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CONTINOUS REDUCTION OF COST USING LEAN-SIGMA TOOLS

1. Cost Reduction Through 5S or 6s The companies lean -sigma start a continuous improvement program is fundamentally through improved houses keeping Using the principles of 5S or 6 S to create and maintain a workplace that becomes a regular clean safe and has a high performance. 5S, allows anyone to separate conditions of normal and abnormal is the foundation for continuous improvement, zero defects , Reduction of costs and to create a safe working area and comfortable. 5S is also a systematic approach to improving the working environment, Processes and products by involving employees on the plant floor or (production line).

Six Sigma Not Just Cost Reduction

There is fear in the employees when the organization announced it would run a Six Sigma program . This occurs due to fear failure to understand the definition and implementation of Six Sigma goals of the organization . This is further compounded because many organizations are implementing Six Sigma in times of crisis , not infrequently also organizations implement Six Sigma as a justification for cutting costs , including resources about six sigma negative manusia.Stigma inherent in the minds of the employees implicated in the emergence of resistance , moral decline employees , and counterproductive . Well let ‘s look at an example below : If the HR manager saw that the overtime rate / high employee overtime . Then want to make improvements to the ” using ” Six Sigma methodology to reduce the overtime costs . I wonder what the title of improvement initiatives ? If you answered “Reduce Overtime Cost” can be sure that you are not yet accurate enough to understand Six Sigma . The goal of

Continuous Cost Reduction Through 5S

Companies that implement six sigma continuous improvement program start fundamentally through improved housekeeping. The company is using the principles of 5S and 6S in order to create and maintain a workplace orderly, clean, safe and has high performance. 5S allows anyone to separate conditions of normal and abnormal, are the foundation for continuous improvement, zero defects, cost reduction and to create a safe work area and comfortable. 5S is also a systematic approach to improve the work environment, processes and product involving employees on the factory floor or production line 5s actually a coaching culture, and employee performance that are designed to develop a simple self-starting work environment works. This simple jobs ranging from separating items that are not used and are still used. Then clean working environment. Everything was getting used so employees can handle the job regularly and systematically. So that productivity and quality can be guaranteed. Search Fund Acc

Deming Chain Reaction In Cost Reduction Program

Deming's Chain Reaction Dr. William Edward Deming, a professor of quality management from the United States put forward a reaction known as Deming’s Chain Reaction. According to Deming, any improvements made by the industry would make the activity of system processes in the industry getting better and better. Quality improvement activities with the overall industry will experience an increase in productivity due to waste and inefficiency is reduced slowly. Customers will benefit from increased productivity by getting more and more products are qualified at the level of cost per unit is declining constantly. If the customer has acknowledged the high quality, trust will be established and released a difficult partner. In addition it will tell customers at competitive prices and quality products to someone else / another prospect, so the demand for products will increase. This will ultimately expand the market share. If the industry remains consistent in its business, it will increase

Continuous Cost Reduction for Global Competition

An industry companies that will succeed are the companies that can win the market competition. Competition in global markets, as now imposed on manufacturers to reduce costs that are considered the company’s financial influence. But more importantly accuracy in capturing the waste management of the company and not realized by the employee and member of the company concerned. Costs in the industry play a very important role in terms of creating competence in inter-industry competition in the global market. Proportion of production costs in general could reach 70% to 90% of the total cost of sales as a whole, thereby reducing production costs will make the selling price set by the manufacturers become more competitive.

Kaizen Blitz For Cost Reduction Efforts In Continuous

Performance improvement program for continuous cost reduction requires a commitment to improvement that involves aspects of human motivation and technological aspects in a balanced way. Kaizen is a Japanese term can be interpreted as continuous improvement. High spirits of Kaizen in Japanese companies have made them thrive and excel in various fields of life, especially in terms of improved quality and productivity.