Our guiding principles:
- KPC consulting is tailored specifically to solve the problems of each customer’s unique situation.
- Improving overall efficiency takes precedence over micro-management in individual areas.
- We’re not just looking for ways to keep our consultants busy – we’re motivated by our passion for Lean and production efficiency.
- We are committed to helping our clients achieve the benefits of a Lean management system and anchor the Kaizen philosophy firmly in their own company culture.
Our KPC consultants have Lean expertise gained from working in a wide range of industrial sectors; they possess the skills needed to deploy Kaizen concepts and activities for sustainable continuous improvement in the most challenging manufacturing environment.
Reduce Manufacturing Costs:
One of management’s primary objectives is to streamline production and keep manufacturing costs as low as possible.
Keep it simple…don’t lose sight of the main objective by putting too much effort into mini-projects or micro-areas. In the long term 5S or improving workstation design will have little impact on the overall operating results. It is more important to deploy measures parallelly that contribute to improving overall efficiency and reducing the variable and fixed costs.
Material costs account for the largest percentage (80-90%) of variable costs and consequently the largest percent of all manufacturing costs (50-80%). However, excess inventory is just the tip of the iceberg and hides – in addition to pure material costs – a number of other cost factors – personnel, energy, transport, storage, administrative costs, depreciation, interest, etc. Reducing variable costs requires a holistic approach.
The majority of fixed costs can be attributed to real estate, production facilities and equipment. Employee salaries are also a fixed cost and important from a socioeconomic point of view; KPC does not underestimate each employee’s value. Methods to reduce fixed costs require:
Methods to reduce fixed costs require:
- Improved space efficiency (revenue per square meter) – supported by lead time reduction.
- Increase resource efficiency, especially in bottleneck facilities.
- Increase employee productivity by setting up standard work and better employee training.
- Lead time reduction in order processing
- Lead time reduction in the R&D and engineering processes