September 12, 2002 - True Accounting™ compares actual plant profits to profits that would be achieved if plant was running at true potential. It breaks down profit gap into reasons for underperformance and values each improvement opportunity. Methodology does not replace company's financial reporting system. Instead, it serves as management decision system that establishes true profit potential of each part of business.
(Archive News Story - Products mentioned in this Archive News Story may or may not be available from the manufacturer.)
Hagen Introduces True Accounting™ Solution For Manufacturing Performance Improvement
First New Accounting Approach in 80 Years Defines Plant's True Profit Potential
MARBLEHEAD, MASSACHUSETTS, USA, August 27, 2002 - Hagen & Co. today introduced its True Accounting solution - an innovative set of tools and practices that support breakthroughs in manufacturing performance improvement.
"The first new production accounting methodology in 80 years, True Accounting has generated a 20% to 40% increase in plant profits in its initial applications," said Ian Thompson, Hagen's founder and CEO. "And these gains were made without any capital expenditure."
The True Accounting solution compares actual plant profits to the profits that would be achieved if the plant was running at its true potential. It breaks down this profit gap into the
reasons for underperformance and values each improvement opportunity. The patented True Accounting methodology does not replace a company's financial reporting system. Instead, it
serves as a management decision system that establishes the true profit potential of each part of the business.
"We've learned that in the act of installing True Accounting, employees discover their production systems are much more capable of generating higher profits. Then, as people implement the Hagen Improvement Process™, giant strides are made in eliminating the highest value problems and closing the profitability gap," Thompson said.
"Our approach reveals the plant's hidden potential, focuses employees on the problems with the greatest financial impact, and ensures they get fixed," he said.
Hiding Millions of Dollars in Recoverable Profits
Thompson said archaic cost accounting systems are inadequate to drive plant improvement because they compare actual performance to budgets. "These budgets are based on historic standard costs and include all of the problems that have limited performance," he said. "Invented in the 1920's before the advent of global production networks and enterprise systems, cost accounting hides tens of millions of dollars in recoverable profits. Today, most plant managers and employees are struggling to achieve an arbitrary annual budget that has no connection whatsoever with the facility's true profit potential," said Thompson.
The True Accounting solution and Hagen Improvement Process immediately engage the workforce to achieve Six Sigma, Lean Enterprise, and Total Quality goals. The company says the methodology is applicable to any manufacturing company.
"Today's senior management team should not be satisfied with a 5% to 8% improvement in its annual business plan after investing millions of dollars in capital," said Thompson. "Most executives would be stunned to learn how much more profit their existing assets can generate. We need a new accounting approach for a new era when manufacturing performance must provide critical competitive advantage."
About Hagen & Co.
Hagen & Co. is a team of experts dedicated to helping industrial companies discover and achieve the true financial potential of their enterprises. The company provides solutions that
empower employees to rapidly generate higher performance and productivity. Over the last 10 years, Hagen has completed 350 improvement projects with 80 global manufacturing companies.
The firm has offices in Marblehead, Massachusetts, and Sydney, Australia.
Contacts:
Public Relations:
Leary & Tiziani
Rick Whitmyre
USA
Phone: 781-793-9380 E-mail this person
General Information:
Trevor Cusworth
USA
Phone: 781-639-4200 E-mail this person Company Information: Name: Hagen & Co. Inc. Address: 40 Tioga Way City: Marblehead State: MA ZIP: 01945 Country: USA Phone: 781-639-4200 FAX: 781-639-2226 http://www.hagenco.com
News provided by ThomasNet News® (TNN). TNN is a comprehensive source
of new and timely product information in the industrial marketplace. TNN supplies new product
information to the web sites, e-marketplaces and print publications that serve the
industrial marketplace. For press release submissions please go to
http://news.thomasnet.com/submitpr.html.
BY ACCESSING, BROWSING AND/OR USING THIS WEB SITE AND/OR ANY WEB SITES PROVIDED BY
ProductNews.com, YOU AGREE TO BE BOUND BY THE TERMS OF USE
AGREEMENT.
del.icio.us
DIGG
Facebook
Reddit
StumbleUpon
Twitter
![[Get Copyright Permissions]](http://license.icopyright.net/images/icopy-w.gif){kind=small}
