The document discusses cost reduction strategies in the manufacturing industry. It identifies six main areas to focus on: marketing, new product introduction, strategic sourcing, manufacturing management, logistics network, and plan design source make deliver phases/functions. For each area, it provides actions that can be taken such as concurrent engineering, just-in-time purchasing, focusing on eliminating waste, and using lean tools like kaizen to increase productivity and quality. The overall strategies presented are aimed at reducing costs through greater efficiency, optimization of operations and processes, and strengthening supply chain relationships.

1. Dr. Lütfi Apilioğulları // İstanbul
lutfi.apiliogullari@leanofis.com
Cost Reduction Strategies
Manufacturing Industry

2. Cost Reduction Strategies in Manufacturing Industry

3. Marketing
New Product
Introduction
Strategic
Sourcing
Manufacturing
Management
Logistics
Network
Plan
Design
Source
Make
Deliver
Phase Function
Cost Reduction Strategies in Manufacturing Industry
Dr. Lütfi Apilioğulları // Lean Ofis
Current Problems & Solutions
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MUDA Productivity
Variability Quality
Uncertainty Speed
Lean
6 Sigma
Agile

4. Marketing
New Product
Introduction
Strategic
Sourcing
Manufacturing
Management
Logistics
Network
Plan
Design
Source
Make
Deliver
Phase Function
• Separate function within
organization.
• Listen to market (market sensitivity)
• Make decision with consensus, base
on your analytical research.
• Track product life cycle
Cost Reduction Strategies in Manufacturing Industry
Action to be taken
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5
Dr. Lütfi Apilioğulları // Lean Ofis

5. Marketing
New Product
Introduction
Strategic
Sourcing
Manufacturing
Management
Logistics
Network
Plan
Design
Source
Make
Deliver
Phase Function
Cost Reduction Strategies in Manufacturing Industry
Action to be taken
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• Concurrent Engineering (Matrix org,
info sharing with whole Chain)
• Advanced technology
(CAD/FMS/Simulation, 3D, etc)
• Skilled Team
• Focus on your expertise, use
knowledge, capacity and knowledge
of your partners.
Dr. Lütfi Apilioğulları // Lean Ofis

6. Marketing
New Product
Introduction
Strategic
Sourcing
Manufacturing
Management
Logistics
Network
Plan
Design
Source
Make
Deliver
Phase Function
Cost Reduction Strategies in Manufacturing Industry
Action to be taken
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• Strategic alliance with limited # of
suppliers
• JIT purchasing. Reduce lead-time,
increase turn
• Share risk with VMI
Dr. Lütfi Apilioğulları // Lean Ofis

7. Marketing
New Product
Introduction
Strategic
Sourcing
Manufacturing
Management
Logistics
Network
Plan
Design
Source
Make
Deliver
Phase Function
Cost Reduction Strategies in Manufacturing Industry
Action to be taken
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• Focus on MUDA: Eliminate wastes
by KAIZEN
• Re-Adjust your lay-out by
considering flow, pull and bottleneck
• Increase your OEE by TPM
• Fight with Quality Problems by
Jidoka & TQM
• Make your workers a factory citizen
Dr. Lütfi Apilioğulları // Lean Ofis

8. Marketing
New Product
Introduction
Strategic
Sourcing
Manufacturing
Management
Logistics
Network
Plan
Design
Source
Make
Deliver
Phase Function
Cost Reduction Strategies in Manufacturing Industry
Action to be taken
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3
4
5
• Reduce your FG stock: Demand
driven manufacturing
• Use WMS & Technology to
eliminate errors, waste
• Postponement strategy where
possible
Dr. Lütfi Apilioğulları // Lean Ofis

9. To do, or not to do! That is the question!
Thank you…