Sunbeam 2013 Annual Report Download - page 15

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Financial Discipline
Throughout The Business
Scrap Rate:
Across our manufacturing facilities, we measure the scrap rate
(materials scrapped/total production). Jarden’s scrap rate has
been less than 2%. In 2013, even from this low base, the scrap
rate improved by nearly 10 basis points year-over-year.
Commodity Forecast Accuracy:
Jarden tracks commodities, setting respective commodity plan
rates for Jarden’s annual plan and budget. Through active thoughtful
hedging coupled with risk management to control commodity
price volatility and limit negative variance, Jarden has been able
to consistently deliver on plan, or within budget tolerances.
Working Capital Discipline:
Jarden tracks the key elements of working capital on a regular basis
at each of our businesses. Jarden’s overall order to cash days
improved by four days year-over-year, largely driven by
inventory day reduction.
Labor Efficiency:
Labor efficiency measures the difference between the standard
hours used for making products and the actual hours. Jarden’s
labor efficiency rate improved by 12% from 2012 to 2013.
By measuring and monitoring metrics that matter, Jarden strives to achieve dependable, reliable
results. Financial rigor is built from strong partnerships and a common financial platform across the
business as the value of financial discipline is embodied throughout the organization. For example,
to achieve timeliness of numbers, operational results are seamlessly shared with finance. Similarly,
to impact results, open communication channels support the ongoing analysis and interpretation
of numbers, which then translate into preemptive and proactive action, as required.
Select examples demonstrate nancial discipline at work:
Jarden Corporation Annual Report 2013 11