Lean Manufacturing services from LeanSavvy Advisors utilizing SCOPE


LeanSavvy Advisors
Providing SYSTEMS that CREATE ORDER, PRODUCTIVITY and EFFICIENCY

 

Activity based costing with LeanSavvy Advisors and SCOPEActivity Based Costing

Ever wonder why your best selling, highest volume, most (presumably) efficient to produce product never seems to produce the margin dollars that you expect?

This is often due to the fact that most organizations rely on a “standard” costing model to develop their cost basis. Unfortunately, this model consisting of “materials + direct labor + overhead” and where overhead is applied as a percentage of a “standard” (generally direct labor), is often wildly inaccurate. What is more often the case is that due to today’s advancements in automated manufacturing practices, high labor activities consume a relatively low amount of O.H. expense and low labor activities rely on high overhead producing technologies, equipment and resources.

Activity Based Costing looks at each operational activity and segments the overhead related expenses being consumed by the activity into smaller, identifiable (and measurable) buckets.

Organizations utilizing Activity Based Costing systems will acquire:

 

Change you Lean project with LeanSavvy Advisors and SCOPEContact LeanSavvy Advisors today to discuss how we can add SCOPE™ to your organization and increase your frequency of change.

 

 

 


LeanSavvy Advisors
2226 Elliott Ave., #510
Seattle, WA 98121
206-605-0498
info@leansavvy.com

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