The stock you thought you had
A job that waits on material you believed was on the shelf costs more than the material.
- 15 jobs a week
- 1 in 10 stops because the material was not actually there
- Each stoppage costs 2 hours of a machinist at $65 an hour, loaded
- Stoppages per week
- 1.5
- 0 — available stock is checked when the job is raised
- Cost per week
- 1.5 × 2 h × $65 = $195
- $0
- Cost per year
- ≈ $10,000
- ERP: $39 × 12 = $468
One avoided stoppage a month pays for the module several times over.
Your rate and your stoppage count will differ. Put your own numbers in — the shape of the sum stays the same.