DIVERSIFIED PRODUCTION CONTROL AND COSTING
UNIDADE DE ESFORÇO DE PRODUÇÃO
The UP represents a unified
measure for all products and production processes.
Your corporation will produce UP's, will program in UP's, will calculate costs in UP's -
And will know results in UP's and Dollars (or any desired currency).
Life and growth of an enterprise depend on the results it can achieve.
How does a company obtain results? Selling with positive margins with profit.
|PROFIT defined as :||Selling Price (usually determined by the market)
less Cost of the Product (most often distorted or unknown)
multiplied by volume of products sold.
Profit is the "blood" circulating in the veins of
But to know the profit with certainty, the company has to know COSTS, product by product,
and its CAPACITY to produce them.
How can we measure production of a factory with a great mix of different products?
Pieces, pounds, gallons, inches, etc., cannot represent production, we cannot add different kinds of products it would equal to summing up potatoes with apples and grapefruits and so on.
Without a unified measuring unit we can only list quantities of identical products without arriving at a final sum total.
|locks for suitcases mod. LS15
doorlocks mod. LD25
simple doorlocks mod. LDS20
padlocks mod. LP7
handles mod. H14
handles mod. H06
|Sum Total:||173.000|| pieces of "what"?|
But how would it be if we had a standard measure that would allow us to measure different products - ?
The UP Method creates
a new unit for measuring a diversified production.
With this tool we can study, observe, compare and control the principal elements of production:
Capacity, costs, contribution margins, productivity, and quantify overcapacities or bottlenecks.
When you have a common unit for measuring production, this is easily obtained.
Calculations and controls are simplified.
With the UP Method we can boost profitability of the enterprise:
Rapidly and clearly we can detect the more profitable products, the loss causing products and products sold at break-even-point. And we can measure how much we are winning or loosing, product by product, by product line, and globally.
When we have these numbers we can direct sales and production efforts towards the more profitable products.
The UP, a new
unit that measures and controls all production stages and processes, is stable and is free
from inflation or deflation.
It is also called production effort measure because it measures all the efforts of the factory to transform raw material into finished (or semi finished) products.
This unit is custom tailored to the working conditions of that specific factory and production processes, able to measure the physical production of hundreds or thousands of different products with ONE number only, expressed in "UP".
Each product equals a certain quantity of UP's. They vary according to the production effort absorbed during the procedures in manufacturing.
The sum total of UP's of all products represents the number of total production of the factory.
Thus we can compare productions of different months and years and different mix, because the UP as an abstract unit is free from inflation or deflation.
Georges Perrin, an engineer and entrepreneur, originally
developed the Method in France, calling it "GP". It was brought to Brazil by
Franz Allora (1996), who studied it and applied together with Ernst Otto Kamp.
Allora & Kamp were co-founders of Tecnosul Systems Engineering (in '82), having
excellent results in more than 80 industries.
Ernst Otto Kamp, with his partner Ronald Ivar Kamp, started Kamp Consult in '94, proceeding with the marketing & implementation of the UP Method. Ernst Otto Kamp has the longest experience with the Method in Brazil today.
The UP Method has been studied, analyzed and highly valued by the Technological Center of the University of Santa Catarina (UFSC). At present it is a subject of Master Degrees in Product Engineering and in Business Administration and Economics (UFRGS - Porto Alegre). Several Theses about the Method and its principles have been published.
Method unifies production control of
diversified product mix. It transforms a factory of hundreds or thousands of products or
parts into a factory of only ONE
This simplifies production control, planning and costing of products (one by one).
Its a valuable tool especially for the production manager. With it he can compare different procedures expressed in UP's, Capacity, Margins and Cost-per-UP - not hampered by monetary expressions subject to inflation or deflation of different years, and / or currency fluctuations.
It can measure capacity by the hour, by the week and monthly, of single machines, sectors and of the entire factory.
SELLING PRICES AND BREAK-EVEN POINT