Lean & cost, Mechanical and plant engineering, Germany
A German product is preferred on the world market despite a 15 to 20 % higher price level – if product, service and sales are right. The rest is lean manufacturing and the right make-or-buy decision.
Make or buy assessed simultaneously. Lean measures and outsourcing alternatives evaluated in parallel – because mid-sized companies don't have 12 to 18 months.
Higher labour costs than in Portugal or China, competitors with cheaper product variants and customers who mostly buy on price. Time was pressing.
Value stream analyses and rigorous lean implementation reduced variable production costs – and with them overhead surcharges. Partial outsourcing alternatives were assessed simultaneously, because lean promises more on paper than practice often delivers.
A cost reduction potential of 15 (±2) % in six months – enough for increased competitiveness. Higher production volume brings further savings.
6 months
Cost structure and value streams recorded.
Waste and potential quantified.
Partial outsourcing alternatives assessed.
Implementation roadmap with 15 % potential handed over.
Plant and general management on a temporary basis – until handover to the local leadership team.
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