Manufacturing Model: 1. Introduction
FinRobot is an automatic assembler of financial Models in Microsoft Excel. It allows you to set online parameters for your project and download a financial Model with working formulae and input fields in Microsoft Excel.
When ordering your Model online, sensitive financial data about your business does not need to be inputted, if you prefer not to. Your Model will be delivered with dummy financial data, which can be replaced with your own inputs off-line as needed.
Your Model can be further modified off-line. Unlike the black box solutions, the code and type of formulae are intentionally simple and transparent.
Currently, FinRobot provides six versions of our Models called 'Base', 'Case Builder', ‘Quick IRR’, ‘Quick RE Development’, ‘Topline’ and ‘Manufacturing’. This Manual describes the functionality of the Manufacturing Model. To read more about our other Models please refer to their respective manuals (available on-line and as a download in pdf).
Initial understanding of the Model’s layout and templates can be achieved by viewing screenshots of the Model from the Models’ section of our site. Note that yellow fields are data input fields which can be re-populated with data off-line without any risk of unintentionally altering the functionality or structure of the Model.
The Institute of Chartered Accountants in England and Wales (ICAEW) has recognised FinRobot’s Manufacturing Model as being compliant with ICAEW’s Twenty Principles for good spreadsheet practice. The purpose of these Principles is to help reduce the amount of time wasted, and the number of errors caused, by businesses (including accountancy practices) as a consequence of the way they and their employees use spreadsheets.
In compliance with Principle 20 of the Principles, all worksheets of the Model are locked except for designated data input fields. If you need to change working areas of the Model you can unlock any tab by going to the Review menu at the top of Excel and clicking on ‘unprotect sheet’ button. Default password is finrobot, but you may wish to substitute a password of your own choice in place of the default. We recommend the Model is locked again after any planned changes to avoid accidental overwrites by end users.
Please ensure you make a back-up after downloading your Model.
* Users should be aware that the Manufacturing Model does not cover all aspects of good spreadsheet practice and therefore should ensure that they follow the best practice appropriate to their specific circumstances when relying upon spreadsheets.
Our Models have been successfully tested for Microsoft Office Excel 2007-2013. If your installation of Microsoft Office is different, you may wish to use free Microsoft Office converters. However, we do not guarantee that the Model will retain all of its functionality and graphical representations if opened in a different version of Microsoft Office.
Manufacturing Model is best suited for modelling production processes based on uptime, output rate and pricing assumptions. For each product group, users can assign up to ten cost drivers. Depending on the profile of your business these can depend on production volume (per unit driver), uptime (per hour or per work shift driver) or remain fixed (adjustable for inflation). The Model can describe any production environment from continuous 24*7 operations to weekly single or multi- shift schedules.
Manufacturing Model allows you to:
- Choose your own calendar start and stop dates for the model (monthly, quarterly or annually) and reset the start date later in Excel, if and when required;
- Select between one and ten product lines to model uptime, output rates and pricing dynamics for each line;
- Within each product line assign up to ten cost drivers to model COGS such as cost per unit or per hour/shift of uptime, alternatively assume some costs to remain fixed (e.g. rents) but adjustable for inflation;
- Model up to five elements of central overhead costs assigning them to be either variable or fixed and adjustable for inflation, if desired;
- Set parameters for your opening balance sheet and working capital requirements, book future CapEx program and the Model will automatically work out its depreciation schedule;
- Provide inputs and analyse impact from short-term overdraft funding and/or long-term debt financing;
- Generate three forms of financial statements – balance sheet, P&L and cash flow – and calculate tax liability and loss carry forwards;
- Сalculate NPV and IRR for your business or project;
- Save time with an easy interface to repopulate input assumptions and/or to rename key elements of your revenue and cost items to suit your business environment with the ability to make later changes in Excel. Please note that any input and output category can be relabelled to make your Model appear fully tailored.
Many additional flexible parameters that can be set in the model-building stage or changed later in Excel are shown in the Model's screenshot.