cost optimization

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Cost Reduction Strategies

By applying cost reduction strategies, various types of hidden costs are revealed to our clients, enabling them to increase their marginal profits. Labor productivity and cost increases are two key challenges for all organizations. Another complex challenge is the ability to produce with shorter lead times. Dealing with such challenges needs a fundamental approach that involves every team member in process optimization and applying zero-waste principles. In the lean journey, Symbios works on converting current wasteful processes into an ideal state of "waste-free" processes.

Costs do not exist to be calculated. Costs exist to be reduced
Taiichi Ohno

Symbios lean optimization services offer a compilation of basic and advanced lean tools that were originally introduced by Toyota and adapted worldwide with a proven impact on productivity, quality, cost, delivery, safety, and morale.

The Lean House
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We have a reliable team of experts who give 24/7 support to our clients with outstanding results in cost reduction and process agility.

Harvesting the Fruit of Process Improvement
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“ We don't know what we don't know We can't act on what we don't know We won't know until we search We won't search for what we don't question We don't question what we don't measure Hence, We just don't know ”

Integrating Lean & Six Sigma
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- Picking the “low hanging fruits” clears the branches, allowing you to clearly see the kinds of challenges that require a Six Sigma approach using statistical tools to uncover the unseen roots of problems. - Using five-day kaizen events, cross-functional groups improve lead time and reduce inventory on the spot, attacking the kind of quality and flow issues referred to as “low hanging fruits.” - A combination of both creates ongoing business improvement.

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Why Cost-Cutting?

To increase profits! How do we increase profits? By increasing our two lines, How do we increase our "two lines"? By reducing our losses

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Principles for Cost Reduction

  • Innovation: Product Life Cycle
      We always have to assess:
    • Where we are from competition (i.e., which site is supplying demand).
    • Product life cycle phase
  • Collaboration (purchasing power) can be used in:
    • shared financing and interest
    • Distribution
    • Shipping
    • Control supplier standards
    • Raw material
    • Shared container
    • production (excess capacity).
    • Shared IT
    • Shared HR
  • Cost-reduction techniques
    • For operations:
      • Productivity = Units / labour hours
    • For business:
      • VAPP (Value added per person)
      • This is a financial measure that relates the value added with the number of people involved in the value addition process.
      • VAPP = Sales-variable cost Total number of people (direct, indirect, and admins).
      • Value Add = Sales-variable cost (raw material and packaging).
      • It was used to be a benchmark for a group type of industry.

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+966 55 503 5737

+966 54 222 3450

+966 53 511 8451