Optimise-GB's presentation takes you through the value for money initiative. Costs can be avoided and reduced through process re-engineering (change what and how you work) and through procurement to negotiate costs of all categories of spend. The best method of cost reduction is to follow the pareto rule to focus on the 80% of total costs which will be derived from 20% of the activities. This allows you to reduce costs in a very quick and efficient manner rather than looking at the costs as a whole. Many thanks Simon Misiewicz

1. Cost reduction through business process improvement and procurement for the Service Industry I don’t want to do business with those that don’t make profit, because they can’t give the best service – Lee Bristol Optimise- GB

2. Value for Money (VFM) & Cost Reduction Value for Money (VFM) … is the term used to assess the quality and benefit received for goods and services paid. VFM considers the economical, efficiency and effectiveness of the goods and services utilised within the organisation Cost Reduction … may be achieved through process improvement, being the things that you do, and through procurement strategies, the things that you buy. Optimise- GB

5. Phase 1: Cost Identification Optimise- GB

8. Phase 2: Cost elimination through process improvement People never improve unless they look to some standard or example higher and better than themselves – Tryon Edwards Optimise- GB

13. Phase 3: Cost reduction through procurement strategies Optimise- GB

16. Process Improvement Savings End Result Procurement Savings Revised Cost £’000 400 150 210 60 60 3,850 550 330 1,890 540 540 2,970 This demonstrates how £880k (23%) can be saved off the bottom line. This is equivalent to an additional turnover of £9m, if 10% net profit was achieved Original cost £’000 Optimise- GB