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There are 4900 Dollar Tree stores in the U.S. Everything outside of the U.S. is out of scope. Dollar Tree is running a 30% profit margin. This means they are making about $.30 on each calculator. Future State Map. Environment. Current State Map.
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There are 4900 Dollar Tree stores in the U.S. Everything outside of the U.S. is out of scope. Dollar Tree is running a 30% profit margin. This means they are making about $.30 on each calculator. Future State Map Environment Current State Map We are assuming an order of about 500,000 calculators a year. The orders would be for two 250,000 calculators. One order before school season and one before spring. Assumptions Red Dot Cost Analysis
After inventory arrives at the Dollar Tree consumer store and is scanned off the truck. The task is counting the box of 500 calculators. Future State Map Environment Current State Map The fix was a change in responsibility and a change in policy. One person at the inventory warehouse will count four random boxes from shipment to check box integrity. Assumptions Red Dot Cost Analysis
(Old Process) Yearly Hour = 980 hours. 6 minutes to count a box of 500 and 9800 boxes 980 hours at a rate of $10 an hour = $9800 a year. Future State Map Environment Current State Map (New Process) Yearly Hours = 1 at a rate of $25 an hour. 980 Hours ($9800) – 1 Hour($25) = Savings of 979 Hours ($9775) per year. Assumptions Red Dot Cost Analysis
Future State Map Environment Current State Map Assumptions Red Dot Cost Analysis