A major electrical equipment manufacturer was looking for new cost reduction opportunities on an existing product line, after having led numerous of cost reduction programs over the years. But how do you go the extra mile and break down the last barriers?
To make the difference, we investigated cost reduction opportunities beyond our client’s perimeter. By bringing the company’s key suppliers into the game, we were able to rationalize the product range, reduce the amount of raw material used and even change the chemical composition of the product, all without impacting marketing requirements. At the same time, we revisited the industrial processes to increase production rates at constant staffing levels.
All these efforts by the company’s teams cut annual costs by 5% on the entire line of 150 references.