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| • Concepts |
| • Adequate Profit |
| • Gear Ratio |
| • Test Your Insight |
| • Glossary |
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Gear Ratio
Like the gear train, when your company makes small changes in ADL speed
It has a big impact on your Profit.
Click the Graphic (below) to see changes in ADL Speed and Profit
Increasing the Velocity of Applied Direct Labor Creates Added Capacity. When added capacity is filled with additional sales, Profit Improves Dramatically.
With the use of the Profit Parametric System, it is possible to increase the velocity and performance of an existing workforce by 10% in the first year. A 10% increase is 6 more minutes of productivity per billable hour. That 10% increase in productivity/capacity can more than double your EBIT Profit when Sales Dollars increase by an equivalent amount per order.© 2001 - SetPoint
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