Lean Demo
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Lean Demo as PDF for free.
More details
- Words: 410
- Pages: 2
Lean Enterprise Benefits Analysis Overwrite the existing numbers and enter your current Dollars, Headcounts, Sq Footage, and Machine Downtime in Column "C" Program will calculate savings in four payback categories: Poor 5%, Fair 10%, Good 15%, Excellent 25%
Use this information to help estimate payback from a Lean implementation.
Lean Enterprise Implementation Results Current Amount
Category Inventory
$
Poor 5%
800000
Annual Savings @ 25% Inventory carrying costs Headcount - MFG Direct Headcount - MFG Indirect Headcount - ADMIN Direct
# # #
50 11 25
Savings @ $25K per head
Space
Fair 10%
Good 15%
Excellent 25%
40000
80000
120000
200000
10000
20000
30000
50000
2.5 0.55 1.25
5 1.1 2.5
7.5 1.65 3.75
12.5 2.75 6.25
107,500
215,000
322,500
537,500
Sq ft
18000
900
1800
2700
4500
Overheads - MFG Fixed Overheads - MFG Variable Overheads - Administration
$ $ $
300000 175000 180000
15000 8750 9000
30000 17500 18000
45000 26250 27000
75000 43750 45000
Total Savings from OHD Reductions
$
32750
65500
98250
163750
2000
100
200
300
500
750
37.5
75
112.5
187.5
$150,250
$300,500
$450,750
$751,250
Machine/Line Changeovers Machine Downtime
Hrs
Summary Total Savings
$
Space Savings Machine time gained Increased Machine Changeovers
Sq Ft
900
1,800
2,700
4,500
Hrs
37.5
75
112.5
187.5
#
100
200
300
500
Some Typical Lean Enterprise Benefits * Improve productivity substantially . * Significantly reduce manufacturing space requirements. * Reduce inventory levels to a few days supply instead of a few months supply. * Improve cash generation through lower inventories and lower capital investment. * Eliminate defects while improving product quality and reliability. * Reduce lead time and improve on-time shipments performance. * Design products that use simplified manufacturing techniques and that have Six-Sigma quality levels designed in. * Have everyone in the organization involved in a continuous improvement activity, permanently. * Reduce your monthly accounting close to a couple of days instead of two weeks. * Run your machines for months or even years without unscheduled downtime. * Reduce your set-up times and produce smaller and more frequent lots. * Have a facility that is a showcase and can be used as an effective marketing tool. The extent of the savings gained will depend on current status and commitment to the Lean program and the % returns used are for estimation purposes only. This spreadsheet is to be used as a guide only for estimation purposes and implies no definitive payback or guarantees of any kind.
Use this information to help estimate payback from a Lean implementation.
Lean Enterprise Implementation Results Current Amount
Category Inventory
$
Poor 5%
800000
Annual Savings @ 25% Inventory carrying costs Headcount - MFG Direct Headcount - MFG Indirect Headcount - ADMIN Direct
# # #
50 11 25
Savings @ $25K per head
Space
Fair 10%
Good 15%
Excellent 25%
40000
80000
120000
200000
10000
20000
30000
50000
2.5 0.55 1.25
5 1.1 2.5
7.5 1.65 3.75
12.5 2.75 6.25
107,500
215,000
322,500
537,500
Sq ft
18000
900
1800
2700
4500
Overheads - MFG Fixed Overheads - MFG Variable Overheads - Administration
$ $ $
300000 175000 180000
15000 8750 9000
30000 17500 18000
45000 26250 27000
75000 43750 45000
Total Savings from OHD Reductions
$
32750
65500
98250
163750
2000
100
200
300
500
750
37.5
75
112.5
187.5
$150,250
$300,500
$450,750
$751,250
Machine/Line Changeovers Machine Downtime
Hrs
Summary Total Savings
$
Space Savings Machine time gained Increased Machine Changeovers
Sq Ft
900
1,800
2,700
4,500
Hrs
37.5
75
112.5
187.5
#
100
200
300
500
Some Typical Lean Enterprise Benefits * Improve productivity substantially . * Significantly reduce manufacturing space requirements. * Reduce inventory levels to a few days supply instead of a few months supply. * Improve cash generation through lower inventories and lower capital investment. * Eliminate defects while improving product quality and reliability. * Reduce lead time and improve on-time shipments performance. * Design products that use simplified manufacturing techniques and that have Six-Sigma quality levels designed in. * Have everyone in the organization involved in a continuous improvement activity, permanently. * Reduce your monthly accounting close to a couple of days instead of two weeks. * Run your machines for months or even years without unscheduled downtime. * Reduce your set-up times and produce smaller and more frequent lots. * Have a facility that is a showcase and can be used as an effective marketing tool. The extent of the savings gained will depend on current status and commitment to the Lean program and the % returns used are for estimation purposes only. This spreadsheet is to be used as a guide only for estimation purposes and implies no definitive payback or guarantees of any kind.
