Cost Reduction

A primary focus of our consulting practice is working with clients in reducing costs to improve their profitability and competitiveness. We accomplish this by focusing on five key areas of their performance. These are: improving the efficiency of high cost areas, increasing the productivity of labor intensive operations, eliminating costly quality failures, improving the efficiency of major processes and identifying the contribution to profit of their products, services and customers. To achieve the greatest cost reduction in the shortest timeframe, we prioritize our improvement effort based on the 80/20 Principle. The 80/20 Principle holds that 80% of the opportunities to reduce costs are rooted in 20% of the organization’s products, services and processes. To support the cost reduction effort, we provide extensive management training in the tools and techniques of reducing costs.

How to Reduce Costs

  • We Improve the Efficiency of High Cost Areas
  • Increase the Productivity of Labor Intensive Operations
  • Eliminate Costly Quality Failures
  • Improve the Efficiency of Major Processes
  • Identify the Contribution to Profit of the Organization’s Products, Services and Customers
  • Train Managers in Techniques of Reducing Costs