Earnings Before Interest & Tax (EBIT) Challenges

The Global Cost to Value Taskforce will provide new web-based systems to address key challenges such as:

• What is the impact of wastage, productivity, cultural investments in knowledge, collaboration, and other intangibles on earnings before interest and tax (EBIT)?
• How do you assess this within any part of the business?
• How do you assess this on an activity-by-activity basis?

Solution:

• Using international intangible standards we financially estimate the loss in EBIT on an activity-by-activity basis within the business.
• For example, below:
o 8,409 is being lost in EBIT due to wastage in travel overheads (motion according to six sigma methodologies).
o Red rows are related to six sigma initiatives and this can be used to determine the financial value of six sigma initiatives.
o Knowledge management activities primarily focused on improving knowledge productivity could result in a .2m increase in EBIT.
o Structural overheads are costing .14m in EBIT




Can you currently show the impact of performance improvements on EBIT related to any activity and performance improvement project? You can now.