The biggest losers report shows the
worst jobs and the best
jobs in the company. It is usually distributed to Management
those on cost reduction and improvement teams.
create the report:
- Your system should allow you to run a cost of
goods sold report.
- The COGS report will give sales for the
period by part
- Along with a COGS amount for each part
- The COGS report can be sorted to reveal the top
10 losers and the 10 ten best parts.
the COGS report:
to do with the report:
- Download the COGS report to Excel.
- Remove any parts that have very low sales, such
as service parts.
- Then sort the report by the contribution margin
- Remove all but the best and worst contribution
Management should do with it:
- Look at the worst parts and find out why they
are the worst
- The Cost Accountant needs to do some legwork.
the people that run the parts and find out what the problems are.
- Also find out why the best parts are the best
- Make notes on the report and give to Management.
to watch out for:
- Management needs to review the report and form
a team of people to go after the worst parts to make them better.
- The best parts should be reviewed to see if
they can get any better.
- Can the parts that produce the most revenue be
- The company should focus its efforts on the
parts that generate the most revenue.
- Be sure the costs in the COGS report are
- Is the burden allocation fair and reasonable?