By Kim H. Pries
A corporation with potent expense relief actions in position might be larger located to conform to transferring financial stipulations. in truth, it could possibly make the variation among companies that thrive and those who easily live to tell the tale during periods of financial uncertainty. Reducing procedure charges with Lean, Six Sigma, and price Engineering Techniques covers the tools and strategies presently on hand for reducing the prices of goods, approaches, and services.
Describing why rate savings may be simply as robust as profit raises, the booklet hands readers with the certainty required to pick the simplest answer for his or her company’s tradition and features. It emphasizes home-grown concepts that don't require the implementation of any new methodologies—making it effortless to use them in any organization.
The authors clarify the right way to lessen bills via conventional Lean tools and Lean Six Sigma. additionally they current Six Sigma price mark downs strategies from production Six Sigma, providers Six Sigma, and layout for 6 Sigma. The publication additionally provides optimization options from operations study tools, layout scan, and engineering method control.
Helping you establish what your organization’s price proposition is, the textual content explains easy methods to enhance at the latest proposition and indicates more than a few instruments that can assist you accomplish that aim. The instruments and methods provided fluctuate in complexity and power and so much chapters comprise a rubric first and foremost to aid readers be sure the degrees of competence required to accomplish the initiatives defined in that chapter.
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Additional resources for Reducing Process Costs with Lean, Six Sigma, and Value Engineering Techniques
Sample text
Whether we are a construction organization, an engineering firm, a service or an administrative office, we can find plenty of opportunities to improve our cost structure. CHAPTER 1 – Introduction 17 Saving the company money without degrading performance or quality is the same thing as securing new business. During tough times, we improve the probability our organization will go on in perpetuity if we are frugal. Frugal does not mean do without the necessary equipment or tools—frugality is functioning without waste.
These ideas are examples of good stewardship and saving the company money as well. We are taking actions that lower our fixed operating costs for the building. 7 We can conserve energy by having conference room lights turn on and off automatically. Consider again our office or administrative businesses. This company has a few hundred employees and the company graciously provides these employees with free coffee. The coffee is not that tasty; however, it is capable of getting the employees moving and is much better than no coffee!
It is entirely possible, however, that some intelligent improvement in the design may also yield quality improvement and enhance customer satisfaction. We use the word “challenge” in the section heading because that is exactly what we will do with our development team—the team that will perform value analysis and value engineering. In some cases, we will specify a percentage of cost reduction; in other cases, we may specify an exact dollar value. These target numbers can be generated from a critique of the product or by senior management establishing some targets for cost improvement.