Industrial Cost Optimization
Time: 9:00am – 2:15pm
(with break in-between lesson)
Venue: Zoom online class
(link will be sent 3 days before the event starts)
A common perception we have about industries that are high in value, such as semiconductor and electronics, will generate high returns. Unfortunately, this isn’t true across the board. While there are companies reaping net profit as high as 60%, there are also companies that is just struggling to stay afloat. Business strategy is essential for a company to do well, besides having the advantage of selling differentiated and excellent product and services. One key element in a good business strategy is the ability to optimise the business spending culture.
Cost optimization is a necessity for all companies, both big and small. Though it may not be a magic wand that turns a failing company into a profitable company, it is a wand that will differentiate a great company from good companies. These days, many companies are moving away from the traditional cost-cutting and cost reduction measures during market downturn. Such “desperate and urgent” measures will normally have a long-term negative impact to businesses. Instead, great companies are putting in place cost optimization methodologies into their businesses, and this will be more systematic, holistic, sustainable and effective, with long term positive impact to the business. It will be a continuous improvement culture that will influence the business is a positive way.
In this course, participants will get to explore the cost optimization methodologies used by great companies. This course specifically focuses on how companies can optimise its materials spending, equipment maintenance spending as well as energy required for production. The latter is particularly pertinent based on the fact that the Singapore Government is looking into the implementation of carbon tax.
This course will help participants establish and manage cost optimization system that will track projects throughout its implementation phases.
The objectives of this course are to guide everyone in the industry to understand the importance of reducing necessary spending and systematically eliminating unnecessary spending. All cost-saving measures covered in the course will be based on technical engineering data analysis as well as statistical evidence. Companies should not be left in ignorance of wasting our limited resources.
WHO SHOULD ATTEND
The course is suitable for all companies, including MNCs and SMEs, and strongly recommended for personnel from any department. Cost optimization is not only for cost drivers in the company but also everyone from engineering; to suppliers; to accounting; to human resources as they should be equipped with the knowledge on cost optimization to excel in their career.
1. Tracking of Cost Optimization projects gain
2. Setting up the Cost Optimization Program in the organization
3. Techniques on materials optimization
- Mass/ Volume balance
- Variance analysis
- Sensitivity to utilization
- Heatmap application
- E-bidding and clean sheet application
4. Techniques on upkeep cost optimization
- 6 Rs methodology
- Contracts application
- Localization for alternate supplies
- Change/ Risk management
- Repair center setup
1. Utility savings technique
- Gold nuggets
- Best known savings
- Self-funding (ROI introduction)
2. Energy savings
3. Experience sharing on specific utility projects
4. All other possible Cost Optimization opportunities in the company
*The course will be conducted through:
(a) Coach-led lessons
(b) Practical application of techniques through individual and group activities
(c) Discussion and reflection of participants’ real-life experiences
CT Chung has been in the semiconductor industry for the past 35 years. He worked in MNCs like General Electric, GlobalFoundries and Applied Materials, and was involved in 5 Fabs start-up in GlobalFoundries from tool evaluation phase till the production phase. He helped to establish the Cost of Ownerships Model for the company when he was with Chartered Semiconductors. In the last 5 years of serving GlobalFoundries, he was the Head of Program Management Office that led Cost Optimization program to extend the company’s profitability.
“Informative session! The instructor is very experienced and shares ideas openly. Even when some projects were not successful, he still managed to give good ideas on possible improvements.” – Lin Mu, Micron
“True cases and good actual data. Good course, should advertise to companies to join!” – Jo Ann Lee, Micron
“Very good course structure and would like to see a deeper dive into opportunities” – Wilson Benett, EcoStruxure Power Lab
Organizer reserves the right to cancel the event due to unforeseen circumstances.
By participating in the online course, you consent to the audio and video recording and its release to be used for promotional purposes or any other purposes that SSIA deems fit.