Realize internal and external cost savings opportunities

Focus Areas for cost savings initiatives:

• Product cost reduction Product cost reduction
  • Direct Material Cost Reduction:
    Target for common parts, common raw materials, standard material type, simplification, reduction of scrap and quality defects, minimize or eliminate batch processes, and other material savings initiatives.
  • Direct Labor Cost Reduction:
    Identify best location to manufacture or deliver service, design for lean processes, standardizing processes, productivity improvement methods, etc.
  • Operational Overhead Reduction:
    Lean factory layout, optimize cross-product-line synergies, improve the utilization of shared capital equipment, etc.
  • Optimize Capital Investment:
    Value Engineering / design simplification, design for one-piece flow, standardization of parts, etc.
• Product rationalization Product rationalization
  • The ongoing improvement is critical to ensure survival in the global economy. As the slowdown in the U.S. economy continues, and transforms itself, a challenge that is facing many companies is sustaining productivity and profitability growth. Product rationalization is one of the overlooked opportunities that do simplify operations and free up critical resources resulting in improved productivity, profit, and cash flow.
• Lean supply chain and logistics management Lean supply chain and logistics management
  • Lean in supply chain and logistics management is not exclusively for those companies who manufacture products, but for all businesses who want to streamline their processes using a process of eliminating waste and non-value added activities. Companies have multiple areas in their supply chain where waste can be identified as time, costs or inventory. To create a leaner supply chain companies must examine each of the following areas.
    • Procurement
    • Manufacturing
    • Warehousing
    • Transportation