Product Line

Alloy
Bearing
Conversion
Corrosion
Die Steel
High Speed
High Temp
Total

No. of Grades

No. of Products

1992 Sales (lbs)

1992 Sales ($)

21
7
16
4
49
24
3

153
24
16
20
156
97
16

11,836,227
329,816
5,516,107
762,448
22,336,768
9,375,129
142,925

$
$
$
$
$
$
$

17,494,283
1,541,070
6,878,068
1,327,111
29,046,569
26,298,139
4,472,281

124

482

50,299,420

87,057,521

Alloy:
Condition
Round
Production (lbs)
Number of skus
Number of orders
Bill of Materials (lbs / lb of output)
Steel Scrap
Alloys
price per lb

478,679
311
957

Conversion:
Roller Wire

Die Steel:
Chipper Knife

2,081,543
473
4,163

Die Steel:
Round Bar

High Speed:
Machine Coil

2,413,299
418
3,218

6,697,682
172
3,349

2,530,552
102
1,012

1.00
0.01
6.29

1.00
0.01
15.29

1.00
0.01
152.29

1.00
0.01
48.29

Machine Time (min / lb; crew = 1)

Melting
Refining
Molding / breakdown (Ignot / PFF)
Rolling (CRM)
Finishing (multiple)

0.20
0.21
0.12
0.10
0.06

0.15
0.02

0.09
0.10
0.07
0.33
0.07

0.09
0.10
0.08
0.09
0.08

0.09
0.10
0.07
0.03
0.05

Total Time

0.69

0.17

0.66

0.44

0.34

Alloy:
Condition
Round

Standard Cost ($ / lb)

Conversion:
Roller Wire

Die Steel:
Chipper Knife

Die Steel:
Round Bar

High Speed:
Machine Coil

Price

2.31

0.77

1.02

0.93

2.33

Materials
Direct Labor
Direct Manufacturing Expense

$
$
$

0.54
0.29
0.24

$
$
$

0.07
0.06

$
$
$

0.12
0.28
0.23

$
$
$

0.21
0.18
0.16

$
$
$

1.58
0.14
0.12

Contribution Margin
Contribution Margin (%)
Total Contribution

$
$

Manufacturing & Administrative overhead

1.24
53.7%
593,562

0.64
83.1%
$ 1,332,188

0.64

Operating Profit
Operating Profit
Total Operating Profit

Thruput margin $/lb

thruput margin %
Rolling (CRM)
Thruput $/constraint minute

$
$

0.64

0.60
26.0%
287,207

1.77
77%
0.10
17.70

0.39
38.2%
941,187

0.38
40.9%
$ 2,545,119

0.64

0.0%
-

0.77
100%
0.15
5.13

0.49
21.0%
$ 1,239,970

0.64

0.64

(0.25)
-24.5%
(603,325)

(0.26)
-28.0%
$ (1,741,397)

0.90
88%
0.33
2.73

0.72
77%
0.09
8.00

(0.15)
-6.4%
(379,583)

0.75
32%
0.03
25.00

Activity
Melting: Depreciation
Melting: Maintenance
Melting: Utilities
Refining: Depreciation
Refining: Maintenance
Refining: Utilities
Molding: Depreciation
Molding: Maintenance
Molding: Utilities
Rolling: Depreciation
Rolling: Maintenance
Rolling: Utilities
Finishing: Depreciation
Finishing: Maintenance
Finishing: Utilities
General & Administrative
Materials Handling & Setup
Order Processing
Production Planning
Technical Support
Total

Driver
melt machine minutes
melt machine minutes
melt machine minutes
refine machine minutes
refine machine minutes
refine machine minutes
mold machine minutes
mold machine minutes
mold machine minutes
roll machine minutes
roll machine minutes
roll machine minutes
finish machine minutes
finish machine minutes
finish machine minutes
pounds
orders
orders
orders
skus

Driver Volume
5,145,632
5,145,632
5,145,632
5,691,042
5,691,042
5,691,042
4,226,965
4,226,965
4,226,965
8,258,382
8,258,382
8,258,382
4,057,311
4,057,311
4,057,311
50,299,420
57,147
57,147
57,147
6,642

Amount
$
2,139,865
$
975,130
$
2,036,477
$
1,711,892
$
780,104
$
1,745,551
$
427,973
$
390,052
$
290,925
$
2,995,811
$
975,130
$
872,776
$
1,283,919
$
780,104
$
872,776
$
5,400,955
$
4,936,068
$
3,953,709
$
3,339,500
$
5,766,579
$

41,675,296