A company has a new opportunity and create a financial model to try to anticipate to be realized that the general requirements for this opportunity to him. In particular, assumptions regarding the cost of direct work on the historic performance of their product lines achieve. Less than two months extension to the current data to confirm or deny that our beliefs, it began to receive positive feedback that employees were paid under the plan, and that their competitors were better compensation programs. What has been achieved in the model?
Let us first be clear that this is not the first or something the last time or not a financial model. They are based on assumptions and not fact, and are therefore prone to error. The assumption was incorrect, the number of direct labor per unit has been made previously by a significant margin. We have shown the shortcomings that have been produced on average during the first 2 months of 1.33 units per person per day. The model assumes that a minimum of 2 units are produced per day. With a piece of tariff compensation program, which means that were employees of the Company to take home with about 1 / 3 less pay for equal work and products of other companies.
The company quickly made adjustments to the business model and realized he would still be a change in production on the new very profitable. As such, they changed the compensation program, employees were happy again, and now enjoys its new range of products.
