents have to be removed and what quality will be acceptable [14]. 

Phillips RL (1999) Pricing and Revenue Management - Driving Profit Improvement from CRM. CRM Project 1 1-7... 

These graphs illustrate why better project performance is produced through proactively seeldng profit-improving changes as early... 

The VIPs that have been statistically verified by IPA benchmarking of capital projects are listed below. Each has a different purpose and focus, but all produce project profitability improvements that the project team cannot achieve on its own. 

The process simplification VIP does far more than just evaluate and simplify processing steps. This very productive VIP ensures that low- or zero-value functions or equipment included in the project scope are challenged by experienced world-class experts and eliminated, if possible. This VIP tries to systematically differentiate wants from needs and remove the wants. It can be especially effective for providing a neutral professional environment for identifying and challenging sacred cows and then removing them. Removal of these low- or zero-value functions yields significant profitability improvements to the overall project. Process simplification results in... 

Since the constructability VIP has seen widespread implementation in industry for capital projects over the last 20 years, in order for this VIP to remain consistent with the definition of a VIP (i.e., above what project teams can do on their own), at least one large engineering and construction company has enhanced this VIP to include a formal facilitated workshop that seeks profitability improvements above those already identified by me project team in the course of its normal work (KBR Value Improving Practices Program, 2001 through 2005). Both work processes described below are mutually additive, flexdble, and compatible. 

Finally, the company s own estimation of fundamental value will frequently be more or less in line with the capital market valuation. This would mean that if the corporate plans are realized in the succeeding years, a shareholder return can be expected of exactly the level of the cost of equity, i.e., roughly the industry average. Here, the valuation logic can be used to set more ambitious objectives in relation to capital market performance, and to translate these into operational targets for profit improvement. 

In fact, all managers except for the head of manufacturing, when designing their organization, had to make sure they reduced their combined headcount costs by approximately ten percent, and the purchasing task force (30 percent of the synergies) had the task of capturing several quick wins as soon as the deal was approved. In parallel, a profit improvement plan for the films activity was launched. 

Fig. 7.1 Potential profit improvement levers related to e-commerce Source Deutsche Banc Alex. Brown estimates, McKinsey analysis...

Fig. 12.1 Gradual changes in profit improvement levers Source McKinsey...

Bryan (1977) highlighted the obvious fact that in a competitive environment the percentage of total revenue that represents profit is quite small. This lead to the conclusion that there is considerable leverage for profit improvement through improved performance. 

Bryan EL (1977) Low-cost profit improvement opportunities in sawmilling. Proceeding of the 32nd Northwest Wood Products Clinic, Coeur d Alene. Washington State University 47-59... 

Fab operation resembles a commodity chemical factory regarding the need for careful scheduling and debottlenecking. Yield levels typically exceed 90% for virtually all tools hence major productivity and profitability improvements must originate more from optimization of the overall process flow rather than of individual unit operations. " In fact, a typical tool is often in production only about 30% of the time, with the balance falling prey to testing and tuning, set up, scheduled and unscheduled maintenance, and unscheduled shutdowns. The shutdowns include cancelled... 

The last step of the framework is to develop a supply chain strategy that will allow the company to identify the steps required to become a demand driven supply chain. This development should be performed aligned with the company strategic business planning process, as supply chain is a key enabler of business improvement and can help the company achieve top level business goals like revenue growth, increase asset utilization and profitability, improve customer service, just to name a few examples. 

Coextrusion increases the cost and complexity of a blown film line considerably. Significantly higher hardware costs, increased operator training, and more sophisticated machinery and control systems are some of the demands of a coextrusion line. However, the gains resulting from increased product capabilities make most investments in coextrusion profitable. Improved film performance leads to increased market share and may open new markets. Also, material costs may be decreased through the use of thinner layers due to higher product performance characteristics. 

We then run a simulation of the MVC first with the normal constraints and then with the constraints tightened by the improvement. For example the constraint on C4 in propane is moved from 5 % to 4.6 %. The difference in objective function between the two simulation runs will be profit improvement (per hour, if flows are measured per hour). 

Further, the single-suppfier approach is likely to force the owner to compromise on the best choice of provider. It is often not the case that the best implementer is also the best at performing benefits studies. Given the relative size of the pieces of work, the owner will choose in favour of implementation skills and risk overlooking potentially valuable profit improvement opportunities. 

Growth Phase This phase follows the successful introduction of the new product and is characterized by very rapid sales growth, the addition of new competitors and rising capacity. Economies of scale are an important part of this phase as substantial profit improvement takes place. Polyethylene is presently in the product growth phase of the product life cycle. Product consumption per capita is the best measure of consumption. 

In the past it was often the case that relationships with suppliers and downstream customers (such as distributors or retailers) were adversarial rather than cooperative. It is still the case today that some companies will seek to achieve cost reductions or profit improvement at the expense of their supply chain partners. Companies such as these do not realise that simply transferring costs upstream or downstream does not make them any more competitive. The reason for this is that ultimately all costs will make their way to the final marketplace to be reflected in the price paid by the end user. The leading-edge companies recognise the fallacy of this conventional approach and instead seek to make the supply chain as a whole... 

Hot fluid can be brought up to the surface in supercritical condition through thermally insulated tubing. As a result of implementation of this scheme in Russian oil fields, the average oil cut is expected to increase from 16 to 50%. Thus, the downward trend in profitability of production due to increase in water content can be reversed, and profitability improvement can be achieved by removing water from reservoirs (as part of water-oil mixture). 

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