The need for Manufacturing Cost Improvement services has never been greater with pressure from shareholders, customers and competitors constantly providing an incentive to achieve world-class levels of performance.
This is despite at least two decades of a whole manner of improvement initiatives such as Lean, Six Sigma, Business Process Re-engineering and a host of technology led activities. However, the sad truth still remains that most organisations still have opportunities to improve the manufacturing capability performance and ultimately the financial performance of the business.
Businesses are constantly being challenged to reduce selling price or improve delivery times as customers become more and more demanding. Often though this increased pressure manifests itself not in improved performance but perversely enters a downward performance spiral as the increased pressure forces shortcuts and mistakes under pressure.
MCP has been involved with delivering a fast track Manufacturing Cost Improvement programme across industries as diverse as Food, Pharmaceuticals, Furniture and Chemical.
This programme is targeted at Manufacturing/Site Directors and Managers who need a rapid and sustainable increase plant performance. A typical intervention will be for a duration of between 10-12 weeks and be delivered in 3 phases through a combination of the MCP team who provide coaching, training and guidance working alongside the company’s staff to identify and make changes in working practices with a focus on cost reduction in terms of:
- Labour costs
- Material costs
- Administration costs
- Downtime costs
However not all of the benefits that accrue through this programme are of a financial nature, benefits will also accrue in quality and compliance, delivery performance and in plant capacity.
The stages of the programme are:
- Week 1 – Diagnostic and measurement of the size of opportunity
- Week 2 – Develop and agree on an implementation plan
- Week 3-10 – Support implementation and provide coaching and training
- Week 10-12 – Deliver sustainable benefits
This programme has had significant success in reducing manufacturing costs and providing a sustainable basis for future improvement. However, it is simply not just about applying some improvement tools and techniques it is also about changing the behaviours of the people within the organisation at all levels. This means that the site management team have to take on responsibility and ownership for sustaining the improvements once the initial 10-week programme is finished. The impact on day to day life can be large with staff having more time to carry out activities efficiently and correctly first time and this brings cost benefits to the business.
The benefits of this programme include:
- Cost Reduction
- Quality and compliance
- Delivery performance
- Plant capacity.
- Improved working practices