A concise discussion of techniques that can be used in any organization to control costs effectively

1. HOW TO CONTROL COSTS Cost Control Training for Team Leaders; Supervisors; Support Staff; and Managers

41. HOW MANAGERS, TEAM LEADERS AND SUPERVISOR CONTROL COSTS THE POSITIVE IMPACT OF PRODUCTIVITY ON COSTS $0.27 54 $15.00 $0.28 50 $14.00 $0.26 53 $14.00 $0.26 50 $13.00 $0.24 53 $13.00 $0.24 50 $12.00 $0.22 53 $12.00 $0.22 50 $11.00 PER HR PER HR LABOR COST/MIN PIECES RATE OF PAY/HR PIECES RATE OF PAY/HR LABOR COST/MIN

43. HOW TO CONTROL COSTS 1.OO M INS 1.03 MINS 1.07 MINS 1.11 MINS 1.15 MINS 1.2 MINS TIME PER PART 60 58 56 54 52 50 PIECES/HR 60 58 56 54 52 50 VALUE-ADDED TIME 0 MINS 2 MINS 4 MINS 6 MINS 8 MINS 10MIN NON-VALUE ADDED TIME

45. HOW TO CONTROL COSTS 6.7% INCREASE 4.5% INCREASE 3.2% INCREASE 2.3% INCREASE 1.4 % INCREASE 0% % INCREASE IN TIME 2..14 MINS 2..09 MINS 2..06 MINS 2..5 MINS 2..02 MINS 2..00 MINS TIME PER PART 15 10 7 5 3 0 SCRAP PARTS 210 215 218 220 222 225 GOOD PARTS 225 225 225 225 225 225 TOTAL PARTS RAN

49. HOW TO CONTROL COSTS $2,500.00 250,000 $.01 per part $1,000.00 100,000 $.01 per part $10.00 1000 .$01 per part Total Cost Total Number Scrapped Cost Per Part

51. HOW TO CONTROL COSTS that is equal to 24 people working for 8 hours at $13.00/hour/person If it costs you $2500 per day in internal scrap are throwing away? and not realize how much money you How many times do you scrap parts $780 30 $26.00/part $150.00 10 $15.00/part $75.00 3 $25.00/part $60.00 3 $20.00/part Cost # of Parts Scrapped Cost Per Part