Cost Improvement Department

Lately, more and more large companies have introduced a new department: COST IMPROVEMENT DEPARTMENT – with an interdepartmental and interdisciplinary approach. Some companies only have Cost Improvement Coordinator. The underlying need or mission of such a department is obvious because cost has become and tends to become a problem that is increasingly difficult to plan and especially to control.

Often traditional pressure on suppliers’ costs and productivity is no longer sufficient and scientific policy (targets and means) establishment for the systematic and systemic improvement of the Costs of Losses and Waste (CLW) in each process of each Product Family Cost (PFC) is the next way to go. In the last 10 years, I have set up and developed these initiatives in many companies – along with the development and implementation of the Manufacturing Cost Policy Deployment (MCPD) concept. The tangible effects of COST IMPROVEMENT DEPARTMENT are seen in reducing unit costs by 30-50%.

So, do you think companies need now and especially in the future a COST IMPROVEMENT DEPARTMENT? What are the core duties of such a Head of Department? Where do you think it should be positioned within the organization chart?

So, I invite you to see details 👉 here.

(Source: Alin Posteucă Post on LinkedIn)