Materials Cost Management Hit List -

Things to do Next

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1. Materials cost reduction

Materials cost is one of the largest costs in plastics processing but there are few formal attempts to manage this costs in many processors. Attempts generally involve simply reporting "variances to standard" without any real attempt to reduce the absolute usage. This "Hit List" gives some suggestions for actions to reduce the real total spend.

2. The materials team

Set aggressive targets in materials reduction - 10% off the total materials bill should force them to think radically!

3. Accounting

Accounting holds the key to materials cost reduction!

4. Sales

Sales have a vital part to play in materials reduction - they have got to sell the result!

5. Design

Designing materials out of the product is easiest at the design stage.

6. Production

Production is where the material is actually used!

7. Purchasing

Purchasing must control the contractual arrangements for all materials used!

8. Suppliers

Building supplier relationships to reduce cost needs perseverance and time.

 

Last edited: 04/03/16

Tangram Technology Ltd. 1998

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