sc 301 Tractor Mower Co- Lean Six Sigma and Other Ideas to Reduce Mower Costs Team Assignment Turn in with McDonald's French Fry (each worth 50 Pts) Selling Price (To Retailer) Cost Elements (8 in Total) Materials Cost per Mower $1,600 Description Summary Cost Red'n Idea* Est'd Cost Red'n New Cost # $ Values in Col'n $Values in Col'n 1 Mower & It's Parts 3 Brass Hinges 4 Wooden Pallet $350 Kohler Steel Engine & Steel body w/foam seat 1/2 inch thick plywood 2 Plywood Protective Pkg's $280 $12 $10 $652 es Hardwood Pallet Sub Total Mtls Plant Labor Cost per Mower Mower Assembly Shipping Crate Assembly Total Plant Labor Total DMC 5 6 $100 Automated Prod'n Line at 20 per hour Assemble Crate Manually Plant Labor Rate = $25/hr $110 $762 7 Transportation (Pre Cowan)* $29 8 Warehouse Labor Rounded from $28.57 $4 $795 $805 Retrieve Loada palle COGS Gross Margin Gross Margin % 50% "Based on shipment of 1000 miles at $1 per mile in 53'Trailer with 45,000 lb loadable vw ro that was addedion **Provide up to a 1/2 page for each idea with Assumptions and Financial Analysis Entire Facility Operates One Shift from 8 am to 4:30 pm for an 8 hour paid work day Hourly employees 2 paid 15 min breaks; One 30 minute unpaid tunch The 15 min breaks for the entire facility are 10 to 10:15 am ard 2:45 pm The lunch period for the entire facility is 12 to 12:30 pm. pdates as of No 22 sc 301 Tractor Mower Co- Lean Six Sigma and Other Ideas to Reduce Mower Costs Team Assignment Turn in with McDonald's French Fry (each worth 50 Pts) Selling Price (To Retailer) Cost Elements (8 in Total) Materials Cost per Mower $1,600 Description Summary Cost Red'n Idea* Est'd Cost Red'n New Cost # $ Values in Col'n $Values in Col'n 1 Mower & It's Parts 3 Brass Hinges 4 Wooden Pallet $350 Kohler Steel Engine & Steel body w/foam seat 1/2 inch thick plywood 2 Plywood Protective Pkg's $280 $12 $10 $652 es Hardwood Pallet Sub Total Mtls Plant Labor Cost per Mower Mower Assembly Shipping Crate Assembly Total Plant Labor Total DMC 5 6 $100 Automated Prod'n Line at 20 per hour Assemble Crate Manually Plant Labor Rate = $25/hr $110 $762 7 Transportation (Pre Cowan)* $29 8 Warehouse Labor Rounded from $28.57 $4 $795 $805 Retrieve Loada palle COGS Gross Margin Gross Margin % 50% "Based on shipment of 1000 miles at $1 per mile in 53'Trailer with 45,000 lb loadable vw ro that was addedion **Provide up to a 1/2 page for each idea with Assumptions and Financial Analysis Entire Facility Operates One Shift from 8 am to 4:30 pm for an 8 hour paid work day Hourly employees 2 paid 15 min breaks; One 30 minute unpaid tunch The 15 min breaks for the entire facility are 10 to 10:15 am ard 2:45 pm The lunch period for the entire facility is 12 to 12:30 pm. pdates as of No 22
