Process Improvement
Training & Consulting
Consultancy for Scrap Cost Reduction
Objective
Optimize operations to reduce costs associated with scrap in your selected processes.
Our Commitment
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Design a comprehensive plan to reduce costs associated with scrap.
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Conduct detailed analysis of your processes using problem solving tools.
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Provide continuous and personalized monitoring.
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Alignment of interests to ensure results
Fee
15% from savings achieved based on annual calculation
Benefits
Significant contribution to improve financial results
How?
Week 1
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Select strategic projects with impact on indicators (YTD SCRAP Cost, Containment Cost, Overtime Cost, Expedited Freight Cost)
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Define Project Leaders (Managers) and Team Members (Engineers)
At least 2 Times
a Week
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Project Progress Revision with Leaders and Team Members at shop floor level
Week 2
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Kick Off Meeting
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Team Building based on Company mission and values to ensure allignment and engagement.
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Team Building perfomed outside Company (Saturday is an option).
Weekly
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Project status presentation to Plant Manager by Project Leaders and Team Members
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Permanent Corrective Actions Implementation
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Lessons Learned & Read Across
Savings Calculation
Calculate Scrap Level Before the Project
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Production Volume: Number of units produced.
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Scrap Percentage: Percentage of production considered as scrap.
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Scrap Cost: Cost associated with scrap (including materials, labor, handling costs, etc.)
Scrap
Cost Before
Production
Volume
Scrap
Percentage
Cost per
Scrap unit
Calculate Scrap Level After the Project
Scrap
Cost After
Production
Volume
New Scrap
Percentage
Cost per
Scrap unit
Calculate Scrap Reduction
Scrap
Reduction
Scrap
Cost Before
Scrap
Cost After
Next Steps