Initiatives with Superior Glove

 COST-SAVINGS:  Blueprint

  

BACK TO

 

PERFORMANCE HOMEPAGE

SUPERIOR PERFORMANCE
SGW COST-SAVINGS

 

A roadmap to successful efficiencies

 

"GLOVE SAFETY & GLOVE ECONOMY" Documenting the BLUEPRINT TO SUCCESS

 

An example of documenting the cost-savings process

This presentation was designed by myself specifically to address the cost-savings initiative relating to PPE (Personal Protective Equipment) in an industrial manufacturing environment. I found that it was essential to communicate the plan of action, or roadmap, to help communicate and seek participation in our path to success. In the following presentation you can click on the blue highlighted words, which will link you to that specific form.

 

Documents are as follows: 

CS#1: Dept.

CS#2: Zone

CS#3: Zone

CS#4: Zone

CS#5: Lifecycle

CS#6: Consolidation

CS#7: Price Reduction

 

 

BLUEPRINT TO SUCCESS

RECOMMENDED COST-SAVINGS TEAM MEMBERS

CUSTOMER'S PURCHASING REPRESENTATIVE  MANUFACTURER REPRESENTATIVE
CUSTOMER'S SAFETY REPRESENTATIVE  ACCOUNT MANAGER  (/Mfg. Rep.)
CUSTOMER'S FUNCTION REPRESENTATIVE :    e.g. Production, Shipping & Receiving, Maintenance, etc.  OTHER TECHNICAL REPRESENTATIVE(S)

 

This one process to realizing COST-SAVINGS:

Each process should be segmented into individual departments where applicable.

1. Cost-savings (hereafter referred to as "CS") team members identify CS opportunities. If CS opportunities are generic (applicable to more than one department) FORM CS#1, which identifies which departments, is to be completed. The Department Head, or his or her representative, will complete FORM CS#2, therein identifying which zone or zones is or are affected.

2. A dual "Customer & Supplier" memo, with a cc. To the Department Head, is sent to the line person who is accountable for the related cost.

1.  The Account Manager drafts a memo to accompany Form CS#2

2.  Customer's Cost-Savings Analyst to approve this memo, which will provide authorization to proceed with this CS initiative.

3.  The Line Representative, who is accountable for the related cost, identifies the zone, or zones, affected and assigns a champion(s) by completing FORM CS#3.

3. Where LIFECYCLE ENHANCEMENT opportunities exist, reconditioning analysis is conducted:

    1. The CS Team determines the amount of new (samples) and current gloves to be used in the analysis.
    2. Account Manager delivers new samples to the Champion. Champion provides current style from inventory.
    3. Champion issues samples to his or her Line-champion(s) along with FORM CS#4.
    4. Champion documents process details on Form CS#3 using in part the Lifecycle Analysis (FORM #5) spreadsheet. The goal is to assign a time value for comparison purposes.
    5. Champion receives feedback (Form CS#4 and used samples) from the Line-champion.
    6. Champion places used samples in sealed package and delivers it to Central Stores where the Reconditioner (who is aware of the trial) will pick it up. It is advisable to mark on the package that the reconditioned samples are to be returned to the Champion only. Champion records findings in the Lifecycle Analysis spreadsheet (through to the completion of the trials).
    7. Upon receiving the reconditioned samples the Champion removes one sample (gloves = one pair) and marks them to identify how many reconditionings have been processed. The remaining samples are to be returned to continue the trials. This is done until sufficient data has been collected to make an informed decision. It is strongly encouraged that the same process conditions be maintained throughout the trials.
    8. Champion presents findings to CS team.
    9. Analysis of Lifecycle results by CS team.

4.  For SAFETY ENHANCEMENT opportunities where lacerations, ergonomic and other safety issues are of a critical concern both a lifecycle and indirect costs are added into the equation

    1. Lifecycle costs must be determined : Complete Form CS#4
    2. Safety Officer calculates indirect costs associated with the product and documents this.
    3. Safety Officer presents findings to CS team who merges this information with Lifecycle Analysis results.

5. CS team submits the Analysis of Lifecycle and Safety results to the CS Supervisor (e.g. Controller)

    1. CS Supervisor, upon completion of a trade-off analysis, will advise CS team of decision to proceed, or not to proceed.
    2. The CS team will communicate this decision/information to the affected departments: Functional areas and Purchasing. The Account Manager must ensure that any changes to the Blanket Contract be effected.

6. Follow-up by CS team:

    1. The Champion will monitor change according to the time frame set by CS team.
    2.  Follow-up to be communicated to all who were involved

7. Upon successful completion of Follow-up:

  1. CELEBRATE RESULTS.
  2. Record cost-savings and report to Customer and Supplier and or Manufacturer.

Two additional forms were created that relate to this Blueprint are:

Product Consolidations (CS #6) (minimizing the number of Stock Keeping Units) and Price Reductions (CS #7).

 

 

With the drive to do more with less, time is also a valuable commodity with customer employees. To make the analysis easier for them, when securing new business or switching styles a cost analysis spreadsheet was created. This has not been presented owing to confidential manufacturer pricing information contained within. The spreadsheet is easy to craft: Simply to create a column for the offered price and the current price: multiply both columns by the number of units and subtract the differences.

One final note re. Cost-savings: It is all very logical. As a commercial society we need to address this because if we are not cost-competitive then the business has a greater propensity to locate elsewhere. With global competition very much a fact of today, losing the business to outside of the country will affect our standard of living locally, regionally, provincially and nationally. Good luck in your cost-savings endeavours.

 
 

BACK TO

 

PERFORMANCE HOMEPAGE
SUPERIOR PERFORMANCE
SGW COST-SAVINGS