Job Shop

Results:

• Totally eliminated obsolete tool costs. Distributor now changes inventory to support the job shop's requirements.
• Drastically reduced purchasing costs through one blanket order for pre-negotiated pricing and terms from the distributor. The company has eliminated over 30 purchase orders a month, at a cost of $100 each, saving about $36,000 a year
• Reduced their monthly tool expenditures from $17,000 to $13,770 on average - a yearly savings of over $38,000
• Inventory levels reduced 30%, as job shop had been over-stocking their inventory.
• Eliminated receiving costs, since the distributor now stocks the Dispensing Stations.
• Operators issue their own tooling. Supervisors no longer have to take time to dispense tools.

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