The performance improvement services provided by Practus assisted the razor blade manufacturer in helping the company discontinue certain loss-making SKUs based on the correct standard costs.
|No. of Employees
|Razor Blade Manufacturing Companie
About The Company
RazorShine is a multinational corporation with operations on five continents. With over 7,000 employees from 60 different nationalities, it is one of the leading razor blade manufacturers. RazorShine has over 30 years of expertise and a reputation for staying on the cutting edge of technology and innovation.
Practus’ Role in Performance Improvement Services
- Examine the cost structures and identify cost-cutting or rationalization opportunities inside the profit and loss statement.
- Obtaining the exact SKU standard cost.
- Assisting the organization in deciding which processes should be outsourced and which should be kept in-house, as well as developing a MIS with management dashboards and comments.
- Take the lead on liaison, process, and control implementation throughout the supply chain.
Impact Delivered in Performance Improvement Services
- Practus was able to provide incremental costs for each product line on a product-by-product basis, which led to the decision to keep steel spooling in the CRM plant’s house.
- Performed a process costing exercise, allocating all direct costs to the correct variables and determining the correct BOM for each sample. As a result, the right standard cost of each SKU was calculated.
- Based on the correct standard costs, the company was able to phase out certain loss-making SKUs.
- Scrap management has implemented a standard operating procedure (SOP) to prevent pilferage and insufficient scrap collection, documentation, and disposal.