How can you communicate materials cost reduction strategies to stakeholders?

1 Value analysis

Value analysis is a systematic approach to identify and eliminate unnecessary costs in a product or process without compromising its functionality, quality, or performance. It involves evaluating the functions of each component or material, comparing them with alternative options, and selecting the best solution based on cost and value criteria. To communicate value analysis to stakeholders, you should explain how your strategy aligns with their goals and expectations, how it improves the overall value proposition of the product or process, and how it addresses any potential issues or concerns they may have.

3 Lifecycle costing

Lifecycle costing is a method of estimating and comparing the total costs of a product or process over its entire lifespan, from conception to disposal. It includes the costs of materials, labor, energy, maintenance, repair, disposal, and environmental impacts. It helps to identify and optimize the cost drivers and opportunities for improvement at each stage of the lifecycle. To communicate lifecycle costing to stakeholders, you should illustrate how your strategy considers the long-term implications and benefits of materials cost reduction, how it balances the trade-offs between upfront and recurring costs, and how it contributes to the environmental and social responsibility of the manufacturing organization.

4 Data visualization

Data visualization is a technique of presenting complex and abstract data in a graphical and interactive way that makes it easier to understand, analyze, and communicate. It involves choosing the appropriate type, format, and style of charts, graphs, diagrams, maps, or dashboards that suit the purpose, audience, and message of the data. To communicate data visualization to stakeholders, you should highlight how your strategy uses data to support your arguments and decisions, how it simplifies and clarifies the information and insights, and how it engages and persuades the stakeholders with visual storytelling.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?