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LebenTech Training Module and Seminar Information

Manufacturing Cost Reduction & Control Strategy

Course Code – LIS 304

This two day comprehensive, hands-on course designed for both the new and seasoned practitioner, provides you with several tools that can help streamline and control the efficiency and cost associated with manufacturing operations. Learn about the fundamental strategies that can be applied to reduce and control manufacturing cost.

This course provides a comprehensive review of the various methods applied to reduce or eliminate waste and enhance manufacturing efficiency. Special emphasis is placed on the drivers of manufacturing cost, methods of optimizing these cost and the impact on profitability.

The course combines sound financial and manufacturing planning concepts, principles, methods, the best industry practices and proven solutions. It offers comprehensive coverage of basic cost model and various methods of analyzing manufacturing efficiencies. It presents both traditional accounting and non-traditional cost methods to allow selection of the most useful methods for controlling manufacturing cost and reducing waste during manufacturing operations.

General Objectives

Upon completion of this training participant shall be able to:

  • Gain an appreciation of the importance of manufacturing control and cost reduction success. They will develop an understanding of the practices that are appropriate to apply for different manufacturing process as well as the basis of effectively implementing the practices.
  • Improve results by adopting new methods for allocating burden and overhead cost.
  • Positively impact the bottom line by learning how to improve factory utilization with a cost reduction strategy.
  • Evaluate the long term prospect for manufacturing cost control.
  • Assess the latest technologies industries are using to lower manufacturing cost while simultaneously raising revenues.
  • Apply real-life examples of manufacturing cost techniques and technological adoption at world class industries.
  • Create manufacturing cost reductions and improve margins by increasing operation effectiveness.

LIS-304 Outline for Training Modules

DAY 1

Module 1 – Manufacturing Cost, Concepts and Applications

  • Understanding Real Manufacturing Costs
  • Fundamental Elements of Manufacturing Cost Control
  • Factors that impacts Manufacturing Cost Control
  • Choosing Manufacturing Production Control & Cost
  • Manufacturing Cost of Quality & Driver of Manufacturing Cost

Module 2 – Cost Control Strategies and Reduction Opportunities

  • Practice Concurrent Engineering.
  • Implement DFM, Design for Quality, Design for Lean
  • Lean Production and Overhead Cost Reduction.
  • Product Line Rationalization Cost Reduction.
  • Total Cost Measurements to Quantify the Cost of Quality.
  • Consideration of Quality Loss Function Application.
  • Application of Commercialization Techniques to ensure Success.

Module 3 – Manufacturing Planning & Control Strategy

  • Overview of Manufacturing Control
  • Metrics of Lean Manufacturing
    1. Total Cost
    2. Total Cycle Time
    3. Delivery Performance
    4. Quality
    5. Safety
  • Production Control Activity
  • Material Requirement Planning
  • Capacity Planning and Equipment Utilization
  • Implementation of an Asset Management Strategy

Module 4 – Comparing Standard Costing with Performance

  • Application of Cost Control
  • Establishing Cost Control Standards
  • Fundamentals elements of Variance Analysis
  • Factors Influencing Variance Investigation
  • Distinction between Standard Costs and Variances
  • Operational Control Measures & the Balance Scorecard
DAY 2

Module 5 – Quantitative Manufacturing Cost Control Methods

  • Section 1 – Cost Measurement and Analysis
    1. Approaches to Cost Measurements
    2. Fundamentals of Cost Review
    3. Elements of Cost Reduction Strategy
    4. How to Measure Manufacturing Efficiency
  • Section 2 – Revenue and Cost Control & Evaluation
    1. Main Focus of Revenue Control
    2. Analyzing Customers
    3. Manufacturing Cost Control
    4. Measuring Manufacturing Cost
    5. Performance Measures
    6. Process Improvements
  • Section 3 – Quantitative Cost Control Methods
    1. Cost Forecasting
    2. Quantitative Check on Conventional Cost Estimation
  • Section 4 – Optimization Techniques Utilized for Cost Analysis
    1. Linear Programming
      1. Maximization Problems
      2. Minimization Problems
      3. Transportation and Assignment Problems
    2. Scheduling Optimization
  • Module 6 – Cost Containment through Project Planning
    1. Introduction
    2. Network Models
    3. Considerations of Resource in Network Models
    4. Profitability Considerations
    5. Software | Computer Methods
  • Module 7 – Sustainable Cost Control and Reduction
    1. Cost Impact on Profitability
      1. Structure of a cost estimate for a manufactured product
      2. Relationship between significant cost drivers and shareholder value
    2. Sustaining Cost Control and Reduction
      1. Establishing a strong foundation and a culture for sustainability
    3. Designing a Sustainable Cost Reduction Process
      1. Establish a process for overcoming challenges during implementation
      2. Designing and establish successful manufacturing cost reduction incentive | targets
      3. Recognizing manufacturing cost management key success factors
      4. Formal documentation and justification of cost reduction initiative with respect to effectiveness and profitability
      5. Establish a reward scheme for significant manufacturing cost reduction initiatives

Interactive Solution Finding Session

Case Study Discussion

Total of eight case studies to be presented 15 – 20 minutes allowed per group.

  1. Option 1 – Select topic from a group that includes variety of industry applications.

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