Our South African colleague Craig van Wyk from VWG Consulting expressed a consideration very much worth republishing: if savings per unit are achieved and sustained in high-volume manufacturing, they keep mounting every hour of every day.
Here is Craig’s message:
During my years in management in the high-volume manufacturing environment, prior to becoming a consultant, the one thing that was always front of mind was that the plant was always running, every minute of every day processes were in motion.
Since variable production costs were being incurred with each unit of production, where per unit production costs were excessive, they would mount up very quickly. The flip side of that situation was that where we were able to extract variable cost savings, these too would be savings achieved with each unit of production. Variable cost savings can be found in raw material and chemical usage, energy, water and waste disposal costs.
Where per unit energy savings are achieved, they mount up with every unit of production.
Once a variable cost reduction project is implemented, it continues to deliver value. Every minute of every day, these savings mount up. While I was at the factory. While I was in bed at night. While I was relaxing on the weekends. Relentlessly adding up to millions. Continue to add projects while sustaining those already implemented, and soon the savings become a veritable mountain.
If you like mountaineering, chat to me about our Sustainable Cost Reduction Programme.
So if you are in South Africa, you what to do – talk to Craig. If you happen to be in Canada, we might be able to help you too ;)