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7.1.1 Process Management Initiatives
The impacts of these initiatives improve business procedures, resulting in improved efficiencies and cost structures:
- CPI (Continuous Process Improvement) Systems: Reduces material cost and to a lesser degree labor costs;
- Vendor/JIT (Just in Time [Inventory]): Reduces Material costs and Administrative overhead;
- QIT (Quality Initiative Training): Reduces labor costs;
- Channel Support Systems: Increases the effectiveness of the sales budget, and therefore demand;
- Concurrent Engineering: Reduces R&D cycle time, the time needed to move sensors on the Perceptual Map and to change MTBF specifications. R&D costs are determined by the length of time they require, therefore Concurrent Engineering also lowers R&D costs;
- UNEP Green Program: The United Nations Environment Program increases the effectiveness of the sales budget (customers prefer products made by socially responsible manufacturers), and therefore increases demand. Green programs also reduce waste and therefore material costs.
