SPRINGFIELD, Mass. - The Markens Group, Inc. (TMG), consultants to the packaging industry since 1988, will hold a Machine Hour Rates and Profit Planning Fundamentals Workshop on November 8-9, 2017 in Springfield, Massachusetts. The workshop helps folding carton and corrugated box converters, commercial printers, labelers and contract packaging companies create an overall financial plan for the year. It is an ideal training course for financial executives, sales managers and cost accountants.
Like a financial roadmap for the year, a profit plan is a set of goals for revenue, spending and earnings that enables packaging companies to set targets, benchmark progress and ultimately stay on a path to success and increased profits.
“It helps to think of a profit plan as a quotation for a single job the size of an entire year’s volume,” said Ben Markens, TMG president and workshop instructor. “It not only includes every cost and detail summarized on a single sheet of paper, it also guides the company’s progress along several of the most important benchmarks like revenues and recoup of fixed expenses.”
In addition to training in profit planning, workshop attendees will receive a crash course in machine hour rates, which are a per-hour translation of the goals established in the profit plan. Crucial to budgeting and pricing jobs, machine hour rates reveal the true out-of-pocket hourly cost for production centers in a manufacturing facility. They can also help manufacturers determine whether an order is truly profitable and which customers contribute most to the bottom line.
To practice, students will user their new knowledge of profit planning and machine hour rates to solve a variety of complex problems for a fictitious folding carton company. They will determine the company’s true cost of labor, construct its variable and fixed overhead budgets, establish production centers and monitor its profitability.
“Operational success doesn’t happen by chance,” said Markens. “It’s the product of careful, strategic planning. I’m looking forward to teaching the basics of such planning at TMG’s upcoming workshop.”