“… in 74% of cases of companies

[businesses] requiring a turnaround strategy,

the problem
. lay with
implementation problems and not
Business Image with
Solutions the plan that had been
.

formulated.” – Hofer, C and Schendel, D, Strategy

Formulation: Analytical Concepts, West, St Paul, Minnesota, 1978, p
172

P/BEXSYS ©
PERFORMANCE EXCELLENCE SYSTEM
ORGANISATION PERFORMANCE SOLUTION
Source of
activity in P&P Manual
JOB
business (SOP’s)
DESCRIPTIONS
PERSONAL
BUSINESS OPERATING
PLAN SYSTEM

WORKS
EMPLOYEE ERP SYSTEM (SAP, Sage, ORDERS INTERNAL
EVENTS / . PURCHASE
REQUiSITIONS Pastel, QuickBooks ORDER

CUSTOMER
EVENTS /
REQUESTS
EXTERNAL
PURCHASE
ORDER

FAILURE
EVENTS
WHAT THE SOLUTION ACHIEVES - INHERENTLY

 Guaranteed absolute financial/COST CONTROL

 Guaranteed PROFIT MAXIMIISATION through OPERATING PERFORMANCE

EXCELLENCE

 Guaranteed total EMPLOYEE RELATIONS & CONTROL solution.

 Guaranteed CONTINOUS IMPROVEMENT (Kaizen/Six Sigma/TQM)

 Guaranteed QUALITY MANAGEMENT and CONTROL

 Guaranteed CUSTOMER SATISFACTION.

 Guaranteed HEALTH & SAFETY legal compliance and management;

 Guaranteed ENVIRONMENTAL legal compliance and management

RECOGNISE THIS ? Your customers , stakeholders and bank manager will !
AND THIS ?

NB !!! Please
excuse the
‘FRENCH’

(PS !! I mean the language used, not

the people of France !!)
 The COST
The response : MANAGEMENT
spectrum
“It is expected that an enterprise will AACE® International – The Association for the
Advancement of Cost Engineering
to do everything possible to “The Authority for Total Cost Management ™ “

promote performance and

productivity by the application of
professional and technical expertise
to plan and control
resources, costs, profitability and
risks. “

AACE® International – The Association for the Advancement of Cost

Engineering
“The Authority for Total Cost Management ™ “
 THE
RESULT………………
 Why cost reduction is more complex than just
‘buying cheap’ and procurement systems. . . . .

In Search of Excellence, Peters &

Waterman
PERSONAL SUPERVISION IS COSTLY AND WILL NOT SOLVED THE PROBLEM

“Those who’ve BEEN

THERE will understand,

and

no explanation is
needed…..

Those who have NOT

BEEN THERE,
cannot and will not
understand,

so no explanation is
possible.”
DISCIPLINARY ACTION obviously doesn’t work…in the long run anyway
 AACE® International – The Association for the Advancement of Cost
Engineering

“The Authority for Total Cost Management ™ “

WORSE
STILL….
HUMAN
PERFORMANCE
ERROR / FAILURE / =
LIMITATION

Clearly management is itself a

“POTENTIAL CONSTRAINT”
P/BEXSYS © PERFORMANCE EXCELLENCE SYSTEM
The propensity to complicate. . .
IMPLEMENTING THE PLAN – Maximised Marketing
The most difficult part of business is its
plan/strategy execution/implementation.
Most important is call to action, appeal.
The importance of Personal Management
The importance of follow-up
IMPLEMENTING THE PLAN – Every Manager’s Desk Reference

Who’s the customer ? Any person or group who

recieves the work output of another (Coupled
Processing – 20 Keys)
The employee customer – the first level of customer
who has ownership of a process for which they are
responsible, a pre-occupation with personal
performance and a commitment to personal
improvement.
Process owners are motivated by a desire for
excellence and are satisfied with their work only when
the product or service is of such quality that it evokes
a sense of personal pride.
THE INTERNAL CUSTOMER – Every Manager’s Desk Reference.
Internal customers are those who receive work output (product)
from internal process owners.
The primary objective of each process owner is to satisfy its
internal customer by providing top-quality products and services.
Product quality, timeliness of delivery and cost are among the
most important factors influencing internal customer
satisfaction.
Excellence in internal customer service is reflected in the
quality of the finished product, the better the internal customer
service quality, the higher the product quality.
Prevention based management ensures customer satisfaction
throughout out the entire process
PREVENTION BASED MANAGEMENT – the supervision and
control of those systems and processes designed to prevent
customer dissatisfaction, it concerns itself with the need for
service recovery, which is the organisations attempt to make
things right, it is proactive and attempts to identify problems
before they affect external customer perception.
THE EXTERNAL CUSTOMER - Every Manager’s Desk Reference
The ultimate recipient of the finished product or
service, the final arbiter of quality, value, excellence
and service.

More than any other single factor, the judgment of the

external customer determines the success or failure of the
business.

Take every possible step to ensure customer

satisfaction up front and to avoid negative perceptions
THE ORIGINS OF THE PROBLEM – NOT JUST OFF-SITE > OUT OF SIGHT

The origins of the problem is well encapsulated by the following

book review in a leading law journal :

Personal Management Skills by Stephen Maysom (Renate de

Klerk: South African editor) There is much in this book for the
young practitioner (particularly one who did not have the benefit
of a planned and focused practical training programme during

orderly and
articles) to learn about establishing

productive working habits.

productive
It seems that

working habits do not come

naturally and need planned and focused practical
training etc.!
The Problem - One Loses Focus On What
Is Really Important!
WRONG PRIORITIES:
Back-loggs
Too Much paper and e-mail
Poor planning
No or poor follow-up
Support personnel not fully used
Not delegating enough
LOSS of TIME:
Personal disorganization
Archive doesn’t function
Interruptions
Unforseen activities
Procrastination.
WOULD YOU BELIEVE
THAT...?

Managers and
professionals
(white collar
workers) spend on
the average SIX
weeks per year
looking for things
Source: Account Temps published in the
Wall Street Journal.
DID YOU KNOW THAT ?..

85 % of the information we file is not

looked at again

We spend 10 % of our time searching

for information.
We never take a step back and look at
ourselves
Most people are only
vaguely aware of how
they go about their
own work;

And very seldom do

they take the time to
analyze this process.
PLANNING PROBLEMS
?
 Too optimistic?

 Difficult to estimate how

much time an action
takes?

 No time for unforeseen

activities?.
 WORK
PLANNING

WORK
ORGANIZATION

WORK HABITS
 TIME
MANAGEMENT
WORK
PLANNING PROJECT
MANAGEMENT GETTING & STAYING
CONTINUAL
LEARNING ORGANISED

STRESS
MANAGEMENT PERSONAL DELEGATION
OPERATING
PROBLEM-SOLVING SYSTEM
& PERFORMANCE
DECISION MAKING MANAGEMENT

NUTRITION EFFECTIVE
WORK HABITS EXERCISE MEETINGS
SUSTENANCE
Clarify job purpose

Manage your time: when to do

what, setting priorities,
working on key tasks

Use of tools: calendar, to do list,

weekly planning.
The ONLY WAY to improve work ethics and service is : -
Maximised Marketing

Educate,
Equip
Empower
On the job training (practise)
 EMPLOYEE/SUPPLIER a/c AVERAGE/STANDARD

PBEXSYS BUSINESS OPERATING SYSTEM DETAILS QTY UNIT

RATE
TOTAL
AMOUNT
BALANCE

Sources of PO-Labour 10 100.00 1000.00 1000.00

SOP/WI/ SOP/WI/ JOBws©
activity/ • SPECIFICATIONS : PURCHASE
PURCHASE PURCHASE
actions/tasks JOBws © ORDER ORDER PO-Labour 10 100.00 1000.00 2000.00
• WBS - ACTIVITIES/ ORDER
opened and • Job ref # processed
in a business ACTIONS : Issued per
• Start date Remuneration / 20 100.00 (2000.00) 0.00
completed • SEQUENCING SOP/WI/ in Payment
for every • RESOURCES • Complete
JOBws © accounting
source of • SCHEDULE: date EMPLOYEE/SUPPLIER a/c BELOW AVERAGE/STANDARD
specifications. system from
• Qty Time or
activity / @ the RATES which DETAILS QTY UNIT TOTAL BALANCE
UoM @
action / per the
standard payment / RATE AMOUNT
BUSINESS event / SOP/WI/JOB settlement
PLAN : • Rate PO-Labour 10 100.00 1000.00 1000.00
incident ws calculated.
• Delivery
Strategies / © & per Remuneration / 20 100.00 (2000.00) (1000.00)
destination/
Projects / capacity Payment
recipient
Recurring- • Tech Claim/Discipline (1000.00) 0.00
routine Data/SOP/Q EMPLOYEE/SUPPLIER a/c BELOW AVERAGE/STANDARD
activates / C details/ref.
P&P’s DETAILS QTY UNIT TOTAL BALANCE
EXPENDITURE RATE AMOUNT
application/
requistion > PO-Labour 10 100.00 1000.00 1000.00
SUPPLIER/
approval >
EMPLOYEE
QUOTE Remuneration / 20 100.00 (2000.00) (1000.00)
EVENTS – PURCHASE ORDER REGISTER – used Payment
requirements to for expediting PO’s
execute Claim/Discipline (1000.00) 0.00
responsibilities
Supplier/Employee EMPLOYEE/SUPPLIER a/c with SUPPLIER & FRACA SOP/WI/JOBWS©
requisitions
MASTER CONTROL WS resources needed to
DETAILS QTY UNIT
RATE
TOTAL
AMOUNT
BALANCE

Used to manage priority and execute order.

PO-Labour 10 100.00 1000.00 1000.00
CUSTOMER capacity ( see template)
EVENTS / Supplier/employee delivers Supplier 1000 10.00 (10000.00) (9000.00)
once expenditure approved PO to person designated SOP/WI/JOBWS©
REQ’S
or sales order received on the PO. Person 1000 10.00 10000.00 1000.00
PO-Materials
designated on the PO is the
FRACA (1000.00) 0.00
next person in the flow SOP/WI/JOBWS©

FAILURE INVOICE/CLAIM Accepted/Signed PO processed in

Remuneration /
Payment
20 100.00 (2000.00) (2000.00)

EVENTS Accounts Payable system Claim/Discipline (2000.00) 0.00

HAND-OUT 1
SOP/WI/JOB/PROJWS ©

HAND OUT 2
JOB NUMBER JC-001
CUSTOMER
CUSTOMER LEDGER A/C #
CUSTOMER
ORDER NUMBER
DATE 15-Jan-14
PROFORMA Generic OMC/P
JOBWS
DESCRIPTION ACCOUNTING COST OF
CODE COSTING PRICING PRODUCTION SCHEULE ISSUED (WIP) INVOICING SALES
UoM PURCHASE
COST MARGIN SELLING ORDER
UoP QTY SUPPLIER RATE AMOUNT UoS QTY % RATE AMOUNT START COMPLETE REFERENCE QTY AMOUNT Qty Amount Qty Amount

Quote EXPENDITURE
RECOVERY
VARIANCE
ACCOUNT - 2014/01/15 2014/01/23
LABOUR Hours 10 Sales Rep x5 28.77 287.67 Hrs 10 40% 40.27 402.74 00:00 08:00 PO-001 1.00 28.77 0.00 0.00 0.00
Sales order EXPENDITURE
processing RECOVERY
VARIANCE
ACCOUNT - 2014/01/23 2014/01/24
LABOUR Hours 1 Internal sales 28.77 28.77 Hrs 1 40% 40.27 40.27 08:00 04:00 PO-002 0.00 0.00 0.00 0.00
Production Wire - EXPENDITURE
Weaving RECOVERY
VARIANCE
ACCOUNT - 2014/01/24 2014/04/17
LABOUR Hours 100 •Weaver & Assts x 25 28.77 2 876.71 Hrs 100 40% 40.27 4 027.40 04:00 12:00 PO-003 0.00 0.00 0.00 0.00
Production Wire - 2014/04/17 2014/04/30
Crimping Hours 15 •Crimper Operator x 6 28.77 431.51 Hrs 15 40% 40.27 604.11 12:00 00:00 0.00 0.00 0.00
Per BOM INVENTORY
CONTROL Units 1 •Weaver & Assts x 25 100.00 100.00 Unts 1 40% 140.00 140.00 15-Jan-14 PO-008 0.00 0.00 0.00 0.00
40% 0.00 0.00 0.00 0.00 0.00

3 724.66 5 214.52 28.77 0.00 0.00

PURCHASE ORDER

PO NUMBER PO-001
DATE 15-Jan-14
SUPPLIER Sales Rep x5
JOBWS # JC-001
START DATE 2014/01/15 00:00
COMPLETE DATE 2014/01/23 08:00
DELIVERY DESTINATION/ADDRESS Internal sales ORDERED RECEIVED

CODE DESCRIPTION UoM QTY RATE AMOUNT QTY AMOUNT

EXPENDITURE RECOVERY VARIANCE ACCOUNT - LABOUR Quote Hours 10 28.77 287.67 1.00 28.77
0.00

287.67 28.77
PURCHASE ORDER

PO NUMBER PO-002
DATE 15-Jan-14
JOBWS # JC-001
SUPPLIER Internal sales
START DATE 2014/01/23 08:00
COMPLETE DATE 2014/01/24 04:00
DELIVERY DESTINATION/ADDRESS Production manager ORDERED RECEIVED

CODE DESCRIPTION UoM QTY RATE AMOUNT QTY AMOUNT

EXPENDITURE RECOVERY VARIANCE ACCOUNT - LABOUR Sales order processing Hours 1 28.77 28.77 0.00
0.00

28.77 0.00

PURCHASE ORDER

PO NUMBER PO-003
DATE 15-Jan-14
JOBWS # JC-001
SUPPLIER •Weaver & Assts x 25
START DATE 2014/01/24 04:00
COMPLETE DATE 2014/04/17 12:00
DELIVERY DESTINATION/ADDRESS •Crimper Operator x 6 ORDERED RECEIVED

CODE DESCRIPTION UoM QTY RATE AMOUNT QTY AMOUNT

EXPENDITURE RECOVERY VARIANCE ACCOUNT - LABOUR Production Wire - Weaving Hours 100 28.77 2 876.71 0.00
0.00

2 876.71 0.00

SUPPLIER (Creditor) ACCOUNT- INTERNAL (EMPLOYEE) - 003

NAME •Weaver & Assts x 25

PAYROLL SYSTEM - PAYSLIP - 003 5 000PO-003 0

Trfr SUPPLIER SOP/WI/JOB/PROJWS© from CUSTOMER (Debtor) A/C to SUPPLIER
(Creditor) 100PO-006 0
Trfr SUPPLIER SOP/WI/JOB/PROJWS© from CUSTOMER (Debtor) A/C to SUPPLIER
(Creditor) 17PO-007 0
PO-008 0
Trfr to GAINS&LOSS ACCOUNT Trfr to GAINS&LOSS ACCOUNT
insert row

5 117 0
Balance c/f -5 117
SOP/WI/JOB/PROJWS ©
JOB NUMBER JC-001
CUSTOMER
CUSTOMER LEDGER A/C #
CUSTOMER
ORDER NUMBER
DATE 15-Jan-14
PROFORMA Generic OMC/P
JOBWS
DESCRIPTION ACCOUNTING COST OF
CODE COSTING PRICING PRODUCTION SCHEULE ISSUED (WIP) INVOICING SALES
UoM PURCHASE
COST MARGIN SELLING ORDER
UoP QTY SUPPLIER RATE AMOUNT UoS QTY % RATE AMOUNT START COMPLETE REFERENCE QTY AMOUNT Qty Amount Qty Amount

Quote EXPENDITURE
RECOVERY
VARIANCE
ACCOUNT - 2014/01/15 2014/01/23
LABOUR Hours 10 Sales Rep x5 28.77 287.67 Hrs 10 40% 40.27 402.74 00:00 08:00 PO-001 1.00 28.77 0.00 0.00 0.00
Sales order EXPENDITURE
processing RECOVERY
VARIANCE
ACCOUNT - 2014/01/23 2014/01/24
LABOUR Hours 1 Internal sales 28.77 28.77 Hrs 1 40% 40.27 40.27 08:00 04:00 PO-002 0.00 0.00 0.00 0.00
Production Wire - EXPENDITURE
Weaving RECOVERY
VARIANCE
ACCOUNT - 2014/01/24 2014/04/17
LABOUR Hours 100 •Weaver & Assts x 25 28.77 2 876.71 Hrs 100 40% 40.27 4 027.40 04:00 12:00 PO-003 0.00 0.00 0.00 0.00
Production Wire - 2014/04/17 2014/04/30
Crimping Hours 15 •Crimper Operator x 6 28.77 431.51 Hrs 15 40% 40.27 604.11 12:00 00:00 0.00 0.00 0.00
Per BOM INVENTORY
CONTROL Units 1 •Weaver & Assts x 25 100.00 100.00 Unts 1 40% 140.00 140.00 15-Jan-14 PO-008 0.00 0.00 0.00 0.00
40% 0.00 0.00 0.00 0.00 0.00

3 724.66 5 214.52 28.77 0.00 0.00

PAYROLL SYSTEM - PAYSLIP - 003

NAME •Weaver & Assts x 25

BASIC SALARY per contract of employment 5000

COMPANY CONTRIBUTIONS
FIXED COST TO COMPANY 5000
HOURLY RATE 28.77
INCENTIVES (e.g. bonus/commissions etc.)
DEDUCTIONS
EMPTAX
UIF
OTHER DEDUCTIONS

NETT PAY 5000

PROCUREMENT FLOW (High Level) WORKFLOW INCIDENT closed in
ERP and
ROUTED/COMMUNICATED to
requisitioner for info.
REQUISITION/AFE/PROCUREMENT SPECIFICATION /TEMPLATE/FORM

Form is based on the CAPITAL BUDGETING process concept FUNCTIONAL MANAGER closes
PROCUREMENT INCIDENT
Completed
Person requiring WORKFLOW
something INCIDENT is FUNCTIONAL
WORKFLOW INCIDENT
completes/ ROUTED/ MANAGER
Start created in ERP
prepares COMMUNICATED decides
REQUISITION/AFE
REQUISITION/AFE/ by ERP per whether need
/PROCUREMENT
PROCUREMENT WORKFLOW to exists AND
SPECIFICATION
SPECIFICATION FUNCTIONAL BENEFIT
/TEMPLATE/FORM
/TEMPLATE/FORM MANAGER to probable
attached to INCIDENT.
approve
requirement/need

Completed Completed
WORKFLOW WORKFLOW
INCIDENT in ERP PROCUREMENT DEPT. INCIDENT in
1 notes cost and actions on PROCUREMENT ERP
ROUTED/
PROCUREMENT INCIDENT obtains pricing ROUTED/COM
COMMUNICATED
and updates attached and does MUNICATED by
by ERP per
AFE/REQUISITION/ costing. ERP per
WORKFLOW to
designated SPECIFICATION WORKFLOW to
departmental/ TEMPLATE/FORM with PROCURMENT
functional cost information. DEPT.
manager for Procurement uses inventory prices if
approval inventory on hand and not otherwise
allocated.
 Functional Manager makes application for additional budget
allocation – per Forecasting/Estimating/Budgeting process if
UN-budgeted and cost benefit justified/established. Approved
‘PROCUREMENT’
WORKFLOW
INCIDENT ROUTED /
Functional COMMUNICATED by
Manager ERP to
reviews/ Functional PROCUREMENT
Functional Manager
considers Manager approves function for
decides whether to
expenditure in ‘PROCUREMENT’ PROCUREMENT
1 approve/reject
WORKFLOW INCIDENT REQUISITION
expenditure against
INCIDENT creation.
budget availability.
against budget
etc.

REQUISITION REQUISITION
REQUISITION notified for created in ERP –
PROCUREMENT approved or Approval per Procurement INVENTORY
2 REQUISITION rejected per AUTHORITY Module – by check
approved PROCEDURAL MATRIX PROCUREMENT
CRITERIA

PROCUREMENT
Requisition only
REQUISITION closed.
generated if NO INVENTORY
unallocated issuing process
Rejected REQUISITION inventory on hand
discarded and
REQUISITIONER notified
 Forecasting/Estimating
/Budgeting process

APPROVED
requisition PURCHASE ORDER
notified by ERP routed/sent to
Approved Cashflow
to designated operator
REQUISITION availability
2 PROCUREMENT for CASHFLOW
converted to checked and
FUNCTION. AVAILABILITY
PURCHASE ORDER scheduled
approval/scheduling.

PURCHASE
ORDER
routed/sent by
Cashflow designated
PROCUREMENT system to
End operator APPROVES
disseminates PROCUREMENT
Purchase Order
PURCHAE ORDER for
dissemination to
supplier.
Purchase Order
printed/emailed to
Supplier
THE IMPORTANCE OF TECHNOLOGY IN BUSINESS (mobile phone app)

“Many entrepreneurs are challenged by access to finance and cash flow management, and put in late
hours to catch up on important tasks that fall behind.”
“Technology can help achieve that much sought-after work-life balance by providing increased mobility,
flexibility and efficiency – yet only 4% of SA’s business owners count their smartphone as an essential
business tool. Mobile apps, in particular, have the power to completely revolutionise how you run your
business – helping you gain valuable time by automating various mundane and time-consuming
processes.”
“Sophisticated SME-friendly apps that integrate seamlessly with cloud accounting software are
increasingly available to help your business avoid the cost – in terms of both time and money – of
human errors. By streamlining all your operational processes and automating expenditure functions.”
“Balancing the books is incredibly important, but it’s also hugely time-consuming. Used correctly, the right
online tools can actually help you scale faster, reduce your overheads and add extra hours to your
day.”
“Smart devices and mobile apps can help you boost your business growth by maximising every working
second of your day, whether you’re in the office or on the road.”
“Mobile apps can do so much more than book holiday accommodation or call you a taxi. They can help
business owners work smarter, not harder, earning them time – a priceless commodity that can
ultimately determine the success of your business.”
Reference: ‘The age of the app: how small business owners can earn time’ , 2017/02/13 -
https://www.sanlam.co.za/businessblog/articles/Pages/the-age-of-the-app-how-small-business-
owners-can-earn-
time.aspx?utm_source=newsletter&utm_medium=emailsub&utm_campaign=BussTips201702Eng&ut
m_content=readmore