Cost Reduction
Having driven millions of dollars in operational savings, Joe Mann-Stadt understands how to reduce costs--without an army of consultants. He is comfortable working with you and your team to deliver savings. Several service levels are offered to assist you toward that end. However, please note that all engagements are preceded by a specific proposal and agreement detailing the level of consultancy required by the client company:
- Operations Assessment and Improvement Proposal, Recommendations
- Detailed Operational Plan for sustainable cost improvement
- Detailed Operational Plan with M-S managed implementation
- Selected or Limited Department Assessments and Improvement Plans
Reducing operational costs in a manufacturing or distribution operation requires an understanding of customer requirements, and the structure necessary to support those requirements. After that, the basic operational functions, as well as the interaction and communication between those functions, must be clear and straightforward. The core activities necessary to make that happen are key. Those activities are defined on the production or distribution lines, and, then, in the support activities of the indirect and overhead organizations. In order to capture what costs can be reduced an assessment should include:
- Customer defined Quality, Delivery and Cost Requirements
- Capacity and Mix, Cycle Time, and Productivity Analysis: Performance versus Capability
- Downtime Analysis
- Process Readiness
- Process Downtime
- Maintenance/Equipment Downtime
- Support: Materials/Inventories, WIP and Work Order related downtime
- Product Quality, Yield, Utilization, and Scrap
- Baseline of Labor hours and dollars
- Overhead Analysis: Versus core requirements, what is the essential overhead organization? Organizational Structure? What are the growth prospects? SG&A Requirements? Baseline of Required Salary and hourly dollars.
- Cost Reduction Opportunities: Gap analysis and Work Plan for Cost Reduction
- Personnel Competence
