Abstract
The concept of business performance is based on the torque value / cost, the goal being to optimize the ratio between the two (Minimizing costs, maximizing the value produced). The goal is to ultimately increase production and lower costs. (A financial value is not sufficient by itself to account for the richness and potential business)
Before trying to improve business performance we must first understand what is happening, to seek to measure it. The performance of a company can be measured in different ways:
- Benchmarking: This tool is to compare the performance and working practices between firms in the sector. This allows a company to position itself in function of the competition.
- The quality indicators: Indicators relevant sets are based on the activity of the company and its objectives and help to monitor and evaluate the characteristics of the company.
- Social indicators: This indicator measures the performance of company.
These tools will help establish a diagnosis and thus a strategy to optimize the performance of the company will be clearer and more precise.
The costs of a company are varied: there are fixed costs and variable costs. As its name suggests, fixed costs do not change (or few) from one period to another (they are mainly labor costs, depreciation, amortization ...), actions to reduce costs will therefore variable costs. Variable costs on which we can play mainly costs related to purchases of raw materials (cost of purchase, transport ...) and storage costs.
