By: subodh
In today's world when Corporate are struggling for profits and with fierce competition in the market, cost reductions, productivity enhancement and lean organizations have become today's mantra s for survival.Folllowing are the key area where you can implement cost reduction methods with significant results.
Following are major areas of:
1. Raw material procurement:
a) Bulk buying
b) Opportunity buying
c) Make or buy
d) Annual Rate contracts
2. Logistics- Inbound and Outbound:
a) Route mapping
b) Loadability
3. Warehouse and Stores:
a) a.Low inventory
b) Space management
c) EOQ
4. Manufacturing Process (Production) :
a) manufacturing
b) Automation
c) OEE
5.Energy, fuel & Water:
a) Motors
b) lighting
c) compressors
d) fuels
e) recycle
f) Waste water management
6.Information Management:
Enterprise Resource management
7. Human Resources:
Out sourcing
