Logo en.artbmxmagazine.com

Cost reduction with force field analysis

Anonim

Once a cost objective to be achieved or a cost to be reduced has been determined, the force field analysis technique becomes a powerful analytical instrument. This technique reduces the problem to a “manageable” size and helps the group work together. It can be used by an individual person, a small group or a large group.

The analysis of force fields applied to cost reduction is based on the idea that any given level of costs is the result of a balance between "driving forces" (the factors that contribute to reduce costs) and " restrictive or obstructive forces ”(factors that prevent cost reduction and even tend to generate an increase in costs).

In order to modify the equilibrium situation corresponding to a certain level of costs to bring it to a new equilibrium corresponding to a lower cost, it is necessary to work with the different forces that cause these equilibria. Achieving cost reduction means having to eliminate or reduce the forces that prevent cost reduction, and increase or strengthen the driving forces that contribute to cost reduction.

The process consists of several stages, the first of which is to clearly define the “current equilibrium situation”, the level of expected costs and the existing gap.

The second step consists of identifying the driving and restrictive forces that exist in the organization, the environment, technology and employees, being able to use a group work technique in order to promote or generate the greatest number of ideas.

Third step in the process is to draw arrows in the figure corresponding to each driving or restrictive force in a length proportional to the magnitude of its force, which can also be indicated in numbers.

The fourth step is to analyze which of the restraining forces can be removed or reduced and which driving forces can be added or reinforced.

All activities to be carried out must modify the balance in favor of the driving forces in a sensible way. This requires a careful analysis of what is technically, economically, organizationally and politically feasible. It is necessary to focus on the forces that are easier to modify, that generate higher performance and are less disruptive.

Once the analysis is finished, a plan for the application of the proposed changes should be prepared.

Below, and only as an example, it does not intend to cover all the alternatives in a real case, a graph corresponding to the force field analysis is shown.

Bibliography

Robert Abramson and Walter Halset -

Programming to improve performance in companies. Guide for Managers and Consultants - ILO - 1983

Cost reduction with force field analysis