iSixSigma

Hard Savings

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  • #53976

    Martin K. Hutchison
    Participant

    When I presented to my boss, the Plant Manager, that I thought we had some opportunities that we could change some tooling so that we could use quick change inserts instead of having to do some complete tool changes whenever we needed a different subfeature on some hard tooled parts, he said that “Hard Savings” are what we need. I said we can reduce the amount of setup $$ that we have to amortize over the lot size, which reduces the cost of each part, that is Hard Savings. He said, “Well, at GM, Hard Savings are people, if a job takes less people you can cut your payroll, that is hard savings”.

    Obviously I don’t have to worry about him visiting this site in this lifetime and catching me asking this question. So what is the Best Practice list of Hard vs. Soft savings? What are the items generally accepted as soft? If I am going to get into this kind of discussion, even though his point of view boggles the mind, I want to make sure I don’t make even one slip up on even a minor outlaying point.

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    #192407

    MBBinWI
    Participant

    @martinkh – Clearly you have found the source of your stupidity.
    If you can reduce the amount of time required to change-over a tool, it will be out of production for a shorter period of time. Thus the next job can start sooner. When you link enough of those together you free up time for that operation to make something that wasn’t made before (either more volume or more variety). This freed-up capacity is available for top-line growth, not merely bottom line cost reduction (which is the only thing this plant mgr seems to be able to see).

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