【文章內(nèi)容簡介】 bars Calculate practical full potential cost position and savings Draw strategic implications Process Steps Key Success Factors ? Be persistent and creative, but ethical 23 Relative Cost Position Data Sources Cost information Former employees Utility panies Financial analysis Client sales and marketing Industry experts Market research reports Plant/site tours Industry conventions Reverse engineering reports Product brochures Government filings and patent filings Supplier interviews Literature searches Local newspapers Equipment vendors Customer interviews Current employees Labor unions The next step is to scour myriad sources for cost information. Multiple data sources should be used whenever possible 24 Relative Cost Position . Government Sources Federal State Local Security filings ? . Environmental Protection Agency ? . Department of Labor ? Equal Employment Opportunities Commission (EEOC) ? Patents and Trademarks ? National Labor Relations Board (NLRB) ? Consumer Products Safety Commission ? . Department of Commerce ? Solid Waste Group ? Air Quality Bureau ? Occupational Safety and Health Association (OSHA) ? State Insurance Division ? Emergency Response Commission – annual inventory filings – chemical release forms ? Employment Security Department ? Department of Energy Resources ? Department of Environmental Protection ? Water Bureau ? Town Hall ?Tax Assessor ? Fire Marshall ? Chamber of Commerce ? Planning Commission ? Town landfill/dump ? Waste Water Collection ? Building Inspectors ? Industrial Development Board ? Company debt offerings ? Company 10K ? Other pany filings The following are some . Government sources: 25 Relative Cost Position Conducting a Plant Tour ?Raw materials –waste, spills, overuse, scrap ?Process and methods –quality, yield, alternatives ?Labor –staffing, supervision, work rules, machine utilization –maintenance, changeover, downtime, bottlenecks, speeds ?Material handling –flow, number of transactions, number of people ?Inventory –amount, damaged, amount of handling, storage efficiency, work in process ?Scheduling –how anized, flexibility, lead times ?Purchasing –number and variety of sources, standards You may want to note the following when conducting a plant tour: 26 Relative Cost Position RCP Steps Map the business value chain Identify cost elements and drivers Scour information sources for cost data on clients and petitors Build, pare, and reality check cost bars Calculate practical full potential cost position and savings Draw strategic implications Process Steps Key Success Factors ? Build up cost bars category by category ? Reality check results against similar panies 27 Relative Cost Position Yummy Gum Raw Materials Raw materials costs are built up by multiplying ingredient costs by the amount of ingredients used for each type of gum. Sugar Sugar free Bubble Ingredient cost/mg – sweetener – base – flavor – color 162。 162。 162。 162。 162。 162。 162。 162。 162。 162。 162。 162。 X mg used per 100 sticks – sweetener – base – flavor – color 192mg 107mg 3mg 6mg 76mg 204mg 6mg 3mg 120mg 125mg 3mg 6mg X 100 sticks produced 1997 10,202,793 61,291,522 15,845,631 Total raw material cost: $ $ $ $ + + 28 Relative Cost Position Yummy Gum Packaging Total packaging costs are built up by multiplying the cost per inner wrap by the number of sticks in a package and the cost per outer wrap by the number of packages for each type of package. Five stick Big pack Multipack Number of sticks per pack 5 20 10 Number of packs (1996) x cost per outer wrapping 310,286,650 162。 $ 574,604,889 162。 Total cost (outer wrapping) 71,825,613 162。 $ $ Number of sticks x cost per foil wrapping 1,551,433,251 162。 $ 5,746,048,890162。 Total cost (foil wrapping) 1,436,512,260 162。 $ $ Total packaging cost $ $ $ $ + + 29 Relative Cost Position Yummy Gum Direct Labor (1 of 2) *The wage rate should be adjusted for overtime hours. In this example, no overtime hours were required. Direct labor costs are calculated for each step of the value chain. For the mixing step, costs are driven by the number of hours the machines are running, the number of machines, the staff per machine, and the wage rate. Sugar Sugar free Bubble Number of mixing machines X 100 sticks/machine/hour Total 100 sticks/hour 6 993 5,958 1996 100 sticks/total sticks/hour 1996 operating hours 15,845,631 2,660 X Number of machines X Staffing per machine X Wage rate* $ 6 Total direct labor cost (mixing) $ $ 2 942 1,884 10,202,793 5,415 2 $ $ 1,884 9 1,339 12,051 61,291,522 5,086 9 $ $ 12,051 5,958 + + Mixing Rolling Base making Curing Packaging Raw material purchasing ? 100 sticks/machine/hour 30 Relative Cost Position Yummy Gum Direct Labor (2 of 2) The direct labor costs for each step are then aggregated across the direct labor value chain to give a total direct labor cost of $51MM. Raw material purchasing Base making Mixing Rolling/curing Packaging $ $ $ $ $ Total direct labor $ 1996 Direct labor 31 Relative Cost Position Yummy Gum Indirect Overhead Overhead cost Drivers Cost ?Supervisory labor ?Depreciation ?Overhead labor ?Utilities ?Repair and maintenance Number of supervisors by department X Wage rates of supervisor Asset register/P,P, E X Depreciation schedule Nondirect plant laborers X Wage roles and benefits Water and electricity cost/unit X Amount used of each Average annual cost/mac