Objective

To implement a Company-wide Cost Reduction Programme leading to significant savings in line with pre set targets in all functional areas.

Strategy

• Team approach
• Total Involvement
• Targets with Time Frame
• Measurable Results
• Continuous Training
• Periodic Reviews

Scope of Work

• Ensure Application of appropriate Management Tools
• Create suitable MIS to Monitor Progress
• Conduct Steering Committee Meetings
• Facilitate Task Force Meetings
• Provide Training and other desired inputs like
  • Contingency Plan
  • Facilitators’ Training
  • Total Productive Maintenance
  • Workplace Management
  • Quality Management System

Minimum 1 Training Session per week, followed by group discussion and Time Bound Action Plan with clearly defined roles and responsibility.

Steps of Implementation

• Interaction with Functional Heads
• Formation of Steering Committee
• Identification of Critical and Potential areas for Cost Saving
• Selection of Project based on Brain Storming Sessions
• Creation of Taskforces
• Benchmarking/Target Setting with respect to Zero Base Budgeting
• Develop Measurement Criteria
• Devising Progress Monitoring Mechanism and Formats
• Periodic Review of Progress and revision of Action Plan, if needed

Focus Areas

• Logistics and Freight Management
• Disposal of Dead Stocks
• Inventory Control
• Scrap Handling System
• Overall Equipment Effectiveness
• Procurement Procedures
• Manpower Planning
• Downtime Analysis
• Spares Management
• Customer Returns
• Capacity Utilisation