Today's competitive marketplace
demands a wide variety of products, sizes, packaging and volumes
and all of this faster and cheaper! Manufacturers are under increased
pressure to manage production runs, raw materials, packaging, and changeovers
more efficiently. HMC can help you understand
and manage this complexity. Our experienced consultants and an innovative
costing tool give our clients a better understanding and control of
complexity in the production process.
Complexity comes from a variety of sources, and while
there is a need for some complexity, much of it is not essential. A
detailed analysis of the production process can help identify some areas
of opportunity, such as combining SKUs to generate longer, more productive
runs or rationalizing packaging to reduce changeovers and material costs.
A thorough analysis may also show other areas in the production process
where complexity exists, but is not required.
In addition to this analysis, HMC
consultants apply an Activity Based Costing (ABC) technique to identify
the true costs of producing each product. Unlike the Traditional Cost
Accounting (TCA) method normally used, ABC more accurately reflects
the specific costs of producing various products. Armed with this information,
manufacturers can make informed, cost-effective production decisions.
At HMC, we use software
tools developed by ABC
Technologies (now SAS), a leader in the field of activity based
costing. These tools enable us to allocate our clients' manufacturing
costs to the activities that produce them, and then analyze more accurately
how those costs flow through their production process. This analytical
technique produces a more accurate assessment of production costs and
the cost of complexity, and yield a better and more reliable solution
to the complexity problem.
more about our Cost of Complexity Service, click
If you would like assistance in solving your manufacturing
complexity problems, please contact