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# Good morning, I need to find 3 more reductions on the tractor mower cost reduction. I found 4 reductions Please Help.

Good morning,

I need to find 3 more reductions on the tractor mower cost reduction. I found 4 reductions Please Help.

**SC 301 Tractor Mower Co--Lean Six Sigma and Other Ideas to Reduce Mower Costs**

Team Assignment = Turn in with McDonald's French Fry (each worth 50 Pts)

**Selling Price (To Retailer)**$1,600 **DescriptionCost Elements (8 in Total)Materials Cost per Mower**Mower & It's Parts$350 Kohler Steel Engine & Steel body w/foam seatPlywood Protective Pkg'g$280 1/2 inch thick plywood Brass Hinges$12 24 Hinges at $.50 each (corrects typo of $50 ea)

Wooden Pallet$10 Hardwood Pallet**Sub Total Mtls**$652 **Plant Labor Cost per Mower**Mower Assembly$100 Automated Prod'n Line at 20 per hourShipping Crate Assembly$10 Assemble Crate Manually**Total Plant Labor**$110 Plant Labor Rate = $25/hr**Total DMC**$762 **Transportation (Pre Cowan)***$29 Rounded from $28.57**Warehouse Labor**$4 Fork Truck Put Away, Retrieve, Load at 1 pallet per trip**COGS**$795 **Gross Margin$805 Gross Margin %50%***Based on shipment of 1000 miles at $1 per mile in 53' Trailer with 45,000 lb loadable wt

and all shipments to customers use Truckload with a 45,000 loadable wt target

**Provide up to a 1/2 page for each idea with Assumptions and Financial Analysis