Hi Cherry and Bic,
What is the Actual Off quality standard we should use for 2015 SVCs? List out product names that will use 1.5% or lower or higher.
Do we need to revise waste for certain products? Again list out the various products that needs to be updated or revised.
Yarn usage allowance or yield needs to be corrected for certain products?
Angie, I assume you already now what labor and O/H variable costs to plug into our SVC next year. How is this going to impact cost? Can you list out the top 20 or XX selling products that make up 80% of our business and do an analysis to see what the SVC in 2015 will look like compare with current once we factor in all the changes.
The end game is to adjust SVC so that all cost are per Actual but hopefully at the end of the day the overall impact to the business is zero cost increase and at the same time we can achieve zero Variance in 2015. Some products like Flatweave will see a big decrease in SVC while other Tapestry products might also see a decrease due to lower Off quality. Many products will also enjoy cost decrease due to reduced PVC weight etc... but there will also be cost increase factors such as yarn price.
Please come to the senior meeting next week with some information. (not just data).