Lean-Driven Cost Management

Overview 

In these unpredictable and challenging times which have worsened in the continuing COVID era, manufacturing organizations are struggling to find new ways to survive. Many are trapped in outdated manufacturing systems and concepts. Any past Lean improvement efforts have resulted in limited enhanced margins due primarily from the downsizing of production lines not to the elimination of wastes. Very few companies know how to effectively plan and manage costs and demands. Profitability calculations are partial at best when the overall systems are decentralized and composed of different profit centers. 

In today’s challenging environment, the only companies who will survive are those who are fully centralized and segmented by value stream. This means a complete interdependence between management and manufacturing functions. By integrating a wide range of management functions into the manufacturing functions, the overall organization will operate more efficiently. This process refers to both large and smaller companies and to every level of staff, from top managers to line workers.

Outcomes

Textile, apparel, footwear and leather goods industry need to be equipped with accurate cost modeling techniques in order to manage their costs and ensure an acceptable profit margin.

As competition increases, new product innovations must outpace product obsolescence. Most of a product’s costs are determined during the product design stage. Managing the cost of a product already in production can be achieved only by minimizing unfavorable cost variances from the product’s standard cost and by applying process improvements.

After a new product is launched, the potential to reduce costs from the product’s perspective rapidly falls. Costs must be managed early on in a product’s life.

Participants will learn how cost management is planned and integrated and what changes might be required in real time to address any cost deviations, to consistently achieve target unit prices and to maintain profitability goals. 

To find out your best suitable course for your career, We would be glad to assist you in making the right choice

Communicate with our advisors