Discover the tools for knowing the costs your company should cut, without impacting its ability to deliver goods and servicesNew from Steve Bragg, this book provides the tools for determining which costs a company should cut, without impacting its ability to deliver goods and services. It explains how to use throughput analysis in order to locate bottleneck operations in a company, which in turn dictates where capital investments should (and should not) be made. Delves into process analysis, to determine where excess resources are being used in a business process Describes the total cost of ownership, showing how a single purchasing decision actually snowballs into a variety of ancillary costs Shows how to create and use a spend management system to reduce procurement costs Shows how just-in-time systems can be used to eliminate inventory costsCost Reduction Analysis: Tools and Strategies provides examples to show how much cost can potentially be eliminated to avoid drastic action later that can imperil your corporation's direction and future.

Steven M. Bragg, CPA, has been the chief financial officer or controller of four companies, as well as a consulting manager at Ernst & Young and an auditor at Deloitte & Touche. He received a master's degree in finance from Bentley College, an MBA from Babson College, and a bachelor's degree in economics from the University of Maine. He has been the two-time president of the Colorado Mountain Club, is an avid alpine skier and mountain biker, and is a certified master diver. Mr. Bragg resides in Centennial, Colorado.

About the Author
Preface
Primary Areas Of Cost Reduction
The Cost Reduction Process
Introduction
Need for Cost Reduction
Advantages of Cost Reduction
Disadvantages of Cost Reduction
Cost Reduction Politics
Cost Reduction Priorities
Cost Reduction Tools
Process Analysis
Process Analysis Tools
Key Cost Reduction Questions
Cost Reduction Reports
Metrics
Summary
Selling and Marketing Cost Reduction
Introduction
Customer Mix Analysis
Customer Class Analysis
Sales Region Analysis
Dropped Customer Analysis
Price Setting with Throughput Analysis
Sales Productivity Analysis
Sales Effectiveness Analysis
Salesperson Analysis
Finding Throughput Problems in Sales
Sales Process Flow
Sales Deduction Systems
Collections by the Sales Staff
Marketing Cost Reductions
Sales and Marketing Metrics
Summary
Product Analysis
Introduction
Target Costing
Targeted Price Increases
Eliminate Unprofi table Products
Add New Products
Outsource Products
Product Rework Costs
Custom Product Costs
Product Metrics
Summary
Production Cost Reduction
Introduction
Throughput Analysis
Product Line Complexity
Production Flow
Cellular Manufacturing
Continuous Flow
Monument Equipment
Quick Changeovers
Assembly Line Configuration
Assembly Line Length
Container Sizes
Source Inspection
Control Chart Analysis
Mistake Proofing
Expediting
Maintenance Planning
Machinery Standardization
Machinery Assignment
Metrics
Summary
Payroll Cost Reduction
Introduction
Analysis for a Workforce Reduction
Cost of a Workforce Reduction
Alternatives to a Workforce Reduction
Manage Payroll Expenses at the Hiring Stage
Combat Institutionalized Pay Increases
Restructure Commissions
Restructure the Workforce
Hire Contractors
Other Types of Payroll Cost Reduction
Worker Adjustment and Retraining Notifi cation Act
Payroll Cost Metrics
Summary
Benefits Cost Reduction
Introduction
Benefits Administration
Disability Insurance
Life Insurance
Medical Insurance
Pensions
Seasonal Bonuses
Sick Time
Snacks
Training
Vacation Time
Wellness Programs
Workers' Compensation Insurance
Miscellaneous Perquisites
Free Benefits
Metrics
Summary
Procurement Cost Reduction
Procurement Cost Reduction
Introduction
Standard Procurement Process Flow
Procurement Cards
Evaluated Receipts System
Additional Procurement Process Flow Changes
Supplier Consolidation
Supplier Relations
Additional Cost Reduction Considerations
Metrics
Summary
Spend Analysis
Introduction
Spend Database
Spend Analysis
Spend Analysis Reports
Spend Analysis Rollout
Third-Party Spend Management Systems
Low-Cost Spend Management Systems
Metrics
Summary
Maintenance, Repair, and Operations Analysis
Introduction
Problems with MRO Cost Reduction
MRO Cost Reduction Methodology
Distributor's Viewpoint
Metrics
Summary
Asset Reduction
Inventory Analysis
Introduction
Inventory Purchasing
Inventory Receiving
Inventory Storage
Bill of Materials
Obsolete Inventory
Miscellaneous Topics
Metrics
Summary
Fixed Asset Analysis
Introduction
Fixed Asset Acquisition Analysis
Fixed Asset Installation Reporting
Postinstallation Audit
Outsourcing Alternative
Lease versus Buy Decision
Feature Reduction Analysis
Asset Commoditization
Monument Analysis
Facility-Specific Considerations
Fixed Asset Retention Analysis
Fixed Asset Maintenance Analysis
Fixed Asset Location Tracking
Fixed Asset Condition Tracking
Fixed Asset Metrics
Summary
Special Topics
Throughput Analysis
Introduction
Theory of Constraints
Operational Aspects of the Theory of Constraints
Nature of the Constraint
Definitions for the Financial Aspects of the Theory of Constraints
Financial Aspects of the Theory of Constraints
Opportunity Cost of Operations
Locating the Constraint
Management of the Constrained Resource
Types of Policy Constraints
Constraint Buffer
Production Scheduling
Batch Sizes
Capacity Reduction Analysis
Work Center Utilization
Metrics
Summary
Cost Reduction in Mergers and Acquisitions
Introduction
Integration Timing
Integration Planning
Synergy Realization
Integration Manager
Integration Team
Integration Communications-Internal
Integration Communications-External
Employee Integration-Qualifi cation Assessment
Employee Integration-Job Positioning
Employee Integration-Relocations
Employee Integration-Key Employees
Layoffs
Compensation Integration
Sales Integration
Process Integration
Technology Integration
Metrics
Integration Pacing
Summary
Index
Table of Contents provided by Publisher. All Rights Reserved.

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Cost Reduction Analysis Tools and Strategies

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