Challenge Operations on Capacity Without Sounding Naive
Practice a conversation that surfaces real capacity drivers behind an unfavorable operations variance.
Elena E VP Operations Cost pressure The issue Freight and overtime are both above plan, and finance needs to know whether this is a controllable miss, a capacity threshold, or a temporary spike. The corrective action changes completely depending on the underlying driver. +9% freight vs plan +14% overtime vs plan Ask for the cost curve, not just the excuse Operations variances usually become useful when finance asks where activity, throughput, or service levels crossed a threshold. Weak question Why did you overspend? Finance can tell the difference between poor control and rational service protection. Variance analysis should link cost…
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