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Box score

Box score. Lean Decision making. Box score. The Box Score shows a Three Dimensional view of the value stream Provides an understanding of the operational, financial, and capacity impact of actions and decisions Leads to better understanding and better decisions. Operational Measurements.

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Box score

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  1. Box score Lean Decision making

  2. Box score • The Box Score shows a Three Dimensional view of the value stream • Provides an understanding of the operational, financial, and capacity impact of actions and decisions • Leads to better understanding and better decisions Operational Measurements Capacity Usage Financial Results

  3. Current State Make Product Buy in China Buy Locally Units per Person 29.31 26.05 32.56 32.56 On-Time Shipment 97.2% 98.0% 95.7% 96.0% First Time Thru 54% 63% 52% 60% OPERATIONAL Dock-to-Dock Days 8.90 8.5 16.28 10.21 Average Cost £111.74 £113.10 £113.90 £112.66 AP days - AR days 8.0 8.0 8.8 8.0 Productive 31% 35% 31% 31% Non-Productive 56% 62% 56% 41% CAPACITY Available Capacity 13% 3% 13% 28% Revenue £1,611,456 £1,821,456 £1,821,456 £1,821,456 Material Costs £490,296 £586,296 £575,296 £672,296 Conversion Costs £497,933 £527,036 £545,933 £502,254 FINANCIAL Inventory £221,163 £234,433 £448,961 £316,484 Value Stream Profit £623,226 £708,124 £700,226 £646,905 Value Stream ROS 38.67% 38.88% 38.44% 35.52% 46.00% Hurdle Rate -7.33% -7.12% -7.56% -10.48% Box score used for decision-making

  4. Value stream box scorefor weekly performance reporting

  5. CURRENT FUTURE STATE STATE Sales per Person £7,472 £7,472 On-Time Shipment 92% 94% First Time Through 71% 78% OPERATIONAL Dock-to-Dock Days 33.0 18.5 Average Cost £419.46 £413.97 Accounts Receivable Days 54.0 50.0 Revenue £332,569 £332,569 Material Costs £111,431 £108,446 Conversion Costs £116,753 £116,753 Total Costs £228,184 £225,199 FINANCIAL Value Stream Profit £104,385 £107,370 Return on Sales 31% 32% Inventory Value £209,336 £113,026 £123,117 £288,926 Cash Flow Box score current state & future state Typical Lean Improvement Short Term Operational Improvement is not Matched by Bottom-Line Improvement What has bridged the gap? What has really happened?

  6. CURRENT FUTURE REMOVE STATE STATE UNNEEDED Sales per Person £7,472 £7,472 £8,493 94% On-Time Shipment 92% 94% First Time Through 71% 78% 78% OPERATIONAL 8.5 Dock-to-Dock Days 33.0 18.5 £399.17 Average Cost £419.46 £413.97 54.0 Accounts Receivable Days 54.0 50.0 64% Productive Capacity 51% 43% Employee 27% Non-Productive Capacity 30% 19% 9% Available Capacity 19% 37% CAPACITY 59% Productive Capacity 53% 53% Machines 19% Non-Productive Capacity 32% 17% 22% Available Capacity 15% 29% £332,569 Revenue £332,569 £332,569 £108,446 Material Costs £111,431 £108,446 £108,704 Conversion Costs £116,753 £116,753 £217,151 Total Costs £228,184 £225,199 FINANCIAL £115,418 Value Stream Profit £104,385 £107,370 35% Return on Sales 31% 32% £51,557 Inventory Value £209,336 £113,026 £125,984 £123,117 £288,926 Cash Flow Eliminate employees & machines

  7. CURRENT FUTURE REMOVE INCREASE STATE STATE UNNEEDED SALES Sales per Person £7,472 £7,472 £8,493 £9,614 On-Time Shipment 92% 94% 94% 94% First Time Through 71% 78% 78% 78% OPERATIONAL Dock-to-Dock Days 33.0 18.5 8.5 16.5 Average Cost £419.46 £413.97 £399.17 £366.14 Accounts Receivable Days 54.0 50.0 54.0 50.0 Productive Capacity 51% 43% 64% 56% Employee Non-Productive Capacity 30% 19% 27% 22% Available Capacity 19% 37% 9% 22% CAPACITY Productive Capacity 53% 53% 59% 69% Machines Non-Productive Capacity 32% 17% 19% 20% Available Capacity 15% 29% 22% 12% Revenue £332,569 £332,569 £332,569 £427,938 Material Costs £111,431 £108,446 £108,446 £139,545 Conversion Costs £116,753 £116,753 £108,704 £116,755 Total Costs £228,184 £225,199 £217,151 £256,300 FINANCIAL Value Stream Profit £104,385 £107,370 £115,418 £171,638 Return on Sales 31% 32% 35% 40% Inventory Value £209,336 £113,026 £51,557 £118,113 £123,117 £288,926 £125,984 £185,283 Cash Flow Increase sales

  8. CURRENT FUTURE NEW INCREASE STATE STATE PRODUCTS SALES Sales per Person £7,472 £7,472 £10,026 £9,904 On-Time Shipment 92% 94% 94% 94% First Time Through 71% 78% 78% 78% OPERATIONAL Dock-to-Dock Days 33.0 18.5 16.5 8.5 Average Cost £419.46 £413.97 £366.14 £364.43 Accounts Receivable Days 54.0 50.0 50.0 54.0 Productive Capacity 51% 43% 56% 60% Employee Non-Productive Capacity 30% 19% 22% 24% Available Capacity 19% 37% 22% 16% CAPACITY Productive Capacity 53% 53% 69% 69% Machines Non-Productive Capacity 32% 17% 20% 20% Available Capacity 15% 29% 12% 12% Revenue £332,569 £332,569 £446,278 £427,938 Material Costs £111,431 £108,446 £139,545 £139,545 Conversion Costs £116,753 £116,753 £116,756 £115,557 Total Costs £228,184 £225,199 £256,301 £255,102 FINANCIAL Value Stream Profit £104,385 £107,370 £189,977 £172,836 Return on Sales 31% 32% 43% 40% Inventory Value £209,336 £113,026 £118,114 £62,086 £123,117 £288,926 £203,622 £156,921 Cash Flow Introduce new high-value products

  9. CURRENT FUTURE INSOURCE INCREASE STATE STATE SUB-ASSY SALES Sales per Person £7,472 £7,472 £7,472 £9,904 On-Time Shipment 92% 94% 95% 94% First Time Through 71% 78% 78% 78% OPERATIONAL Dock-to-Dock Days 33.0 18.5 13.5 8.5 Average Cost £419.46 £413.97 £384.07 £364.43 Accounts Receivable Days 54.0 50.0 50.0 54.0 Productive Capacity 51% 43% 52% 60% Employee Non-Productive Capacity 30% 19% 22% 24% Available Capacity 19% 37% 26% 16% CAPACITY Productive Capacity 53% 53% 69% 69% Machines Non-Productive Capacity 32% 17% 20% 20% Available Capacity 15% 29% 11% 12% Revenue £332,569 £332,569 £332,569 £427,938 Material Costs £111,431 £108,446 £92,179 £139,545 Conversion Costs £116,753 £116,753 £116,755 £115,557 Total Costs £228,184 £225,199 £208,934 £255,102 FINANCIAL Value Stream Profit £104,385 £107,370 £123,635 £172,836 Return on Sales 31% 32% 37% 40% Inventory Value £209,336 £113,026 £71,131 £62,086 £123,117 £288,926 £184,263 £156,921 Cash Flow Insource currently outsourced sub-assemblies

  10. CURRENT FUTURE REMOVE INCREASE INSOURCE STATE STATE UNNEEDED SALES SUB-ASSY Sales per Person £7,472 £7,472 £8,493 £9,904 £7,472 On-Time Shipment 92% 94% 94% 94% 95% First Time Through 71% 78% 78% 78% 78% OPERATIONAL Dock-to-Dock Days 33.0 18.5 8.5 8.5 13.5 Average Cost £419.46 £413.97 £399.17 £364.43 £384.07 Accounts Receivable Days 54.0 50.0 54.0 54.0 50.0 Productive Capacity 51% 43% 64% 60% 52% Employee Non-Productive Capacity 30% 19% 27% 24% 22% Available Capacity 19% 37% 9% 16% 26% CAPACITY Productive Capacity 53% 53% 59% 69% 69% Machines Non-Productive Capacity 32% 17% 19% 20% 20% Available Capacity 15% 29% 22% 12% 11% Revenue £332,569 £332,569 £332,569 £427,938 £332,569 Material Costs £111,431 £108,446 £108,446 £139,545 £92,179 Conversion Costs £116,753 £116,753 £108,704 £115,557 £116,755 Total Costs £228,184 £225,199 £217,151 £255,102 £208,934 FINANCIAL Value Stream Profit £104,385 £107,370 £115,418 £172,836 £123,635 Return on Sales 31% 32% 35% 40% 37% Inventory Value £209,336 £113,026 £51,557 £62,086 £71,131 £123,117 £288,926 £125,984 £156,921 £184,263 Cash Flow

  11. £500,000 45% 40% £400,000 35% 30% REVENUE £300,000 25% PROFIT 20% £200,000 RETURN 15% 10% £100,000 5% £- 0% CURRENT REMOVE INSOURCE INCREASE NEW STATE CAPACITY SUB-ASSY SALES PRODUCTS Summary of these decisions

  12. Box score to assess capital equipment:identify the problem 31-Dec 7/31/2004 31-Aug 30-Sep 31-Oct 30-Nov Units per Person 46.01 44.62 43.15 47.11 51.56 33.07 On-Time Shipment 98.0% 98.3% 99.0% 98.8% 72.3% 100.0% Value stream box score prior to additional people & machines First Time Through 82% 84% 84% 82% 76% 86% OPERATIONAL Dock-to-Dock Days 0.00 8.20 7.60 8.10 3.40 5.60 Average Cost £263.04 259.24 255.83 250.89 217.68 244.65 AP Days - AR Days 0 -8 -8 -8 -8 -8 Productive 31% 31% 31% 33% 48% 34% Non-Productive 59% 59% 60% 59% 66% 60% CAPACITY Other 0% 0% 0% 0% 0% 0% Available Capacity 10% 10% 9% 8% -14% 6% Revenue £923,974 £895,549 £865,680 £979,075 £1,142,411 £688,827 Material Costs £317,570 £307,908 £297,735 £336,566 £396,024 £236,667 FINANCIAL Conversion Costs £345,084 £330,159 £315,691 £353,259 £378,838 £242,745 Value Stream Profit £261,320 £257,482 £252,254 £289,250 £367,549 £209,415 Value Stream ROS 28.28% 28.75% 29.14% 29.54% 32.17% 30.40%

  13. 31-Dec 7/31/2004 31-Aug 30-Sep 31-Oct 30-Nov Units per Person 46.01 44.62 43.15 43.99 52.9 30.89 On-Time Shipment 98.0% 98.3% 99.0% 98.8% 99.0% 100.0% First Time Through 82% 84% 84% 85% 85% 86% OPERATIONAL Dock-to-Dock Days 0.00 8.20 7.60 8.10 3.40 5.60 Average Cost £263.04 £259.24 £255.83 £262.44 £236.83 £261.17 AP Days - AR Days 0 -8 -8 -8 -8 -8 Productive 31% 31% 31% 28% 41% 34% Non-Productive 59% 59% 60% 49% 60% 60% CAPACITY Other 0% 0% 0% 0% 0% 0% Available Capacity 10% 10% 9% 23% -1% 6% Revenue £923,974 £895,549 £865,680 £979,075 £1,142,411 £688,827 Material Costs £317,570 £307,908 £297,735 £336,566 £396,024 £236,667 FINANCIAL Conversion Costs £345,084 £330,159 £315,691 £362,054 £362,054 £251,462 Value Stream Profit £261,320 £257,482 £252,254 £280,455 £384,333 £200,698 Value Stream ROS 28.28% 28.75% 29.14% 28.64% 33.64% 29.14% 2 new machines purchased @ £90,000 each 6 additional people in the OEM Machining cells Box score to assess capital equipment:result of the planned action Value stream box score with new equipment and people

  14. Current Plan Outsourcing Net Result 30-Nov 30-Nov 30-Nov Units per Person 51.56 58.18 On-Time Shipment 72.3% 99.0% First Time Through 76% 92% OPERATIONAL Dock-to-Dock Days 3.40 3.70 Average Cost £217.68 £260.91 AP Days - AR Days -8 -8 Productive 48% 42% Non-Productive 66% 56% CAPACITY Other 0% 0% Available Capacity -14% 2% Revenue £1,142,411 £1,142,411 Material Costs £396,024 £14,851 £410,875 FINANCIAL Conversion Costs £378,838 £45,461 £424,299 Value Stream Profit £367,549 (£60,311) £307,238 Value Stream ROS 32.17% 26.89% Box score used for outsourcing decisions The effect of outsourcing to overcome the shortfall of capacity in november.

  15. Current Value Remove "Low Introduce New Stream Margin" Products Products Jan-03 Jun-03 Sep-03 466 395 505 Units per Person 92 99 99 On-Time-Shipment Operational 15 7 9 Dock-to-Dock Days 65 75 75 First Time Thru £112.75 £120.94 £109.23 Average Product Cost 42 35 35 AR Days 24% 18% 28% Productive Capacity 63% 35% 42% Non-Productive 13% 47% 30% Available Capacity £10,667 £9,866 £12,800 Revenue Monthly Financial £3,758 £3,185 £4,073 Material Cost £2,547 £2,547 £2,547 Conversion Cost £4,362 £4,134 £6,180 Value Stream Gross Profit Rationalizing products in the value stream & introducing new products with no capital or employee additions

  16. Current 6 Months 1 Year 18 Months 2 Years 30 Months 3 Years Additional Monthly Quantity 0 1 5 10 15 20 30 Units per Person 1.52 1.54 1.63 1.80 1.90 2.16 2.59 On-Time Shipment 100% 100% 100% 100% 100% 100% 100% OPERATIONAL Dock-to-Dock Days 6.00 6.00 6.00 5.00 5.00 4.50 4.50 First Time Through 80% 80% 85% 85% 85% 85% 85% Average Product Cost £3,481 £3,480 £3,278 £2,985 £2,821 £2,497 £2,092 AR Days 42 42 42 42 37 37 37 Productive 29% 33% 38% 34% 36% 41% 50% CAPACITY Non-Productive 54% 52% 55% 35% 33% 33% 33% Available Capacity 17% 15% 7% 31% 31% 26% 17% Revenue £466,670 £472,670 £502,568 £562,461 £630,170 £714,132 £834,172 Material Costs £172,085 £175,385 £178,685 £181,935 £184,686 £187,101 £189,160 FINANCIAL Conversion Costs £119,584 £119,584 £119,584 £142,584 £142,584 £152,593 £158,084 Value Stream Gross Profit £175,001 £177,701 £204,299 £237,942 £302,900 £374,438 £486,928 Value Stream ROS 37.50% 37.60% 40.65% 42.30% 48.07% 52.43% 58.37% Additional People 5 2 1 Additional Machines 3 2 1 Material Costs per Unit £3,300 £3,300 £3,250 £2,750 £2,325 £2,150 Box score showing the introduction of new product family -- new machines and additional people are required to support the growth

  17. Current Full Manual Cell Scenario 2 Scenario 3 Technology Scenario 5 Scenario 6 Automation Add No Machines Add 10 Machine Add 23 machines Sales per Person £37,494 £48,742 £48,742 £52,804 £52,804 £54,835 £55,389 Inventory Turns 26 22 22 20 20 15 12 Average Cost per Unit £30.03 £28.39 £28.39 £28.78 £27.27 £26.77 £27.96 OPERATIONAL First Time Through % 81% 85% 85% 85% 90% 90% 97% Lead Time in Days 3.0 3.0 5.0 5.0 7.0 7.0 10.0 Productive 55% 52% 58% 64% 55% 56% 48% Non-Productive 28% 40% 22% 18% 37% 27% 43% CAPACITY Available Capacity 17% 8% 20% 18% 8% 17% 9% Revenue £4,874,230 £4,874,230 £4,874,230 £5,280,416 £5,280,416 £5,483,509 £6,092,788 Material Costs £1,396,840 £1,396,840 £1,396,840 £1,513,243 £1,513,243 £1,571,445 £1,746,050 Conversion Costs £1,649,358 £1,483,416 £1,483,416 £1,649,358 £1,483,416 £1,483,416 £1,799,416 FINANCIAL Value Stream Profit £1,828,033 £1,993,975 £1,993,975 £2,117,816 £2,283,757 £2,428,648 £2,547,322 Value Stream Return 38% 41% 41% 40% 43% 44% 42% Hurdle Rate 40% -2% 1% 1% 0% 3% 4% 2% Box score showing 3P results

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