Margin Increase as a Function of Quote Precision Optimization for Packaging Automation Projects and Services
Zusammenfassung
This document describes design and
development of quote optimization process using
margin increase as a critical process response. It
analyzes the aspects of estimating project or service
in the packaging machinery industry. The process
begins by acquiring specifications; designing or
coordinating resources, time and order fulfillment.
Resources considered a range of factors from
machinery to spare parts, labor to travel
expenditures and hardware accessories. A 35%
margin was established as acceptable by customer
and management. Invoicing and other metrics
acknowledged a profit lower than 35% target. This
states an opportunity to increase and maintain goal
margin. The procedure and resources were studied
to assess over-expenditures deficiencies. Current
economy scarceness has increased competition to
the extent of company earning trade-offs for
"survival". Methodology used included a Pareto
diagram which was developed to determine which
price range or project scale was most impacted to
concentrate efforts and assign causes. Six Sigma
methodology: Define, Measure, Analyze, Improve
and Control was selected for implementation.
Supplier Input Process Output Customer diagram
which lists manufacturers, resources, operation,
services and clients, was used to evaluate all
possible factors impacting the response. Value
Added Analysis was performed with resource
expenditures derived from invoices reconciled over
the year 2013. Standardize, Mistake Proofing, Pull
System and Work Balance strategies were
combined to generate improvement forms that
calculate and keep track of progress performance
while enabling scope deviation detection.
Key Terms - Margin, Packaging, Quote,
Specifications.