Background of the story:
When Patti visited Rob, who had been injured in an accident, he calculated the cost of MRI in the hospital, and the professor did a similar investigation about it, which led to a series of reflections about the cost.
Sam Watkins, general manager of ACME's New Hampshire plant, just wrapped up a meeting with Boss CEO Mike Madigan. These kinds of meetings bring him new stress and even embarrassment every time, because Mike is a daunting person. However, this should not have been the case. Patti Coleman, who initiated the NMAC IO indicator, visited all of ACME's underprofitable factories and conducted process audits to help them develop improvement plans. There is also Pete Ottez, who works with Patty, and Sam has not forgotten him, Pete and Patti work together tacitly, and both are key to the success of the project.
Sam turned on his computer and wrote an email to Patty, and Mike argued that given the recent success of the NMAC IO metric, there was a need to unify the way ACME operated. If this strategy is to be implemented, the most cost-effective equipment and materials need to be selected, and in their view, the lowest "acquisition cost" should be the most important measure in this strategy, and the email to Patty is asking (ordering) her to implement this strategy and submit a project progress plan six weeks later. Patti's report was asked to include recommended equipment and materials, a phased plan, the budget needed to achieve the goal, and the projected ROI.
Patty was having lunch in her office while flipping through Golf Digest and USA Today when Sam's email popped up on her laptop. After reading it, she couldn't hide the excitement in her heart, grabbed the ** and wanted to call the professor and ask for his opinion. Sam also mentioned in the email that she would hire a professor as a special advisor and promise a lot of money. Patty just smiled when she saw it, and she knew that the professor had long since treated money as nothing.
Professor fromUnstatedthemselvesYesHow many languages are spoken, so PattiThis timeI'm going to see if the professor can speak French. She and Rob have recently been learning French at home. "Good morning, Professor, how are you? The professor answered, and Patti greeted in French. "Good, Patty. How are Rob and your sons? My wife and I have been worried about Rob, is his back recovering well? The professor responded in fluent French. Patty sighed and thought to herself, "Well, so far, I've verified that the professor can speak about 10 languages." Patti switched to English and said, "Rob is recovering well, and after learning of his injury, my Six Sigma Green Belt Coach Jim Hall called me and shared his thoughts on overdoing exercise. Jim is a fitness trainer and is a strong believer in moderate exercise. I told Rob about Jim's advice, and he assured me that I would reduce the amount of exercise." "I'm relieved," the professor said in English. "Rob needs to be physically fit to keep up with the growth of the kids. "But, I'm guessing you have something else to discuss with me. The professor shifted. Patti said, "Yes. Sam and Mike wanted me to develop an implementation plan for the most cost-effective equipment and materials that would allow the plant to replicate the success. It is also recommended to keep the acquisition cost of equipment and materials to a minimum. "It's a really good idea to replicate the success if you choose the right materials and equipment. The professor replied thoughtfully. "But I have reservations about whether we should advocate for a 'minimum acquisition cost,' which is a good measure for comparing automotive consumer goods, but not so well for comparing profitable equipment or materials. The professor continued.
It was similar to what Patty had in mind, but she wanted to hear more specific advice from the professor. "Can you give an example? She asked. The professor replied, "Let's say a person mows the lawn for a living. He consideredBuy oneLawn mowers do business, one of which is pushingcarlawn mower,Mowing the lawnThe width is20 inches, $300. Suppose he needs towithThree years to repay the loan. The maintenance fee is $150 per year and the fuel fee is $1200workTime30 weeks. The other is $3,000Mount-styleLawn mowers, $500 per year for maintenance, $3,000 per year for fuel consumption. The mowing width is50 inches。Which programAcquisitionLower cost? ”"It's simple. "A 20-inch cart mower, but it was clear that it didn't make sense to compare the cost of ownership." "Go on. The professor replied. Patti went on to say, "This guy is in business to maximize profits, and it's clear that he can mow more lawns with the second option. For example, a cart mower can mow four lawns a day, and with a mount mower, you can mow ten lawns a day, assuming you get $35 for mowing one lawn. ”
In New Hampshire, lawn mowing work is available for 30 weeks per year, and a cart mower earns $4x7x30x35, or $29,400; The total revenue from using a mount-mounted lawn mower is $10x7x30x35, for a total of $73,500. Let me pull an electron** to calculate the profit for both cases. Patti was the kind of young man who typed very quickly, much to the professor's surprise. After a few seconds, she made an electron**. With a cart mower you earn only 2$70,000, you can earn $6 with mount pose$90,000! Patty exclaimed. "The same is true for electronics manufacturing, where the best equipment and materials, including solder paste, preforms, underfills, solder wires, and fluxes, can help companies maximize profits, while choosing the lowest purchase often backfires. The professor concluded.
What other exciting stories will follow? Stay tuned for the next episode, "Case Study (34): Patti Presents the Most Cost-Effective Solution".
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