logging in or signing up cost reduction strategy stuti.rana Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: Embed: Flash iPad Copy Does not support media & animations WordPress Embed Customize Embed URL: Copy Thumbnail: Copy The presentation is successfully added In Your Favorites. Views: 1016 Category: Entertainment License: All Rights Reserved Like it (0) Dislike it (0) Added: March 22, 2012 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript COST REDUCTION: “Cost cutting is no longer the solution to sustainable profitability, the key to success is finding creative ways to prevent cost.” C OST REDUCTIONDEFINITION: DEFINITION “Cost reduction is to be understood as the achievement of real and permanent reductions in the unit cost of the goods manufactured or services rendered without impassing their suitability for the use that is intended”- ICWA London.Achieving the goals of cost reduction: Achieving the goals of cost reduction Reducing the cost per unit. Increasing productivity. How to reduce cost? Elimination of waste Improving operations. Increasing Productivity. Cheaper materials. Improved Standards of Quality.Cost Reduction Process: Cost Reduction Process Analysis Examination. Developing Solution. Selecting a solution. Obtaining agreement.PowerPoint Presentation: FishBone Diagram:Areas of Cost Reduction: Areas of Cost Reduction Material: Design. Purchasing. Storage. Transport. Production. Labour: Overheads: Increasing the production volume. Extension of market and price differentials. Size of business units.PowerPoint Presentation: 4.Outsourcing 5.Sales and marketing 6.Energy 7.Production3 dimensions of Cost reduction: 3 dimensions of Cost reduction 1)Internally driven: - Keep improving processes -Employee suggestion programs 2)Externally driven : -Top of the technology and process 3)Competitor driven: -Benchmarking against competitors -Real time dataImplementing Cost reduction program: Implementing Cost reduction program Set realistic goals Develop cost reduction program consulting all Do an ROI analysis Explore all options, not only BPR/technology(consider offshoring and outsourcingTools and Techniques of Cost Reduction: Tools and Techniques of Cost Reduction Value Analysis. Work Study. Job Evaluation and merit rating. Quality Control. Economic Order Quantity. Use of Better Technology. Standardization. Improvement in the design of a product. Inventory Management and Control.Advantages of Cost Reduction: Advantages of Cost Reduction To a particular concern Improves profits. Improves financial position. Improves competitive capabilities. Serves as an index of efficiency. To the Industry One company serves as a trend setter for the other companies.PowerPoint Presentation: C. To the Nation Efficient utilization of Scarce Resources . High taxes can be levied by the government. Retaining the markets and gaining new buyers. Combating inflation.Cost reduction in materials in Manufacturing setup.: Cost reduction in materials in Manufacturing setup. Vendor consolidation. Value engineering. Assembly outsourcing Standardization.Precautions in Implementations: Precautions in Implementations Must be planned soundly . Appropriate to organization. Requires cooperation and coordinated efforts. Reluctance should be recognized and dealt with. Programs should be clearly communicated. Should not have undesirable effects on external parties. Unnecessary costs can be reduced not eliminated. Is expensive and complicated to implement.PowerPoint Presentation: Freeze in hiring . Personal awareness to cost cutting. No bonuses or pay hikes. Night home drops and pick ups are charged. Reducing off-shore trainings. Outlook comm. Used in Place of BhartiPowerPoint Presentation: The share ownership plan discount scrapped Reducing work hours for trainees. Delay in freshers joining the company. WFR carried out. Paycut of 5%. Annual shutdown of a week extended to a fortnitePowerPoint Presentation: Shutting down older fabrication units. Freeze in hiring. Reduced travel expenses,using video chats &voice chats as alternatives. Reducing/reusing inventory. Increasing personal awareness. Avoiding discretionery expenditures.BOMBAY DYEING: BOMBAY DYEING Introduction of new cost effective technology. Process re-aligning. Re-engineering of product. Restructuring of workforce. Rationalising input costs.PowerPoint Presentation: THANK YOU! Smriti Ramya Dhilip You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.