Project Everest

Adopted Experiment

[Adopted Experiment] Waste Management REPURPOSE Cost Optimisation July 2019

The Repurpose team in February 2019, conducted preliminary research into finding a warehouse alternative. Please read the experiment results before commencing this task.

If we are to continue down the Ximenes Belo plastic bottles outsourcing option at $1.50 per FIBC bag (1000L) or $1 for one of his bags (500L), we need to minimize fixed costs. The largest cost currently is the ongoing cost of the warehouse of $150/month.

 

Lean Phase: Cost structure

 

Assumption:

  1. There is a cheaper way to store recycled material (other than warehouse → $150/month)

 

Time Box: 1 Week

 

Success Metric:

Metric

Profit margin financially assessed for several researched solutions of storing recycled material.

 

Green Light - Proceed

  • Optimise financial projections (minimise variable costs + mitigate fixed costs) and explore scaling to maximise revenue.

Success point:

  • If 70% profit margin can be attained, proceed with green light.

Orange Light - Optimise

  • Inform Collection on the exact figure that they need to sustain to keep ERS in the green.

Failure Point:

  • If the monetary figure required from Collection requires an increase in the cost of current BagPay and Premium

Red Light -

  • Explore NEW outsourcing options

 

Experiment Build:

  • Determine different land and warehouse options by word-of-mouth research.
  • Use the ERS Repurpose financial projections spreadsheet already established to form an extensive financial projection that incorporates all costs incurred by Repurpose and the different options that could be utilised.
  • This should include assessing financials around all options
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edited on 10th April 2019, 08:04 by Andrew Vild

Lucy Preiss 1 month ago

Status label added: Adopted Experiment

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