Box score

© BMA Inc. 2009. All rights reserved.© BMA Inc. 2009. All rights reserved.

Box score

Lean Decision making


Box scoreOperational

Measurements

FinancialResults

Capacity

Usage

• The Box Score shows a Three Dimensional view of the value stream

• Provides an understanding of the operational, financial, and capacity impact of actions and decisions

• Leads to better understanding and better decisions


Box score used for decision-making

Current State Make Product Buy in China Buy LocallyUnits per Person 29.31 26.05 32.56 32.56

On-Time Shipment 97.2% 98.0% 95.7% 96.0%

First Time Thru 54% 63% 52% 60%

Dock-to-Dock Days 8.90 8.5 16.28 10.21

Average Cost £111.74 £113.10 £113.90 £112.66

AP days - AR days 8.0 8.0 8.8 8.0

Productive 31% 35% 31% 31%

Non-Productive 56% 62% 56% 41%

Available Capacity 13% 3% 13% 28%

Revenue £1,611,456 £1,821,456 £1,821,456 £1,821,456

Material Costs £490,296 £586,296 £575,296 £672,296

Conversion Costs £497,933 £527,036 £545,933 £502,254

Inventory £221,163 £234,433 £448,961 £316,484

Value Stream Profit £623,226 £708,124 £700,226 £646,905

Value Stream ROS 38.67% 38.88% 38.44% 35.52%

46.00% Hurdle Rate -7.33% -7.12% -7.56% -10.48%

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Value stream box scorefor weekly performance reporting


Box score current state & future state

Productive Capacity 51% 43%

Non-Productive Capacity 30% 19%

Available Capacity 19% 37%




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Typical Lean Improvement

Short Term Operational Improvement is not Matched

by Bottom-Line Improvement

What has bridged the gap?What has really happened?Revenue £332,569 £332,569

Material Costs £111,431 £108,446

Conversion Costs £116,753 £116,753

Total Costs £228,184 £225,199

Value Stream Profit £104,385 £107,370

Return on Sales 31% 32%

Inventory Value £209,336 £113,026Cash Flow £123,117 £288,926

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Sales per Person £7,472 £7,472

On-Time Shipment 92% 94%

First Time Through 71% 78%

Dock-to-Dock Days 33.0 18.5

Average Cost £419.46 £413.97

Accounts Receivable Days 54.0 50.0

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CURRENT STATE

FUTURE STATE


Eliminate employees & machines


On-Time Shipment 92% 94%First Time Through 71% 78%

Dock-to-Dock Days 33.0 18.5Average Cost £419.46 £413.97








Revenue £332,569 £332,569Material Costs £111,431 £108,446

Conversion Costs £116,753 £116,753Total Costs £228,184 £225,199

Value Stream Profit £104,385 £107,370Return on Sales 31% 32%Inventory Value £209,336 £113,026

Cash Flow £123,117 £288,926

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CURRENT STATE

FUTURE STATE

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£8,493

94%

78%

8.5

£399.17

54.0

64%

27%

9%

59%

19%

22%

£332,569

£108,446

£108,704

£217,151

£115,418

35%

£51,557£125,984

REMOVE UNNEEDED


Increase salesSales per Person £7,472 £7,472













Cash Flow £123,117 £288,926

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FUTURE STATE

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£8,49394%78%

8.5£399.17

54.0

64%

27%

9%

59%

19%

22%

£332,569£108,446

£108,704£217,151£115,418

35%£51,557£125,984

REMOVE UNNEEDED

£9,61494%78%

16.5£366.14

50.0

56%

22%

22%

69%

20%

12%

£427,938£139,545

£116,755£256,300£171,638

40%£118,113£185,283

INCREASE SALES


Introduce new high-value products














Cash Flow £123,117 £288,926

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FUTURE STATE

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£9,90494%78%

8.5£364.43

54.0

60%

24%

16%

69%

20%

12%

£427,938£139,545

£115,557£255,102£172,836

40%£62,086£156,921

INCREASE SALES

£10,02694%78%

16.5£366.14

50.0

56%

22%

22%

69%

20%

12%

£446,278£139,545

£116,756£256,301£189,977

43%£118,114£203,622

NEW PRODUCTS


Insource currently outsourced sub-assemblies














Cash Flow £123,117 £288,926

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FUTURE STATE

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£9,90494%78%

8.5£364.43

54.0

60%

24%

16%

69%

20%

12%

£427,938£139,545

£115,557£255,102£172,836

40%£62,086£156,921

INCREASE SALES

£7,47295%78%

13.5£384.07

50.0

52%

22%

26%

69%

20%

11%

£332,569£92,179

£116,755£208,934£123,635

37%£71,131£184,263

INSOURCE SUB-ASSY















Cash Flow £123,117 £288,926

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CURRENT STATE

FUTURE STATE

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£8,49394%78%

8.5£399.17

54.0

64%

27%

9%

59%

19%

22%

£332,569£108,446

£108,704£217,151£115,418

35%£51,557£125,984

REMOVE UNNEEDED

£9,90494%78%

8.5£364.43

54.0

60%

24%

16%

69%

20%

12%

£427,938£139,545

£115,557£255,102£172,836

40%£62,086£156,921

INCREASE SALES

£7,47295%78%

13.5£384.07

50.0

52%

22%

26%

69%

20%

11%

£332,569£92,179

£116,755£208,934£123,635

37%£71,131£184,263

INSOURCE SUB-ASSY


Summary of these decisions

£-

£100,000

£200,000

£300,000

£400,000

£500,000

CURRENT

STATE

REMOVE

CAPACITY

INSOURCE

SUB-ASSY

INCREASE

SALES

NEW

PRODUCTS

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

REVENUE

PROFIT

RETURN


Box score to assess capital equipment:identify the problem

Value stream

box score prior to

additional people &

machines

7/31/2004 31-Aug 30-Sep 31-Oct 30-Nov 31-Dec

Units per Person 46.01 44.62 43.15 47.11 51.56 33.07

On-Time Shipment 98.0% 98.3% 99.0% 98.8% 72.3% 100.0%

First Time Through 82% 84% 84% 82% 76% 86%

Dock-to-Dock Days 0.00 8.20 7.60 8.10 3.40 5.60

Average Cost £263.04 259.24 255.83 250.89 217.68 244.65

AP Days - AR Days 0 -8 -8 -8 -8 -8

Productive 31% 31% 31% 33% 48% 34%

Non-Productive 59% 59% 60% 59% 66% 60%

Other 0% 0% 0% 0% 0% 0%

Available Capacity 10% 10% 9% 8% -14% 6%

Revenue £923,974 £895,549 £865,680 £979,075 £1,142,411 £688,827

Material Costs £317,570 £307,908 £297,735 £336,566 £396,024 £236,667

Conversion Costs £345,084 £330,159 £315,691 £353,259 £378,838 £242,745

Value Stream Profit £261,320 £257,482 £252,254 £289,250 £367,549 £209,415

Value Stream ROS 28.28% 28.75% 29.14% 29.54% 32.17% 30.40%

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Box score to assess capital equipment:result of the planned action

Value stream box score with

new equipment and people

7/31/2004 31-Aug 30-Sep 31-Oct 30-Nov 31-Dec

Units per Person 46.01 44.62 43.15 43.99 52.9 30.89

On-Time Shipment 98.0% 98.3% 99.0% 98.8% 99.0% 100.0%

First Time Through 82% 84% 84% 85% 85% 86%

Dock-to-Dock Days 0.00 8.20 7.60 8.10 3.40 5.60

Average Cost £263.04 £259.24 £255.83 £262.44 £236.83 £261.17

AP Days - AR Days 0 -8 -8 -8 -8 -8

Productive 31% 31% 31% 28% 41% 34%

Non-Productive 59% 59% 60% 49% 60% 60%

Other 0% 0% 0% 0% 0% 0%

Available Capacity 10% 10% 9% 23% -1% 6%

Revenue £923,974 £895,549 £865,680 £979,075 £1,142,411 £688,827

Material Costs £317,570 £307,908 £297,735 £336,566 £396,024 £236,667

Conversion Costs £345,084 £330,159 £315,691 £362,054 £362,054 £251,462

Value Stream Profit £261,320 £257,482 £252,254 £280,455 £384,333 £200,698

Value Stream ROS 28.28% 28.75% 29.14% 28.64% 33.64% 29.14%

2 new machines purchased @ £90,000 each6 additional people in the OEM Machining cells

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Box score used for outsourcing decisions

The effect of outsourcing to overcome the

shortfall of capacity in november.

Current Plan Outsourcing Net Result30-Nov 30-Nov 30-Nov

Units per Person 51.56 58.18

On-Time Shipment 72.3% 99.0%

First Time Through 76% 92%

Dock-to-Dock Days 3.40 3.70

Average Cost £217.68 £260.91

AP Days - AR Days -8 -8

Productive 48% 42%

Non-Productive 66% 56%

Other 0% 0%

Available Capacity -14% 2%

Revenue £1,142,411 £1,142,411

Material Costs £396,024 £14,851 £410,875

Conversion Costs £378,838 £45,461 £424,299

Value Stream Profit £367,549 (£60,311) £307,238

Value Stream ROS 32.17% 26.89%

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Rationalizing products in the value stream & introducing new products with no capital or employee additions

Jan-03 Jun-03 Sep-03

Units per Person 466 395 505

On-Time-Shipment 92 99 99

Dock-to-Dock Days 15 7 9

First Time Thru 65 75 75

Average Product Cost £112.75 £120.94 £109.23

AR Days 42 35 35

Productive 24% 18% 28%

Non-Productive 63% 35% 42%

Available Capacity 13% 47% 30%

Revenue Monthly £10,667 £9,866 £12,800

Material Cost £3,758 £3,185 £4,073

Conversion Cost £2,547 £2,547 £2,547

Value Stream Gross Profit £4,362 £4,134 £6,180

Remove "Low Margin" Products

Introduce New Products

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Current Value Stream


Box score showing the introduction of new product family -- new machines and additional people are required to support the growth

Current 6 Months 1 Year 18 Months 2 Years 30 Months 3 YearsAdditional Monthly Quantity 0 1 5 10 15 20 30

Units per Person 1.52 1.54 1.63 1.80 1.90 2.16 2.59

On-Time Shipment 100% 100% 100% 100% 100% 100% 100%

Dock-to-Dock Days 6.00 6.00 6.00 5.00 5.00 4.50 4.50

First Time Through 80% 80% 85% 85% 85% 85% 85%

Average Product Cost £3,481 £3,480 £3,278 £2,985 £2,821 £2,497 £2,092

AR Days 42 42 42 42 37 37 37

Productive 29% 33% 38% 34% 36% 41% 50%

Non-Productive 54% 52% 55% 35% 33% 33% 33%

Available Capacity 17% 15% 7% 31% 31% 26% 17%

Revenue £466,670 £472,670 £502,568 £562,461 £630,170 £714,132 £834,172

Material Costs£172,085 £175,385 £178,685 £181,935 £184,686 £187,101 £189,160

Conversion Costs £119,584 £119,584 £119,584 £142,584 £142,584 £152,593 £158,084

Value Stream Gross Profit £175,001 £177,701 £204,299 £237,942 £302,900 £374,438 £486,928

Value Stream ROS 37.50% 37.60% 40.65% 42.30% 48.07% 52.43% 58.37%

Additional People 5 2 1Additional Machines 3 2 1

Material Costs per Unit £3,300 £3,300 £3,250 £2,750 £2,325 £2,150

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Box score showing 3P resultsManual CellScenario 2 Scenario 3

Current TechnologyScenario 5 Scenario 6

Full Automation

Add No Machines Add 10 Machine Add 23 machines

Sales per Person £37,494 £48,742 £48,742 £52,804 £52,804 £54,835 £55,389

Inventory Turns 26 22 22 20 20 15 12

Average Cost per Unit £30.03 £28.39 £28.39 £28.78 £27.27 £26.77 £27.96

First Time Through % 81% 85% 85% 85% 90% 90% 97%

Lead Time in Days 3.0 3.0 5.0 5.0 7.0 7.0 10.0

Productive 55% 52% 58% 64% 55% 56% 48%

Non-Productive 28% 40% 22% 18% 37% 27% 43%

Available Capacity 17% 8% 20% 18% 8% 17% 9%

Revenue £4,874,230 £4,874,230 £4,874,230 £5,280,416 £5,280,416 £5,483,509 £6,092,788

Material Costs £1,396,840 £1,396,840 £1,396,840 £1,513,243 £1,513,243 £1,571,445 £1,746,050

Conversion Costs £1,649,358 £1,483,416 £1,483,416 £1,649,358 £1,483,416 £1,483,416 £1,799,416

Value Stream Profit £1,828,033 £1,993,975 £1,993,975 £2,117,816 £2,283,757 £2,428,648 £2,547,322

Value Stream Return 38% 41% 41% 40% 43% 44% 42%

40% Hurdle Rate -2% 1% 1% 0% 3% 4% 2%

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Box score

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