effective-ways-to-reduce-manufacturing-costsWe are excited to introduce our new monthly blog article series.  In March, we will focus on ways to improve costs, profits, and flexibility by reducing manufacturing costs.  Manufacturing cost reduction efforts can result in significant product cost saving, manufacturing cost saving, and life cycle cost saving especially when companies implement all eight of the following strategies for manufacturing cost reduction:

  1. Reduce manufacturing costs associated with product design
  2. Implement lean manufacturing (or lean production) principles
  3. Reduce overhead manufacturing costs with build to-order and mass-customized inventory
  4. Standardize parts to reduce manufacturing costs
  5. Rationalize the product line to focus on the most profitable products
  6. Simplify supply chain management
  7. Evaluate the cost/ benefit of quality (in some cases reducing quality costs can double profits)
  8. How not to reduce manufacturing costs (avoiding cost reduction attempts that can substantially raise many less-obvious costs and compromise other important goals)

Over the next four weeks we’ll present information on all eight strategies. Of course, having a system in place to help you manage and analyze the data associated with each of these strategies is critical to implementing them. Download our “How to Choose a Manufacturing System” guide to see if your current system will be a help or a hindrance to reducing your manufacturing costs.