Manufacturing profitability can look straightforward on a financial statement. But the numbers used for reporting do not always tell you what will make the best decision on the factory floor.

In this episode of Manufacturers Make Strides, Martin is joined by Jay David, Founder of Do Business Better and author of Turnaround Revelations, to explore how his 30 years across manufacturing, finance and operations have changed the way he thinks about profitability. They discuss the relationship between capacity and fixed costs, why traditional costing assumptions can influence pricing decisions, and what Jay learned from moving out of accounting and onto the shop floor.

From challenging the numbers behind investment decisions to stopping overtime to stabilise a workforce, Jay shares experiences that have shaped the way he approaches manufacturing businesses today. Whether you work in operations, finance or run a manufacturing business, the conversation offers a different perspective on the decisions behind a profitable operation.

In this episode

• Manufacturing profitability
• Capacity utilisation
• Fixed costs
• Pricing decisions
• Cost accounting assumptions
• Automation decisions
• Building stronger teams
• Stopping excessive overtime
• Filling unused capacity
• Developing future talent

Our Standout Q&A

Martin: What would you say successful manufacturers are doing to balance financial reporting, planning, and operations?

Jay: This is where the controversy comes in, and I never propose a second set of books. You have to close the books, you have to be compliant, you have to fully value your inventory.

But that information, when you turn and use it for operational decision-making, and especially your pricing model, is so inaccurate that it drives very bad decisions.

So what I propose and what I’ve done in multiple places is to say, “Okay, let’s look at the opportunity in front of us.”

Quick Win

At the end of every episode, we ask our guests to leave listeners with one practical action.

Jay’s quick win is to look at your team and identify one or two people you can begin mentoring.

He suggests setting aside 30 minutes a week to talk through situations they’ve encountered at work, how they responded and what they could have done differently. Over time, this helps develop people who can take on more responsibility and reduces how dependent the business is on any one person.

About Jay David

Jay David is the Founder of Do Business Better, where he works with businesses as a fractional COO and supports companies through operational and financial challenges.

With 30 years of experience across manufacturing, finance and operations, Jay began his manufacturing career as a cost accountant before moving into operational leadership and eventually taking responsibility for businesses with thousands of employees. Today, alongside his work with manufacturers, he writes about the lessons and approaches he has developed throughout his career, including in his book Turnaround Revelations.

Resources

📖 Turnaround Revelations
Jay shares alternative approaches to leadership, finance and operations based on his experience working with businesses throughout his career.
View Turnaround Revelations on Amazon

🌐 Website
Do Business Better

💼 LinkedIn
Connect with Jay David on LinkedIn

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