"Reduced Rework" Initiative to stabilise your organisation

Phone: +49 711 49097 530   email: info(at)gfkm.de

 
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Cost avoidance is not the same as cost reduction:CentreOfExpertise-200x133_EN

  • Cost avoidance is more sustainable than cost reduction
  • Cost avoidance is more powerful than cost reduction
  • Cost avoidance is more transparent than cost reduction
  • Cost avoidance is healthier than cost reduction and
  • Cost avoidance is more popular than cost reduction.
Despite this most organisations concentrate on cost reduction. This can be compared with a typical approach to headache. Whoever only takes a tablet suppresses the symptoms but does not cure the cause. It is similar with cost reduction – we do not address the root cause but just "suppress" it. This is achieved through unpopular activities like cutting budgets and laying off employees – unfortunately not totally without "side effects".

 

For over 15 years we have been helping organisations with cost avoidance

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In many organizations there is re-work, double work, unnecessary activities, re-calls, scrap etc. (so called "corrective actions"). Most of them view these as "normal" activities that simply happen in the course of product development and research. They are also not aware that the costs incurred make up a large proportion of the total cost.

The R2 Initiative forces on reducing corrective action. As a result parts of the costs for material and external services will be avoided (e. g. less scrap, less retrofit, ...). This will (1.) increase business profits, (2.) give more room for innovations and therefore (3.) positively impact market shares and revenues – the business enterprise will become more efficient and more stable (see illustration).

Your next step

R2-Initiative-150x49With our R2 Initiative (Reduced Rework) your organisation will get its costs under control – cost avoidance through less re-work. Take the next step and start with us your "Reduced Rework Initiative". For more information simply click on the R2 Logo or send an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .