| Weber Supply Company
Revenue
Enhancement Worksheet
This
is the documentation that Weber Supply uses to demonstrate revenue
enhancement activities it performs for a customer. Example: anything that
increases output such as reduced downtime or production efficiencies.
| Customer:
***************** |
WSC rep: Ed Wawryk |
Date: April 17, 2001 |
| Revenue impact explanation |
(A) Annual unit
improvement |
(B) Unit value |
(C) Increased costs |
Profit improvement
(A x B) - C |
| Increased output of seat
tracks |
403,200 |
$4 |
n/a |
$1,612,800 |
| Less $300 for vacuums |
|
|
|
- $300 |
| Total
profit improvement
$1,612,500 |
|
Notes: Their
production line where they assembled the components has 4 cells with
3 people per cell who change the ball bearings for the different
style seats twice per shift per cell for a total of 8 changes per
shift, 3 shifts per day, 7 days a week, 48 weeks per year.
The
old method took 15 minutes per change; the new way with the vacuum
takes 2 minutes, therefore saving 13 minutes per change. The
downtime represents 25 percent of an hour. This equals 60 pieces
less every time they change bearings (they do 240 pieces per hour).
So, instead of losing 60 x 24 = 640 pieces, they have increased
their production 50 x 24 = 1,200 per day, 8,400 extra pieces per
week, 7 days per week, 48 weeks per year totaling 403,200 extra
pieces per year. The material cost $8 per track and they sell the
track for $12. This has also eliminated some overtime. |
| Authorized by: |
Title: Manufacturing
Superintendent |
Signature: |
| Authorized by: |
Title: Purchasing Manager |
Signature: |
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