MoldMaking Technology

DEC 2018

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Business Management 24 MoldMaking Technology —— DECEMBER 2018 CONTRIBUTOR Charlie Daniels is a certified management accountant and the chief financial officer for Wepco Plastics Inc. begins. Then schedule a budget meeting to review the entire year and the first period. Moving forward, schedule these meet- ings immediately before the upcoming period. This provides an opportunity to prepare and review actual year-to-date perfor- mance related to the budget. Budgets on the Move Budgets should be dynamic. If trends emerge or events occur that contradict previous assumptions, make adjustments to the remainder of the year. This is one area where using percentages is very useful. For example, if raw material expenditures are up for the period, but the percentage of income is in line with expecta- tions because of higher sales, there may not be a reason to worry. If the higher expense is related to an unforeseen price increase, however, make changes to this line item for future periods. It is important to make changes based only on those things that are outside of the shop's control. Failure to manage income and expenses effectively is not justification for making adjust- ments. When deficits occur, develop a strategy on how to cor- rect course. Do not allow the budget expectations to deter risk or defer required maintenance. The process will improve continuously as the team learns les- sons from month to month and year to year. Therefore, do not be discouraged by predictions that miss the mark. Be encour- aging throughout the process and work hard to ensure that the team views the process positively. Budget meetings do not need to include streamers and cake, but it is necessary to battle the negative connotation that the word "budget" evokes. Monitoring performance, addressing issues and capitalizing on opportunities are critical parts of successful management. I would say that implementation, analysis and corrective action are equally as important as the act of planning. An apropos quote often attributed to Benjamin Franklin is, "If you fail to plan, you are planning to fail." While budgets alone will not ensure success, mold builders are guaranteed to have a better idea of how their businesses are performing by following these guidelines. FOR MORE INFORMATION Wepco Plastics Inc. / 860-349-3407 / /

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