How to determine the percentage of completion of the plan
Video: Percentage of Completion Demonstration 2024, July
The high profit of the organization in the conditions of fierce competition is achieved only through effective task setting and continuous monitoring of the implementation of the intended points. That is why in any business planning is necessary with the subsequent determination of the percentage of completion of the plan.
You will need
Planned indicators of production (sales) and indicators for the reporting period
Instruction manual
1
At the beginning of each reporting period (such a period can be a year, quarter, month, even a day or several hours for current tasks), the head of the organization or department sets out clearly defined plans and tasks for employees. An important condition for the further calculation of the percentage of completion of the plan is the quantitative measurability of these goals. The goal of "high sales in the current month" cannot be measured and estimated using objective methods, and the specific figure of "650 units of goods" will make it possible to calculate the percentage of plan fulfillment based on the results of the month.
2
Based on the results of the work, analyze the achieved result. Avoid the “double counting” situation that will distort your data. Products sold in the previous period, but paid for in the current period, are taken into account in actual sales only once. Similarly, work in progress can be included in actual production figures in only one reporting period. Similar situations may arise with goods shipped, but not yet reached the customer.
3
The implementation of the plan is measured by the ratio of actually achieved results and planned indicators and is expressed as a percentage. If you are considering the implementation of an enterprise plan, consisting of many branches and divisions, summarize the actual values of each of them. Ensure that all values are in common measurement units.
4
A regular analysis of the percentage of fulfillment of the plan will allow you to track the dynamics of the development of production or sales, indicate the strengths and weaknesses of the enterprise, which will help to adjust the features of your business on time.
note
Too high a percentage of the plan (more than 130%) can sometimes mean planning errors and inaccurate forecasts. An extremely low indicator indicates inefficiency, incorrect planning or the presence of force majeure in the reporting period.
