摘要 |
A system and method for analyzing the profitability of a company's products and services and then maximizing that profit is provided. A contribution margin per unit 138 is multiplied times the forecast in units per year 104. The product of this contribution margin per unit 138 times the forecast in units per year 104 is divided by the product of the total capacity hours per standard run 120 quantity and the planned production runs per year 106. The result is the contribution margin per capacity hour 150 which is also defined here as the capacity value analysis 150. The capacity value analysis 150 provides for determining product rationalization, and profitable growth determination, as well as a metric for profit optimization initiatives such as eliminating constraints, customer perceived value, design for manufacturability, reduced production frequency, and reduced setup time.
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