This document outlines a case study comparing two factories with identical setups and workloads. It identifies several opportunities to improve the bottom line through targeted training initiatives. Factory expenses could be reduced by training the tool setter in hydraulics and pneumatics to perform maintenance internally, saving $50,000. Additionally, training the operator in programming and setting could minimize downtime when the setter is unavailable. Finally, training on production planning software and tool life extension techniques may help lower overhead expenses by at least 10% each.

1. “How to improve Bottom line by Training” Case study
(Hypothetical example)
 1. Two factories are considered with Same set up and same work load, are
adjacent to each other.
 2. CNC machine – One number
 3. Machine has sufficient workload.
 4. Manpower - 1 operator, 1 setter.
 5. 26 different jobs in equal numbers are made i.e one set up daily,
Component A on 1st of every month, Component B on 2nd, Component C
on 3rd so on and so fourth till Component Z on 26th working day.
 6. Machine Hour Rate is Rs. 1000/ hour. (Bank Loan only, consumables
additional)
 7.Shop runs in 1 shift basis.
 8. Average selling price of machined component with material is Rs. 200
 9. Total number of components machined in a month are = 240x 26 =
6240.

2. Income Expense Statement
 Top line is 6240x200 = Rs. 12,48,000 (sales turnover)
 Expenses = 8000x26 = 2,08,000/-
Operator Salary 10,000/-
Setter Salary 20,000/-
AMC of machine 50000/- (Machine Maintenance)
Tooling expenses 3,00,000/-
Over head 20% 1,17,000/- (Electricity, Factory Rent, Fuel,
Office)
Total = 7,05,000/-

3. Training Need Identification
1. Hydraulics, pneumatics &Mechatronics training to tool setter so that AMC to
outside party can be cancelled , tool setter is idle for 5 hours/ day can be
utilised. Bottom line increase by Rs. 50,000/-
2. Programming and setting training to operator so that he can do programming
& setting when tool setter is busy with maint in same shop or in other shop. By
this down time due to non-availability of above setter cum maint man will be
reduced.
3. How to increase tool life so that tooling expenses can be brought down by at
least 10 % i.e. = Rs 30,000
4. Training on Production planning s/w so that factory A and factory b can be run
for 15 days in two shifts or as per the need evolving through software. At least 10
% reduction will be there in OH expenses like better power factor, start up and
stoppage loses, manpower mobility.