Structured Approach to Strategic Cost Reduction Phases PPT
This PPT slide, part of the 97-slide Strategic Cost Reduction Training PowerPoint presentation, outlines a structured approach to Strategic Cost Reduction (SCR), detailing 4 distinct phases designed to facilitate both immediate and long-term savings.
Phase 0, labeled "Scoping & Planning," spans 5-6 weeks. It emphasizes the importance of establishing a clear rationale for change, defining objectives, and delineating roles and responsibilities. Key activities include identifying a baseline for current costs, reviewing existing initiatives, and formulating hypotheses regarding potential savings. This foundational phase sets the stage for subsequent efforts by ensuring all stakeholders are aligned on goals and expectations.
Phase 1, "Assessment," lasts 8 weeks and focuses on data collection and analysis. It involves gathering functional data, conducting a cost structure analysis, and engaging with personnel to assess financial impacts. Identifying cross-functional connections is also critical here, as it helps uncover interdependencies that may affect cost-saving initiatives. This phase is crucial for understanding the current state and identifying specific areas for improvement.
Phase 2, "Plan & Roadmap," takes 3 weeks and is about categorizing identified opportunities into tiers, building a business case for each, and prioritizing them based on potential impact. Developing a comprehensive plan by opportunity and tier ensures that resources are allocated effectively. This phase also includes identifying project owners to foster accountability.
Phase 3, "Implement," is marked as TBD, indicating that the timeline for execution will depend on the outcomes of the previous phases. It involves organizing implementation teams, creating detailed project plans, and establishing performance metrics to track results and evaluate total savings. This final phase is where the theoretical groundwork laid in earlier phases is translated into actionable steps.
This slide is part of the Strategic Cost Reduction Training PowerPoint presentation.
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