Excel Toolkit In Minimizing Cost & Defects

Minimize Cost & Defect with Excel:

Target Audience:
Production Managers/Executives; Operations Managers/Executives; Finance Managers/Executives; and anyone involved in the areas of reducing cost and manufacturing defects. Basic Excel knowledge is required.

About the Course:

Manufacturing Defects are flaws or irregularities in products arising from errors in Production. When the manufacturing process goes awry, the resulting products may fail to meet the manufacturer’s own design specification standards. If such a product escapes the manufacturer’s quality controls, its flawed condition may lead to its failure during use, to an accident, and possibly to an injury to the user or another.

In general,manufacturers and other suppliers are liable for injuries caused by manufacturing defects in products that they sell. Increase in Defects will lead to increase in the organization’s operating cost. Small defects and manufacturing variations can become costly for any company. Several companies have begun implementing different lean manufacturing approaches to reduce manufacturing variations and defects.

Some of the common methods include Six Sigma, Total Quality Control, and the 5 “S”Methodology.Most of the common methodologies in the market require a tool that allows Managers and Executives to perform data collection,measure and analyze the Defects data quick. Microsoft Excel has become a tool that some of these methods recommends.The sample templates have been widely distributed to assist the manufacturing people in their data collection and data analysis.

However, most of the users still do not have sufficient knowledge of the latest functionalities in MS Excel. Financial budgeting can be easily done when Management is able to see real figures being transformed into analytical results with the power of MS Excel.

Training / Course Outline:

1. COST REDUCTION THROUGH EFFECTIVE DEFECTS MANAGEMENT

What are Manufacturing Defects
Urgency of Cost Reduction
Improving productivity through Defects Management

2. METHODOLOGIES OF DEFECTS MANAGEMENT

Cost Reduction by Design
Lean Production
Overhead Cost
Economies of Scale
Product Line Rationalization
Supply Chain Management
Quality Cost
Total Cost management

3. PERFORMANCE MEASUREMENT

Financial vs. Non-Financial Measures
Cost Drivers
Key Performance Indicators (KPI)

4. CRITICAL PRODUCTION FACTORS THAT CONTRIBUTE TO PRODUCT DEFECTS

Quality related costs
Cost of reworking
Scrap during Production
Manufacturing Effectiveness
Bottleneck Management
Cycle Time Reduction

5. MANAGING INVENTORY FOR DEFECTS REDUCTION

Inventory Management
Warehousing
Delivery & Shipping Costs

6. LEAN SIX SIGMA DEFECTS MANAGEMENT

Understanding Six Sigma
Approach to Six Sigma
The Six Sigma DMAIC Model
Key Benefits of the DMIC Models
DMAIC tools in MS Excel
Using Excel to Define, Measure, Analyze, Improve and Control

7. ADVANCED EXCEL FUNCTIONALITIES

Applying various Functions and Formulas
Using Pivot Table
Application of Macro Keystrokes
Using the Excel Solver

8. COST RISK ANALYSIS

Cost Estimating Process
Cost Estimating Methods
Cost Models based on historical data

9. CHARTS FOR DEFECTS ANALYSIS

Various cost related charts in Excel
Analyzing the Charts / Graphs for smart financial decisions
Application of Statistical Analysis

10. MEASURING MANUFACTURING PROFITABILITY WITH MS EXCEL TOOLS

Effects of the Defects on overall Manufacturing Cost on P&L Statement
Analyzing the P&L to identify the impact of higher Manufacturing Defects
Performing further analysis using Advanced Excel functionalities
Making financial decision by reading the P&L