Forensic Cost Strategy for High-Velocity Turnarounds.
FOCUS ON COSTS FOR PREDICTABLE PROFIT ENHANCEMENT
Profits = Revenues - Costs. That means you can increase profitability by increasing revenues or reducing costs.
Revenues are increased through effective marketing. That is definitely an important task.
However, reducing costs can provide more immediate results.
Effective cost reduction is much more practical than effective marketing, which requires gaining insights into customer minds and market conditions. Gaining insights into these external realities is much tougher than gaining insights into factory conditions and operating issues.
Reducing costs also makes effective marketing easier. You can use lower selling prices as a competitive strategy (Look at China and how they conquered world markets.) Lower costs also mean more cash for marketing campaigns.
Blunt cost cutting is often used for cost reduction. It is rarely sustainable and can even hurt the business. For example, cutting maintenance costs can lead to more serious plant breakdowns causing several times the cost saved.
Unlike arbitrary cutting of costs without finding the root causes, Forensic costing and Cost architecting can produce SUSTAINABLE cost reductions,
Forensic costing spots waste, and goes deep to identify the underlying factors. This makes it possible to target the root factors and eliminate the waste in a sustainable way.
Cost architecting builds cost efficiency by attending to factors that affect costs, say by designing plant layouts and workplaces for high productivity.
A HANDBOOK FOR DISCRETE MANUFACTURING STARTUPS & CONSULTANTS
The HANDBOOK focuses on costs.
Through clear narratives, diagnostic checklists and case studies, the book helps you master FORENSIC COSTING and COST ARCHITECTING.
The 175-page book consists of four parts.
Part 1 starts with an overall diagnostics section to help you identify the top waste area, so that you can go directly to the relevant chapter instead of going through all the chapters.
The part continues with forensic costing, with each chapter:
Highlighting a key area where waste occurs almost invisibly,
Discussing remedial options and a case study that brings added clarity and
Ending with a diagnostic audit checklist for that area.
Part 2 focuses on cost architecting, with each chapter:
Showing how factors like location, plant layout and more affect costs,
Discussing how to attend to each of these issues to reduce costs, along with a case study and
Ending with a diagnostic checklist to help you focus on relevant issues.
Part 3 consists of some great case studies designed to demonstrate that the concepts discussed in the above parts are far from book theory. We show how the concepts have been implemented in practice, and the dramatic results achieved.
Part 4 is a specific action program to help you implement the concepts in your own venture. It is a 90-day turnaround program with weekly action programs and progress checks.
The Handbook is available at Amazon, with the
Paperback edition selling at USD 19.99 and
Get Your Copy and Start Working on Your Costs