The financial supply chain provides the cash flow needed to ensure the doors are kept open, the lights are kept on, the employees are being paid and products are being made and shipped.
Keep Everybody on the Same Page
When it comes to managing cash flow at Toyota Industrial Equipment Manufacturing Inc. (TIEM), a Columbus, Ind.-based manufacturer of lift trucks, it all begins with the budget process, which allocates the appropriate funds to ensure the company can fund its production operations (e.g., labor, raw materials, product development). Then, once the budget is developed, "all key personnel are expected to meet these targets to ensure our actual financial performance," explains Joe Kurdziel, accounting manager at TIEM (a 2011 IW Best Plants winner). "In the event we cannot meet our budget, we would review our capital expenditure plan to postpone cash disbursements to ensure that the manufacturing process continues at an optimal level."
According to Kurdziel, it's important for the finance department to work closely with the supply chain departments in various aspects of the business. "Finance provides the reports to assist these departments in their day-to-day decision-making processes as well as budgeting and capital expenditure planning," he explains. The key decision-makers are the department vice presidents as they, along with the president, drive TIEM's short- and long-term targets and goals for their respective areas of responsibility.
"Communication is very important in Toyota's environment," he notes, "and the executives meet daily to discuss the events of the day. This meeting also includes the managers that report to these executives. This ensures that all the necessary associates are available to identify and clarify any issues." As you would expect, TIEM also utilizes many of the lean methodologies championed by parent Toyota Motor Corp. (IW 1000/8) to promote improvement in all areas.
