This document outlines costs from various cases and their root causes and potential cost reductions. Case A had $15 per unit costs from process design that could be reduced through activity selection. Case B had $300 per setup costs from process design that could be reduced by activity reduction. Case D had $400,000 per year costs from process and product design that could be reduced through activity selection.
This document outlines costs from various cases and their root causes and potential cost reductions. Case A had $15 per unit costs from process design that could be reduced through activity selection. Case B had $300 per setup costs from process design that could be reduced by activity reduction. Case D had $400,000 per year costs from process and product design that could be reduced through activity selection.
This document outlines costs from various cases and their root causes and potential cost reductions. Case A had $15 per unit costs from process design that could be reduced through activity selection. Case B had $300 per setup costs from process design that could be reduced by activity reduction. Case D had $400,000 per year costs from process and product design that could be reduced through activity selection.
Case Non value added cost ($) Root cause Cost reduction
A 15 per unit Process design Activity selection
B 300 per setup Process design Activity reduction C 120 per unit Plant layout Activity elimination D 400,000 per year Process design, Prouduct design Activity selection E 250 per unit Suppliers Activity elimination F 900,000 per year Product design Activity sharing