As we all know, cost saving is not so easy to achieve. Over the years, there have been many cost management methods, which have been applied in many enterprises and achieved good results. But now, the problem faced by most enterprises is that the improvement methods and countermeasures of tangible costs have been applied. Although we are still trying to improve in the old way, the effect is becoming less and less obvious. It is time to introduce more effective cost-saving methods, as a domestic production director said: "I dream of how to reduce costs. In order to reduce costs, I am willing to mobilize all my energy to launch a super war."
Borg Consulting Company often uses the following three methods in lean cost management consulting activities: new procurement cost compression method, R&D and business cost compression method, and comprehensive energy and logistics cost compression method.
First, Borg Consulting's new procurement cost compression method
Without the cost reduction of the purchasing department, the comprehensive cost of the enterprise will not be competitive. According to McKinsey's statistical analysis, the effect of purchasing cost saving 1% is the same as that of reducing inventory 10% or increasing sales by 3%. In the lean cost management advocated by Borg Consulting, TCO (Total Cost of Ownership) is the most commonly used method to reduce procurement costs. This method is a new procurement cost reduction method proposed by Borg under the premise of limited effectiveness in reducing costs in bulk procurement and strategic procurement.
TCO mainly includes three aspects, namely
A) purchasing
The core element of this solution is the purchase unit price. Commonly used methods include guiding effective competition mechanism, large-scale procurement, introduction and application of new materials, etc. By bidding.
B) internal expenses
The core elements to be solved are transportation cost, storage cost, inventory cost, procurement management cost and input-output ratio within the factory. Commonly used methods include canceling invalid inspection activities, sharing information smoothly between departments, reducing working procedures by shortening production cycle, improving inventory turnover rate, resetting safety inventory and so on.
C) comprehensive cost
The key factors to solve this problem are R&D expenses, product loss expenses and product specifications. Commonly used methods include integrated procurement of two-level suppliers, participation of supplier R&D personnel in product R&D process, and improvement of supplier's production efficiency and quality ability.
Second, Borg Consulting's R&D and ways for enterprises to reduce costs
Although cost savings all start from the site, the cost savings of R&D and business departments are the biggest contributors to the overall cost savings of enterprises. If the cost introduction effect is divided into parts, 80% of the cost is completed by postgraduate entrance examination, because the so-called cost has been determined in the product development stage.
Jin, the chief consultant of consulting experts, said, "In the past, most enterprises classified costs and business costs as hidden costs, but in recent years, more and more enterprises have turned their attention to them." In lean cost management, Borg Consulting Company adopts DTC(Design To Cost) to save R&D costs. The characteristic of this method is to cut into product design for the purpose of reducing cost from the initial stage of research and development. We often compare our competitors' products with ours after complete decomposition, looking for ways to reduce costs.
Third, Borg Consulting's comprehensive cost compression method of energy and logistics.
Oil futures prices are rising, global logistics costs have increased for many years, and domestic energy costs have increased by at least 100% in the past decade. In addition to changes in management methods, Borg Consulting strongly recommends that our customers adopt new energy-saving technologies.
Borg consulting company answers you.