Inventory valuation: the number that decides your profit
How stock is valued changes reported profit and tax without anything physical changing. FIFO against weighted average, what cost includes, and the write-down nobody wants to make.
A production schedule turns orders into a sequence the shop floor can run. What it needs, why it slips, and the point at which a spreadsheet stops coping.
A production schedule says what will be made, on which equipment, in what order, and when. It is the point where a list of customer orders meets the number of machines, people and hours that actually exist. Most schedules fail not because the sequencing was wrong but because they were built on capacity nobody had verified — a line assumed to run three shifts when it runs two, or a changeover assumed to take twenty minutes when it takes ninety.
A schedule nobody can achieve is worse than no schedule, because it stops being a commitment and becomes a suggestion — and once that happens the sequence gets decided informally by whoever shouts loudest. The test is simple: if the schedule was met last week without heroics, it is a plan. If it required overtime and expediting, the capacity assumptions are wrong, not the team.
Sequencing by hand works until the constraints interact. Production scheduling software models finite capacity, sequence-dependent changeovers and shared tooling, which is where a plan on paper stops matching what the floor can run.
Not every late task threatens the finish date. The critical path is the chain with no spare time in it, and knowing which tasks are on it decides where attention is worth spending.
Ettex Sheets is the right home while the schedule is a table: one row per order with resource, sequence, start and finish, alongside a capacity view that shows the load per line per week. Kept next to the inventory management data and the planned preventive maintenance calendar, it stops the two most common causes of a broken schedule — missing material and unplanned downtime on a machine that was actually due for service. Ettex is not an MRP or APS system: there is no material requirements explosion, no automatic rescheduling and no finite capacity optimiser. If you need those, buy them — and be honest that most companies buying MRP would have got further by verifying their capacity numbers first.
Far enough to cover your longest material lead time, in decreasing detail — firm for the next week or two, planned beyond that. Detailed scheduling six months out is effort spent on a version of reality that will not arrive.
Neither exclusively. Optimise the bottleneck for utilisation and everything else for flow, and check due dates as a constraint rather than an objective. Maximising utilisation everywhere reliably increases work in progress and lead time.
Decide the rule in advance and write it down — who can authorise an insertion, and what gets displaced. Ad hoc expediting is the mechanism by which a working schedule becomes a fiction, and it always looks reasonable in the individual case.
How stock is valued changes reported profit and tax without anything physical changing. FIFO against weighted average, what cost includes, and the write-down nobody wants to make.
Staff turnover is easy to calculate and easy to misread. How to work it out, why voluntary and involuntary must be separated, and what a replacement actually costs.
Business interruption cover replaces lost profit while you cannot trade. How the sum insured is calculated, why the indemnity period is the number that matters, and what is usually excluded.