Cost Reduction

Day One of the Course

• Introduction and Program Overview
• Optimizing Labor Costs
  • Defining Headcount and Controlling Staff Growth
  • Developing and Implementing Time Standards
  • Measuring and Using Efficiency
  • Assessing Machine Utilization
  • Controlling Overtime
  • Making Multiple Shifts Productive
  • Finding and Reducing Lost Time
  • Using the Learning Curve to Drive Costs Down
  • Risks and Risk Reduction Strategies
• Reducing Material Costs
  • Make-versus-Buy Determinations
  • Inventory Minimization
  • Material Utilization
  • Minimizing Supplier Costs
  • Supplier Negotiation
  • Supplier Competition
  • Risks and Risk Reduction Strategies

Day Two of the Course

• Process Improvement
  • Workflow Optimization
  • Setup Time Reduction
  • Material-Handling Improvements
  • Scrap and Rework Reduction
  • Work Center Cleanliness
  • Risks and Risk Reduction Strategies
• Design Cost Reduction
  • The Design Approach
  • Requirements Relaxation
  • Tolerance Relaxation
  • Materials Substitution
  • Packaging
  • Risks and Risk Reduction Strategies
• Controlling Overhead Costs
  • General Overhead Expenses
  • Sales Expenses
  • Travel
  • Inspection
  • Risks and Risk Reduction Strategies
• Gaining Disciples, Measuring Progress, and Sustaining the Effort
  • Suggestion Programs
  • Measuring Progress
  • Risks and Risk Reduction Strategies
• Course Summary and Wrap Up