Halve setups
SMED programme cuts setup volume by 50%; spend unchanged.
Capacity held: spending and unit rates stay at baseline, so volume that disappears becomes unused capacity. Loss-making customers: 22 before, 16 after.
Baseline vs scenario
| Baseline | Scenario | Change | |
|---|---|---|---|
| Revenue | 20,185,090 | 20,185,090 | 0 |
| Direct margin | 6,661,978 | 6,661,978 | 0 |
| GL cost | 5,141,678 | 5,141,678 | 0 |
| Cost allocated to customers and products | 4,844,417 | 4,453,945 | -390,473 |
| Unused capacity | 297,260 | 687,733 | 390,473 |
| Operating profit | 1,520,300 | 1,520,300 | 0 |
Activities
| Activity | Rate (base) | Rate (scenario) | Volume (base) | Volume (scenario) | Unused (base) | Unused (scenario) |
|---|---|---|---|---|---|---|
| Custom finishing | 215.95 | 215.95 | 1,041 | 1,041 | 0 | 0 |
| Engineering changes | 1,472.54 | 1,472.54 | 229 | 229 | 0 | 0 |
| Hand assembly | 4.37 | 4.37 | 128,686 | 128,686 | 0 | 0 |
| Machine run | 18.62 | 18.62 | 47,923 | 47,923 | 0 | 0 |
| Quality inspection | 248.25 | 248.25 | 2,247 | 2,247 | 0 | 0 |
| Setups | 974.96 | 974.96 | 801 | 400 | 0 | 390,473 |
| Credit and collections | 13.56 | 13.56 | 4,480 | 4,480 | 28,577 | 28,577 |
| Customer support | 74.91 | 74.91 | 3,243 | 3,243 | 114,325 | 114,325 |
| Delivery | 114.04 | 114.04 | 4,386 | 4,386 | 0 | 0 |
| Order processing | 52.86 | 52.86 | 4,596 | 4,596 | 114,341 | 114,341 |
| Pallet handling | 23.96 | 23.96 | 14,910 | 14,910 | 0 | 0 |
| Returns handling | 301.52 | 301.52 | 282 | 282 | 40,017 | 40,017 |
Biggest customer profit movements
| Customer | Profit before | Profit after | Change |
|---|---|---|---|
| C006 Retail chain account 006 | 444,280 | 496,941 | 52,661 |
| C020 Retail chain account 020 | 186,768 | 202,557 | 15,788 |
| C070 Contract account 070 | 6,254 | 19,824 | 13,570 |
| C005 Retail chain account 005 | 106,348 | 119,321 | 12,973 |
| C041 Dealer account 041 | 145,043 | 156,553 | 11,510 |
| C003 Retail chain account 003 | 56,415 | 67,487 | 11,072 |
| C010 Retail chain account 010 | -3,996 | 6,107 | 10,104 |
| C060 Online account 060 | -35,652 | -26,180 | 9,472 |
| C001 Retail chain account 001 | 31,174 | 40,609 | 9,434 |
| C013 Retail chain account 013 | 71,152 | 80,356 | 9,204 |
| C061 Online account 061 | -59,166 | -50,401 | 8,765 |
| C031 Dealer account 031 | 100,359 | 108,971 | 8,612 |
Whale curve: baseline
Whale curve: scenario
Scenario cost conservation: all checks evaluated.