COST IMPROVEMENT is a long-term approach to improving the fundamental use of the organizations’ resources. As a is a continuous improvement activity, it includes cost reduction, cost savings, restructuring and business turnaround activities. COST IMPROVEMENT looks at the entire cost base of the company, and takes a step-by-step / year-by-year approach to ensuring the better use of company resources and improving overall productivity.
It is a very strategic approach. The management as part of its strategic planning and/or the planning process defines a cost improvement target.
On the basis of this target, a cost improvement program is established (once) in the company. This will act as the organizational umbrella under which all cost saving and productivity activities are managed and controlled.
Using a project management approach, sufficient measures are identified by the staff and management of the business to achieve or exceed the cost saving (reduction) target. These measures are then implemented in 5 steps following the structured approach of the cost improvement program.
The cost improvement program guarantees consistency in the project, and allows management to follow the individual activities, from start-to-completion. The program includes all the software, templates, procedures and best practices, which are necessary to ensure a successful conclusion.
Once the individual measures are completed, they are validated for completion and particularly to ensure financial targets have been achieved.
At the end of the year, the overall cost improvement program is reviewed with management for successes, lessons learned and best practice sharing. At this point a new target for the following year is set and the program begins again in a new cycle.
Implementing cost improvement programs is our business. To save you the effort, time loss and expense of developing your own cost improvement program, we can support you in your implementation with our turnkey approach. Alternatively, we can provide you (for a reasonable fee) with the procedures, handbooks, templates, software and best practices, which you can easily adapt to your own organization. Just let us know how we can help. email@example.com