Training Module for Understanding on How to Control Costs in A Process

1. HOW TO CONTROL COSTS Cost Control Training for Team Leaders; Supervisors; Support Staff; and Managers

41. HOW MANAGERS, TEAM LEADERS AND SUPERVISOR CONTROL COSTS THE POSITIVE IMPACT OF PRODUCTIVITY ON COSTS $0.27 54 $15.00 $0.28 50 $14.00 $0.26 53 $14.00 $0.26 50 $13.00 $0.24 53 $13.00 $0.24 50 $12.00 $0.22 53 $12.00 $0.22 50 $11.00 PER HR PER HR LABOR COST/MIN PIECES RATE OF PAY/HR PIECES RATE OF PAY/HR LABOR COST/MIN

43. HOW TO CONTROL COSTS 1.OO M INS 1.03 MINS 1.07 MINS 1.11 MINS 1.15 MINS 1.2 MINS TIME PER PART 60 58 56 54 52 50 PIECES/HR 60 58 56 54 52 50 VALUE-ADDED TIME 0 MINS 2 MINS 4 MINS 6 MINS 8 MINS 10MIN NON-VALUE ADDED TIME

45. HOW TO CONTROL COSTS 6.7% INCREASE 4.5% INCREASE 3.2% INCREASE 2.3% INCREASE 1.4 % INCREASE 0% % INCREASE IN TIME 2..14 MINS 2..09 MINS 2..06 MINS 2..5 MINS 2..02 MINS 2..00 MINS TIME PER PART 15 10 7 5 3 0 SCRAP PARTS 210 215 218 220 222 225 GOOD PARTS 225 225 225 225 225 225 TOTAL PARTS RAN

49. HOW TO CONTROL COSTS scrap total of all dropped nuts and bolts and parts and report findings. KAIZEN Project for QC and Production- Do a study and estimate the annual $2,500.00 250,000 $.01 per part $1,000.00 100,000 $.01 per part $10.00 1000 .$01 per part Total Cost Total Number Scrapped Cost Per Part

51. HOW TO CONTROL COSTS that is equal to 24 people working for 8 hours If it costs us $2500 per day in internal scrap are throwing away? and not realize how much money we How many times do we scrap parts $780 30 $26.00/part $150.00 10 $15.00/part $75.00 3 $25.00/part $60.00 3 $20.00/part Cost # of Parts Scrapped Cost Per Part