Control and reduction of operating costs
Possible solutions for reducing costs
Operation or production costs are certainly one of the essential pieces of the puzzle when it comes to talking about profitability. The ultimate goal is to keep them as low as possible and even to reduce them. Some large clients even have a price reduction strategy to please their customers and pass part of the bill to you. Some of you certainly recognize yourself or have experienced it firsthand.
In controlling and reducing operating costs , it is to your advantage to question everything periodically and not to hesitate to carry out a diagnosis of operations to see more clearly. It is also important not to overlook the fact that everything can contribute to reducing costs, for example:
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Automation
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Adopting methods of monitoring production , quality , maintenance , etc. illegal immigrants
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Optimization of production via:
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Improved startup routines
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Scheduling
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Sequencing
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Etc.
What should be prioritized to control and reduce costs?
The highest priority is to maintain the flow of day-to-day operations and profitability while meeting regulatory, normative and customer compliance requirements . It is therefore essential to integrate the fact that profitability , productivity and quality go hand in hand.
It is a promising strategy to prioritize the following elements:
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Teamwork with all your teams , ie production, quality, maintenance, human resources, etc.
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Announce upcoming changes and explain them to everyone in order to reduce resistance to change
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To seek advice and remain attentive to the floor staff that are there every day
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Plan or organize small changes at a time
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Take the time to measure all the effects and impacts of the change before implementing another one
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Not to hesitate to include a transition period or a break even if it means going back or making changes in the approach if necessary
What's the best way to do it?
The magic recipe depends on you and your flexibility and how you go about integrating different approaches. The efforts, even the smallest, of each department can make a difference. The implementation of a strategy of continuous improvement which encourages the participation of all is certainly part of the path towards a good cost control and reduction initiative.
By using the tools mentioned in the solutions above; you'll even discover ways to cut costs that you might not have thought of. Collaboration between departments/teams and not hesitating to question everything are among the pillars of this cost reduction approach.
We are able to assist you with controlling and reducing operating costs. This will allow you to become more efficient and achieve productivity gains while allowing you to be up to date and meet regulatory compliance requirements, standards and those of your clients (including those specified in the GFSI standards).