IDEAS FOR COST REDUCTION & PROFITABILITY INCREASE IN MANUFACTURING
By LIVE ONLINE PROGRAM
20 & 21 Feb 2023 (Every session 9am - 5pm)
Mon & Tue
In this compact but value-filled workshop, we look at the right strategies on how to reduce cost in a structured manner.
Cost reduction is so much more than just cost control and cost-cutting. True cost management is about being aware of costs, and seeking to reduce them through good design and efficient operating practices whilst taking continuing action on overspending. MCPD (Manufacturing Cost Policy Deployment) addresses how to handle cost reduction challenges in a structured and proven approach.
Lean approach shows a systematic method to identify and eliminate wastes (non-value added activity) rather than direct cost reduction which might impact our operations and services adversely.
- Understand what is MCPD (Manufacturing Cost Policy Deployment).
- How to continuously move towards being a profitable organization under every conceivable scenario?
- Cost reduction vs waste reduction.
- How to Identify areas that have potential for waste reduction?
- Setting priorities for waste reduction step by step in a systematic manner.
- Becoming aware of the current value stream and bottleneck areas for cutting costs.
- Establishing methodologies for planning and implementing performance measurement.
- Methods to maintain the cost reduction gains and have continuous improvement.
- How can the Six Sigma DMAIC approach lower costs and improve quality?
- How to use the 11 pillars of Industry 4.0 for cost reduction?
- The workshop is a mixture of presentation with personal examples, assessment, discussions and group activities.
- Training will be conducted online using Virtual Platform.
- Activities will be given throughout the training for better understanding.
- Participants to develop customized cost reduction strategy with inputs from facilitator.
- Section Heads
- Engineers and Executives
- Suitable for all Manufacturing, Business and Service organization
Introduction – the cost management process
- The risks of poor cost control
- The importance of cost awareness
- iii. The importance of cost reduction
- Cost management – the key aspects
Understanding of the MCPD system
- Productivity goals
- External & internal manufacturing profits
Scenarios and strategies of the MCPD system
- Increase or decrease in sales
- Maximizing outputs
- Minimizing inputs
- Variable cost efficiency
- Fixed cost efficiency
Manufacturing Cost Improvement (MCI) and OEE – maximizing outputs
- Scrap reduction
- Eliminating bottleneck
- Cycle time reduction
- Increasing availability
- Breakdown reduction
- Setup and adjustment reduction
MCI improvement through reducing fixed and variable costs – minimizing inputs
- Raw material
Methods for gathering and analyzing the necessary data for cutting costs
- What are the 7 wastes and how to identify them?
- Value add vs non-value add
- Lean assessment
- Lean indicators
- VSM – Value Stream Maps
Methods of cutting cost by reorganizing our processes
- JIT – Just in time
- Kanban systems
- Quick changeover
- Standardized Work
- Downtime reduction with TPM (Total Productive Maintenance)
- Lead time reduction
- Poka Yoke (mistake proofing)
- Utilizing the 8th waste – utilizing people’s creativity
- Case studies
Using Six Sigma to reduce costs
- How to choose the right DMAIC projects?
- Process capability studies
- SPC for data dashboard and to establish control
- Statistical data analysis techniques
- Case studies
How to use the 11 pillars of Industry 4.0 for cost reduction?
- Data dashboards for performance monitoring
- Disruptive technologies
- Digital transformation requirements for Industry 4.0
- Case studies
Cost reduction culture
- The need for cost reports
- What measures can be used to identify over-spends as early as possible
- Cost control performance measures and ratios
Action plan – participants and trainer to develop customized cost reduction strategy for each participating organization.