Saving cost through house keeping –
Celebration’s apparel has managed to save a big amount of money by introducing a simple concept of wearing slipper on the production floor. The factory has got the shop floor area of 60,000 sq. feet. To clean this area we need minimum of 6 House keeping employees to ensure that the Plant is clean. The cost of house keeping for the shop floor at present -
|Salary of 1 cleaner |Rs.3900 | |Yearly salary of 6 cleaner | Rs. 280800 | |Total cost per year |Rs. 280800 |
After going through the 5 S of KAIZEN – there was change in the process of House keeping for the shop floor. The plant decided to buy and give slippers to every body and developed the habit of cleaning their working area by themselves. This change in process also incurred some one time costs. The one time incurred cost for change of process is followings
|Cost of brooms & other items |Rs. 11000 | |Cost of slippers ( 650 * 50) |Rs. 35,500 (Visitors slippers) | |Cost to make slipper’s storage racks |Rs. 15000 | |One time cost |Rs.58,500 |
After the introduction of this system, every employee of Celebrations gets into the working slipper before walking onto the production area. Also, they need to clean their working area before they start the work and after finishing their work in the evening. The plant maintains the same system for visitors. [pic]
Operators wearing slippers
After introduction of the above said system – there were reduction in the number of house keeping people required to maintain the floor area. The new cost is followings
|Salary of 2 cleaner’s |Rs.3900*2 = Rs7800 | |Yearly salary of 2 cleaner’s |Rs.93600 | |Total cost per year |Rs.108600 |
Difference between the both the previous cost & the new cost is = Rs 280800 – Rs. 108600
= Rs 172200
Conclusions and results:
1. The pie chart clearly depicts that there is net saving of Rs. 172200. 2. Operators are more cautious about the cleanliness as they themselves have to clean their working are 3. The buck stops at everybody working and there are minimum chances that anyone could pass it onto someone else.
Project -2 REDUCTIONS IN TRANSPORTATION TIME
Saving cost in one of the waste given in 9 waste radar chart –(Transportation) –
In the company the main store is at the ground floor while all the other production activities are on the first floor. Therefore, good amount of time gets wasted if one needs to go from first floor to the ground floor for any production need. So we have reduced the distance by making the sub store on the production floor itself so it saves the – ➢ Cost
➢ Increase the production as we have extra minutes available than earlier for production activities.
This will be more clear by the table which shows our study done when we reduces the distances after creating the Sub- Store on the shop floor itself.
Main store chart:
|Distance traveled from production floor to main store |157 feets | |No. of time helper travels to main store...