Study Of Material Losses Cost Control Strategy Based On Lean Thinking

The fiscal crisis has been negatively and seriously impacting the global economy,the enterprise has been facing an even worse market and has to take effective actions toovercome the challenges from the market competition. In the die-cut industry, the trendof situation has required the manufacturers to transfer the development strategy, reducethe consumption of resource, and maximize the input output ratio. Traditionalmanagement method and philosophy can’t meet the requirement of situation trend. To besuccessful at reducing resource consumption, obviously need a new productionmanagement theory and method Lean Production.Lean production has originated in Japan Toyota and been regarded as a productionmanagement method which is most suitable to today’s enterprise, its core thinking is topursue continuous improvement, eliminate all kinds of waste in process, and maximizethe value with minimum resource such as manpower, equipment, capital, material, timeand space etc., in order to provide best product and service for customer. Based on leanthinking, lean production can bring great contribution on promoting the reduction ofmaterial consumption. In the Company X of die-cut industry, material cost has been themajor part of production cost and been controlling the competitive capability of productson the market. This paper is under the research on the project about the reduction ofmaterial consumption with lean thinking in company X, and studies the lean strategies onreducing material consumption. Firstly, this paper introduce the background, analyzewhat the situation trend has required to enterprise, die-cut industry and company X, aswell as the function of lean on reducing material loss; secondly, based on the currentprocess, analyze the reason of material loss and difficulties that company X is facing now;Thirdly, provide the lean analysis and strategies about the reduction of material loss fromthe view of control procedure, technology and staff; lastly, sum up the lessons and results,provide guidance on lean implementation and die-cut industry development.