45 January 2020STEELWORLD

n the current business Iscenario, every

organization is striving to

increase profit and grow its

market share. To realise the

growth vision, products

offered by company must

be globally competitive.

Cost is one the most

important factors for global

competitiveness, saleability,

and profitability of every

company.

The book “Increase your

PROFIT by Radical Cost

Reduction”, just released is a

good initiative to address

the most important issue for

Indian Steel industry.

The conventional cost

reduction practices followed

by most of the organisations

are reactive, symptomatic,

top-down, compromising

“cost-cutting” approach with

financial controls on

purchasing, learning, and

improvement activities that

becomes counter-

productive in most of the

situations. Radical cost

reduction technique follows

a remedial, bottom-up

structured “problem

solving” approach

implemented at the root-

cause level of processes to

develop sustainable

solutions with a new

mindset to manage costs.

Radical Cost

Reduction uses TLS

Problem Solving

Technique developed by

benchmarking and

synergistically blending

three most powerful

world-class problem

solving techniques; Theory

of Constraints (TOC),

Lean, and Six Sigma with

an integrated approach to

manage cost.

Ÿ TOC is used to

discover the constraint

(process) which is the

weakest link resulting to

higher cost

Ÿ Lean focuses on

detection and selection of

cost-adding problems (cost

reduction projects) in the

constraint process

Ÿ Lean Six Sigma is

used to manage cost

reduction projects by

applying an unique and

highly effective TLS problem

solving technique. The book

facilitates managers to

identify real Cost Reduction

Projects in their processes

and develop Action Plan for

implementation of Radical

Cost Reduction Technique

to reduce cost by

addressing following critical

cost management issues;

Ÿ What makes your

products costlier than your

competitors?

Ÿ How to discover the

process problems which are

causing higher cost?

Ÿ How to select critical

cost reduction projects

impacting the bottom-line?

Ÿ How to reduce cost

using TLS problem solving

technique?

The innovative cost

reduction methodology is

Increase your PROFIT byRadical Cost Reduction

Using TOC-Lean-Six Sigma Problem Solving Technique

Analysis

46 January 2020STEELWORLD

explained in seven

practical steps and

supported by real case

studies of steel industry

and engineering industries.

A unique case study

explains how an integrated

large steel plant has made

recurring saving of more

than Rs. 90 Crores per

annum by reducing setup

time of steel refining

furnace by few minutes

using Toyota’s most

popular technique SMED.

Inventory reduction is

one of the most burning

issues for every industry,

as per TLS approach

inventory management is

the easiest and fastest

way to reduce cost.

Another case study

describes how a metal

product industry has

drastically reduced

working capital and

inventory carrying cost by

linking the sales,

production, and purchase

processes and managing

with JIT technique.

An engineerings industry

improved its productivity

just by measuring, analysing

and improving cycle time of

its production processes by

balancing the TAKT time

(demand rate) with

Production rate?

This book is especially

written for the managers

to introduce most effective

world class problem

solving techniques being

used by leading companies

of the world.

Senior Managers and

Engineers managing

various functions

including; Operations,

Production Planning,

Maintenance, TQM,

Materials Management,

Supply Chain, Logistics,

Cost Accounting, Sales &

Marketing can learn and

apply the problem solving

technique to improve their

performance.

The author Akhilesh N

Singh, a Management

Consultant is Metallurgical

Engineer having over 46

years hands-on industry

experience. After working

three decades in leading

steel industries, since last

seventeen years fully

involved in operational

excellence consulting in all

kinds of industries.

He has undergone

training in Lean

Management, Value Steam

Mapping and TQM at Lean

Enterprise Academy UK,

Toyota Motor Co. Japan,

Kaizen Institute Japan,

Asian Productivity

Organization and Yokohama

Kenshu Center Japan,

Armco Inc. USA.

Six Sigma Black Belt

from American Society for

Quality, ISO 9000 Lead

Auditor, BEE Certified

Energy Manager and NLP

Practitioner.

Executed more than 250

Lean, Six Sigma training

and consulting

assignments in 5 countries;

India, Bangladesh, Saudi

Arabia, UAE and Qatar.

Provided training and

consulting to various

leading manufacturing

industries in business of

steel, ferroalloys, metals,

petroleum, engineering,

electrical machinery, food

products, pharmaceuticals,

paper, chemicals, etc.

Based on his hands-on

experiences he has

authored 14 books.

An engineering graduate

from Indian Institute of

Technology, Banaras Hindu

University with postgraduate

qualifications in business

management, industrial

management and

Gembakaizen (Japanese

Management).

This book is

especially

written for the

managers to

introduce most

effective world

class problem

solving

techniques

being used by

leading

companies

of the world.

Analysis