SC 301 Tractor Mower Co-Lean Six Sigma and other Ideas to Reduce Mower Costs Note-this assignment is to form a LEAN Team to limprove OUTPUT per Day Selling Price (To Retailer) Cost Elements (8 in Total) Materials Cost per Mower $1,600 Description # 1 Mower & It's Parts 2 Plywood Protective Pkg's $280 1/2 inch thick plywood 3 Brass Hinges 4 Wooden Pallet 350 Kohler Steel Engine & Steel body w/foam seat 12 24 Hinges at $.50 each 510 Hardwood Pallet $652 Sub Total Mtls Plant Labor Cost per Mower Mower Assembly Shipping Crate Assembly Total Plant Labor Total DMC Semi-Automated Prod'n Line at 20 per hour Assemble Crate Manually Plant Labor Rate $25/hr (Same rate for Whse) 5 6 $100 $10 $110 $762 Fork Truck Put Away, Retrieve, Load into Trailer Plant and Warehouse are in "same building" 7 Warehouse Labor $4 8 Transportation (Pre Cowan* $29 Rounded from $28.57 using $1/mi for 1000 miles COGS $795 Gross Margin Gross Margin % $805 50% Background Info Entire Facility Operates One Shift from 8 am to 4:30 pm for an 8 hour paid work day Hourly employees (Pit and Whse Labor)- 2 paid 15 min breaks; One 30 minute unpaid lunch The 15 min breaks for the entire facility are 10 to 10:15 am and 2:30 to 2:45 pm The lunch period for the entire facility is 12 to 12:30 pm. Dept Labor Staffing: There are 2 Production Lines with 8 hourly employees each 16 employees The Crate Assembly Dept is staffed by 4 employees The Warehouse has 8 employees In Class Assignment: Your Class Team is now a LEAN Team You need to think of ways to "eliminate waste" in order to increase OUTPUT per day >You need to "Quantify" any additional output and how that will be achievec >ADDITIONAL OUTPUT PER DAY 's Mowers . +-- % >>YOUR PLAN TO ACHIEVE ADD'L OUTPUT: PRINT TEAM MEMBER'S NAMES WHO WORKED ON DRILL& SIGN YOUR NAME Print Name Below Sign Name Below SC 301 Tractor Mower Co-Lean Six Sigma and other Ideas to Reduce Mower Costs Note-this assignment is to form a LEAN Team to limprove OUTPUT per Day Selling Price (To Retailer) Cost Elements (8 in Total) Materials Cost per Mower $1,600 Description # 1 Mower & It's Parts 2 Plywood Protective Pkg's $280 1/2 inch thick plywood 3 Brass Hinges 4 Wooden Pallet 350 Kohler Steel Engine & Steel body w/foam seat 12 24 Hinges at $.50 each 510 Hardwood Pallet $652 Sub Total Mtls Plant Labor Cost per Mower Mower Assembly Shipping Crate Assembly Total Plant Labor Total DMC Semi-Automated Prod'n Line at 20 per hour Assemble Crate Manually Plant Labor Rate $25/hr (Same rate for Whse) 5 6 $100 $10 $110 $762 Fork Truck Put Away, Retrieve, Load into Trailer Plant and Warehouse are in "same building" 7 Warehouse Labor $4 8 Transportation (Pre Cowan* $29 Rounded from $28.57 using $1/mi for 1000 miles COGS $795 Gross Margin Gross Margin % $805 50% Background Info Entire Facility Operates One Shift from 8 am to 4:30 pm for an 8 hour paid work day Hourly employees (Pit and Whse Labor)- 2 paid 15 min breaks; One 30 minute unpaid lunch The 15 min breaks for the entire facility are 10 to 10:15 am and 2:30 to 2:45 pm The lunch period for the entire facility is 12 to 12:30 pm. Dept Labor Staffing: There are 2 Production Lines with 8 hourly employees each 16 employees The Crate Assembly Dept is staffed by 4 employees The Warehouse has 8 employees In Class Assignment: Your Class Team is now a LEAN Team You need to think of ways to "eliminate waste" in order to increase OUTPUT per day >You need to "Quantify" any additional output and how that will be achievec >ADDITIONAL OUTPUT PER DAY 's Mowers . +-- % >>YOUR PLAN TO ACHIEVE ADD'L OUTPUT: PRINT TEAM MEMBER'S NAMES WHO WORKED ON DRILL& SIGN YOUR NAME Print Name Below Sign Name Below
