Good morning, I need to find 3 more reductions on the tractor mower cost reduction. I found 4 reductions Please Help.
Good morning,
I need to find 3 more reductions on the tractor mower cost reduction. I found 4 reductions Please Help.
SC 301 Tractor Mower Co–Lean Six Sigma and Other Ideas to Reduce Mower Costs
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Selling Price (To Retailer)$1,600 DescriptionCost Elements (8 in Total)Materials Cost per MowerMower & It’s Parts$350 Kohler Steel Engine & Steel body w/foam seatPlywood Protective Pkg’g$280 1/2 inch thick plywood Brass Hinges$12 24 Hinges at $.50 each (corrects typo of $50 ea)
Wooden Pallet$10 Hardwood PalletSub Total Mtls$652 Plant Labor Cost per MowerMower Assembly$100 Automated Prod’n Line at 20 per hourShipping Crate Assembly$10 Assemble Crate ManuallyTotal Plant Labor$110 Plant Labor Rate = $25/hrTotal DMC$762 Transportation (Pre Cowan)*$29 Rounded from $28.57Warehouse Labor$4 Fork Truck Put Away, Retrieve, Load at 1 pallet per tripCOGS$795 Gross Margin$805 Gross Margin %50%*Based on shipment of 1000 miles at $1 per mile in 53′ Trailer with 45,000 lb loadable wt
and all shipments to customers use Truckload with a 45,000 loadable wt target
**Provide up to a 1/2 page for each idea with Assumptions and Financial Analysis