Innovation in product design as a factor for reducing logistic and production costs

Abstract

Innovation has been considered of fundamental importance for organizations competing in dynamic environments, which along with cost management has been shown as an organizational strategy that allows the company to measure its results and implement measures that impact on the organization's performance as a whole. This paper, carried out in a metal mechanical industry of a telecommunications engineering branch, aims to analyse cost reduction in logistics raw materials areas through innovation in the product design, which are antennas and towers for telephone networks. In terms of methodology, this study presents itself as a qualitative and quantitative research-action, which from the link between theory and practice allows for intervention in the middle of the researchers studied. As a result, an innovative project was developed, which allowed for the reduction costs of production by 68% and logistics by 32%. Despite the significant decrease in costs, the quality of manufactured products not declined and customer needs were met, thus making the company more competitive against competitors. Not widespread in the literature, this analysis of the impact on logistics and production costs due to improvements in the project is the main contribution theoretical of this paper.