Estimate the Impact to Your Bottom Line
Let's crunch the numbers and see the potential impact on your operation. By cutting your production time in half, you can significantly reduce direct labor and overall operating costs. Take the guesswork out of your decision-making and make data-driven choices with confidence.
Simply enter your summary financial data into the fields below and you will see the impact to your finances. If you are producing various products use an average for your unit Production for the period. The period can be a month, quarter, year or whatever time span you want to compare.
*Please note that this is a static calculator and cannot retain data if you want a copy you must capture a screen shot
2X Impact Calculator
| 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.
Upon seeing the results 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.
Upon seeing the results 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.
