Overview

Organizations have been always in the competitive environment, the only difference now is the pace and complexity of competition due to such common themes as globalization, Information Technology and Internet revolution. Therefore to be competitive, organizations need to reduce cost and improve quality – but there is a catch. Mention cost cutting most employees would shiver and run for cover. Reasons? People have associated cost cutting with cuts in overtime, benefits, or even retrenchment – no wonder. The session aims to share techniques of cost savings and simultaneously looks at handling your competitive advantage i.e. your people.

Duration

2 Days

Who Should Attend

This workshop is designed for middle and senior management level of the manufacturing sector who involved in:

  • Production
  • Quality assurance
  • Productivity improvement
  • Cost cutting program

Objectives

By the end of the session, you would be able to:

  • acquire a comprehensive understanding of measurement techniques
  • help in the organization’s cost savings plan
  • understand productivity techniques
  • link productivity to cost improvements
  • differentiate between subtleties of fixed and variable items
  • know how to focus and prioritize on areas of importance
  • acknowledge the importance of systems improvement
  • handle people better in the process of cost reduction

Course Outlines

Definition of Cost Savings and Concept

  • Define savings and productivity

The Cost “Pie” – Cost Components in Manufacturing

  • Measurement: a partner in savings

Types of Savings

  • System or productivity-based savings
  • Non-system or non-productivity-based savings

Introduction to Base Measurement

  • Generic savings calculation

Types of Base Measurement (Each with Case Exercises)

  • Straight line technique
  • Comparable volume technique
  • Equivalent units technique
  • Linear regression technique

Base Deployment

  • Potential areas for cost reduction or savings for various departments
  • Case study

Horse Stable Case: Simulation Case Exercise to Drive Home Costs

  • A look at key volume indicator (KVI)
  • Fixed & variable items: which cost do we reduce?

How to Develop and Implement Cost Reduction Programme

  • Why cutting OT, people & benefits are not good ideas
  • Understanding the psychology behind big changes
  • XYZ company case study

**Requirements for preparation:

  • basic understanding of microsoft excel, maths and graphs
  • bring along calculators

Inhouse Training Framework - ADDIE Model

In GIN, we will work with you to modify courses or develop one to meet the specific requirements of your business. To assure your investment on training is not wasted and to maximize the value of the in-house program, we apply the ADDIE model – a dynamic, flexible guideline for building effective training and performance support tools. You may learn more about ADDIE model here.

Contact Us for Quotation

Contact us now for training at the Venue and Date of your choice throughout Malaysia and Internationally. Do let us know what is your expectation, number of participants, participants' profile and your preferred date and venue.