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The Calculation Formula of The Five Streams Management

Popularity 1Viewed 2438 times 2014-5-19 08:11 |Personal category:Five Streams Management|System category:Economy| management, possible, company, created, profit

It's said hard to calculate the value of management. so there comes the formula to make it possible to count the value created by management.
Capital Stream Flow = Material + Labour + System Management Expenditure + Culture Cultivation Expenditure
Using this formula we can count the cost of the whole company.
If want to know each part of value and profit made, then can adjust the formula as following.
Material Pecentage = Material / Capital Stream Flow
Labour Percentage = Labour / Capital Stream Flow
System Percentage = System Management Expenditure / Capital Stream Flow
Culture Percentage = Culture Cultivation Expenditure / Capital Flow
The formula lays the calculation foundation of the five streams management. So we can use the two side to check if there's anything unnormal happen. This makes the computer monitoring system useful, helping remind the managers of the on-going problems and unusual things and tell where the problems are.
 

(Opinions of the writer in this blog don't represent those of China Daily.)


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Reply Report snowipine 2014-5-20 07:33
Reduce the system management expenditure and adding the reduced value to the laborers' salary checks will attract more talents servicing for a company.
Reply Report woerm 2014-5-20 12:42
snowipine: Reduce the system management expenditure and adding the reduced value to the laborers' salary checks will attract more talents servicing for a company ...
Agree, to some extent.

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