General Corporate and logistics
Comprehensive cost management strategies.
- Create working capital to grow business
- Keep non-value added activity from depleting resources
- Determine if a product line truly is profitable to the bottom line
- Total Cost Measurement to Support All Cost Reduction Activities
- Overhead Cost Reduction
- Eliminate non-value-added efforts
- Increase the effectiveness of all workers
- Optimum allocation of burden and overhead
- Use corporate standards where feasible
- Optimize purchasing, receiving, quality control, accounts payable
- Use efficient CR tools: corporate philosophy, software, schemes (6-sigma)and maintain an ongoing CR Process
- Utilize efficient Information Management system and a cost accounting system
- Identifying systemic waste in support functions
- Minimize: travel, training, energy, communications
- Cost-manage IP through protection, licensing, selling, etc.
- Increase response times
- Manage by fact (measures)
- Minimize overhead pool; direct material or direct labor
- Manage incremental growth, product decommissioning
- Minimize risks
- Minimize and make efficient: support software, IT support and network infrastructure support
- Optimize and support hardware and software deployment staff and system maintenance.
- Manage Inflation potentials
- Reducing information management and transaction processing efforts
- Eliminate waste from administrative functions
- BTO - Business Technology Optimization {3, 4, 9, 10, 11, 12, 16}
- Identify and eliminate waste in all parts of the company's operation {1, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16}
- Quality Cost Reduction {1, 3, 4, 7, 12, 13}
- Eliminate obsolete products (waste, hazardous materials) {3, 4, 7, 8, 9, 10, 11, 13}
- Reduced cycle times {1, 4, 10, 14, 15, 16}
- Minimize causes of product failure or outage (planned and unplanned) {2, 3, 4, 5, 6, 7, 8, 15}
- Delete diminished performance incidents (i.e. if users are kept waiting), costs of security breaches (in loss of reputation and recovery costs), costs of disaster preparedness and recovery {1, 2, 3, 5, 6, 7, 8, 14, 15, 16}
It's very clear that a producer's unit cost of a product can continue to accumulate long after the product is sold.
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