Cost Reduction Without People Reduction

Category: Cost Reduction Without People Reduction

Course Description

Manufacturers must deal with complex global challenges such as increasing customer expectations, lower cost competitors, fluctuating commodity prices and an unstable global economy. Thus, organizations have been always in the competitive environment, the only difference now is the pace and complexity of competition due to such common themes as globalization, Information Technology and Internet revolution. Therefore to be competitive, organizations need to reduce cost and improve quality but there is a catch. Mention cost cutting most employees would shiver and run for cover. Reasons? People have associated cost cutting with cuts in overtime, benefits, or even retrenchment. This training program aims to share techniques of cost savings and simultaneously looks at handling your competitive advantage i.e. your people.

This comprehensive training program is designed especially for manufacturing industry. The hands-on approach allows participants to develop practical competencies using various tool and techniques, allowing participants to develop their cost reduction strategies without reducing the manpower.

Course Objectives

  • Understand the costing elements in relation to the factory operations
  • Acquire a comprehensive understanding of measurement techniques
  • Understand the evaluation methods and learn to use the evaluation tools in factory operations
  • Learn to develop organization’s cost savings initiatives and implement cost saving plans
  • Differentiate between subtleties of fixed and variable items
  • Know how to focus and prioritize on areas of importance
  • Acknowledge the importance of systems improvement
  • Handle people better in the process of cost reduction

Who Should Attend

This program will benefit all supervisors, engineers, managers, and those who have been assigned to improve productivity and reduce cost for the organization, and for those who wish to improve their understanding and skills in relation to managing cost.

Course Outline

  • Definition of cost savings and concept
  • Types of wastes and what are they
  • The cost “pie” – cost components in manufacturing measurement: A partner in savings
  • System or productivity-based savings
  • Non-system or non-productivity-based saving
  • Introduction to base measurement
  • Generic savings calculation
  • Types of base measurement
  • Using KPIS to see where the costs are coming from
  • How do you introduce this topic to people on the floor so that there is an ownership on cost reduction
  • Base deployment: potential areas for cost reduction or savings for various departments
  • A look at key volume indicator (KVI)
  • Fixed & variable items
  • How to develop and implement cost reduction program