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Production Cycle Times
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Cycle time, also called throughput time, is the amount of time required to produce a product or service. This time includes all production processes including value added time and non-value added time.
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Inventory Levels
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Inventory in general, and work-in-process inventory levels specifically can contribute to higher manufacturing costs.
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Non-value Added Processes
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Non-value added processes include: inspection time, move time, wait time and waste. Non-value added processes include any process in manufacturing that does not add value to the customer.
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Factory Utilization Rates
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The factory utilization rate relates the actual number of units produced by a plant during a time period to the number of units that a factory can produce using the existing capacity. Maximize factory utilization rates to increase profit per unit.
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Reliability Improvement
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Simply put- when you increase your factory's reliability, you increase your production. Increase your production and you increase your company profit. Reliable factories operate at lower costs.
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Quality Management and Control
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Quality management focuses both on product and service quality and on the means to achieve it. It has four main components: quality planning, quality control, quality assurance, and quality improvement.
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Warehousing Efficiencies
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Getting on top of warehouse efficiency metrics is very important and inventory cost issues can drain an outwardly healthy business. Receiving, stocking, inventory-taking, order picking, and order cycles should be considered as a continuous improvement process.
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Supplier Partnerships
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Strong partnerships with key suppliers are intended to bring down Total Cost of Ownership for materials through rapid and relevant communication of goals.
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Outsourcing - Sources and Extent
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Develop a target cost strategy for the acquisition of offshore materials and analyze the make-buy decision framework for the outsourcing of materials and sub-assemblies.
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Procurement and Material
Acquisition Costs
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Reviewing Materials Management and Planning, Supplier Quality Engineering, Inbound Freight and Duties, Receiving and Put Away, Incoming Inspection, Material Process and Component Engineering and Tooling will all lead to costs that can be controlled.
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Waste Reduction
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Removing any cost incurred that does not benefit the customer.
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Alternative Material Selection
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DCI can help to engineer new solutions to existing products by exploring to use of lower cost materials for specific applications.
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Logistics Costs
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Review the costs incurred end to end in moving a product from the raw material stage to market delivery.
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Manufacturing Execution Systems
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Review current implementation and or recommend software solutions that connect, monitor, and control complex manufacturing processes within your factory.