CMA data analysis and Productivity Improvement

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CMA data analysis and Productivity
Improvement Improving Performance of SME
Unit Summary For any small manufacturing unit,
the following are required to be done on regular
basis to keep the momentum year on year
basis. When you apply for bank loan, bank
ask certain data which is known as CMA
data analysis. We insist that this data must be
prepared by entrepreneur him self and to put the
same in the language which bank
understand can be done by chartered
accountant/external consultant.
Why this to be done by entrepreneur as
entrepreneur after lot gut feeling and passion,
has narrowed down on particular product for
his enterprise so he knows all difficulty
about the project which he can put to understand
in financial figure weather this project will be
generating enough profit year after year till he
repays his term loan. Weather financial ratios
like EBIDA is good and he is able to service his
debt and shall generate to support additional
working capital for next five to seven
years. Once he does this himself, he can
fine-tune his own thinking and verify his
assumptions and then put in the format as
required by bank. Once loan is sanctioned, he
will have to evaluate his own performance on
monthly basis in which he has to analyse
the variation and take corrective actions
required.
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Many times assumption made both verbal and
written changes so this will change the
performance. This will make the entrepreneur
to identify areas where correction is
required and timely action taken will improve
performance greatly. Many times ,external
consultant or mentor will give critical input and
or early signals of weakness developing in the
system, can be analysed in the detailed and
learned line of action can be taken. CMA data is
like thermometer, which gives a reference like in
the human body normal temperature should be
98.4 F but if it is higher or lower gives
indication, that something is not right.
Many times we may have to consult doctor
and suitable treatment. CMA delta is financial
thermometer for the unit. Productivity
Improvement Observation of particular
process and doing time study will give lot of
ideas to improve productivity. But irrespective
of anything, 5 s has to be followed
mechanically in the unit, How small or big it may
be.This culture itself for new unit is easy but
for the old unit, This requires entrepreneurs
commitment to change the attitude of his own team
and it has to be monitored.
Conclusion Prepare CMA data yourself,
monitor your performance basis,take
corrective steps benefiting your performance.
on monthly
When start new unit follow 5 s from day one and
for older team commit yourself.