Cost Reduction Strategy Case Study

1235 Words5 Pages
EXECUTIVE SUMMARY TABLE OF CONTENT 1.0 Introduction 2.0 Cost Reduction Strategies and Green 2.1 Cost Reduction Strategies 2.2 Positive Impacts on the Environment 2.3 Negative Impacts on the Environment 2.4 Compare and Contrast 3.0 The Role of Information Technologies in Quality/Efficiency/Collaboration 3.1 Lean and IT 3.2 QM and IT 3.3 Collaboration and IT 4.0 Conclusion 5.0 Reference 1.0 Introduction (write paragraphs of how lean & six sigma, green and port are related) 2.0 Cost Reduction Strategies and Green 2.1 Cost Reduction Strategies Cost reduction strategies include several terms such as lean, six sigma and strategic procurement. Lean is a system to identify and eliminate waste through…show more content…
That is how IT is related to lean and how important it is to lean. In order to implement lean, it is required for the company to use high quality of data to run the processes of problem solving, continuous improvement, and effective production control (Daryl, Jan R. & Jan O. 2013) ERP systems can be used to support lean practices. It can be seen through the pull production system. It is one of the necessary principles in lean. The support done by ERP can be summarized through CMM (Capability Maturity Model). CMM has five levels that will assess the maturity level of a company’s way of using ERP. (11) In terms of lean, kanban system is an important component after all. Kanban usage is a tool that uses card to give signal to the next step of a process. Using cards is not an effective way because most of the time, the cards get lost which leads to material shortage, waiting, extra cost, and lower service level. With the help of IT, Lage Junior and Godinho Fiho (2010) suggested the concept electronic Kanban (e-Kanban). It will help to improve the supplier relationships and reduce the amount of paperwork. It can also reduce human error. Another thing being mentioned is bar-coding Kanban. This system might help to reduce item variability and unstable

More about Cost Reduction Strategy Case Study

Open Document