Cost reduction through business process improvement and procurement for the Service Industry

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Optimise-GB's presentation takes you through the value for money initiative. Costs can be avoided and reduced through process re-engineering (change what and how you work) and through procurement to negotiate costs of all categories of spend. The best method of cost reduction is to follow the pareto rule to focus on the 80% of total costs which will be derived from 20% of the activities. This allows you to reduce costs in a very quick and efficient manner rather than looking at the costs as a whole. Many thanks Simon Misiewicz

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Cost reduction through business process improvement and procurement for the Service Industry I don’t want to do business with those that don’t make profit, because they can’t give the best service – Lee Bristol Optimise- GB

Value for Money (VFM) & Cost Reduction Value for Money (VFM) … is the term used to assess the quality and benefit received for goods and services paid. VFM considers the economical, efficiency and effectiveness of the goods and services utilised within the organisation Cost Reduction … may be achieved through process improvement, being the things that you do, and through procurement strategies, the things that you buy. Optimise- GB

Phases in creating value for money and cost reduction ,[object Object],[object Object],[object Object],[object Object],[object Object],Optimise- GB

[object Object],Identify costs from the Profit & Loss account and rank Them (highest first). This will give you the data for the Pareto chart Optimise- GB

Phase 1: Cost Identification Optimise- GB

[object Object],From this analysis we know that the focus on costs should be on 1) labour / agency costs, 2) Materials and 3) Motor expenses Optimise- GB

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Phase 2: Cost elimination through process improvement People never improve unless they look to some standard or example higher and better than themselves – Tryon Edwards Optimise- GB

[object Object],100% 85% 75% ,[object Object],[object Object],[object Object],[object Object],The level of outputs are less than the input due to errors (re-work), poor quality and wastage Optimise- GB

[object Object],Over Production: doing more than required Inventory: buying more than required Waiting on other people, bottle necks Extra processing, duplication of work Errors: input errors, incomplete forms Motion: walking to filing cabinets, printers Transport: postage to departments Under utilisation: staff not working Optimise- GB

[object Object],Remove paper systems and postage of info Remove paper forms Ensure people are adequately trained Schedule peoples work each day Develop measuring systems to monitor quality Ensure process related people are close to each other Ensure training manuals and policies are clear Use technology to validate input data Process Improvement solutions Optimise- GB

[object Object],100% 85% 75% By improving business process improvement quality and output is increased and costs are reduced by 20% to 80% 95% 1,600 600 97% Optimise- GB

Phase 3: Cost reduction through procurement strategies Optimise- GB

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Process Improvement Savings End Result Procurement Savings Revised Cost £’000 400 150 210 60 60 3,850 550 330 1,890 540 540 2,970 This demonstrates how £880k (23%) can be saved off the bottom line. This is equivalent to an additional turnover of £9m, if 10% net profit was achieved Original cost £’000 Optimise- GB

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Organisational success today depends on effective communication and collaboration with individuals from cultures with varying beliefs and practices. Indeed, with the workforce increasingly comprised of people of varying cultural backgrounds, leaders must now prioritise the significance of cultural competence in the workplace. Ensuring cultural competence at every level of your organisation cannot be understated. While cultural disparities can manifest in different ways, as a leader, you must build deep and nuanced cultural competence skills and education to accurately spot, address and alleviate the various scenarios that can arise. Failing to recognise the importance of cultural competence or not acting to improve it can lead to cultural negligence. There are a few things to consider to ensure your organisation is on the right track. In this deck, you'll understand the importance of building cultural competence in the workplace. You'll also learn • The three (3) dimensions of Cultural Competence in the workplace • Key strategies to build a culturally competent workforce • Major benefits you stand to gain by having a culturally competent team.

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Cost reduction through business process improvement and procurement for the Service Industry

1. Cost reduction through business process improvement and procurement for the Service Industry I don’t want to do business with those that don’t make profit, because they can’t give the best service – Lee Bristol Optimise- GB

2. Value for Money (VFM) & Cost Reduction Value for Money (VFM) … is the term used to assess the quality and benefit received for goods and services paid. VFM considers the economical, efficiency and effectiveness of the goods and services utilised within the organisation Cost Reduction … may be achieved through process improvement, being the things that you do, and through procurement strategies, the things that you buy. Optimise- GB

5. Phase 1: Cost Identification Optimise- GB

8. Phase 2: Cost elimination through process improvement People never improve unless they look to some standard or example higher and better than themselves – Tryon Edwards Optimise- GB

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13. Phase 3: Cost reduction through procurement strategies Optimise- GB

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16. Process Improvement Savings End Result Procurement Savings Revised Cost £’000 400 150 210 60 60 3,850 550 330 1,890 540 540 2,970 This demonstrates how £880k (23%) can be saved off the bottom line. This is equivalent to an additional turnover of £9m, if 10% net profit was achieved Original cost £’000 Optimise- GB

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Cost reduction through business process improvement and procurement for the Service Industry

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Cost reduction through business process improvement and procurement for the Service Industry