Automation
Doing things automatically with information technology, machines and robots.Productivity
Improving the productivity of workers. For example, a decision support tool may allow workers to make better decisions faster.Efficiency
Improving the efficiency of equipment and processes. For example, replacing a slow computer with a faster model that uses less power.Outsourcing
Focusing on your core competencies and outsourcing things in areas where you aren't particular productive. For example, a small business that manufacturers bicycles may outsource tax preparation to an accounting firm.Waste
Removing waste in processes such as unnecessary transportation, inventory, activities or waiting. For example, a restaurant that makes its own bread doesn't need to overstock bread or drive across town to a bakery to pick up fresh bread each morning.Quality Control
Identifying quality problems as early as possible to reduce the cost of poor quality. For example, identifying a quality problem on the production line is cheaper than shipping it all the way to the customer and having them complain and ship it back to you.Reliability
Improving the reliability of systems, equipment and processes. For example, a system crash can cause a great deal of waste as workers wait for the system to come back up or implement time-consuming workarounds.| Overview: Cost Reduction | ||
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Definition | The process of eliminating waste and improving processes to reduce cost. | |
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