This article presents a real case study showing how inaccurate labor cost assumptions became a direct cause of financial losses. Understated labor rates made unprofitable jobs appear profitable, and errors in allocation and WIP timing further distorted results. Correcting labor cost accuracy and rebuilding the allocation rules restored visibility into true profitability.

I supported two business-unit acquisitions as the right-hand to the owner-CEO, where the real challenge was post-merger integration. In one case, I restored a manufacturer’s autonomy through group restructuring and proper accounting processes, leading to record profits. In another, I secured a key engineer and resolved quality issues with a Taiwanese supplier, turning the business into a major profit driver.