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How to reduce costs in a factory? The lean approach.

February 18, 2013

The number one challenge of Chinese suppliers is price, as revealed by a recent survey. Their costs keep rising, but price competition is stronger and stronger. Factory owners spend a lot of time trying to reduce costs. Unfortunately, they tend to focus only on three levers to keep their costs under control: Negotiating down material prices; Limiting salary raises; Pushing the employees to work hard, for long hours. These are actually NOT the main drivers of cost though... … [Read more...]

Filed Under: Process Improvement Tagged With: 7 wastes, chinese factories, cost reduction, eliminating waste, lean, lean manufacturing, process improvement


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This is the official blog of Sofeast.com.

This blog is written by Renaud Anjoran, an ASQ Certified Quality Engineer who has been involved in Chinese manufacturing since 2005.

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