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"...This is an excellent program. I'm so glad that I stumbled on to this when researching for task management programs. Very low learning curv, quite flexible, and the price is right. Tried at least 20 other programs, either too complicated, too expensive, or poor documentation..."
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Business Process Cost Reduction Checklist

 

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Business Process Cost Reduction Checklist Cost reduction can be achieved through process improvement. In this Business Process Cost Reduction Checklist you can find out how to reduce costs of a business process through implementing an improvement strategy. The checklist explains cost reduction as a procedure that takes three 3 steps.


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1.    Define Process Costs.

  • Direct labor costs, including operating labor and supervision, clerical labor, inspection, productivity changes
  • Indirect labor costs, including maintenance, housekeeping, medical surveillance
  • Utilities including electricity, water
  • Materials, including direct product materials, raw materials, transport, storage
  • Sales costs, including marketing, promotion, ad campaigns
  • Future liabilities, including fines, penalties, personal injury
  • Regulatory compliance costs, including inspections, training, workplace management, insurance

2.    Identify Improvement Opportunities.

  • Figure out if you can increase product quality through implementing best practice standards, including more appropriate product requirements, better design, more effective testing
  • Provide more effective process administration, portfolio management, time scheduling, project management, resource allocation, cost management
  • Involve key stakeholders who can provide valued feedback on your business process
  • Implement capacity and demand management to improve process scheduling and forecasting
  • Check if there is an opportunity to enhance service support and delivery to end-users
  • Review contractual relationships with vendors and check if there is an opportunity for improvement
  • Implement faster on-boarding of new personnel
  • Consider reducing time to be spent on meetings and conferences relating to your process
  • Try to reduce time necessary for process design and re-work
  • Prevent occurrence of any process-related disputes between in-house staff and third-party vendors
  • Provide personnel with necessary process documentation to reduce time spent on researching
  • Be sure your employees understand process goals and objectives
  • Provide training and development for in-house personnel

3.    Determine ROI.

  • Calculate the amount of payback received as your business process finished
  • Determine ROI by the formula...

 



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