An analysis is the first step in identifying cost-cutting measures. In this video, explore a list of business areas upon which to perform internal analysis.
- So before you can cut costs … you have to measure what your costs are, … and this is a summary of the top 10 things … that you need to measure. … Number one, do a Pareto analysis … of where the money is being spent. … 80% of your cost goes on the top 20% of things. … So, after people and materials, … what else is taking your money? … And within materials, again, what is the top 20%? … Savings made on this top 20% … will give you the biggest benefit, … and investigating and negotiating … and shopping around on these will be worth your time. … Banning biscuits and Post-its will not give you anything … like such a big payback, … and it will only de-motivate people … and make them less productive. … So that's the first thing to do. … Secondly, productivity of people … is something that you should measure. … Ideally you would work out the productivity … of all of your key people, … and if you could compare one against another … you could work out why some people are producing more … and some people are producing less. …
- Different cost areas affecting your business
- Comparing cost vs. income
- Enhancing your work environment
- Focusing on the most important management tasks
- Getting better deals on raw materials and labor
- Recognizing your optimum quality level
- The hidden costs of subcontracting
- Where to avoid cutting costs
- Top ten cost-cutting actions to take
Skill Level Beginner
What to expect1m 3s
1. What to Reduce
2. Reducing Labor Costs
3. Costs Other Than People
4. Top 10 Tips
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