Cost Management

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Cost Management

DESCRIPTION

Cost management is the most serious challenge for Chinese factories. Chinese currency appreciation, labor cost increases, extreme amounts of employee turnover, and drastic fluctuations of raw material prices are direct factors which impact factory competitiveness. The global financial crisis has also worsened the external operating environment. Factories must understand cost management as a system and then improve their internal management capabilities and processes in order to rebuild their cost advantages.

CONSULTING MODULES

  • Identify waste in each process
  • Labor cost analysis and improvements
  • Material cost analysis & improvements
  • Manufacturing cost analysis and improvements
  • Operation cost analysis and improvements
  • Quality cost analysis and improvements
  • Sales cost analysis and improvements
  • Purchasing Processes & Improvements

EXPECTED OUTCOMES

  • Lower management costs
  • Detailed cost accounting
  • Optimized cost structure
  • Better cost analysis capabilities
  • Better cost control capabilities

SUCCESSFUL CASES

Cost Management Via Rack

Fusion performed cost management consulting at a slipper plant. Before Fusion began the project, slippers were thrown into
plastic baskets. Fusion recommended using racks for many reasons: easy to manage, no accidental mixing of products, and
more convenient for inspecting & counting. Using the racks saved more than 50% of the original time.

The expected effect Diagram