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Cost Reduction

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Cost Reduction

Doing Business in China or Mexico it is very easy if you have the correct attitude. You have heard before about the problems and suspiciousness of doing business abroad, many domestic suppliers and resellers foster this notion as a strategy to compete in the global market, but as you may find out from many other of your competitors, manufacturing and sourcing from China or Latin America is actually a superb deal. The cost can be dramatically improved and there are hundreds if not thousands of companies that compete for your product and of course they will do so by offering World Class Manufacturing and the highest quality standards in the world.

We have identified that our company provides added value for you by helping you in the legwork of finding your China or Latinamerica sourcing. Additionally we will empower you to connect and strengthen a direct relationship with your supplier. We will travel to their facilities with you and assist you in asking the important questions. We will also recommend and train you on the skills and practices that will help you solve problems, faster and better. Normally takes weeks when companies rely on representatives, we will teach you how to do it in a day or even hours.

 

Cost Reduction Services

  • Materials, Suppliers and Processes Selection 

It is very common for complex companies to manage many suppliers with different types of parts at different rates of cost benefit. An overall analysis of your company’s needs can help in determining the perfect balance of your entire efficiency in regards with the number of Suppliers or Selection of Suppliers, Materials and Processes.

  • Research of Non-Value added losses

Another common problem is the dissemination of Processes, Systems and or components that are not truly adding value to your product, but exist due to some prior and not verified reason. We can analyze your organization to look for this non-value losses and help you eliminate or mitigate them.

  • Value Engineering

Another key benefit we can provide for your company is the use of engineering principles to build value into your product, by improving its features, effectiveness, quality and cost reduction. Such activity is sometimes disregarded in stable products and an opportunity for improvement is lost.

  • Defects and Scrap analysis and reduction

Another big cost opportunity is the Scarp and Defects that occur normally in manufacturing. Such cost is hidden sometimes from the bottom line. We can analyze the main Scrap and defect generators in your company and help you understand how to determine them. Furthermore, the most important part is knowing how to minimize them or even eliminate them.

  • Operator Dynamics and Ergonomics

Usually we do not think operators work center as a cost generator. Operators that work comfortably and move less, can yield extremely high productivity. Understanding how to minimize their effort produces great savings in manufacturing. We can determine this and help you understand what to look for when optimizing an operators work area.

  • Quality systems implementation

From ISO9000 to World Class Manufacturing, there are world wide standards of Quality operation that have benefited the best companies in the world. Anybody can use this extensive knowledge base and obtain the benefits for free. We can help you improve or implement the best Quality systems available.

  • Improve supplier’s quality

Sometimes our biggest problem is not our own quality but our supplier’s. By getting involved in their effort to improve quality you can obtain benefit. Such assistance can be provided by certifying the supplier, advising them on how to improve quality and the worse case, researching new suppliers that will be happy to cooperate with you and your efforts to be the best.

  • Establish a mutual cooperation between you and your suppliers

Nothing is most beneficial than establishing great relationships with your suppliers. For them, you are a customer, so the burden is on their side, but you are still responsible to make sure that that burden is taken seriously, professionally and with good will. Great relationships foster this. We can work with your to determine the opportunities that you may have with all your suppliers and help you identify them and improve them.

  • Standardize Bill Of Materials
  • Train you to select the best suppliers in China and Mexico
  • If you already had a supplier we can qualify his production capability, quality, logistics and cost

 

 

   

 
 

costreduction@costinnovation.com

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