ASSIGNMENT
- Select an item that has a high annual dollar volume. This can be material, a purchased item, or a service.
- Identify the function of the item.
- Obtain answers to these kinds of questions:
- Is the item necessary and have value, or can it be eliminated?
- Are there alternative sources for the item?
- Can the item be provided internally?
- What are the advantages of the present arrangement?
- What are the disadvantages of the present arrangement?
- Could another material, part, or service be used instead?
- Can specifications be less stringent to save cost or time?
- Can two or more parts be combined?
- Can more/less processing be done on the item to save cost or time?
- Do suppliers/providers have suggestions for improvements?
- Do employees have suggestions for improvements?
- Can packaging be improved or made less costly?
- Analyze the answers obtained above, as well as the answers to other questions that arise, and then make recommendations.
