Variable Cost Optimization

In today’s world it is clear that there remains a strong and immediate operational imperative to manage the current dynamic of high and volatile energy and raw material costs, and thereby improve production efficiency and competitive positioning.

Although there is now a far keener understanding of variable costs, empowering companies to make informed decisions, Accelerant has found that there is great value in working with clients on applying process control principles and shifting mind-sets to help further focus the organization on managing consumption and process deviations.

Too often companies get bogged down in defining stand-alone improvement projects or focusing on capex improvements. Our consultants have found that deployment of technical tools and methodology needs to go hand-in-hand with a fundamental shift in operational behaviors. Key to success is embedding a level of awareness in the daily shop-floor operating procedures.

We will work with you in the granular cost breakdown and identifying the big consumers and levels of inefficiency / deviation. Drilling down to daily variability analysis has the ability to drive discussions on usage patterns but also smart behaviors. Together with our big data analytics and AI tools we can also correlate key process parameters to better understand what drives process variance and, thereby, assess optimal setpoints and control limits. Ultimately this serves as the starting point for a broader conversation on operator influence, level of of control and attention to these parameters.

Organizations today recognize that by implementing Variable Cost Optimization programs the resulting reduction in expenses will contribute to overall business resilience, agility, and competitiveness.