Reduce Costs Operational Budgets by 20% Without Disrupting Work

Day 1: Understanding Costs and Value

• Introduction to Cost Management:

  • Components of operational budgets

  • Importance of cost measurement and value assessment

• Methods of Cost Measurement:

  • Cost accounting techniques

  • Activity-based costing (ABC)

  • Total cost of ownership (TCO) analysis

• Identifying Value:

  • Determining value streams in operations

  • Assessing value-added activities versus non-value-added activities

Day 2: Identifying and Eliminating Waste

• Understanding Waste:

  • Types of waste in operations (e.g., overproduction, defects, unnecessary processing)

  • Impact of waste on costs and value

• Waste Identification Techniques:

  • Value stream mapping

  • Gemba walks

  • Root cause analysis

• Elimination Strategies:

  • Lean methodologies (e.g., 5S, Kaizen)

  • Six Sigma principles

  • Continuous improvement techniques

Day 3: Creating Value Through Process Optimization

• Process Optimization Fundamentals:

  • Streamlining workflows

  • Reducing cycle times

  • Standardizing procedures

• Value-Creating Processes:

  • Identifying processes with high value potential

  • Redesigning processes to increase efficiency and effectiveness

• Budget Allocation Strategies:

  • Allocating budgets to processes that generate the most value

  • Prioritizing investments for maximum impact on cost reduction

Day 4: Targeting Process Improvements

• Process Improvement Techniques:

  • Performance metrics and KPIs

  • Benchmarking against industry standards

  • Cross-functional collaboration

• Setting Improvement Targets:

  • SMART goals for cost reduction and value creation

  • Establishing baseline performance metrics

  • Monitoring progress towards targets

Day 5: Developing Consistent Measures and Early Warning Systems

• Consistent Measurement Framework:

  • Standardizing cost measurement methodologies

  • Implementing performance dashboards and scorecards

• Early Warning Systems:

  • Setting up triggers for budget overruns

  • Implementing variance analysis techniques

  • Establishing escalation procedures for corrective action

• Consolidating Execution Plans:

  • Documenting cost reduction and value creation projects

  • Integrating plans into overall operational strategy

  • Assigning responsibilities and timelines for implementation