Cost Reduction and Optimization for Manufacturing and Industrial Companies / Edition 1

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In today's economic climate, the need to cut costs can be the difference between success and failure. Cost Reduction and Optimization for Manufacturing and Industrial Companies covers all major cost reduction areas, providing easy to read examples and advice on steps to take. It provides the roadmap for implementing recommended actions with true and tried methods by taking a modern, all-inclusive look at manufacturing processes. Based on the author's cost reduction experience gained during 30 years of senior operations and consulting engagements with hundreds of organizations, this book includes easy-to-understand and easy-to-implement cost reduction concepts organized into five general areas--labor, material, design, process, and overhead.

Each chapter:

Dives into a cost reduction area and starts with the bottom line first by summarizing key points

Provides proven tactics for cutting costs without a lot of extraneous data

Follows a qualitative and design-oriented approach

Emphasizes quick implementation and measurable cost reduction

Identifies who in the organization should do the work

Outlines risks and suggested risk mitigation actions

Contains numerous tables, graphs, and photos to show the concepts described in the book

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Product Details

  • ISBN-13: 9780470609576
  • Publisher: Wiley
  • Publication date: 2/22/2010
  • Series: Wiley-Scrivener Series
  • Edition number: 1
  • Pages: 258
  • Product dimensions: 6.10 (w) x 9.30 (h) x 0.80 (d)

Meet the Author

Joseph H. Berk holds a graduate degree in mechanical engineering from Rutgers University and an MBA from Pepperdine University. His work is focused on helping organizations improve their engineering, manufacturing, and process capabilities, with a special emphasis on identifying and eliminating the causes of delinquent deliveries, product failures, excessive cost, and inefficient practices. Joe's work encompasses a wide set of industries including electronics, electro-optical, aerospace, automotive, biomedical, marine, ordnance, consumer goods, water treatment, metal fabrication, and the US Department of Defense.

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Table of Contents

Introduction 1

Chapter 1 Organizing a Cost-Reduction Program 3

Part I Labor 15

Chapter 2 Defining Headcount and Controlling Staff Growth 17

Chapter 3 Developing and Implementing Time Standards 28

Chapter 4 Measuring and Using Efficiency 36

Chapter 5 Assessing Machine Utilization 45

Chapter 6 Controlling Overtime 52

Chapter 7 Making Multiple Shifts Productive 61

Chapter 8 Finding and Reducing Lost Time 67

Chapter 9 Using the Learning Curve to Drive Costs Down 76

Part II Material 87

Chapter 10 Make-versus-Buy Determinations 89

Chapter 11 Inventory Minimization 100

Chapter 12 Material Utilization 110

Chapter 13 Minimizing Supplier Costs 117

Chapter 14 Supplier Negotiation 125

Chapter 15 Supplier Competition 133

Part III Process Improvements 139

Chapter 16 Workflow Optimization 141

Chapter 17 Setup Time Reduction 151

Chapter 18 Material-Handling Improvements 160

Chapter 19 Scrap and Rework Reduction 166

Chapter 20 Work Center Cleanliness 178

Part IV Design 185

Chapter 21 The Design Approach 187

Chapter 22 Requirements Relaxation 194

Chapter 23 Tolerance Relaxation 199

Chapter 24 Materials Substitution 207

Chapter 25 Packaging 211

Part V Overhead 219

Chapter 26 General Overhead Expenses 221

Chapter 27 Travel 231

Chapter 28 Inspection 236

Paxt VI Gaining Disciples and Measuring Progress 245

Chapter 29 Suggestion Programs 247

Chapter 30 Measuring Progress 253

Index 255

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