Production
Cost savings in the company: Cost reduction programs
Strategic cost-cutting programs with impact
Increased profits don’t always start with higher revenue. Often, the greatest potential lies within your own company: in processes, structures, and costs that can be optimized for the long term. Our cost-reduction programs help you identify hidden savings opportunities and systematically implement them. By analyzing your cost structures and value chain, we develop customized solutions that reduce your expenses and manufacturing costs, streamline processes, and boost production productivity. and strengthen your competitiveness in the long term.
Philipp Kappus
Senior Production Manager
Feel free to contact me!
Would you like to analyze your cost drivers and reduce manufacturing costs in the long term, or are you looking for professional advice on production optimization? If so, please feel free to send me a message. I’ll get back to you right away.
Quick Check
Quickly identify cost-cutting potential and point out the need for action
The identification and realization of cost reduction potential requires a clearly structured approach that enables both short-term efficiency gains and long-term optimizations and thus cost savings in the company. In day-to-day operations, however, there is often a lack of an unbiased view from the outside to objectively identify weak points and evaluate cost reduction opportunities in the company without bias. A sober and analytical approach is essential in order to make well-founded decisions and achieve sustainable results. In addition to obvious cost-cutting potential such as rework costs, hidden costs and the classic “Eh-da costs” are more difficult to identify. There is a lot of potential here in particular, which is uncovered by our proven analysis procedure.
Our Quick Check, conducted as part of the cost-saving program, quickly provides you with a precise and well-founded basis for systematically identifying cost-reduction opportunities and then implementing them in a targeted manner. Using a structured and efficient approach, we analyze your processes and structures through workshops, interviews, and shop floor inspections. In doing so, we uncover weaknesses and work with you to evaluate measures based on their savings potential and feasibility. The result is a detailed roadmap that offers you clear recommendations for efficient and sustainable implementation—with a focus on quick results and long-term improvements to drive cost optimization across your entire production and reduce your manufacturing costs.
Our service packages:
- Identify cost reduction potential
- Prioritize cost reduction measures
- Developing individual cost reduction strategies
- Create a roadmap for sustainable cost savings in the company
Benefits for you:
- Short-term identification of the relevant fields of action
- Prioritization of cost-cutting measures for rapid implementation
- Long-term increase in efficiency and cost optimization through detailed roadmap
Strategy and KPIs
Development of customized strategies and KPIs for sustainable cost reduction
For an efficient approach to cost-cutting programs, it is crucial to link the corporate strategy with the objectives of the cost-cutting measures. A precise definition of targets and KPIs that are directly aligned with the corporate strategy forms the basis for sustainable cost savings in the company and long-term efficiency gains. A cross-departmental understanding across all employees is also essential. The key figures should be made transparent and comprehensible throughout the course of the project and communicated clearly.
Based on your corporate strategy, we jointly define the goals and framework conditions of your savings program, which serve as the cornerstone for the implementation of effective measures. In workshops, we also define the target key figures and analyze which operational key figures influence them. On this basis, we develop targeted optimization measures. We establish a uniform reporting system that monitors the progress of the cost-cutting program based on the previously defined KPIs and creates a sound basis for management decision-making.
Our service packages:
- Check consistency of departmental targets and KPIs with the corporate strategy
- Ensure strategic alignment of the cost reduction program
- Establish KPI structure for continuous monitoring and adjustment of measures
- Create regular management reports
Benefits for you:
- Analysis of the corporate strategy to identify the need for action
- Targeted strategy for your savings program
- Sustainable strategic orientation for long-term cost reductions in the company
- Transparency of costs across all decision-making levels
Optimization of organizational structures
The optimal organizational structure for your savings program
Successful cost reduction programs require a clear alignment of the organizational structure and processes that combine strategic goals with operational efficiency. A Target Operating Model (TOM) describes the optimal target structure of your organization – from the processes and responsibilities to the resources and technologies required to successfully implement your strategic goals. It serves as the basis for setting up your organization efficiently and sustainably.
Wir entwickeln gemeinsam mit Ihnen ein maßgeschneidertes Target Operating Model, das als zentraler Baustein Ihres Sparprogramms dient. Durch die Analyse Ihrer bestehenden Strukturen und die Definition klarer Prozesse, Verantwortlichkeiten und Ressourcennutzung stellen wir sicher, dass Ihre Kostenoptimierung in der Produktion nachhaltig und langfristig realisiert wird. Mit einem klaren TOM schaffen wir eine belastbare Basis für nachhaltige Kosteneinsparungen und Effizienzsteigerungen im Unternehmen.
Service packages:
- Analyze goals and requirements for the organizational structure holistically
- Evaluate current organizational structure and identify weaknesses
- Develop a target operating model aligned with your cost reduction targets
- Define clear processes and responsibilities for targeted implementation
Benefits for you:
- Optimization of the organizational structure with a focus on savings targets
- Precise alignment of the structure to your savings program
- Increased efficiency through clear responsibilities
- Optimization of processes and workflows
- Sustainable cost savings in production through structural adjustments
Production costs
Transparent manufacturing cost analysis for efficient cost reduction in the company
Die vollständige Transparenz und der Fokus auf die Herstellkosten (COGS) ist unerlässlich, wenn Sie nachhaltig Ihre Herstellkosten senken und ein effizientes Kostensenkungsprogramm durchführen wollen. Dabei ist es notwendig, die Total Cost of Ownership (TCO) und die Gemeinkosten in der Betrachtung zu berücksichtigen, um ein vollständiges Bild zu erhalten.
Indem wir alle relevanten Kostenstellen analysieren und eine Herstellkostenberechnung aufstellen, schaffen wir die notwendige Transparenz, um im Sparprogramm den richtigen Fokus zu legen und die Potentiale und Maßnahmen quantitativ bewerten zu können. Hierbei nutzen wir Methoden, wie zum Beispiel die PHEK-Systematik. Darüber hinaus führen wir eine umfassende End-to-End-Kostenbetrachtung durch, die den gesamten Auftragsabwicklungsprozess sowie den Order-to-Cash-Prozess einbezieht. Durch gezielte Kostenstellenstrukturanalysen sowie den Einsatz von Multimoment- und Wertstromanalysen identifizieren wir systematisch Potenziale zur Kostensenkung. Basierend auf diesen Erkenntnissen entwickeln wir maßgeschneiderte Strategien zur Optimierung Ihrer Kostenstruktur und realisieren langfristige Kosteneinsparung in der Produktion, insbesondere in den COGS.
Our service packages:
- Analyze production costs and TCO
- Carry out an end-to-end cost analysis of the entire production and supply chain
- Apply multi-moment and value stream analysis
- Compare manufacturing costs with industry standards
- Implementing best practices
Benefits for you:
- Transparency about your production costs
- Sustainable reduction in COGS
- Improved competitiveness through systematic cost optimization
Manufacturing Footprint
Strategic optimization of your production network to reduce production costs
An inefficiently designed production network often leads to high operating costs, long transportation routes and unused capacities. Companies are faced with the challenge of strategically aligning their production sites, as increasing market requirements, global competitive conditions and growing cost pressure require continuous adaptation. Dabei ist die Balance zwischen Kostenreduzierung in der Produktion, Flexibilität und einer nachhaltigen Kostenoptimierung entscheidend, um sich erfolgreich an veränderte Marktanforderungen anzupassen und somit dauerhaft Produktionskosten senken zu können.
Wir analysieren und bewerten Ihr bestehendes Produktionsnetzwerk nicht nur umfassend, sondern identifizieren auch Ihre Schwachstellen und entwickeln Optimierungsszenarien, mit denen wir Ihre Produktionskosten optimieren. Kurzfristig fokussieren wir uns auf die Effizienzsteigerung durch optimale Kapazitätsnutzung sowie die Reduktion von Überkapazitäten. Langfristig entwickeln wir strategische Lösungen zur Konsolidierung, Verlagerung oder Neugründung von Produktionsstandorten, um Kosten in der Produktion zu senken und zudem die Effizienz Ihrer Produktionskapazitäten nachhaltig zu steigern. We consider “make or buy” questions and scrutinize the diversity of variants and complexity.
Our service packages:
- Analyze and evaluate existing production network
- Develop optimization scenarios for the production network (consolidation, relocation, new foundation)
- Managing the reallocation of production volumes between existing or new locations
- Reduce product and process complexity
- Determine optimum vertical integration
- Maximize site utilization and minimize overcapacity
Benefits for you:
- Lower location and operating costs
- Consolidation and realignment of production capacities
- Higher capacity utilization through targeted adjustment and relocation of production volumes
- Strengthening the market position through optimally positioned and strategically aligned locations
- More efficient supply chains thanks to reduced transportation routes
Process- and product-based advanced analytics
Data-based analysis and optimization of processes and products to increase cost efficiency
Conventional analysis methods such as interviews and value stream mapping reach their limits in some cases and consequently do not uncover all relevant cost reduction potential. Without the use of targeted and comprehensive analysis tools, many optimization opportunities remain unused, leaving valuable cost reduction potential untapped.
In addition to traditional analysis methods, we use advanced analytics to analyze your processes, your data and your product portfolio holistically. With process mining, we uncover inefficiencies in your processes and optimize them, while product mining helps to reduce the complexity of your portfolio. Simulations and scenario planning provide you with precise information that enables you to make well-founded decisions to sustainably improve your cost structure. Zudem evaluieren wir den Einsatz von Robotic Process Automation (RPA), um wiederkehrende Prozesse zu automatisieren, die Effizienz zu steigern, Herstellkosten zu optimieren und Personalkosten zu senken.
Our service packages:
- Analyze inefficiencies
- Optimize product portfolio and reduce complexity
- Developing data-based simulations
- Little effort required to provide the data due to standardized queries
- Automate recurring processes with robotic process automation (RPA)
- Reduce personnel costs
Benefits for you:
- Precise insights into cost drivers and optimization potential
- Long-term cost savings through automation of recurring tasks
- Reduction of process and structural complexity
- Sustainable reduction in operating costs
- Reduction in personnel costs
Planning and control processes
Efficient planning and control processes for better use of resources
Inadequate planning and control processes can lead to high inventories or unused capacity, which can result in unnecessary costs for the company. The aim here is to establish precise demand forecasts and optimized capacity planning in order not only to use valuable resources more efficiently but also to increase competitiveness. Effective planning and control processes are crucial for creating transparency and eliminating inefficiencies in a targeted manner.
We analyze the structure of your planning and control processes to identify hidden potential and implement targeted efficiency improvements that both reduce production costs and enhance planning accuracy. Through more precise demand planning and optimized capacity allocation, we improve your resource utilization and reduce inventory levels. Together with your employees, we develop and evaluate various scenarios to analyze the impact of logistical factors—such as an increase in lot size—on inventory costs, as well as other relevant variables.
Our service packages:
- Analyze and optimize existing planning and control processes
- Improve demand planning and capacity allocation
- Optimize planning accuracy and resource utilization
- Calculate and evaluate scenarios to increase efficiency
Benefits for you:
- Increased planning accuracy
- Increased efficiency through optimized planning processes
- Improved capacity planning
- Cost reduction in production
OPEX – Operational Excellence in the Context of Production Optimization Consulting
Operational excellence as the basis for sustainable cost reduction and process optimization
Inefficient workflows and unused capacity inevitably lead to hidden costs in production processes. Without the consistent implementation of Operational Excellence (OPEX), valuable efficiency potential—which already exists in the minds of your employees—remains untapped. In light of growing cost pressures, it is therefore crucial to systematically optimize processes in order to achieve sustainable cost reductions in production, realize long-term efficiency gains, and lower manufacturing costs.
We assess the potential of applying OPEX methods to your specific situation to achieve targeted efficiency gains, boost production productivity, and thereby realize sustainable cost reductions. In addition, we gather valuable ideas from your employees at the shop floor level and integrate them into structured processes. In this way, we optimize material flows and create lean workflows that boost your process efficiency and sustainably reduce operating and manufacturing costs. By defining KPIs, we ensure that the measures are measurable and that long-term cost reductions are achieved within the company. In this way, we effectively integrate cost-reduction strategies into your business processes and ensure lasting efficiency gains across all levels.
Our service packages:
- Analyze production processes
- Identify cost drivers and waste
- Introduce OPEX program to promote a culture of continuous improvement
- Optimize material flows and reduce waste
- Establish precise KPIs for monitoring and controlling optimization measures
Benefits for you:
- Reduction in production costs
- Increased efficiency through optimized processes
- Reduced scrap and waste
- Measurable results through continuous monitoring
Implementation of measures
Efficient implementation and sustainable integration of your cost-cutting measures
Implementing a cost-reduction program requires structured priorities, targeted processes, and a precise assessment of necessary projects. The effort-impact matrix is used to evaluate and prioritize measures based on the best cost-benefit ratio. Measures must be clearly aligned with corporate goals and flexibly adapted to changing requirements in order to fully leverage long-term cost savings in production and efficiency gains, and to reduce manufacturing costs over the long term.
As part of our production optimization consulting services, we support you in implementing your cost-reduction measures within the framework of a comprehensive cost-saving program. Using a detailed assessment and a well-founded roadmap, we prioritize the measures based on figures, data, and facts to ensure their measurable and effective implementation and to optimize your production costs. Through continuous monitoring and the close involvement of your employees, we maximize cost-reduction potential to increase production productivity and thereby ensure the long-term success of the measures. Our change management and implementation support guarantee that the measures are not only integrated operationally but also gain the necessary acceptance among your employees. In this way, we maximize the long-term success of cost-reduction strategies and ensure that efficiency gains are permanently embedded in your business processes.
Our service packages:
- Evaluate and prioritize identified measures
- Develop roadmap
- Implement cost-saving measures in production
- Continuously review cost-cutting measures
Benefits for you:
- Efficient implementation of cost-cutting measures
- Maximizing the savings potential
- Monitoring and adapting the measures
- Sustainable integration into your processes
- Long-term cost reduction
FAQ
How can cost-saving opportunities within a company be quickly identified?
The best way to identify cost-reduction opportunities is through a structured analysis of processes, cost structures, and value chains. This process uncovers not only obvious cost drivers but also hidden costs and untapped efficiency potential. A Quick Check creates transparency and prioritizes the measures with the greatest savings potential.
How does Rothbaum Consulting advise companies on identifying opportunities for cost reduction?
Rothbaum Consulting combines traditional methods such as workshops and value stream mapping with data-driven approaches such as process mining, product mining, and simulations. This reveals inefficiencies, cost drivers, and opportunities for optimization that often remain hidden in conventional analyses. Based on this, we develop customized measures for sustainable cost reduction within the company and support their implementation.
