Structured – Cost Improvement Program

September 24, 2010  |   Posted by :  

Implementing our cost improvement program – guarantees success by defining organization, responsibilities, rules & cost reduction measures etc.

Our cost improvement program is a structured process for driving cost saving or productivity activities in the business or organization. The program helps our customers to strengthen the coordination and transparency of cost saving activities throughout the organization, ultimately leading to a significantly better success rate.

Program Handbook

Our program handbook provides the customer organization, with a detailed understanding of the program and how it operates.  This includes a step-by-step description of the process and all other elements of the program.

Roles & Responsibilities

The program has a standard roles & responsibilities structure.  Each person directly involved in the program is assigned a specific role.  The roles and the responsibilities of the roles are clearly described in the documentation.

Principles and Rules

As with most programs, there need to be a set of game rules.  We call these roles and principles.  This is important as it ensures the program is managed within an agreed framework.  activities outside that framework (for example – quality control activities) are managed under another program or activity.

Defining and Categorizing Measures

Defining measures is not simply finding ideas.  The measures must satisfy certain criteria laid down within the program, and agreed with management.  Additionally, measures need to be categorized, to ensure that we are able to have an overview of what is being done and by whom, thereby preventing over-lapping and redundant effort.  It is important that measures are properly evaluated before implementation, in order understand both the financial impact, but also other effects on the organization.

Communication Strategy

A continuous cost saving program has far reaching opportunities in the organization.  It also effects many many employees.  It is important that the workforce understands the background of the activity.  That it is long term, that it aimed at securing the future of the business and its employees etc.  For this reason, we prepare and provide communications templates for the rollout process, in order to inform everyone of both the activity, its targets and the reasons behind it.

Cost Improvement Process

As mentioned above the cost improvement process is the basis of all activity.  The process steps are clearly defined in the program documentation and explained in great detail by our team.  The program is implemented once in the organization, but can operate indefinitely in cycles.  For example, each year the management may define new targets.  These are applied to the program, and new measures are defined and so on…

Tracking Implementation

A cost improvement program may contain tens or hundreds, even thousands of individual measures.  The measures need to be followed during the implementation phase.  Our cost-improvement program defines how the measures are described and how the progress and status is regularly reported.  The tracking can be done manually using our excel template, or automatically, using our tracking software.

Reporting Documentation

The cost improvement target was set by management, therefore, management also needs to know about the progress and success of the individual measures.  More important management needs to understand where there are problems, so that they can be addressed.  A predefined reporting structure and standard reports are provided with the program.


In addition to everything discussed above, the program toolbox contains a number of helpful templates and processes.  These include financial calculations and a best practice database.

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