IDEAS FOR COST REDUCTION & PROFITABILITY INCREASE IN MANUFACTURING

• 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?

COURSE CONTENT

• Introduction – the cost management process
  • The risks of poor cost control
  • The importance of cost awareness
  • The importance of cost reduction
  • Cost management – the key aspects

• Understanding of the MCPD system
  • Directions
  • 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
  • Utility
  • Labor
  • Environment

• 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.