Reducing Costs in Your Business

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This document provides tips for reducing costs in a business. It recommends analyzing costs and planning reductions, focusing on eliminating waste and inefficiency rather than necessary investments. Specific techniques mentioned include Six Sigma, continuous improvement, kaizen, just-in-time, and total quality management. The document also advises involving employees, managing suppliers carefully, and making cost reduction a ongoing process rather than a one-time effort. The overall message is that reducing costs requires strategy, analysis, and culture change within an organization.

Business Technology

Reducing Costs
in your business

25 April 2012

Welcome

‘The price of inaction is far greater
than the cost of making a mistake. ’

Meister Eckhart 1305

It’s popular
Have you been through a Cost Reduction programme in
the last 3 years?

Yes
No
Don't Know

Source Deloitte

Strategy vs Tactics

“Imagination rules the world”
Napoleon Bonaparte

Cut waste and inefficiency, not
investment

Techniques for Cutting Waste & Inefficiency

Six Sigma
Continuous Improvement

Kaizen

Just in Time

Statistical Process Control Total Quality Management

Business Process Re-Engineering
Trillium
ISO 9000

Involve your Employees

Analysis and
Planning

Managing Suppliers

• Search the globe
• Re-negotiate

What we plant
in the soil of
contemplation,
we shall reap
in the harvest
of action.

Meister Eckhart 1307

Recap and Process

•Review Strategy
•Analyse and plan
•Watch the Technology
•Chase the big numbers
•Cut waste and inefficiency, not investment
•Involve employees
•Stay out of court
•Manage Suppliers
•Stop doing things
•Make it a way of life

Conclusion

•Do Less
•Do what remains more efficiently
•Pay less for what you buy

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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. https://bit.ly/3hos7YG

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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.

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Reducing Costs in Your Business

1. Reducing Costs in your business 25 April 2012

2. Welcome ‘The price of inaction is far greater than the cost of making a mistake. ’ Meister Eckhart 1305

3. It’s popular Have you been through a Cost Reduction programme in the last 3 years? Yes No Don't Know Source Deloitte

4. Strategy vs Tactics “Imagination rules the world” Napoleon Bonaparte

5. Analysis and Planning

6. Watch the Technology….

7. Chase the big numbers

8. Cut waste and inefficiency, not investment

9. Techniques for Cutting Waste & Inefficiency Six Sigma Continuous Improvement Kaizen Just in Time Statistical Process Control Total Quality Management Business Process Re-Engineering Trillium ISO 9000

10. Involve your Employees Analysis and Planning

11. ?

12. Employment law – stay out of court

13. Managing Suppliers • Search the globe • Re-negotiate

14. Stop doing things

15. This doesn’t work…

16. But I’m in a hurry…..

17. What we plant in the soil of contemplation, we shall reap in the harvest of action. Meister Eckhart 1307

18. Recap and Process •Review Strategy •Analyse and plan •Watch the Technology •Chase the big numbers •Cut waste and inefficiency, not investment •Involve employees •Stay out of court •Manage Suppliers •Stop doing things •Make it a way of life

19. Conclusion •Do Less •Do what remains more efficiently •Pay less for what you buy

Editor's Notes

IntroThanks for comingI am – ProsperoCost Redn is something often asked about.My backgrnd Questions. Prizes for good questionsBegin with monkAssuming business owners or advising business ownersStraw poll
65 23 12It’s disruptive If you have to keep repeating it, perhaps you’re not doing it right
Strategy – customers & competitionMassive trend for manufacturing to ChinaPeak manuf 2007People businessProperty businessOne client. 12 bus lines – now 5Lots of great quotes from NB ‘Never ascribe to malice that which can be explained by incompetence’1812
None of it works without careful a & pNeed a good FDGKN Case. Expensive redundancies counter productive
Strategy must take account of technology. Firstly, you’ve got to think about how changing tech can wipe out your business model. Eg road atlases, travel agentsHow many passengers? 75m2nd Using tech can radically reduce costs. Eg low cost airlinesDramatic tech change. Eg logmeinClive
You’re never going to save a business by cutting down on use of envelopesCost of sales, direct costs, purchases, payroll are the biggest spends Symbolic value of stationery Nazi
Marketing, training, prod devel are easiest to cut, but harm the business.Always want to get value for money from these. As Fd, always struggle to see payoffsOther than changing strategy, there’s only one way to cut core costsCosts adding value v waste. Scrap, downtime, non-chargeable hours, obsolete stock.Look internally, in detail, involving empls, making lots of small stepsGet help. Toyota, Harley D taken millions out of costs while improving prod quality.Also works in office environments
Continuous process improvement, lots of tiny steps. Tiresome and common sense, but effective.Egs Electronics packaging Shared servicesDetermine you’re going to do it. Announce, involve. Set up teams. Give resources – time and money. List & analyse problems. Choose ones to tackle. Eliminate problems. Go round again. 80/20.Not a quick fix. Requires persistence. Must be customer driven.
2 reasonsMorale107 people
Establish genuine needSet out fair selection criteria. In reality…Consult with all of those affected – more formal if > 20 employeesRights to stat redund pay if employed > 2 yrsIf any of this isn’t done right, you can end up at a tribunal.Get advice
Activities that don’t add value. Pointless meetings, unread reports. Don’t cost much but opportunity to save cost and time.Electrical Wholesaler. Mgmt report was 96 pages. At some point, someone had said ‘I’d like to see’…
GE. Sack 5% each year.3 responses Meek surrenderFightbackCareless axemenName the characterAn effective business Stringer’s crime empire
If you have to cut in a hurry, all you can really go at are the investment type costs. R&D, marketing, training, capex.You’d heard me say that you should cut waste not investment. Contradiction? Not really – a qu of pace. You should always be looking to run at lower cost. Then you won’t get into crises.How can I do this. Cash is always tight. Need good finance mgr.Beijing Gold Medals 19
Probably noticed I don’t like bullets on charts, but sometimes they are useful
Right down to 3 pointsVery quick canter through

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