Reducing production costs

In nearly every sector, the permanent reduction of production costs is a central challenge to ensuring a competitive advantage. Germany, with its high wages, is not alone in confronting this task; there is now also a global dimension to it that is applicable to the entire worldwide factory network. In this regard, continued outsourcing is generally now a concept with only limited value.

Instead, a permanent process must be put in place at all locations whose objective is the continual increase in employee and facility productivity and the further development of processes, structures, and employees.

This challenge cannot be surmounted via a classic bottom-up approach using CIP or kaizen. Creation of absolute cost transparency and top-down targeting of cost objectives are necessary. These must be realized in a management-directed manner for the rigorous elimination of waste in all production, logistics, and support processes.

In this regard, there is no need to redevelop or question the time-tested principles and methods of lean production. Success can be achieved only by adapting existing best practices in a rigorous, intelligent, and company specific and location specific manner. This enables “tailored” designs and swift achievement of cost reductions.

The main tools in this regard are:

• Rigorous alignment of production according to the value-stream approach
• Optimal integration of production, logistics, and development 
• Holistic programs for improving purchasing and production quality and for reducing scrap, repair, and warranty costs
• Stabilization of processes and standardization of process-measurement parameters
• Optimal integration and dimensioning of production-support areas
• Lean organizational and leadership structures

ROI Consulting is fully conversant with the lean production-methods toolkit, is familiar with cross-sector and time-tested best practices, and moreover deploys methods, developed in-house, that enable quick yet well-grounded determination and realization of potentials.

In addition to well-grounded lean and process know-how, our profile is rounded out by technological expertise in facilities design, customized automation, and technology strategies.

You can find an overview of our entire spectrum of services in this area under Lean Production.