EXAMPLES OF ORGANIZATIONS THAT USE EVA

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By monografiaac


Economic Value Added

Below two examples of companies that use EVA and seeking success, extracted from published reports:

The Monographia AD- equipe de produção de Monografia para TCC, warning that many monografias or TCC s the area of Administration, Graduate or post-graduate students need a practical scope of applicability or occurrence of the subject of a monograph companies or organizations.

The Herman Miller faced difficulties in the mid-90. Going on a huge drop in business of mobile offices, the company's sales grew faster than those of industry, but the results do not appear in the line of results. "We actually lost our way" says chief executive financial (CFO), Brian Walker: "We were playing all sorts of unnecessary or unproductive assets on the balance sheet. Actually we thought that capital was free and the business was having a stroke. " It was then that the top management turned to the EVA, it considered to be particularly well-suited to its business environment that officials called-owners (all have shares).

The managers were right. In its first full year with the new financial management system, the EVA Miller's jumped from $ 10 million to over $ 40 million, "The analysis EVA allowed us to identify the waste both in our costs and in our use of capital, "says CEO, Michael A. Volkeman. "This led to the reduction of non-productive assets such as stocks and receivable and accounts." Over the past two years, as sales increased by 38%, employees of Herman Miller found ways to reduce inventories by 24% and reduce the total square meter area built on 15%.

The Herman Miller also cut the days of accounts receivable of 45 in 1992 to only 30 in 1997. But the Herman Miller not accelerated payments because the office of the controller instructed the divisions to press the pressure on customers. When adopted the E.V.A. and began to focus on cost of capital as accounts receivable, employees of Miller Divisions attacked the problem of overdue accounts receivable for its own account and found that the cause, were incomplete deliveries. When a request was delivered with a lack of one or two pieces, the customer retinha all payments until the arrival of the last missing piece.

Thus, employees of Miller reduced the time of the "accounts receivable" increasing the speed of production of those items missing and ensuring that shipments fell outside s full and on time. Result: Improvements in both E.V.A. and in customer satisfaction.

This example of applicability is very interesting for a monograph or a dissertation on EVA

The Construtora Andrade Gutierrez is concentrated in four classes, concessions, roads and sanitation, telecommunications, construction in Brazil and abroad. Constatada the inability of government to follow investing in the infrastructure works, the builder decided broaden their horizons. For this, reorganised itself into business units and has given maximum attention to the cost of spreadsheets. Another measure was to rid himself of holdings in some business. It made a deep mexida in organizational structure.

Even with all these changes, remained a problem. The group was coming to the new century tied to a holding company operating in the case, the actual construction. In these times when decisions must be taken quickly it was inappropriate under a set builder, strategies related, for example, the area of telephony or concessions from roads. It was necessary to decentralize. Hence, was created to AGSA, the latest non-operational holding company of the group. Finally, from now on the executives of the group will have to guide their actions by EVA -- The Economic Value Added, or economic value added - a tool of administration that seeks maximize return on their investments. "The goal is to have a return of 20% a year in all our business," says Sergio Andrade, CEO.

Count on the AC and Research Papers Ready for reasons of TCC to a monograph on the EVA

It is therefore with a structure more closely aligned to the new times that the company vai try to match its billing from now on the past.

This article is an offshoot of the article for the EVA on business

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ajay  says:
3 months ago

nice example

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