Saving cost through house keeping –
Celebration’s apparel has managed to save a big amount of money by introducing a simple concept of wearing slipper on the production floor.
The factory has got the shop floor area of 60,000 sq. feet. To clean this area we need minimum of 6 House keeping employees to ensure that the Plant is clean.
The cost of house keeping for the shop floor at present -
|Salary of 1 cleaner |Rs.3900 |
|Yearly salary of 6 cleaner | Rs. 280800 |
|Total cost per year |Rs. 280800 |
After going through the 5 S of KAIZEN – there was change in the process of House keeping for the shop floor. The plant decided to buy and give slippers to every body and developed the habit of cleaning their working area by themselves. This change in process also incurred some one time costs. The one time incurred cost for change of process is followings
|Cost of brooms & other items |Rs. 11000 |
|Cost of slippers ( 650 * 50) |Rs. 35,500 (Visitors slippers) |
|Cost to make slipper’s storage racks |Rs. 15000 |
|One time cost |Rs.58,500 |
After the introduction of this system, every employee of Celebrations gets into the working slipper before walking onto the production area. Also, they need to clean their working area before they start the work and after finishing their work in the evening. The plant maintains the same system for