Reducing Process Costs with Lean, Six Sigma, and Value Engineering Techniques

CHAPTER 14 – When Cost Improvement Goes Wrong

I. Rubric

We considered putting a moderately humorous, somewhat sarcastic rubric in this chapter. Unfortunately, we believe it would probably be misunderstood. Perhaps we will save that idea for a magazine article.

II. Questions to Ponder

• How can we tell when a cost improvement opportunity is a problem laying in wait?

• Should all cost improvement projects have the same level of diligence as typical product development projects—do we omit steps?

• Ponder a time when you were involved in a cost rationalization or improvement exercise. What do you think went awry?

• Consider what warning signs may be available to tell us that a given cost reduction is more liable to be a cost catastrophe.

• How would ...