Cost Reduction Strategy For Manufacturing Industry

Cost reduction can be achieved through reduction, elimination, modification of manufacturing activity. Through in depth analysis the best and least cost path is adopted for each activity. The best method to achieve results are to bench mark operating parameters to world class companies. 

In today’s competitive world corporate and businesses are struggling to maintain profits and healthy bottom lines. Cost of production, fuel, electricity, raw material and human resources is rising each year.

These developments have prompted people to look for cost reduction ideas and methods. Those who opted for focused cost reduction strategies have survived and those who did not manage well have perished. In recent economic downturn it becomes important to make cost reduction program a major initiative in the industry.

Companies have to develop its own cost reduction program for savings without cutting jobs. This course will help you develop an action plan for your organization.

Who Should Attend?

• Any manager who has been focused largely on operations and now wants to take a more strategic view of his or her responsibilities.

Learning Outcomes:

• Prioritize the cost reduction efforts on high-return opportunities
• Objectively identify and evaluate all existing costs
• Work together in an effective multidisciplinary environment to reduce costs
• Implement and sustain a cost reduction program
• Tap into and incentivize your employees to help reduce costs

Course Outline:

• Why Cost Reduction?
• • Profits
• • Waste Reduction
• • Increase productivity
• • Competition
• • Resource conservation
• • Image enhancement
• Where To Implement Cost Reduction?
• • Raw material procurement
• • Logistics inbound and outbound
• • Production (process, time and work study, maintenance, automation)
• • Energy
• • Human resource (out sourcing)
• • Sales and marketing
• • Finance
• The Major Parameters For Any Manufacturing Unit
• • Cost per unit
• • Man-hours unit
• • Units produced/unit time
• • Break down time
• • Waste and defectives
• • Fuel, electricity and water consumption
• What Is Productivity?
• • Location
• • Work standards – All standards for operations should be displayed at work stations in all languages with dos and don’ts
• • Autonomous maintenance – Operators to
• be trained to do regular maintenance
• • Manpower allocation per machine – Manpower deputed per machine should be adequate and is not low or high.
• • Tools – Necessary tools to be placed near work stations
• • Reduce loss of time during shift changeovers
• • Labor productivity, movement, re-work and physical stress
• Kaizen Concepts For Productivity
• • Kanban system and JIT
• • 5S (Housekeeping)
• • Seven deadly wastes in production line
• • Total preventive maintenance
• • Lean manufacturing