Cost Reduction and Profit Improvement Strategies

2 days’ workshop

INTRODUCTION

In order to be an effective, reduce cost & increase profit , you need to have the heart of an entrepreneur. This course will help to provide you with an environment that stimulates proactive behavior in order to achieve greater goals for yourselves and your organization. By creating value for your organization, you will be amazed at the speed of career advancement. Real-current problematic business cases will be analyzed and scenario solutions will be provided under the guidance of Dr. Steven Liew.

Course Objectives                                                                                                                                   
By the end of this course you will be able to:

  1. Managing Materials, Labor & overheads Costs 

  2. Strategies on Turnaround the Company 

  3. Apply Procurement Negotiation Strategy

  4. Learnt from the success story of reputation organization

  5. Applying Risk Modelling for Cost Reduction in Manufacturing Sector

  6. Formulating the Cost Reduction Strategies for Your Organization Costs

METHODOLOGY

Case Study & Group Discussion. Real-current problematic business cases will be analyzed and scenario solutions will be discussed within the workshop.

WHO SHOULD ATTEND

Entrepreneurs, Bankers, Accountants, Business Managers, Marketing Managers & Supervisors 

Special Feature: NOTE: Please bring laptop along

PROGRAMME OUTLINE

Day 1

Module 1: Cost Reduction Success Story

  • How to target saving for your organization

Module 2: Direct Material Cost

  • Procurement (Purchasing)

  • Inventory management

  • Design errors

  • Technical errors

  • Reject output

  • Re-work

Module 3: Managing Labor Costs

  • Inefficient Work Processes (eg, Vague job responsibility, Poor production planning, etc)

  • Absenteeism ( eg, Lack of commitment, Lack of supervision, etc)

  • Staff quality (eg, Insufficient trainings, Lack of integrity, etc)

  • Manpower management ( eg, Lack recruitment policy, Lack of  empowerment, etc)

  • Staff turnover (eg, Lack of motivation- fringe benefits not attractive, Dislike the job function)

  • Complex process ( eg, Job done manually, Complex work flow, etc)

Module 4: Managing Overhead Costs

  • Assets Management (eg, Under-utilization of assets, Idle/excessive assets, etc)

  • Customers ( eg, Overdue account, Higher debts collection expenses, etc)

  • Financial resources (eg, High financing cost,  sole financing source, etc)

  • Human resources (eg, Excessive training programmers, Excessive of overtime claims, etc )

  • Expenditures (eg, High utilities of telephone, fax , electricity; High rental cost, etc )


Day2

Module 5: Case Study (Turn-around the Company)

  • Asset conversion (conversion of assets to cash or profit)

  • Collection (Focus on collection & debt recovery ) 

  • Cost reduction ( review all aspects of costs drivers)

  • Revenues ( review all aspect of revenue drivers)

  • Purchasing policy ( focus on top 5 key suppliers; focus on fast moving items, etc)

Module 6: Procurement Negotiation Strategy

  • The Supply Positioning Model 

  • Understanding Negotiating Styles

  • Negotiation Tactics

  • Objectives & Variables

  • Set targets for your preferred option(s)

Module 7: Successful Procurement Negotiation

  • Developing the Negotiation Strategy

  • Win-Win versus Win-Lose

  • Negotiating by Telephone

  • Criteria of Successful Negotiators

  • Evaluating Your Negotiation Performance

Module 8: Risk Modelling For Cost Reduction in Manufacturing Sector

  • Analyzing the potential risks facing an organization

  • Mitigating controls 

  • Weight the financial impact 

  • Cost/benefit decision analysis

  • Risk Model softwar

Procurement Cost Reduction (Manufacturing Sector)

Cost Control & Budgeting

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