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Dollar Savings

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  • #30676

    Mahabaleshwar
    Participant

     
    What are the key factors considered during dollar savings calculation.Can anyone be able to highlight on this.
     mvu

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    #80273

    Mike Carnell
    Participant

    Mahabaleshwar,
    You should be determining this in the measure phase. When you decide what you are going to work on it will be because of a parameter that you believe is operating at some substandard level,ie. inventory turns, personel turnover, etc. There are cost associated with those that may or may not be indigenous to that process. You should be able to determine that from a process map – if not your map isn’t complete but in general if you use the catagories from an Ishikawa diagram it will give you a pretty good start.
    Good luck.

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    #80283

    mv
    Participant

    Hi,
         Can dollar savings’ factors / considerations be expalained more.In case, if it is in cycle time reduction for a product during processing in different stages of it’s production.
         It would be helpful.

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    #80284

    Niraj Goyal
    Participant

    Hello Mahabaleshwar,
    I have just done a project in the insurance industry. Applying Batch Flow and principles of lean in reducing turnaround of documents has not only reduces the customer wait time by cutting the cycle time but alos improved productivity per document by 40% by cutting the mankours spent.
    This is easily transaltable into dollar savings.
    Further the infrastructure is getting better utilised as less of it is required for the same volume of work.
    Regards,
    Niraj  

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