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* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * MANY TOOLS, PROCESSES HOW DO THEY FIT TOGETHER DISCLAIMER – EXCLUDE YOUR PET PROCESS OVERLAP NECESSARY BUT NOT SUFFICIENT * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * TWO PAIRS END: Do good job w/ Volume, Mix gets easier Volume vs Mix – where companies spend time Why? Are we dumb? Important, unimportant – urgent, non-urgent * Do good job w/ Volume, Mix gets easier Volume vs Mix – where companies spend time Why? Are we dumb? Important, unimportant – urgent, non-urgent * * * * * * * * * * Purchasing Benefits 13% improvement in purchase costs Purchasing benefit $3.250 million Reasons Valid schedules allow purchasing personnel to spend most of their time doing effective purchasing rather than expediting or trying to obtain material in less than normal lead times Provide purchasing personnel with accurate and up to date projections of usage by item for Sourcing decisions, volume discounts, and value analysis Productivity Benefits 20% improvement in labour expense Productivity benefit $1.60million Reasons Assembly and packing areas; parts available to build the product Other areas; minimal hot jobs, and rush jobs that cause short production runs, extra set ups or wash downs, disruption and inefficiency Obsolescence 50% reduction in obsolescence levels Obsolescence benefit ? Reasons Product changes are better implemented, resulting in less obsolete inventory Ability to react to the market place means less obsolete or non saleable inventory Traffic and Outside Storage Benefits Reduction of 50% by better planning ? Reasons Less expediting and shortages, consequently less need for premium methods of transport Lower inventory levels Cost of Delaying Project Return on Your Invest
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