Part 5 of our Effective Ways to Reduce Manufacturing Costs article series

effective-ways-to-reduce-manufacturing-costsIn Build-to-Order and Mass Customization (see part 4 of our article series) manufacturing cost reduction is realized at the parts and raw materials level.  Standardization supports the fundamental concept of build-to-order and mass customization in that all parts must be available at all points of use which eliminates the setup to find, load, or kit parts.

Standardization makes it easier for parts to be pulled into assembly, instead of ordering and waiting, by reducing the number of part types. Fewer types of parts ordered in larger quantities will reduce part and material overhead cost.  Additional benefits are floor space reduction, overhead cost cuts, and time saved in setup, logistics and supply chain management. Other types of standardization which can also affect cost include tools, features, raw materials, and processes.

Rationalizing products and measuring total cost to justify standardization efforts requires the right tools. Download our “How to Choose a Manufacturing System” guide to see if your current system will be a help or a hindrance to implementing standardization and reducing your manufacturing costs.