G
Greg B
Hi all,
I have been reviewing some of our work areas lately and talking to the operators about Continuous Improvement and costs etc. One of our departments has had a 33% increase per tonne, against budget and they were wondering why it had increased so drastically. I stated that it was because of the number of Non conforming batches that had appeared lately and that the costs associated with Scrap, rework etc had not been factored into the budget originally (and nor will they be). These costs are significant as the 33% shows. NOTE: this is not the management group but the supervisors and operators.
I decided to show them what I meant by added costs so I came up with a flow chart showing one container (batch) being produced and then found to be non conforming. The added cost are from the new replacement order etc. It is colour coded with green being normal costs and orange being additional costs associated with the NC. I will try and get some actual costs for each operation and show Labour, Transport, Lost revenue, Restesting, Investigation and storage costs etc. This is a first draft and they haven't seen it yet.
I'd appreciate some feedback
Greg B
I have been reviewing some of our work areas lately and talking to the operators about Continuous Improvement and costs etc. One of our departments has had a 33% increase per tonne, against budget and they were wondering why it had increased so drastically. I stated that it was because of the number of Non conforming batches that had appeared lately and that the costs associated with Scrap, rework etc had not been factored into the budget originally (and nor will they be). These costs are significant as the 33% shows. NOTE: this is not the management group but the supervisors and operators.
I decided to show them what I meant by added costs so I came up with a flow chart showing one container (batch) being produced and then found to be non conforming. The added cost are from the new replacement order etc. It is colour coded with green being normal costs and orange being additional costs associated with the NC. I will try and get some actual costs for each operation and show Labour, Transport, Lost revenue, Restesting, Investigation and storage costs etc. This is a first draft and they haven't seen it yet.
I'd appreciate some feedback
Greg B
Attachments
Last edited by a moderator: