Operations Forensics - 9780262018661

Investors and analysts often need to look into a firm's operations more deeply thantraditional financial statements and models allow. This book describes newly developed tools forusing operations metrics to discern and influence the valuation of a firm. It is the first topresent these techniques from a unified perspective: that of operations forensics, which looks atoperations management not from the traditional point of view of a manager but from that of aninvestor or shareholder. After a discussion of financial statements and the useful but incompleteinsights they provide, the book covers the three components of operations forensics: operationalindicators, operations details that can predict future performance; operational due diligence,methods for verifying companies' claims about operational excellence and valuing their operationalassets; and operational turnaround, an innovative approach to buyout and turnaround strategies. Thetext also offers brief reviews of operations management concepts, real-world examples of operationsforensics, and a glossary. The mathematical material gradually increases in sophistication as thebook progresses (but can be skipped without loss of continuity). Each chapter concludes with a"Takeaways and Toolkit" section, a brief summary of prior research, and suggestions forfurther reading. Operations forensics offers powerful tools and frameworks for financial analysts,private equity firms, managers, and consultants. This book provides a valuable resource for MBAstudents and practitioners. Downloadable supplementary material for instructors incudes figures formthe text and 42 slides that can be used for class presentations.