ajoy guha associates presents: cost reduction...

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8 Ajoy Guha Associates Presents: COST REDUCTION STRATEGIES Methodologies, Strategies and Steps to Reduce Cost & Enhance PROFIT directly Organization-wide practical approach & to keep your Competitive Edge forever Facilitator : Mr Ajoy K. Guha Duration : 1 or 2 Days 1. RATIONALE Competitive pressure on companies has never been greater. Sales price keeps going down & cost of doing business keeps going up. Today there is so much pressure on costs. There are two approaches to maintaining a healthy P&L. Cut cost & improve sales. Today businesses are trying to find out how cost cutting will not only help you to bring down your cost of doing business, but it should directly contribute to customer service and growth of the company. Only this way you can stay competitive. Cash is like oxygen to a company. This is saying the obvious. However, not so obvious is the following: Keeping operating expenses at reasonable levels has assumed greater importance in recent years and conserving cash is no less important than making more sales. Every business, even the most successful one, faces cash trap situation at various times in the course of operation. Some develop preventive and precautionary measures to minimize their occurrence or effect. Too many businesses scramble to put out one cash trap fire after another. Has this workshop worked for others? It has, in my 28 years career. This is a function where every little counts. Cost Reduction and Control adds to Net Profit. 2. KEY FOCUS AREAS Increasing sales makes it necessary for a company to find money in order to provide precious working capital, while cost reduction costs virtually nothing. A rupee saved is a rupee added to the company’s bottom line. The sorry story about the cost reduction programme is that most businesses think in terms of reducing workforce as a first point. This may be effective in some cases. But research says that there are other operating areas that should be attended to first. A company needs to rank the operations and the priorities in which this cost reduction programme is to be perched. Costs Reduction Strategies programme will give necessary tools for ranking the activities & setting priorities in the manner the COST REDUCTION STRATEGIES program is to be carried out for utmost results. It will do more - tell you the steps you need to take during liquidity crisis and re-engineering. The first point to remember about the concept of costs reduction is that it can be used interchangeably with the term “profit improvement.” If profit improvement is the glass of water half full, then costs reduction is the glass of water half empty. Ideally, all staff from various departments should take Cost Reduction Programme not only as an opportunity, but a challenge to contribute directly to the profits of the company. The next best thing is to form a Cost Reduction Committee and approach a costs reduction programme. 3. RESULT AREAS This workshop is about preventive and precautionary measures as well as on-the-spot remedies you can apply to protect your cash-flow, save lakhs of rupees of your operating expenses, keep yourself liquid most of the time and thus improve overall operations. Also, involve the various tried out strategies available which may serve well in your organization too. Regardless of the current position in the business cycle, cost reduction should be one of the first resources of management when attempting to improve or stabilize profit. Top executives should not wait until a stressful economic period to realize that reducing costs can immediately and effectively improve company’s bottom line performance. Delaying cost reduction can be suicidal. This workshop therefore aims to: 3.1 For Organisation: - Emphasize that Cost Reduction is every bodies job - Keep costs down and get marketing edge on pricing without sacrificing quality. Don’t Cut Strategic Costs Don’t Cut Strategic Costs

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Page 1: Ajoy Guha Associates Presents: COST REDUCTION …ajoyguha.com/download/consultancy/carryout_costreduction_strategy...8 Ajoy Guha Associates Presents: COST REDUCTION STRATEGIES Methodologies,

8

Ajoy Guha Associates Presents:

COST REDUCTION STRATEGIES Methodologies, Strategies and Steps to Reduce Cost & Enhance PROFIT directly Organization-wide practical approach & to keep your Competitive Edge forever

Facilitator : Mr Ajoy K. Guha Duration : 1 or 2 Days

1. RATIONALE Competitive pressure on companies has never been greater. Sales price keeps going down & cost of

doing business keeps going up. Today there is so much pressure on costs. There are two approaches to

maintaining a healthy P&L. Cut cost & improve sales. Today businesses are trying to find out how cost

cutting will not only help you to bring down your cost of doing business, but it should directly contribute

to customer service and growth of the company. Only this way you can stay competitive.

Cash is like oxygen to a company. This is saying the obvious. However, not so obvious is the following:

Keeping operating expenses at reasonable levels has assumed greater importance in recent years and

conserving cash is no less important than making more sales.

Every business, even the most successful one, faces cash trap situation at various times in the course of

operation. Some develop preventive and precautionary measures to minimize their occurrence or effect.

Too many businesses scramble to put out one cash trap fire after another.

Has this workshop worked for others? It has, in my 28 years career. This is a function where every little

counts. Cost Reduction and Control adds to Net Profit.

2. KEY FOCUS AREAS

Increasing sales makes it necessary for a company to find money in order to provide precious working

capital, while cost reduction costs virtually nothing. A rupee saved is a rupee added to the company’s

bottom line.

The sorry story about the cost reduction programme is that most businesses think in terms of

reducing workforce as a first point. This may be effective in some cases.

But research says that there are other operating areas that should be attended to first. A company needs

to rank the operations and the priorities in which this cost reduction programme is to be perched.

Costs Reduction Strategies programme will give necessary tools for ranking the activities & setting

priorities in the manner the COST REDUCTION STRATEGIES program is to be carried out for utmost

results. It will do more - tell you the steps you need to take during liquidity crisis and re-engineering.

The first point to remember about the concept of costs reduction is that it can be used interchangeably

with the term “profit improvement.” If profit improvement is the glass of water half full, then costs

reduction is the glass of water half empty.

Ideally, all staff from various departments should take Cost Reduction Programme not only as an

opportunity, but a challenge to contribute directly to the profits of the company. The next best thing is to

form a Cost Reduction Committee and approach a costs reduction programme.

3. RESULT AREAS This workshop is about preventive and precautionary measures as well as on-the-spot remedies you can

apply to protect your cash-flow, save lakhs of rupees of your operating expenses, keep yourself liquid

most of the time and thus improve overall operations. Also, involve the various tried out strategies

available which may serve well in your organization too.

Regardless of the current position in the business cycle, cost reduction should be one of the first

resources of management when attempting to improve or stabilize profit. Top executives should not wait

until a stressful economic period to realize that reducing costs can immediately and effectively improve

company’s bottom line performance. Delaying cost reduction can be suicidal. This workshop therefore

aims to:

3.1 For Organisation:

- Emphasize that Cost Reduction is every bodies job

- Keep costs down and get marketing edge on pricing without sacrificing quality.

Don’t Cut Strategic CostsDon’t Cut Strategic Costs

Page 2: Ajoy Guha Associates Presents: COST REDUCTION …ajoyguha.com/download/consultancy/carryout_costreduction_strategy...8 Ajoy Guha Associates Presents: COST REDUCTION STRATEGIES Methodologies,

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- To show how to organize a Planned System for Cost Control.

- Involve tried and tested approaches to collection problems.

- Lay down strategy during Cash Crunch situation.

3.2 For Participants:

To vision, conceptualise and then implement. To improve the process of management. To assure a

system of financial propriety, to establish systems so that management decisions are taken on the basis of

proper information and ensure adherence to the same. BPR, Risk assessment, cost control/reduction,

profitability improvement and bench marking of the best practices.

- To empower participants in their task of COST REDUCTION.

- To understand various cost reduction strategies that may come handy.

- Understand Strategic Cost.

- Empower managers / staff in their task of cost reduction.

- Enable them to become aware of the total economic, psychological and strategic factors involved.

- Encourage proactive methods & share a tested organisation strategy.

- Contribute directly to the company’s profits, no matter which department you work for.

- Inform, enthuse, and inspire.

4. Participants Profile - All department heads and their subordinates. Also, Internal Audit department

with a new dimension to run it as Profit Centre.

5. What will we cover

DAY ONE

- Facts of Cost Reduction Program

- What is Strategic Cost Control

- A CASE STUDIES – in detail

- Work Sampling

- Ranking priorities

- Setting Target

- Concentration Areas

DAY TWO

- Float

- Costs Reduction – 20 Expenses and tried

practices

DAY TWO

- Cash Traps in Contracts

- Dealing with Over due debtors – case

study

- Restructuring and cost control

- Quality of People, Process, Product &

Services

- Customer care and Cost control

- Are you suffering from Active inertia

- Introduction to :

Supply Chain and Cost control

Liquidity Crisis – case study

6. WORKSHOP METHODOLOGY – Participative, interactive presentation, Case Studies, Success

Stories, Problem Discussions and Course Material.

7. WORKSHOP FEES: Will be sent along with the proposal.

IT IS WISER TO BE

M -erging Operations

I -mproving Activities

S -implifying Jobs

E -liminate steps & Jobs

R -educing operations