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    Cost Reduction

    Reducing Product Costs

    We helped a major U.S. household products manufacturer reduce product
    cost by 14%.


    The Client Ask:
    Realize required cost reductions by organically creating 25% more capacity to enable a consolidation strategy.
     
    Plant Attributes at Project Start:
    Older facility, high volume, high mix, batch process, all “monument-size” equipment, expensive to retool, constantly changing product mix, many different changeovers required, many product flow alternatives…
     
    What We Did:
    Working with client teams, we analyzed and characterized 4,300 different end products and identified the product families, studied the capabilities and characteristics of the production equipment, assigned product families to specific asset flows, identified priority process improvements, built a value stream-based capacity management model, developed a value stream management capability in the leadership team and enhanced the scheduling process.
     
    The Outcome:
    Exceeded client expectations with realized cost savings in the millions of dollars, plus optimized production capabilities, engaged and empowered teams, and improved their customer service index by 9%.


    This was a big (and fun) project and we can assist you in achieving similar outcomes. We can also assist with smaller projects.
     
    What’s keeping you up nights? Chances are we’ve helped someone tackle a similar issue. We have 40+ years of experience, let us put it to work for you.
     
    Give us a call to get started. (203) 225-0451. Or email us at lean@productivityinc.com.
     

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