From discounts based on intuition and experience to theoretical cost reductions.
We will introduce a case study of cost reduction consulting that we are conducting. ◆Consulting Case Study◆ Setting and Utilizing Cost Standards
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【Background】 Due to reliance on intuition and experience, we have become defensive in response to strict cost reduction requests from customers, making it difficult to secure profits. ◇ How to respond to cost reduction requests from customers ◇ How to request cost reductions from suppliers and partner companies and how to proceed with them By creating theoretical and scientific cost standards and calculating costs based on those standards, we aim to plan cost improvements and facilitate smooth negotiations with business partners. 【Implementation Effects】 ◇ Through theoretical price negotiations with customers, we were able to determine prices with their understanding. ◇ We achieved cost reductions while gaining understanding from partner companies. ◇ We became able to identify key points for cost improvement within the company. ◇ We were able to cultivate cost professionals (cost engineers) within the company. ◇ We were able to raise employees' awareness of costs. We have made it possible for anyone to easily and accurately estimate costs based on the same standards through the creation of cost standards, cost calculations based on those standards, and operational manuals, rather than relying on experienced engineers for cost estimates.
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※We will create a consulting plan based on the meeting.
Applications/Examples of results
A manufacturing company that performs machining, sheet metal processing, and assembly of parts.
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Company information
We provide practical guidance on achieving target costs in product development, assessing and evaluating purchase prices in procurement, improving costs during the manufacturing stage, and advancing market development, with a focus on the manufacturing industry and enhancing profitability from the perspective of product and component costs. When advancing cost improvement activities for products and components, it is essential to first understand what costs make up the cost of those products or components. Then, we eliminate waste, inefficiency, and inconsistency from the factors that constitute the cost. As a result, cost reductions can be achieved. Our company offers guidance on cost management and provides estimation software for calculating the costs of products and components, aiming to enhance the efficiency of cost analysis.