Calculate and see the results when you build your products in half the time it takes today.
Simply enter your data into the fields below and you will see the impact to your finances. If you are producing various products use an average number of units produced for your Unit Production for the period. The period can be a month, quarter, year or whatever time span you want to compare.
| Period 1 | Period 2 | |
|---|---|---|
| Sales | ||
| Cost of Goods Sold | ||
| Direct Labor | ||
| Gross Margin | ||
| S G & Admin | ||
| Net Profit | ||
| Unit Production | ||
| Unit Sale | ||
| Unit Direct Costs | ||
| Unit Burden Costs | ||
| Unit Total Cost | ||
| Unit Net |
When 2X is achieved, we can now see that each unit produced for the period only carries half the direct labor and burden as it did before. Your Gross Margin increases from the reduction of 50% of the Direct Labor and your Net Profit accumulates that and the 50% decrease in S G & A. To be fair, the sales potion of the S G & A may be higher if there are fixed sales costs per unit. This gives you the weapon to deliver faster and lower prices to beat your competition.
Now that the financial gains are defined and we see the power of building faster, lets ask some questions.
How many deals in the first period were lost to delivery date?
How many deals were lost to price?
Do the math and ask yourself, "How can I not take the initiative to build in half the time?"
Impossible? Think again. If Ford can put 30,000+ parts together in 48 seconds, it's possible you can make a 2X improvement.
Now that the financial gains are defined and we see the power of building faster, lets ask some questions.
How many deals in the first period were lost to delivery date?
How many deals were lost to price?
Do the math and ask yourself, "How can I not take the initiative to build in half the time?"
Impossible? Think again. If Ford can put 30,000+ parts together in 48 seconds, it's possible you can make a 2X improvement.
