This PPT slide, part of the 97-slide Strategic Cost Reduction Training PowerPoint presentation, outlines the first phase of the SCR (Strategic Cost Reduction) approach, focusing on conducting activity analysis and refining the baseline. This phase is critical as it establishes a foundational understanding necessary for effective sizing of organizational units and estimating potential savings.

The process begins with launching data collection, which involves refining standard activity definitions. This step is essential for ensuring that the data gathered is relevant and accurate. Following this, there is a need to conduct research to address any remaining data gaps. This thorough approach to data collection sets the stage for a more detailed problem definition in the subsequent step.

Once the data is collected and refined, the next step is to conduct a detailed problem definition. This is where the insights from the data analysis will inform the specific challenges and opportunities identified within the organization. The outcomes from this step include the development of recommendations based on the detailed activity database created during the analysis.

Finally, the phase concludes with testing and refining these recommendations. This iterative process ensures that the proposed solutions are not only viable, but also aligned with the organization’s financial objectives, as indicated by their ties to the P&L.

Overall, this slide emphasizes the importance of a structured approach to activity analysis, which is vital for making informed decisions that drive efficiency and cost savings. The clarity in steps and outcomes provides a roadmap for organizations looking to optimize their operations.

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Cost Reduction Assessment Cost Reduction Data Analysis