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Overwrite the existing numbers and enter your current Dollars, Headcounts, Sq Footage, and Machine Downtime in Column "C"
Program will calculate savings in four payback categories: Poor 5%, Fair 10%, Good 15%, Excellent 25%
Use this information to help estimate payback from a Lean implementation.
Summary
* Reduce inventory levels to a few days supply instead of a few months supply.
* Improve cash generation through lower inventories and lower capital investment.
* Design products that use simplified manufacturing techniques and that have Six-Sigma quality levels designed in.
* Reduce your monthly accounting close to a couple of days instead of two weeks.
* Run your machines for months or even years without unscheduled downtime.
* Reduce your set-up times and produce smaller and more frequent lots.
* Have a facility that is a showcase and can be used as an effective marketing tool.
The extent of the savings gained will depend on current status and commitment to the Lean program and the % returns used are for estimation purposes only.
This spreadsheet is to be used as a guide only for estimation purposes and implies no definitive payback or guarantees of any kind.