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There are many ways to save money in the business, but blindly reducing costs will catch up sooner or later. You must have a plan, a plan to change any process or you are looking for. There are good ways to save money, like increasing the effectiveness and bad ways to reduce costs as the use of inferior parts. Most people hear the term cost cutting and assume that it means cutting jobs and labor. It isn't always about cutting jobs and labor; it's about finding a better way to get the job done. But before you can even make the first cost savings or change in the process, you have to look at the entire scope of the process, called the Value Stream. The value stream is the entire process from start to finish. If you were talking about a manufacturing process, it would include everything from ordering, to building, to shipping the finished product. These processes are often large and detail oriented, so it is easier to break it down and look at all the individual processes that make up the whole stream. This way, by looking at the whole and the parts, you can see how one part affects the other parts and make decisions based on the entire process and not just what works well for one part or one department. That is why it is also important to get all the departments together when trying to identify the problems and the areas that will be looked closer at. It is important to identify the areas with the greatest chance and impact for chance. Look for the problems that can make the biggest impact by fixing and what you will get the biggest bang for your buck. There will undoubtedly be other problems that will show themselves once you begin clearing out the apparent ones. You are looking to remove as much waste as you can and by taking the obvious once out first, it will help to reveal the more subtle, underlying problems that hide beneath the surface. Remember, while seeking ways to improve profitability, you do not look for shortcuts. You do not want an inferior product because you cut corners and did not fill properly. You want to drive up profits by cutting costs. The cost can be reduced in hours of work lost, machines and subspace. When facing business difficulties, six sigma can help you work them out. 6 sigma certification can greatly increase your problem solving skills, log onto stupidcupid.org today and learn more.
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