The pVelocity® suite of profit optimization software tools gives manufacturers the capability to leverage data from multiple financial and operational systems, and evaluate the impact of competing variables on ROA and profit. pVelocity allows business users to create scenarios balancing price, capacity, and raw material costs to optimize profit. The pVelocity ScenarioPV module allows the user to perform "what-if" analysis using real data to project real outcomes.
ScenarioPV is designed for Asset Management, Plant Management and Specialists to provide a plant/product perspective to optimize profit and drive ROA. By aggregating and correlating many points of process data into highly visible performance intelligence, ScenarioPV heightens organizational awareness of what, where, and how various production events are affecting the performance of the enterprise as a whole. ScenarioPV helps decision makers throughout the organization pinpoint opportunities for improvement as they occur rather than after the fact.
ScenarioPV uses the profit velocity concept, an elegantly simple model that integrates actual manufacturing cycle times, changeover times, and product margin per hour to enable manufacturing, sales and planning personnel to agree on the product mix, operating rates and campaigns that are most profitable.
ScenarioPV can be used to address the following kinds of problems:
1. Analysis of the impact of wildly swinging raw material price changes on the variable cost of a product
2. Development of a product price management strategy including price optimization, execution and enforcement
3. Development of a capacity management strategy
4. Developing a product segmentation and profit optimization strategy. Each segment can be analyzed by volume, price, contribution margin as well as variable and fixed costs.
The segmentation process allows the user to look at…
Cost reduction options such as cycle time improvement, utilization of different production vessels and changing the BOM to reduce cost
Profit improvement options such as lowering the price on a high $/hr product to drive higher volume and fill available capacity.
5. Simulating the profitability and asset utilization of a new product. A new product can be simulated easily by copying the BOM and the Production Model of a similar product and changing them to suit. Volume can be simulated to assess vessel utilization. Selling and freight pricing can be simulated to assess profitability
6. Developing a buy, make or toll strategy for a product or an intermediate.
7. The software provides the capability to do multi plant simulations across various sites to do comparative analysis of fixed and variable cost, vessel utilization, and $/hr of a product across plants. The goal is not just to optimize the profit of a product, or even to optimize the profit of a particular plant. The goal is to optimize the profit of the system.
ScenarioPV - Model Profit Scenarios using actual Manufacturing and Financial Data has not been reviewed by any customers.
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