From the course: Cost Reduction Tips - How To Cut Costs And Maximize Profits

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Poor utilization of assets

Poor utilization of assets

From the course: Cost Reduction Tips - How To Cut Costs And Maximize Profits

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Poor utilization of assets

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- Another area of wasted cost is poor utilization of assets. Now, we talked about utilization of people earlier on, and this is really the same, but it's equipment. So, something like operating theaters. If you're only using them half the time, that means you could have half the number of operating theaters and still be fine. So you're wasting all of that cost. It could be laboratories. You know, what is the utilization of your laboratories? Have you ever measured how much time they're actually being used? It might be forklift trucks. How much time are those forklift trucks actually driving around? Do you need to hire quite so many? Could you cut the cost on the forklifts? So, you could just measure the utilization of those. And certainly, don't buy another one if your forklifts are only 50% utilized. Even training courses. And quite often, I do a training course and you know, I could do up to 20 people and I get there and there's six. And you just think, well why didn't you put…

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