270 How to be an Even Better Manager
Action Programme
Steps Responsibility Completion
by
- Ensure recognition Purchasing Manager 15 January
by supplier of problem Production Manager
with ‘hard spots’ in
castings. - Negotiate price concession Purchasing Manager 31 January
on all castings received
during weeks when we
return more than 10 bad
castings. - Set up storage area to Facilities Manager 15 February
accumulate ruined
castings. - Establish procedures to Production Controller 1 March
record machine downtime
and cutter breakage with
individual castings. - Ensure XYZ Company Purchasing Manager 15 March
agrees new arrangements.
Profit impact
£
20... Profit increase
(decrease)
Price concessions 7,000
Effect of improved quality Scrap 8,500
Overtime 3,500
Expense tools 9,000
Lost production 20,000
Other 12,000
Modifications in storage area (2,000)
Recording procedures (1,000)
Other costs (3,000)
Total profit impact £54,000
Figure 43.1 Example of a manufacturing plan