Cost Reduction

Any good company knows that cost is an extremely important balancing act. The cost of materials, equipment, workers and supplies adds up quickly. Then, to make margins, companies tend to cut workers first and never spend the time to equate other problems that cause cost overruns.  As we know, every so many years the economy drops out, and cutting happens again.

Do you find these signs in your company?

Workers under utilized

Product quality varies wildly

Raw Materials sitting on pallets or in baskets waiting for the next step

Office processes bog down in bureaucracy and bringing things to a stand still

“Beatings will continue until morale improves” mentality

No clear signs of improvement

Management screams for cost reductions with no relief in site

Workers have suggestions, yet never speak

Same old, same old work mentality

Idea of the month club

“Wait long enough, this too will blow over” talk

Quarterly spreadsheets seem to be weighing more

Executive office sends people who are to help, but only makes the issue worse

Company culture tends to focus only on final numbers and not fixing processes

 

Solution

Leadership Initiatives culture change agenda provides wide spread change that allows workers to use their ideas and suggestions to bring about cost down initiatives. Couple this with our process effectiveness agenda (Lean, OEE, etc.) and you have a crisis ready team able to combat the competition. Giving workers incentives to share their ideas will increase profit margins without force. When workers share in the ideas, they also share in the responsibly and gain ownership in the overall outcome of the process. As we work in the trenches with the workers, we teach them tools like SPC, Lean and problem solving so they are equipped to take on issues presented to them.