Cost Analysis

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The Standard Minute Values derived from Work Measurement provide the opportunity to do detailed analysis on the elements within a measured method or process. This gives managers greater understanding of the financial impact of ‘actual’ or ‘proposed’ changes to the:

 

  • Process - Elimination or reduction of a work element(s)

 

  • Equipment - Introduction of new equipment or technology

 

  • Layout - Layout changes can alter the size of the travel elements & therefore the costs

 

  • Business Variables (e.g. Hit Rate, Product Mix) - Changing buying & ordering patterns impact on the average batch size per job & product type. AS Consulting produces Time Standard data in a format that quantifies the financial impact of these changes on your business.

 

This approach to Cost Analysis offers the customer a number of benefits:

  • Lower Risks - Managers are in a position to accurately compare the work content of alternative methods. This ensures the selection of the most cost effective method

 

  • Rationality - Work study based Cost Analysis encourages managers to ‘Focus on the FACTS’ rather than simply support their own proposed method.

 

  • Proactivity - Staffing levels can be calculated & adjusted ahead of implementing method changes. This reduces the impact of the introduction of a new method on service levels.