What is:

• a) Current output = ___

  b) New output = ___

  c) % Increase = (New/Old -1) = ___

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 improve OUTPUT per Day Selling Price (To Retailer) $1,600 Description # Cost Elements (8 in Total) Materials Cost per Mower 1 Mower & It's Parts 2 Plywood Protective Pkg's 3 Brass Hinges 4 Wooden Pallet Sub Total Mtls $350 $280 $12 $10 $652 Kohler Steel Engine & Steel body w/foam seat 1/2 inch thick plywood 24 Hinges at $.50 each Hardwood Pallet $100 Plant Labor Cost per Mower 5 Mower Assembly 6 Shipping Crate Assembly Total Plant Labor Total DMC $10 $110 $762 Semi-Automated Prod'n Line at 20 per hour Assemble Crate Manually Plant Labor Rate = $25/hr (Same rate for Whse) 7 Warehouse Labor Fork Truck Put Away, Retrieve, Load into Trailer Plant and Warehouse are in "same building" Rounded from $28.57 using $1/mi for 1000 miles 8 Transportation (Pre Cowan)* COGS $29 $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 (Plt 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 achieved >> ADDITIONAL OUTPUT PER DAY = _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