Our promise: Short-term cost reduction
Elimination of the causes instead of symptom treatment
Focus on overall efficiency
The objective of KPC consulting: reduce costs with total system optimization
KPC wants to be part of your success story and help you realize the optimization potential that will ensure that your company continues for future generations. It’s not about working harder but about working leaner and more efficiently, and KPC is committed to helping you remain strong and competitive by focusing on methods to improve efficiency and reduce operating costs.
Our guiding principles:
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.
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:
This is done in 3 steps: