Strategize your company’s cost reduction plan using Cost Reduction Plans PowerPoint Presentation Slides. Reduce cost of the production of the product and increase the profit by using cost reduction plans PPT templates. Apply various techniques and tools to reduce the costs such as budgetary control, standard costing, cost benefit analysis, value analysis, contribution analysis, and more. Go step by step to reduce expenditure and continuously analyse costs, functions, etc. This deck covers various topics to help you strategize your cost reduction plan such as key levers to cost management, levers to achieve successful cost optimization, levels of strategic cost optimization, detailed levels within strategic cost optimization framework, prioritizing IT cost optimization, IT cost optimization, cost optimization techniques, cost optimization planning, stages in cost reduction, cost design, comparison of stages, etc. You can use price optimization PowerPoint presentation templates for better cost reduction plan. Create more demand for the product, increase sales and revenue, increase competitive strength and more using cost reduction plan PPT presentation slideshow. Assess the fallout of emerging circumstances with our Cost Reduction Plans PowerPoint Presentation Slides. It helps decipher the implications.

1. Cost
Reduction
Plans
You Company Name

2. Agenda
2
01 02 03 04
Opening
(9:30am to 10:00am)
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Guest Check
(10:00am to 10:30am)
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Files Distribute
(10:30am to 11:00am)
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Break - Time
(11:00am to 11:30am)
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3. Key Levers to Cost Management
3
Procurement
• Due to reducing cost in china, many procurement teams are
facing growing pressure
• This will lead to more strategic sourcing, consolidation of
resources and improved contract & inventory management
Operational Efficiency
• Companies often reduce focus on operational & process
efficiency
• Top performing companies understand the fact that financial
strength is built from driving out operational inefficiencies
Supply Chain
• Inefficiencies in channel management and distribution
networks needs to be identified & understood to optimize
efficiency gains along the supply chain
Working Capital Management
• To ensure sustainability, reduce reliance & exposure to
short-term funding needs
• It is also subject to exposure and risks from areas including
receivables, payables and inventory management
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4. Levers to Achieve Successful Cost Optimization
4
• How to best
establish the cost
optimization
program?
• What are the
goals / scope of
the program
Discover
• What is the scale
of the cost
optimization
opportunities?
Insight
• What
opportunities are
available and
which one should
be developed?
Design
• Which
opportunities
should be
implemented and
in what order?
Implement
• What can be done
better?
• How can the
benefits and
improvement to
the financial
performance be
permanently
embedded?
Maintain &
Grow
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5. Levels of Strategic Cost Optimization
5
CostSavingHigh
Low
Nature of IT Cost OptimizationTactical Strategic
Do more with
less
Tighter alignment
with business
Transform to
higher levels
Reduce
Reduce costs and prioritize
spend
Agenda: Cut IT costs, prioritize
demand, span of control
enhancements
01
Optimize
Remove waste, increase
efficiency
Agenda: Improve processes, “go
lean,” evaluate target operations
models (shared services),
exercise sourcing options.
02
Rationalize
Business relevance, flexibility,
agility
Agenda: Rationalize IT
portfolio, reduce functional
redundancies.
03
Transform
Invest more to optimize more
Agenda: Evaluate technology,
broaden capabilities., create new
sources of revenue.
04

6. Detailed Levels Within Strategic Cost Optimization Framework
6
Reduce:
Cut costs and
prioritize spend
Optimize:
Remove waste and
increase efficiency
Rationalize:
Seek business
relevance, flexibility
and agility
Transform:
Invest more to
optimize more
Level 1
Companies tend to
prioritize cost optimization
initiatives by simply
considering short-term
cash savings
Level 2
The focus should be on
eliminating excess waste
while increasing the
efficiency of current
systems
Level 3
It is imperative to focus
on business goals and
ensure that IT initiatives
are aligned with
business objectives and
priorities. IT
performance metrics
should be closely tied to
business metrics so that
their alignment can be
measured appropriately
Level 4
As economic conditions
improve, companies can
focus their cost
optimization efforts on
implementing long-term
business and IT process
improvements, enabling
business growth and
innovation, and
repositioning the business
to sustain a competitive
advantage
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7. Prioritizing IT Cost Optimization
7
Dimension
Score
1 2 3
Strategic Value Low Medium High
IT Control Low Medium High
Potential Cost & Benefit Low Medium High
Customer Impact Negative Neutral Positive
Time to Benefit Realization < 18 Months 6-18 Months < 6 Months
Degree of Business Risk
Reengineering of current
processes & organizational
structures. Staff redundancies.
Limited changes in roles &
organizational structures
Minimal organizational
change & staff impact
Degree of Technical Risk
Impact on operating system,
database & middleware.
Moderate impact on few
technical components.
Minor impact on technical
components
Likelihood of Reprioritization &
Cancellation
High Medium Low
Investment Requirement High Medium Low
Total Score Reject AcceptEvaluate
9 18 22 27
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8. IT Cost Optimization: Three-Step Approach
8
IT Investment Optimization
• Flat or declining IT budgets, coupled with an
increased demand for IT services
• Removal of expenses from current spend or run rate
in order to invest in future business opportunities
IT Cost Assessment
• Business challenges identified through merger,
acquisition or divestiture of business operation
• Increased utilization of IT resources & assets
Application Portfolio Rationalization
Infrastructure Rationalization
Organizational & Operating Model
Global Sourcing
Operations & Process Transformation
Define IT investment Optimization Goals
Identify Investment Opportunity
Prioritize Investment Portfolio
Develop Ongoing Governance
Alternate Sourcing
Business Alignment
Vendor Renegotiation
Consolidation/ Rationalization
Standardization
People Alignment
IT & Business Alignment Opportunity Identification Realization of Benefits
Software Hosting Network End User
Computing
IT Overhead
Management
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9. IT Cost optimization Initiative Benefits
9
Application Portfolio Rationalization
• Improved Cost Management
• Increased Efficiency
• Business Transformation
Infrastructure Rationalization
• Reduce total Cost of Ownership
• Improve Economies of Scale by Standardization of Assets
Organization & Operating Model
• Savings Due to Process Standardization and Reduced Re-work
• Improved Product Quality and Service
Operations & Process Transformation
• Improve visibility of End-to-end Value Chain
• Increase Demand Forecast Accuracy
• Drive Significant Increase in Bottom Line.

10. 10
Improving Data
Management
Enable people to share data in an
easy & efficient way & use that data
to create business value through
better & faster decisions
Supply Chain
Optimization
CIOs need to work collaboratively to look
beyond cost reduction to enable increased
sales. Focus should be on using a mixture of
conventional & unconventional techniques to
optimize IT & business costs
Process
Automation
Business leaders need to go beyond
the current use of automation to
robotics, and leverage the Internet of
Things and smart machines to build
intelligent business processes
Customer Self-
Service
Establish a strategy to handle self-
service technologies, which must be
continuously updated and based on
the customer’s perspective and
experience
Cost Optimization Techniques
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11. 11
Cost Optimization Techniques
Improving Business
Efficiency Through
Analytics
Advanced analytics helps in reducing
customer churn and make equipment
safer. Utilizing analytics also helps in the
customer retention or improving marketing
responses which in turn can have a big
impact on the business
Digitalization of
Business Processes
Develop an integrated approach that brings
together required competencies & expertise,
along with buy-in from the executive leadership
team
Improving Inventory
Management
As inventory is a working capital asset,
reducing inventory will contribute directly
to the bottom line
Continuous
Improvement
Culture
CIOs need to work collaboratively with
business leaders to focus on lean
improvement efforts
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12. Cost Optimization Planning
12
Already
Done
Plan to
Do
Save
IT Procurement
• Hiring internally at lower rates than contact staff
• Deferring desktop replacements
• Text here
• Text here
15
12
18
21
19
12
16
31
13
14
19
21
Cost Savings within IT
• Open-source desktop software
• Consolidation of data centers within a single
agency
• Text here
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x
x
x
x
x
x
x
x
x
x
x
Joint Business &
IT Savings
• Asset utilization analysis
• Teleworking
• Text here
• Text here
x
x
x
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x
x
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x
Process Improvement,
Business Restructuring &
Innovation
• Sharing citizen call centers across agencies
• Sharing IT help desk across agencies
• Text here
x
x
x
x
x
x
x
x
x
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13. Stages in Cost Reduction
13
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Cost Cutting
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Cost Management
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Cost Design
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Cost Positioning
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14. 1. Cost Cutting
14
Cost Cutting
involves cuts in
spending based on
arbitrary criteria.
Costs are divided
into committed &
discretionary
categories.
Cuts target discretionary
before committed; large
before small; expedient
before sensitive.
Performance
measured against
historical standards
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15. 2. Cost Management
15
Cost Management
involves a systematic
approach to cost
reduction that involves
an understanding of
relevant cost drivers
Costs are organized by
resources, activities,
and cost objects
Reductions achieved
by eliminating unused
capacity, nonvalue-
added activities, &
reducing activity cycle
times.
Performance
measured against
long-term target
standards
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16. 16
Cost Design involves an evaluation
& redesign of the internal value
chain . It seeks to improve the
relationship among resources
required and work performed to
satisfy customer requirements
Cost
Design
Costs are organized by
process & sub process.
Reductions achieved by eliminating
redundancy & conforming to
operational strategy.
Performance measured against
best-in-class standards of
performance.

17. Cost Positioning involves an
evaluation & redesign of the
external value chain. It seeks to
improve the relationship among
supply chain members to enhance
competitiveness
4.CostDesign
Costs are organized by
links in the value chain
Reductions achieved by consolidation of
links, sharing information, better
coordination, & exploiting synergies
among supply chain members
Performance measured against
strategic objectives such as market
share & price targets
17

18. Comparison of Stages
18
Stages Cost Cutting Cost Management Cost Design Cost Positioning
Basis Arbitrary spending cuts Understanding cost drivers Redesign internal value chain Redesign external value chain
Objective Achieve cost reduction targets Satisfy customer requirements
Enhance company
competitiveness
Enhance s. chain
competitiveness
Time horizon Short term Medium Term Long term Long Term
Perspective Internal Internal Internal External
Cost Measurement
Classified into committed &
discretionary
Organized by resources
activities, & cost objects
Organized by links in the
internal value chain
Organized by links in the
external value chain
Reduction Methodology
Reduce discretionary large &
expedient costs
Eliminate unused capacity, NVA
activities & reduce cycle times
Eliminate redundancy &
conform to operational
strategy
Consolidate links, share
information, coordination,&
synergies
Performance Standards Historical standards Long-term standards Best –in- class standards Strategic objectives
Common tool Standard costing Kaizen Costing Activity-Based Planning Strategic Cost Management
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19. 19
Let’s have a
Coffee
Break!
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20. Cost Optimization Strategy Icons Slide
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21. 21
Additional
Slides

22. Meet Our Team
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Designation
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23. About Us
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We are Professional
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We are Creative
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We are Talented
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24. 24
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Our
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25. Timeline
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26. Puzzle
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01
02
03
04
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27. Our Location
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South America
20%
North America
30%
Africa
40%
Asia
60%
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28. Magnifying Glass
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5%
70%
10%
15%
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29. 29
Charts &
Graphs

30. Pie Chart
30
25%
15%65%
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65%
25%
15%

31. Bar Graph
31
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
2018
Increase
Decrease
Mar
Apr
May
Jun
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32. Radar Chart
32
01-01-2018
02-01-2018
03-01-2018
04-01-201805-01-2018
06-01-2018
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33. Area Chart
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0
10
20
30
40
50
60
70
80
90
100
DecNovOctSepAugJulJunMayAprMarFebJan
SalesInPercentage%
Financial Year 2018
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34. 34
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