When something doesn’t seem right, it probably isn’t.
Bettendorf’s Carl Williams, Production Supervisor, noticed that scrap was disproportionately high compared to the weight of a coil. Through his own research and investigation, Carl learned more about how others have improved their processes and reduced scrap costs. First, he began entering actual weights instead of theoretical weights and recording all transactions to reflect the actual weight of the coils. Then, he identified that reducing the scrap from the mill reduces the scrap costs associated with the material, and when the scrap cost is lower, overall material cost is lower, thus increasing the gross margin on the material. He worked with accounting to track data weekly to make the right decisions and Carl’s diligence will generate an estimated $812,681 annually in scrap cost savings.
When it doesn’t seem right, it probably isn’t. Follow-up your gut feeling with data to identify improvements that affect the bottom line.
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