By Roland Schwientek, Axel Schmidt

Attaining operative excellence is a vital endeavour for all businesses ? it's the golden direction that results in elevated price over the longer term. via this publication you too can achieve operations excellence inside your personal corporation.

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Extra resources for Operations Excellence: Smart Solutions for Business Success (International Management Knowledge)

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This means that it is possible to extrapolate target costs for a product by knowing the cost of similar products. 4). Tool 5: Innovation analysis This tool aims at reducing cost by using the latest technologies, materials, processes or solutions. 4 2 4 6 8 10 Number of product functions Competitor Y (D-1 comparable) 12 Performance Cost Analysis – Cost comparison by most important function Note: A-1... D-1 own products (different families). 14 Competitor Z (D-1 comparable) 16 Innovate to win to allow functionalities to be integrated more tightly on a lesser number of chips; they might produce concentrates, as do detergent makers to reduce packaging, logistics and sales cost; or they might replace light bulbs with LEDs.

The goal of this lever is to quantify all costs of a product over its full lifecycle (development, series production, and after sales). TCO strives for an overall cost optimization. It is especially applicable in cases when production machines, parts or components used in own products incur further cost during their lifecycle. This tool is applicable mostly when designing processes or services. Tool 8: Mapping the complete value chain This is one of the most comprehensive approaches with which to understand and reduce cost.

Combined with Roland Berger’s ‘comprehensive cost reduction’ approach (CCR), DtC covers more than merely the four typical levers that are usually applied to tackle cost. Setting the points: reducing cost is – above all – a mindset Mindset is the first obstacle that needs to be overcome when trying to implement any sort of DtC approach. This is as true for engineering as it is for other professional fields. The word ‘engineer’ is derived from the word ‘genius’. Miraculous inventions and brilliant ideas spring to mind when we think of genius.

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