Rated by:______________

Rapid Plant Assessment

Plant:__________________
Table 3--Tour Data
Measure
Metric
Yearly customer sales dollars
Sales Volume
Number of yearly production units
Unit Production
Number of hourly employees
Production Employees
$ per hour
Average Wage Rate
% of wage rate
Fringe Benefits
Number of employees
Salaried Employees
Yearly base pay plus fringes
Average Salary
Total production & salary people
Total Employees
% employees that leave each year
Employee Turnover
Ratio of DL to Indirect Labor
Direct/Indirect Ratio
Direct Labor Rate Multiplier
Overhead Rate
Number outstanding for union workforce
Workforce Grievances
% overtime by employees over year
Average Overtime
Actual $ or COS%
Direct Material Cost
Inventory + Acc Rec - Acc Payable
Average Working Capital
% of orders delivered on time
Order Fulfillment
$ Book value of property, plant & equipment
PP&E
Old technology or up-to-date
Equipment State
Preventive maintenance effectiveness
Equipment Condition
Square Footage
Plant Size
Number of different product families
Product Complexity
Number of different process types
Process Complexity
Job shop, line flow, batch, assembly
Operations Type
What mix of operations types?
Operations Mix
Short Term Variability--peak to average
Daily Demand Variability
Seasonal Variability--peak to average
Yearly Demand Variability
Average Equipment utilization
Equipment Utilization
$ or units of finished goods
Finished Goods Inventory
Raw material & WIP Inventory Levels
WIP Inventory
What is the operations bottleneck?
Bottleneck process?
Theoretical time to produce products
Theoretical Flow Time
Actual time to produce products
Actual Flow Time
Noise, Air, Effluents, etc.
Environmental Issues
Incidents per employee per year
Safety Record

Tour Date:______
May-02
Data

NO

Chart 2 Typical Operations Measures

Variable

1
Yearly sales per employee--manufacturing
2
Yearly sales per employee--Assembly
3
Production hourly wage rate--manufacturing
4
Production hourly wage rate--Assembly
5
Hourly wage rate--Retail
6
Production hours per year (less vacation & holidays; see Note 2)
7 Fringe--FICA & Medicare Taxes (employee portion only--1/2 of total)
8
Fringe--Medical for family per year
9
Fringe--Workmen's Comp per year--production employee
10
Fringe--Insurance, AD&D, other per year % of hourly wage rate
11 Fringe--Vacation, holiday, sick leave/production employee--days/year
12
Fringe--for hourly employees--% of yearly base pay
13
Annual average salary for plant employees
14
Fringe--for salaried employees--% of yearly base pay
15
Plant fixed costs per sq ft per year
16
Plant variable costs per sq ft per year
17
Yearly equipment fixed costs--% of COS--heavy manufacturing
18
Yearly equipment fixed costs--% of COS--assembly
19
Yearly equipment variable costs--% of COS
20
Sales per sq ft per year--manufacturing
21
Sales per sq ft per year--assembly
22
Gross Margin--manufacturing
23
Gross Margin--Assembly
24
Material % of COS--Manufacturing
25
Material % of COS--Assembly
26
Manufacturing overhead rates--% of Direct Labor hourly cost
27
Salaried overhead rates--% of direct yearly salary
28
Corporate allocations--percent of sales
29
"Other" plant costs % of COS--manufacturing (See Note 3)
30
"Other" plant costs % of COS--assembly
31
Working capital to sales
32
Inventory to sales
33
Accounts Receivable--days outstanding
34
Account Payable--days outstanding
35
Inventory Turns per year--assembly
36
Inventory Turns per year--heavy manufacturing
37
Hours to assembly an automobile
38
Hours to assembly a typical seat set for an automobile
39
Hours to assembly a PC
40
Hours to manufacture a heavy-duty truck
41
Typical Manufacturing Overhead Variances
42
Property, plant, & equipment investment to yearly sales
43
Equipment depreciation--years
44
Indirect to direct labor ratio
45
Salary to production worker ratio

Low side

May-02
High Side

$ 100,000
$ 250,000
$
9
$
9
$
6
1,732

$
500,000
$ 1,500,000
$
24
$
22
$
15
1,920

$
$

$
$

3,500
250
5.0%
15
25%
$ 35,000
20%
2
3
4%
2%
1%
$
100
$
200
10%
7%
25%
60%
200%
30%
1%
5%
6%
-5%
5%
15
20
10
3
20
0.5
0.1
50
3%
15%
3
10%
10%

7,500
800
12.0%
30
95%
$
80,000
40%
7
6
10%
6%
7%
$
500
$
1,000
55%
30%
60%
80%
500%
100%
5%
20%
15%
35%
30%
120
90
125
20
80
2.5
0.5
100
20%
100%
15
150%
50%

Notes: 1. Data from instructor's experience, 2. 2080 hrs/yr., 3. "other" costs refer to RPA cut

Nominal
$ 300,000
$ 500,000
$
16
$
12
$
9
1,850
9.4%
$
4,400
$
350
7.5%
22
40%
$ 45,000
25%
5
5
6%
4%
4%
$
200
$
500
30%
15%
45%
70%
275%
60%
3%
12%
8%
18%
15%
45
45
20
10
35
1.0
0.3
60
7%
25%
7
33%
18%

Rated by:______________

Rapid Plant Assessment

Plant:_________________________

Table 4--Holistic Cost of Sales (RPA Cut)

Measure--Annual $'s

Measure % of
Sales

Sales
Cost of Sales (COS)
Direct Material Cost
Total People Cost
Property, Plant, & Equipment Cost
"Other" Costs
Gross Margin
PP&E Investment

Average yearly $'s

Facility yearly cost

Average yearly $'s

Working Capital Investment

Average yearly $'s

Net Assets Employed

Average yearly $'s

Shop Rate

$/hour

Measure--% of COS

Tour Date:____________
May-02
Data