IDEAS

  • 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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    2008, Richard M. Haney, CMT Group
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