Maintaining a high standard of quality while keeping costs low is not an easy task. However, by looking at both the visible and invisible cost factors that affect both production quality and efficiency, our experts can help you identify areas where you can reduce costs while keeping quality in check.
Our consultants specialize in optimizing processes, improving labour productivity, and reducing costs from seemingly minor steps such as tooling. If you would like to know more, you can schedule a call with one of our specialists who will assess the opportunities for cost reduction in your factory.
Tiers 1 & 2
(including on-site paint shops)
Cost control can be implemented at almost any stage of your project, and for almost any type of factory and industry.
In general, cost reduction is a commitment you should consider if you do not see increased efficiencies or marginal cost reduction achieved despite scaling up.
CMC’s consultants analyse your existing processes and design an implementation plan that accounts for your schedules, so that the impact on your delivery timeline is minimal. In the long run, cost reduction can also shorten your production times as we focus on overall efficiency improvement as well.
Cost reduction is a non-linear process that often requires a very experienced and detailed-oriented eye to spot some less common sources of unnecessary expenses. When our consultants perform analysis on cost, they look into every aspect of the factory operations. From our past experience, there are 4 general areas where we often find opportunities for cost reduction.
In general, cost reduction is a commitment you should consider if you do not see increased efficiencies or marginal cost reduction achieved despite scaling up. Cost control can be implemented at almost any stage of your project, and for almost any type of factory, and industry.
CMC’s consultants analyse every aspect of your existing processes and design an implementation plan that accounts for your schedules, so that the impact on your delivery timeline is minimal. In the long run, cost reduction can also shorten your production times as we focus on overall efficiency improvement as well.
Below are 4 areas where we often find opportunities for cost control:
Often, the productivity of factory workers is much lower in China than in Europe or North America as managers are aware of a few “best practices”.
To increase labor productivity, we typically look for opportunities such as:
Is the factory aware of the money it loses because of poor quality? The main sources of costs related to poor quality include:
By reducing set-up times and batch sizes, we get work-in-process inventory turnover down to 1 day in each workshop.
It allows for the following savings:
For more information on how a factory can reduce inventory, read this blog.
Speak with experienced manufacturing consultants for a no-strings discussion about your project.