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How can an operation manager reduce costs without sacrificing quality?

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Question added by Lalia Boukhers , Contracts Manager , Ooredoo
Date Posted: 2017/04/06
Shihabudheen Abu Backer
by Shihabudheen Abu Backer , Supply Chain Manager , BAUER KOMPRESSOREN GCC FZE

There are different technics for cost reduction follow by different departments :

In operation : Value engineering:  It will help you to configure your product by removing unnecessary features, to reduce cost and get better profit margin.

In Sales : Product Mix – Use suitable product mix for increase profit; don’t play with quality and cost.

In Logistics : Optimal model of transportation will help to reduce the transportation cost without touching on quality of product and cost.

 

In general :

QMS : An advanced quality management system will help you to reduce your cost by preventing / eliminating re-works or product call back. Initial cost of QMS will be there, but it will help you to reduce cost in log terms in many ways.

Training / Coaching : It will develop the skills of employee, long  terms  it is fruitful to the organization. It will help to improve productivity, decision making and finally leads to cost reduction.

ICT : Information & Communication  Technology, ERPs are caused to cost reduction of most of the corporate giants in a great extent.  

 

Above listed are few examples of cost reduction for positive results and it is advisable. This will help to increase the efficiency and ultimately help to reduce the cost of operation.

Nadjib RABAHI
by Nadjib RABAHI , Freelancer , My own account

  • Choosing between a stock not too abundant and therefore too expensive and an insufficient stock leading to breaks in production or a decrease in customer service,
  • Measure and evaluate the quantity and type of work required for a given product,
  • Ensure that production methods are adapted to production tasks,
  • Establishing systems of motivation and rewards of the quality of work,
  • Establish more efficient production methods,
  • Managing waste and loss,
  • Train operators in quality management and better working techniques,
  • Resolving the problem of staff absenteeism,
  • Reducing the factors of overstocking,
  • Reducing time for series changes,
  • Reducing transport by bringing suppliers together and setting up workshops,
  • Reducing breakdowns through operators training and maintenance,
  • Reducing defects by the direction of defects during the production process,
  • Reducing the costs of ancillary services.

Muhammad Aslam
by Muhammad Aslam , Sales and Marketing Manager/Merchandiser/Digital/Social Media Marketing Manager , NEEDO SPORTS Industries

Thanks for invitation.

1. Establish a cost-cutting goal.

2. Set a mark that you must meet.

3. Reevaluate your suppliers.

4. Maximize your employee's task efficiency.

5. Evaluate production methods & tasks.

6. Eliminate defects in production process.

7. Minimize & Eliminate waste.

ARSHAD AHSAN
by ARSHAD AHSAN , SENIOR MANAGER , PAKISTAN TELECOMMUNICATION COMPANY LTD.

By increasing efficiency... there can be multiple options depending upon the situation. e.g. if you are operating a site on grid or gen set, it can be designed to operate on solar. A little CAPEX needed but huge OPEX reduction guaranteed, thus TCO is too good.

Omar Saad Ibrahem Alhamadani
by Omar Saad Ibrahem Alhamadani , Snr. HR & Finance Officer , Sarri Zawetta Company

Thanks

I strongly agree with the answer which given by Mr. Najeeb

Regards

Ibrahim Adawi
by Ibrahim Adawi , Administrative Assistant , هيئة تطوير وتعمير المناطق الجبلية بجازان Mountain Development Authority in Jazan

Thank you for invitation I agree with Mr. Najeeb's answer

Karym Bentebbal
by Karym Bentebbal , Open for an opportunity to bring onboard a wealth of experience and a positive attitude , Private Company

Looking at the value chain and optimizing key activities, inbound or outbound logistic, production and any primary activity. 

Obaid ur Rehman
by Obaid ur Rehman , HR Executive , Al Bahr Al Arabi Marine Engineering Services

Resource allocation, Right sizing of department and biased free evaluation process.

khaled elkholy
by khaled elkholy , HR MANAGER , misk for import & export

thanks 

i fully agree with all experts 

and i think also to decrease the cost

Emmanuel Wamweta
by Emmanuel Wamweta , production supervisor , Tembo Steel Rolling

I fully agree with Mr. Nadjib's excellent submission. Thanks for the invitation

Ashraf E. Mahmoud (PhD)
by Ashraf E. Mahmoud (PhD) , University Lecturer, Freelancer Consultant and Trainer for Int'l Business & Banking TF. , FreeLancer

Thanks for invitation,

1- Improving effectiveness and efficiency in the organization as a whole.

2- Activating the role of research and development (R &D), in the organization.

3- More control for wast in all types of  resources.

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