Cost Management Service "GenKan"

KOSKA Corporation has recently published a white paper that enables immediate improvement of profits in small-lot, multi-variety production within the company. This white paper introduces how sales and management can utilize cost management, taking into account the characteristics of small-lot, multi-variety production and responses to the COVID-19 pandemic, to enhance sales and profits. Additionally, it provides a three-step guide that can be immediately implemented to improve the accuracy of estimates specifically for sales activities in small-lot, multi-variety production. 【Table of Contents】 - Differences between mass production and small-lot, multi-variety production - General cost management - Characteristics of estimates and improvements in mass production versus small-lot, multi-variety production - Cost management methods suitable for small-lot, multi-variety production - Cost management during the COVID-19 pandemic - KPI management to improve estimate accuracy - Three steps to manage estimate accuracy 1. Datafication of discrepancies between estimates and actuals for each project 2. Monthly indicatorization of the state of discrepancies between estimates and actuals 3. Discussion of the causes of discrepancies using data - Reasons for not being able to achieve ideal cost management - Barriers to cost management in small-lot, multi-variety production - Cost management service GenKan addresses these challenges - What is GenKan?

KOSKA, a company specializing in the digital transformation (DX) of the manufacturing industry based in Chiyoda, Tokyo, will launch a service on November 1 to automate the cost management of manufactured parts. The system measures the time taken for each process and the actual working hours of employees using sensors to calculate costs. Users can also check the progress of each process online, and the usage fee, including dedicated equipment, is 48,000 yen per month (excluding tax) for up to seven processes. The company aims to implement this in 5,000 factories in Japan within five years and is also considering sales overseas, including in China.

KOSKA will officially start providing "GenKan" on November 1st. It visualizes the progress of the manufacturing process using work instructions and human detection cameras, and calculates manufacturing costs. It is proposed for managing custom-made items and small-batch production, which frequently require estimates. By comparing estimated costs with actual costs, it improves the accuracy of estimates made by sales representatives. When a work instruction is placed on an RFID sensor, it records the start and end times of the process. At the same time, the human detection camera records the actual working time of the operator. Even in environments where operators move around and do not stay in one place, such as in large assembly or sheet metal processing, it can measure actual working time. By registering equipment depreciation and labor costs of operators, it calculates costs for each process. For custom-made items and small-batch production, estimates are provided each time an order is received. Unlike mass-produced items, where cost reductions from process improvements are reflected, the accuracy of estimates becomes more important. Since it allows real-time tracking of manufacturing progress and costs, it helps reduce discrepancies in estimates made by sales representatives. The initial cost is free. The usage fee for managing seven processes is 48,000 yen per month, and any additional processes will cost 3,000 yen each.

KOSKA Corporation will exhibit at the "Smart Factory EXPO 2021" scheduled to be held at Tokyo Big Sight, as well as at "FOODEX JAPAN 2021" for the food processing industry, scheduled to be held at Makuhari Messe. At these exhibitions, we will provide opportunities to experience our products in a non-face-to-face and non-contact manner as a response to the prevention of the novel coronavirus infection. Specifically, for participants who register by the day of the event, we will send a set of "GenKan" sensors by mail and conduct remote demonstrations that can be carried out in meeting rooms completely free of charge, including shipping costs. ■Situation where participation in the exhibition is not possible Due to the impact of the COVID-19 pandemic, manufacturing companies that have traditionally gathered information by physically interacting with exhibits at trade shows are shifting to participate in online exhibitions. However, relying solely on online information is insufficient, and the time taken from information gathering to purchasing decisions has increased compared to before. For companies actively considering the utilization of IoT sensors and visualization tools, it is crucial to determine whether the sensors can accommodate the characteristics of each process in their own factories and whether they are suitable for the flow of production lines. This can only be accurately assessed by physically interacting with the sensors and confirming specific technical characteristics and operational methods.