Cost Reduction/Lean

Whether you are in a production industry or a service sector, cost reduction and lean methods can improve your bottom line and open up new possibilities. Although like many necessary undertakings, the biggest challenge is in actually achieving the expected benefits; unforeseen issues may arise, costs can mount, the organizational culture may be resistant to change, and any gains created at first may be quickly lost. It is crucial that cost reduction and lean efforts are sustainable – not just focused on short-term measures, but ingrained in your organization’s culture for continuous improvement. These issues are people-related. Our “art & science” approach to cost reduction and lean ensures that cost reduction and lean transformations happen smoothly and effectively – delivering maximum results both immediately and for years to come.

How We Can Help

If you are looking to reduce costs and improve your bottom line we can help. Our professional consultants have decades of experience in lean and cost reduction initiatives. They possess a wide range of knowledge and techniques including: Six Sigma, 5S, OPPS, Single-Minute Exchange of Die, Kanban, and Kaizen.

Sample activities may include:

  • Identifying areas for cost reduction or cost management
  • Benchmarking costs
  • Determining and implementing the best cost management plan for your organization
  • Conducting cost reduction assessments
  • Conducting business practice reviews
  • Implementation of cost reduction measures
  • Conducting an assessment of your organizational culture around efficiency and lean
  • Measuring and tracking cost reduction initiatives and efforts

Key Considerations

Questions to Ask

  • Have we developed a sustainable culture which focuses on continuous improvement including cost reduction and increasing efficiency?
  • Are our management and employees responsible and held accountable for being as efficient as possible?
  • What reward structures are in place to ensure constant improvement?
  • When was the last time the organization conducted an efficiency audit?
  • Are our cost reduction initiatives passing on increased value to our customers?

Thoughts to Consider

  • The most efficient organizations have a cost conscious culture in place. It is not enough to have sporadic cost reduction initiatives from time to time; a truly competitive organization has systems in place to look for continuous improvement.
  • Leadership and accountability are large factors in determining the success of your cost reduction or lean initiatives. Proper reward programs (monetary but also other) and clear outlines of responsibility and reporting are essential.
  • Transformation of an organization’s culture and people to become more efficient is difficult. The correct balance of “art & science” while trying to accomplish this is essential.

There are many obvious benefits to reducing cost and improving efficiency, such as increasing your bottom line and improving your competitiveness. Others include:

  • A sustainable approach to efficiency, with a culture aware and looking for opportunities to continuously improve
  • Having a structured, workable approach to making your cost reduction initiatives a success
  • The identification and avoidance of business practice inefficiencies
  • Increased profitability and enhanced shareholder value
  • An understanding where you stand, by benchmarking compared to competitors and as a baseline against which to measure your goals
  • Avoidance of redundant or inefficient operational processes
  • The confidence knowing you have the most efficient cost management practices in place

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