Cost Reduction Project - CRP

a cross functional approach for cost excellence

When one has to reduce a cost or a price, one needs a method. The CRP approach is a reliable method with a high probability to find and implement the previously non obvious potentials. The success factor is, as always, knowledge and understanding about what costs there are and what factors affect them.

The mission is often to reduce the price or the cost. A typical price consists of these parts.

The team need to understand which they are, how big they are and how to affect them.

In order to learn that, there is an Initial Analysis - IA needed. That will give a team understanding of the current cost, its causes and the strategy for the cost reduction project.

The strategy will indicate what cost areas to focus and with what tools.

Some ideas will come already at the IA workshop. Those can be directly forwarded to the ordinary organisation for further analysis, decision and implementation.

For the areas selected for further studies one or more analysis methods from the toolbox are applied. This will again generate concrete ideas that after team evaluation are introduced to the ordinary organisation.
Should the implementation process stop, it is very important that the team and especially the project leader engage in the progress.