Michael Mendolia’s Post

View profile for Michael Mendolia, graphic

CTO, Sensor Solutions at Leonardo Electronics, Inc.

Great thought topic. I find value add in 2 ways 'is this something the customer would gladly pay for' and 'does this make our team stronger'. Any actions taken that don't directly impact one or the other I consider tangential aspects any position. #valueadd #teamwork #customerdelight

View profile for Randy Kesterson, graphic

Interim / Fractional CEO/COO and Senior Advisor “I help underperforming companies … excel!”

What is your Value Added? I use Value Added for benchmarking purposes as a way to assess relative productivity in manufacturing organizations. Why? Because Revenue per Employee can vary greatly across firms in the same sector depending on their level of vertical integration (i.e., their make versus buy strategy). For example, a firm that does only final assembly work can have Revenue per Employee well over $1 million, while a firm that makes component parts and subassemblies in-house might have a much lower value (maybe $250K per employee). To adjust for the impact of vertical integration, I use Value Added per Employee as a high level metric to compare the productivity of manufacturing firms competing in the same sector. (Granted, relative profitability will also impact this metric). Value Added per Employee = (Annual Revenue minus Annual Cost of Purchased Materials & Services) divided by the Number of Emoloyees. What is a competitive Value Added per Employee for your sector? What is the Value Added per Employee in your organization? What can you do to improve? #strategy #operations #supplychainmanagement #makebuy #aerospace #aerospaceanddefense #cfo #executiveleadership #benchmarking #valueadded #productivity #competitiveness #ceo

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