This PPT slide, part of the 33-slide Cost Reduction Methodologies PowerPoint presentation, outlines a structured approach for conducting an Activity Based Assessment, divided into four key steps. Each step is designed to guide organizations through a comprehensive evaluation process, ensuring alignment and clarity at every stage.

Step 1 focuses on Planning and Alignment. This initial phase emphasizes the importance of pre-project planning and setup. It includes initial diagnostics, interviews, and hypothesis formulation, which are crucial for establishing a solid foundation for the assessment. Data gathering is also highlighted, indicating the need for thorough information collection to inform subsequent analyses.

Step 2 shifts to the Analysis of the “As Is” and Potential of the “To Be.” This step involves a detailed examination of leadership performance and business processes through process mapping. It also includes an operating model analysis that covers cost analysis and benchmarking. The goal here is to identify current capabilities and performance gaps, setting the stage for future improvements.

In Step 3, the focus is on Opportunity Selection. This phase emphasizes quantification and validation of opportunities, ensuring that identified areas for improvement are both actionable and impactful. It’s about prioritizing initiatives that can drive significant value.

Finally, Step 4 presents the Transformation Map. This step outlines a path forward, detailing quick wins for productivity and the long-term change requirements necessary for successful implementation. The transformation map serves as a strategic guide for mobilizing resources and initiating change.

This structured approach not only provides clarity, but also ensures that organizations can systematically assess their current state and plan for effective transformation.

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Procurement Strategy Cost Reduction Assessment