Fast Cash Article Samples:

5 Instant Income Streams That No One Knows About

So what are the five income streams that you can set-up immediately to earn a constant stream of income? We'll look at ...to continue this article click here.

Credit Card Features

Do you know anyone who doesn't have a mailbox overflowing with credit card offers? Open any of them up and you'll find in large print just what makes this card perfect for you. At first glance, this all looks good on paper, but ...to continue this article click here.

Planning to Become Debt Free with a Consolidation Loan

If you have multiple debts, and are struggling to meet the monthly payments, then there's a good chance you will want to consider, now or later, a consolidation loan to become debt free. to continue this article click here.

7 Secrets to Writing Inventory Procedures

by Chris Anderson

You have permission to publish this article free of charge, as long as the resource box is included with the article. If you do run my article, a courtesy reply to sean@bizmanualz.com would be greatly appreciated. This article is 994 words long including the resource box. Thanks for your interest.

What Would you Do with $1,000,000?

With $1 Million would you:
•Pay off debt?
•Purchase new equipment?
•Invest/save for the future?
•Give yourself a bonus?

$1,000,000 Waiting in the Wings

What do you and your business need that you have been putting off because you don’t have the money today? $1 Million certainly would fill those needs. But where do you find 1 Million just lying around your business right now? Well, you probably have $250,000 in each of four areas in your everyday business, and you don’t even realize it.

Money in Business Procedures

And so let’s look at four places in your business where we will find $250,000 each and see how we can help you find it:

Part 1: Inventory - $250,000.00
Part 2: Receivables - $250,000.00
Part 3: Sales - $250,000.00
Part 4: Accounts Payable - $250,000.00
Part 5: Procedures - $1,000,000.00

Turn Cash into Time with a New Company Policy

But just what exactly is this source for cash? It’s time. If you are looking for $250,000 then it costs you $4,808 every week that you delay. So what you do with your time quite literally amounts to either costs of delaying, or it can amount to savings when you take action and control of your time. To correct this cost of delay, an increase in velocity must follow - which will set the difference between 'good' and 'great'. The consequences of this shift in system velocity increases discipline and competency: the ability to maintain the increased velocity and the ability to make the adjustments to achieve the 'great'. So how do you realize the difference?

Eliminate Inventory and Increase Cash

Let’s start with the biggest, most obvious source – your balance sheet, specifically inventory. If you are a manufacturer with $300,000 or more of inventory (raw materials, work in process or finished goods) then STOP! We found it. Why? Because inventory is an unproductive asset. Inventory is money, and having it lying around your factory is not where your money belongs. So if we reduce inventory to Just-In-Time (JIT) levels, then we can eliminate 85% or more of your inventory, which translates into $250,000 in cash. But that's not all. You will also save another $50,000 or more in annual inventory carrying costs. With less inventory, there are lower costs of holding inventory. Let's look at an example of what we're talking about.

Manufacturing Business Procedures Case Study

A manufacturing organization with 2 Million in average inventory balances needed assistance. We examined their inventory consisting of raw materials, work in process and finished goods to understand and quantify the workflow, workload, and demand forecasting issues. Then we designed and implemented a process to improve their inventory cycle and tie it closer to their actual sales.

The metrics we developed reduced their inventories by 85% and increased their manufacturing cycle efficiency from 60% to 90% within 120 days of implementing the new procedures. With these new processes and reports, the company now tracks manufacturing cycle efficiency and delivery time variance rather than just units produced, as the measure of their manufacturing effectiveness. The result: extra capital plus a 50% increase in process capability (capacity).

Methods to Design the New Process

By becoming more efficient in the process, we can use time not as a detriment but as a significant benefit to our business. Step by step, let's take a further look at how time and efficiency plays a great role in your business.

Increase Demand Forecasting Accuracy. We only need enough inventory to satisfy demand, and that is where part of the problem exists. If demand can not be accurately forecasted, then we end up compensating for this unknown with inventory.

Increase Manufacturing Cycle Efficiency. How well manufacturing resources are used to produce a product determines the cycle efficiency. Defective product, product rework, and long lags between manufacturing cells cause inefficiency, which can be easily calculated. Raw materials should be converted into finished goods as quickly as possible. The speed at which this occurs defines your manufacturing cycle efficiency.

Increase Supply Chain Turns. Increasing the number of times purchases are made may increase acquisition costs and unit costs because of smaller order quantities. But you will benefit by increasing your cash flow and eliminating the carrying cost of the inventory (warehousing, material handling, taxes, insurance, depreciation, interest and obsolescence totaling 25% to 35%).

Eliminate safety stock. Safety stock is really just a buffer for forecasting variance and supplier delivery time. While many levels are set arbitrarily in automated MRP systems, your safety stock levels will need to be reduced due to improvements in demand forecasting accuracy, manufacturing cycle efficiency and supply chain turns.

Reduce purchasing errors. This can reduce overstocking and, more importantly, minimize stock outs that result in expensive expedited purchases. Sell excess and obsolete inventory or return it to your vendor.

Eliminate delivery variance. Do not allow vendors to deliver early or late and make sure the delivered quantity does not vary from the order quantity. After all, delivery errors cause the need to carry more inventory. Instead, provide suppliers with forecasts of future needs.

Train purchasing personnel. Provide your purchasing and material management personnel with formal training. This will arm them with better negotiating skills that will result in better prices and terms.

Procedures Provide Time Savings

So, as we have seen, we should use each element of the process to extract the most benefit from our business. With time-saving procedures set in place, you will let your efficiency work for you.

Time Savings Provide Cash in the Bank

With well-defined processes and procedures in place, you will increase efficiency by increasing inventory turns. And of course an increase in inventory turns means an increase in cash on hand. It’s there - all you have to do is grab it.

Next part of this series, we will look at finding $250,000 in Accounts Receivable - another step as we work toward our goal of 1 million in savings. So not only aim to reap the rewards of extra savings to your bottom line, but also see more cash in the bank - $1,000,000 to be exact.

About the Author

Chris Anderson is currently the managing director of Bizmanualz, Inc. and co-author of policies and procedures manuals, producing the layout, process design and implementation to increase performance.
To learn how to increase your business performance, visit: Bizmanualz, Inc.

For more cash creating articles click here: More Cash Articles

Some more sample articles:

Payday and Cash Advance Loans Online

How online payday loans or cash advance loans work? Online payday loans usually work by first filling out a pre-approval application. 90% of the time, your credit is not pulled. to continue this article click here.

Credit Card Debt Problems

...When debt goes bad, it becomes more than just a financial problem. It can take over your life. If you have a debt problem the earlier it is handled and dealt with, the less likely it’ll turn into a crisis, and the more money you’ll save in the fullness of time. ... to continue this article click here.

22 Tips to Become Wealthy Fast

1. Trade your high interest credit cards for low interest credit cards. Let's say that you have a $5,000 balance on your 17.6% interest credit card. You'll pay $880 in interest in the next 12 months. By transferring that balance to a 6.4% credit card, your interest would be only $320 for the next 12 months. That's a $560 savings!... to continue this article click here.

Looking for Big Money? Make Big Money.

Free Cash Creating Gifts just for Joining our Free Ez Cash Bulletin

When you sign up for our free Ez Cash Bulletin be sure to download your free cash building freebies including What You Need to Know in the Pursuit of Wealth and The First Time Home Buyers Guide to Finding Free Money and Low Interest Loans. These books represent a $37 value but are yours free if you join with us today. And, remember - every now and then we will send more free wealth building ebooks just for remaining a member of our free valuable Ez Cash Bulletin. So join and stick with us - your financial future will be a much brighter one if you do!

Once you've signed up please check out the cash advance and loan consolidation companies we do work with. They are reputable and you get money very quickly.

While here you'll also discover a variety of credit repair, debt relief and cash creating tools and secrets that you can begin using today to push toward financial freedom.

E-Mail
First Name

Privacy Policy: Rest assured your email address will never be given out, rented or sold for any reason. We value your privacy. Should you ever wish to do so you can unsubscribe with one quick click in any email we send you.

Wealth Secrets

Reading through these stories should convince you that there are many out there that are making big incomes and that the possibility is within your reach as well. If something looks interesting give it a try.

Do You Make $3500 a Week? She Does...
Attract Abundance
A Program to Make Money
$400,000 a Year!
This Kid Has Cash - Lots of It
Make a Million?
This Guy is a Jerk!
Robo Riches - Automatic Riches!
Jobs Directory

Debt and Credit Secrets!

Check out these debt relief solutions now. If you're having trouble handling debt on your own one of these programs could be the winner.

Credit Repair
Credit Secrets
Debt Free
The Ultimate Guide to Erasing Debt
Stop Collectors from Harrassing You
Ultimate Wealth

cash - Google News
Google News

Obama has twice as much cash as Romney, but the money advantage is declining ...

USA TODAY
Obama has twice as much cash as Romney, but the money advantage is declining
Washington Post
WASHINGTON ? President Barack Obama holds a cash advantage of more than 2-to-1 over Republican challenger Mitt Romney but the president's money advantage is beginning to dwindle. Obama's campaign reported $115.1 million in the bank through April and ...
Obama and Democratic Party have twice the cash of RomneyUSA TODAY

all 4,174 news articles »
Cash pullout means more ECB reliance - Reuters

ABC News
Cash pullout means more ECB reliance
Reuters
By Kirsten Donovan | LONDON (Reuters) - A scramble by savers to withdraw cash from banks as they fret about a Greek euro zone exit and the health of Spanish financial institutions may leave lenders even more reliant on the European Central Bank's cheap ...
Greek banks strain for cashCNN
Greeks Pull Cash Out of Banks as Confidence WanesABC News
If Greece Crumbles, How Can Europe Save Itself? With Growth And CashForbes
Los Angeles Times
all 2,182 news articles »
Inside Apple's secret plan to kill the cash register - Computerworld

Inside Apple's secret plan to kill the cash register
Computerworld
Whether it's a clothing store, a grocery store or a coffee shop, you're likely to find a big counter with a cash register on it, and a person operating that cash register on the other side. You go to them; they don't come to you. Why?

and more »
Family hangs hope for boy on unproven therapy in India - CNN

Family hangs hope for boy on unproven therapy in India
CNN
New Delhi (CNN) -- Cash Burnaman, a 6-year-old South Carolina boy, has traveled with his parents to India seeking treatment for a rare genetic condition that has left him developmentally disabled. You might think this was a hopeful mission until you ...

and more »

Newsfeed display by CaRP

Home | Cash Articles | Wealth Secrets | Fast Cash | Ez Cash Bulletin | Contact copyright 2006 EzCashAz.com