Situation Description
The challenge consists in the need to reduce cost of an offering (be it a product or a service) or internal operations (e.g. manufacturing, business processes, etc.) without degrading performance.
It is necessary to point out that cost is a “cumulative expenditure” parameter closely directly related to one’s goal to achieve required performance levels, which in turn requires addition of elements, thereby adding to overall cost. In addition to cost, there are other “cumulative expenditure” parameters such as weight (for products), space occupied, time needed, which is why the same GTI approach is applicable.
GTI Approach
Contrary to other traditional approaches (for example, Value Engineering, Lean, so on), the GTI approach is truly systems-based and rests on two facts:
- Every element of an analyzed system adds cost
- Every element of an analyzed system is a solution to a problem of another element of a higher level of the systems hierarchy
As a result, we can model teh system and formulate numerous problems aimed at eliminating existing elements while keeping their contribution to the system performance or finding alternative solutions to the problems presently solved by existing elements that are simpler and cheaper. This is indeed an innovation-based approach to expenditure reduction.
To ensure robust performance and achieve expenditure reduction targets, in addition to specialized tools and technoques, GTI uses the entire arsenal of its proven Complex Problem Solving Tools and Techniques.
Major Benefits
GTI Cost Reduction methodology delivers the following major benefits
- High ROI on a project
- Multiple alternative solutions, as the “problem-solution” space is comprehensively explored
- Efficiency of the process, as the methodology is robust and repeatable
- Etc.
To address this challenge, the Institute of Professional Innovators offers:
- Training in the form of a seminar (when you study the how-to of the methodology, including the processes and tools), or a workshop (when you solve your challenge while studying the methodology)
- Consulting (we solve your challenge, which requires the minimal amount of your involvement in the process)
