Total Cost Reduction is an ongoing process and is comprised of efforts on behalf of Engineering, Purchasing, Production & Management toward the identification and removal of unnecessary costs and expenditures from which neither the producer or customer benefit.
Engineering efforts bring about designs which provide ease of manufacturing and assembly through forward logic in Design for Manufacturing, Failure Modes & Effects Analysis in concert with Value Engineering.
Increasing the function and reducing the cost is accomplished through a careful questioning process of How ? and Why ? so as not to limit action and application over the product’s lifespan. The outcome must be measureable.
Purchasing efforts bring about total cost reductions with price & inventory initiatives such as win-win contract negotiations and inventory control programs such as JIT, VMI and Consignment.
Production efforts bring about cost reductions through the steady elimination of systematic waste through the use of Lean Manufacturing Principles such as Production Leveling and Constraint Theory practice to enhance smoothness in overall work flow.
Management efforts guide the company toward capabilities which differentiate the business from their competitors and develop new value propositions for their customers.
Performance metrics dedicated to organizational refinement to channel communication , develop and define functions & responsibilities and toward the removal of friction points will create a culture of ownership as well as incentivize continuous improvement.
Core Component Resources has long and wide industry experience in each area of Cost Reduction and will provide a Cost Driver Analysis necessary to guide your team toward fast, enduring improvements in the bottom line of your corporation.