Jackson Productivity Research Inc.
Productivity is our middle name
Our Productivity and Industrial Engineering Books,
click cover for contents. Cost Reduction is a high powered book, full of good ideas. Industrial Engineering book includes the contents of Time and Motion Study,
Layout, and Cost Reduction; but not Construction Piece Rates .
Cost Reduction - A Vital Practice in any Economy
Does your business take cost reduction seriously? Chances are, you have already started.
This page offers some
specific ideas, and resources, on this difficult topic.
Specific cost reduction
First, please consider your entire organization, not just direct labor, to optimize results.
Second, platitudes and buzz-words alone won't do the job. Successful cost reduction requires a hands on approach,
literally a line by line analysis. Where to look? Your business is unique, but these insights are often useful:
Find the highest value opportunities in your unique circumstances; show me the money. "Opportunity" combines
both the overall cost, and the potential actually to create an improvement .
- Cut waste. Just what is waste? A March 2009 "Business Week" article presents this test:
Will a customer pay for this activity?
Will my service fail without this activity?
Will I go to jail if I eliminate this activity?
Answer "no" to all three, and the activity can essentially be defined as waste.
Sounds good to me.
- Find and manage constraints, bottlenecks, delays; that extend the cycle time of any activity.
- Quantify expectations, measure performance, ask for accountability.
- Cherry pick on the floor; look for delay, workload imbalance, high scrap.
- Cherry pick at the management level, non-value added activity, inventory policy that causes changeover
or out-of-stock. Match throughput to customer demand, match facilities and workforce to customer demand.
Do your internal operating practices or paperwork interfere?
Put cost reduction into effect
The immediate needs for your organization will depend on the general economy, the particular sector of the
economy in which you participate, and unique characteristics of the organization. You may need to survive, or to
recover, or to thrive at different times of your existence. Ideas for cost reduction and for good management
are mixed interchangeably, just as in real life.
By the way, real cost reduction results may well cause you to evaluate some hard choices. It is said that
there are no fixed costs if one reconsiders the basic assumptions.
Read more, or act?
Read an on-line article on Cost Reduction; please click to read
Read what I consider my most useful book. Please click here or the Cost Reduction cover above for more detail on
the Amazon site.
If you'd like experienced assistance
to create effective cost reduction for your circumstances, call on JPR. We can perform a project,
shepherd your staff, or tailor services according to client resources, objectives, timetable and budget.
We welcome your questions and comments; please call
call Jack Greene at 843-422-1298, to ask about cost reduction.
There is neither charge nor obligation
Or please e-mail Jack Greene at