The icon shown above is used to visually display a truck shipment on a value stream map.
Total productive maintenance is a maintenance strategy which focuses on achieving improved performance, reduced breakdowns and better quality through the preventative maintenance and effort of employees. The strategy is based on 8 pillars:
Target costing is defined as "a disciplined process for determining and achieving a full-stream cost at which a proposed product with specified functionality, performance, and quality must be produced in order to generate the desired profitability at the product’s anticipated selling price over a specified period of time in the future." This definition encompasses the principal concepts: products should be based on an accurate assessment of the wants and needs of customers in different market segments, and cost targets should be what result after a sustainable profit margin is subtracted from what customers are willing to pay at the time of product introduction and afterwards.
The fundamental objective of target costing is to manage the business to be profitable in a highly competitive marketplace. In effect, target costing is a proactive cost planning, cost management, and cost reduction practice whereby costs are planned and managed out of a product and business early in the design and development cycle, rather than during the later stages of product development and production.
Reference : Wikipedia - Target Costing
The total cost of ownership is the sum of all the costs associated with every activity of the product or service. The benefit to using total cost of ownership is that it provides us with a deeper look and a better understanding by which we can base our decisions on. For a free make or buy comparison template click on the link below.
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