PRINCIPLES OF CREATING A COST-CUTTING STRATEGY AT AN ENTERPRISE BY MEANS OF THE LEAN PRODUCTION CONCEPT

The article analyzes the interconnection between innovations and the general competitive strategy of a transnational concern. Looking for robust and sustainable solutions, the management turns to integration approaches analyzing the whole process chain. Basic elements from the functional strategy of an enterprise are selected in order to enhance the value creating processes. A structure for forming the cost-cutting strategy by means of the Lean Production is suggested. The necessity for using Value Stream Mapping as a strategy execution tool is demonstrated. Within the Value Stream Design each particular process step is reconsidered with respect to wasting in order to shorten the lead time and to enhance the flow along the process chain. Process steps which do not add value the customer’s needs are modified or eliminated. A new “road map” of the process is drawn pointing out future activities of the enterprise to be implemented. Practical significance of the devised approach to forming and realizing the cost-cutting strategy is indicated. During realization of the cost-cutting strategy at the enterprise a set of recommendations was formulated, advising the use of equipment with flexible readjustment. This equipment was also recommended for use on various stages of the production process. For example, installation of multipurpose hotmelt lamination device and integrating folding unit for the table cover drape prior to set assembly reduced the wasting by 3.7 days within the overall process time. Implementation of the organizational innovations that we have formulated lead to the improvements in the material and information flows within the Lean Production Concept at the enterprise. Particularly, these suggestions were connected with developing measures for reducing time wasting at the packing lines, rational use of production personnel of the enterprise, organizing more ergonomic production layouts for the service staff to decrease time wasting during maintenance.