Two key cost reduction strategies for manufacturing construction

When aiming to reduce the capital costs of construction projects in manufacturing, there are two key strategies you should consider implementing.

Strategy 1 – Optimise the area

Efficient Design – Build Less (m²):

1. • Optimize the layout and design of the manufacturing facility to minimise the construction material required and maximise space utilisation. Build only what you need. (Remember it’s all about £/m²)
   • Consider whether it is more effective to outsource warehousing and extend production into existing warehouse space.
   • Use standard building sizes and modular construction techniques. These approaches help to minimise the premium applied to a ‘one-off’ as well as reduce construction time and costs.
   • Incorporate lean manufacturing principles to streamline process layouts and minimise unnecessary movements or steps.

Strategy 2 – Optimise the cost (£)

Value Engineering

1. • Apply value engineering techniques to identify opportunities for cost savings without compromising quality or functionality. There should be at least 2 iterations.
   • Evaluate alternative materials, equipment, and construction methods to establish if there are more cost-effective options.
   • Balance life-cycle costs by choosing appropriately durable and energy-efficient materials that optimise the initial cost and in-use costs associated with the materials.

Implementing these two key cost reduction strategies is the most effective way to optimise the construction related costs for a given manufacturing process.