Cost Reduction Programs
for
Increased Profitability
A White Paper
by
Steven C. Martin
President and CEO
ABSTRACT:
This paper summarizes the proven benefits of cost reduction (cost savings) programs as
proactive means to enhance profitability and enhance cash flow. Evaluations are provided
for the reader to assess existing programs or determine if a program might be useful. It
also presents the key elements, some of the myths, and factors to consider in program
design and implementation. The importance of structure of a Cost Reduction/Profit
Enhancement Program to ensuring results consistent with the goals and values of the
organization is discussed.
The following pages contain the entire text of this benchmark cost
reduction (cost saving) process for the management of costs within organizations.
The methods can be applied by any type of organization that uses money to keep
score. You may use this active index or you can go page by page. We suggest you start here with an analysis of your situation.
INDEX
1. ABSTRACT
2. SUMMARY
3. My organization already has a program - How
good is it?
4. We don't have a program - Is my organization a
candidate?
5. Here is the structure of an effective program.
6. Why should we use a Cost Reduction Program?
7. What are the benefits?
8. How to improve profits and financial stability:
9. What expenses can be targeted for reduction and
how can they be found?
10. What tactics can be used to reduce expenses?
11. What about size? Is my organization too small
or too large?
12. Nine myths associated with Cost Reduction
Programs:
13. How do CRP's interact with other programs?
14. Why do CRP's occasionally fail to meet
expectations:
15. Fourteen questions to consider to make sure
the program works as expected:
16. How you can install a new program or optimize
an existing one:
Cost reduction evaluation forms.
17. SCORING: Evaluate Your Existing Cost Reduction
Program (CRP)
18. SCORING: Is Your Organization a Candidate for a
CRP?
This cost reduction program can help you identify those areas where you can improve
efficiency to establish a more capable and efficient operation. Efficiency can
enable growth and prosperity.
(c) 1998 - 2008 Steven C. Martin, Business Solutions. All
rights reserved.
The contents of this paper are copyrighted and, as such, may be
used for personal use only. Duplication and/or commercial use of this material is
expressly prohibited without written permission of the author.
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