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© BMA Inc. 2008. All rights reserved.
Lean decision makingBox score
© BMA Inc. 2008. All rights reserved.
Box scoreOperational
Measurements
FinancialResults
Capacity
Usage
• 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
© BMA Inc. 2008. All rights reserved.
Box score used for decision-making
Current State Make Product Buy in China Buy LocallyUnits 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%
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%
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
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%
OP
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© BMA Inc. 2008. All rights reserved.
Value stream box scorefor weekly performance reporting
© BMA Inc. 2008. All rights reserved.
Box score current state & future state
Productive Capacity 51% 43%
Non-Productive Capacity 30% 19%
Available Capacity 19% 37%
Productive Capacity 53% 53%
Non-Productive Capacity 32% 17%
Available Capacity 15% 29%
CA
PA
CIT
Y
Em
plo
yee
Mac
hin
es
Sales per Person $7,472 $7,472
On-Time Shipment 92% 94%
First Time Through 71% 78%
Dock-to-Dock Days 33.0 18.5
Average Cost $419.46 $413.97
Accounts Receivable Days 54.0 50.0OP
ER
AT
ION
AL
CURRENT STATE
FUTURE STATE
Revenue $332,569 $332,569
Material Costs $111,431 $108,446
Conversion Costs $116,753 $116,753
Total Costs $228,184 $225,199
Value Stream Profit $104,385 $107,370
Return on Sales 31% 32%
Inventory Value $209,336 $113,026Cash Flow $123,117 $288,926
FIN
AN
CIA
L
Typical Lean Improvement
Short Term Operational Improvement is not Matched
by Bottom-Line Improvement
What has bridged the gap?What has really happened?
© BMA Inc. 2008. All rights reserved.
Eliminate employees & machines
Sales per Person $7,472 $7,472
On-Time Shipment 92% 94%
First Time Through 71% 78%
Dock-to-Dock Days 33.0 18.5
Average Cost $419.46 $413.97
Accounts Receivable Days 54.0 50.0
Productive Capacity 51% 43%
Non-Productive Capacity 30% 19%
Available Capacity 19% 37%
Productive Capacity 53% 53%
Non-Productive Capacity 32% 17%
Available Capacity 15% 29%
Revenue $332,569 $332,569
Material Costs $111,431 $108,446
Conversion Costs $116,753 $116,753
Total Costs $228,184 $225,199
Value Stream Profit $104,385 $107,370
Return on Sales 31% 32%
Inventory Value $209,336 $113,026Cash Flow $123,117 $288,926
OP
ER
AT
ION
AL
CURRENT STATE
FUTURE STATE
FIN
AN
CIA
L
CA
PA
CIT
Y
Em
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Mac
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$8,493
94%
78%
8.5
$399.17
54.0
64%
27%
9%
59%
19%
22%
$332,569
$108,446
$108,704
$217,151
$115,418
35%
$51,557$125,984
REMOVE UNNEEDED
© BMA Inc. 2008. All rights reserved.
Increase salesSales per Person $7,472 $7,472
On-Time Shipment 92% 94%
First Time Through 71% 78%
Dock-to-Dock Days 33.0 18.5
Average Cost $419.46 $413.97
Accounts Receivable Days 54.0 50.0
Productive Capacity 51% 43%
Non-Productive Capacity 30% 19%
Available Capacity 19% 37%
Productive Capacity 53% 53%
Non-Productive Capacity 32% 17%
Available Capacity 15% 29%
Revenue $332,569 $332,569
Material Costs $111,431 $108,446
Conversion Costs $116,753 $116,753
Total Costs $228,184 $225,199
Value Stream Profit $104,385 $107,370
Return on Sales 31% 32%
Inventory Value $209,336 $113,026Cash Flow $123,117 $288,926
OP
ER
AT
ION
AL
CURRENT STATE
FUTURE STATE
FIN
AN
CIA
L
CA
PA
CIT
Y
Em
plo
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Mac
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$8,493
94%
78%
8.5
$399.17
54.0
64%
27%
9%
59%
19%
22%
$332,569
$108,446
$108,704
$217,151
$115,418
35%
$51,557$125,984
REMOVE UNNEEDED
$9,614
94%
78%
16.5
$366.14
50.0
56%
22%
22%
69%
20%
12%
$427,938
$139,545
$116,755
$256,300
$171,638
40%
$118,113$185,283
INCREASE SALES
© BMA Inc. 2008. All rights reserved.
Introduce new high-value products
Sales per Person $7,472 $7,472
On-Time Shipment 92% 94%
First Time Through 71% 78%
Dock-to-Dock Days 33.0 18.5
Average Cost $419.46 $413.97
Accounts Receivable Days 54.0 50.0
Productive Capacity 51% 43%
Non-Productive Capacity 30% 19%
Available Capacity 19% 37%
Productive Capacity 53% 53%
Non-Productive Capacity 32% 17%
Available Capacity 15% 29%
Revenue $332,569 $332,569
Material Costs $111,431 $108,446
Conversion Costs $116,753 $116,753
Total Costs $228,184 $225,199
Value Stream Profit $104,385 $107,370
Return on Sales 31% 32%
Inventory Value $209,336 $113,026Cash Flow $123,117 $288,926
OP
ER
AT
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AL
CURRENT STATE
FUTURE STATE
FIN
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CIA
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CA
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$9,904
94%
78%
8.5
$364.43
54.0
60%
24%
16%
69%
20%
12%
$427,938
$139,545
$115,557
$255,102
$172,836
40%
$62,086$156,921
INCREASE SALES
$10,026
94%
78%
16.5
$366.14
50.0
56%
22%
22%
69%
20%
12%
$446,278
$139,545
$116,756
$256,301
$189,977
43%
$118,114$203,622
NEW PRODUCTS
© BMA Inc. 2008. All rights reserved.
Insource currently outsourced sub-assemblies
Sales per Person $7,472 $7,472
On-Time Shipment 92% 94%
First Time Through 71% 78%
Dock-to-Dock Days 33.0 18.5
Average Cost $419.46 $413.97
Accounts Receivable Days 54.0 50.0
Productive Capacity 51% 43%
Non-Productive Capacity 30% 19%
Available Capacity 19% 37%
Productive Capacity 53% 53%
Non-Productive Capacity 32% 17%
Available Capacity 15% 29%
Revenue $332,569 $332,569
Material Costs $111,431 $108,446
Conversion Costs $116,753 $116,753
Total Costs $228,184 $225,199
Value Stream Profit $104,385 $107,370
Return on Sales 31% 32%
Inventory Value $209,336 $113,026Cash Flow $123,117 $288,926
OP
ER
AT
ION
AL
CURRENT STATE
FUTURE STATE
FIN
AN
CIA
L
CA
PA
CIT
Y
Em
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Mac
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$9,904
94%
78%
8.5
$364.43
54.0
60%
24%
16%
69%
20%
12%
$427,938
$139,545
$115,557
$255,102
$172,836
40%
$62,086$156,921
INCREASE SALES
$7,472
95%
78%
13.5
$384.07
50.0
52%
22%
26%
69%
20%
11%
$332,569
$92,179
$116,755
$208,934
$123,635
37%
$71,131$184,263
INSOURCE SUB-ASSY
© BMA Inc. 2008. All rights reserved.
Sales per Person $7,472 $7,472
On-Time Shipment 92% 94%
First Time Through 71% 78%
Dock-to-Dock Days 33.0 18.5
Average Cost $419.46 $413.97
Accounts Receivable Days 54.0 50.0
Productive Capacity 51% 43%
Non-Productive Capacity 30% 19%
Available Capacity 19% 37%
Productive Capacity 53% 53%
Non-Productive Capacity 32% 17%
Available Capacity 15% 29%
Revenue $332,569 $332,569
Material Costs $111,431 $108,446
Conversion Costs $116,753 $116,753
Total Costs $228,184 $225,199
Value Stream Profit $104,385 $107,370
Return on Sales 31% 32%
Inventory Value $209,336 $113,026Cash Flow $123,117 $288,926
OP
ER
AT
ION
AL
CURRENT STATE
FUTURE STATE
FIN
AN
CIA
LC
AP
AC
ITY
Em
plo
yee
Mac
hin
es
$9,904
94%
78%
8.5
$364.43
54.0
60%
24%
16%
69%
20%
12%
$427,938
$139,545
$115,557
$255,102
$172,836
40%
$62,086$156,921
INCREASE SALES
$7,472
95%
78%
13.5
$384.07
50.0
52%
22%
26%
69%
20%
11%
$332,569
$92,179
$116,755
$208,934
$123,635
37%
$71,131$184,263
INSOURCE SUB-ASSY
$8,493
94%
78%
8.5
$399.17
54.0
64%
27%
9%
59%
19%
22%
$332,569
$108,446
$108,704
$217,151
$115,418
35%
$51,557$125,984
REMOVE UNNEEDED
© BMA Inc. 2008. All rights reserved.
Summary of these decisions
$-
$100,000
$200,000
$300,000
$400,000
$500,000
CURRENTSTATE
REMOVECAPACITY
INSOURCESUB-ASSY
INCREASESALES
NEWPRODUCTS
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
REVENUE
PROFIT
RETURN
© BMA Inc. 2008. All rights reserved.
Box score to assess capital equipment:identify the problem
Value stream
box score prior to
additional people &
machines
7/31/2004 31-Aug 30-Sep 31-Oct 30-Nov 31-Dec
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%
First Time Through 82% 84% 84% 82% 76% 86%
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%
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
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%
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© BMA Inc. 2008. All rights reserved.
Box score to assess capital equipment:result of the planned action
Value stream box score with
new equipment and people
7/31/2004 31-Aug 30-Sep 31-Oct 30-Nov 31-Dec
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%
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%
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
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 each6 additional people in the OEM Machining cells
CA
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© BMA Inc. 2008. All rights reserved.
Box score used for outsourcing decisions
The effect of outsourcing to overcome the
shortfall of capacity in november.
Current Plan Outsourcing Net Result30-Nov 30-Nov 30-Nov
Units per Person 51.56 58.18
On-Time Shipment 72.3% 99.0%
First Time Through 76% 92%
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%
Other 0% 0%
Available Capacity -14% 2%
Revenue $1,142,411 $1,142,411
Material Costs $396,024 $14,851 $410,875
Conversion Costs $378,838 $45,461 $424,299
Value Stream Profit $367,549 ($60,311) $307,238
Value Stream ROS 32.17% 26.89%
FIN
AN
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PE
RA
TIO
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AP
AC
ITY
© BMA Inc. 2008. All rights reserved.
Rationalizing products in the value stream & introducing new products with no capital or employee additions
Jan-03 Jun-03 Sep-03
Units per Person 466 395 505
On-Time-Shipment 92 99 99
Dock-to-Dock Days 15 7 9
First Time Thru 65 75 75
Average Product Cost $112.75 $120.94 $109.23
AR Days 42 35 35
Productive 24% 18% 28%
Non-Productive 63% 35% 42%
Available Capacity 13% 47% 30%
Revenue Monthly $10,667 $9,866 $12,800
Material Cost $3,758 $3,185 $4,073
Conversion Cost $2,547 $2,547 $2,547
Value Stream Gross Profit $4,362 $4,134 $6,180
Remove "Low Margin" Products
Introduce New Products
Op
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Current Value Stream
© BMA Inc. 2008. All rights reserved.
Box score showing the introduction of new product family -- new machines and additional people are required to support the growth
Current 6 Months 1 Year 18 Months 2 Years 30 Months 3 YearsAdditional 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%
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%
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
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 1Additional Machines 3 2 1
Material Costs per Unit $3,300 $3,300 $3,250 $2,750 $2,325 $2,150
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© BMA Inc. 2008. All rights reserved.
Box score showing 3P resultsManual Cell Scenario 2 Scenario 3
Current Technology Scenario 5 Scenario 6
Full 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
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%
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
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%
40% Hurdle Rate -2% 1% 1% 0% 3% 4% 2%
OPE
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