Cost management haghpanah-2015

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Costs Reduction methods

Pejman Haghpanah

October 2015

P.Haghpanah@kas-msp.com

Pejman Haghpanah

P.Haghpanah@kas-msp.com

Education:B.A. of Industrial EngineeringM.A. of Technology management

Experience:Assessor of EUROPEAN HR LEADERSHIP AWARD in IranAssessor of Iran National Award of Human Resources EmpowermentAssessor of Iran national award of technology and innovation managementLead auditor in TUV NORD IRAN (ISO 10015, ISO 10001, 10002, 10003, 10004)Responsible for develop and train the training courses of changes of ISO 9001:2015, CRM,ISO 10001, ISO 10002, ISO 10003, ISO 10004 (CSM), ISO 10015, and Training management

systems in TÜV Academy IRAN-GEMANY branch and IMS requirements, ISO9001:2008 Internal Auditor, and other management training courses such as:Strategy management, Performance management, Knowledge management,New approach of business continuity, Train the trainer, Product management,Marketing and Sales strategy management, Risk Assessment methods, Costsreduction methods in Amirkabir University of Technology, Tehran University, IranAssociation of Industrial Quality Control Managers and other managementacademies in Iran.

Costs Reduction methods

Costs reduction methods

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ContentCompetitiveness and importance of cost

Role of costs in Porter’s Five Forces Model

Types of cost

Objectives, activities and processes base on costs reduction

Cost reduction of:

Organization structure

Marketing, Sales and After sales

Human Resources

Purchasing

Production and service providing

Maintenance

storage

Competitiveness

Quality

Price/Cost

Delivery Time

Organization Competitiveness

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Michael Eugene Porter

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Role of costs in Porter’s Five Forces Model

5

Cost reduction

Increase of cost

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Cost

Organization Structure

Marketing, Sales, After

sales

Human Resources

Suppling & Purchasing

Provide Product &

Service

Maintenance

Storage

Types of Cost

Mission

Policies

Objective & Targets

Planning

Determine new Objectives

Analysis of Processes

Processes

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Objectives, activities and processes based on costs reduction

Cost of Organization

Structure

Develop the matrix organization structure

Reorganize the organization structure

Reorganize the Job description

(See HR Segment)

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Cost reduction of Organization structure

Cost of Marketing, Sales, After

Sales

After sales (Warranty, Guaranty,

Packaging Promotion

Branding

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Cost reduction of Marketing, Sales and After sales

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Cost reduction of Marketing, Sales and After sales

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Cost reduction of Human Resources

Job Organization

Trends of employment

Multi-purpose

Human resources

Change

full time to part time

employee

Out sourcingPerformance-

based pay

Dismiss

Task bonus

Organization Rewards

Cost reduction of Human Resources

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Job Competency standardization

Education & Experiences

SkillsTraining

Cost reduction of Human Resources – Job Organization

Reduction of:

Time & cost of staffing and employment

Time of probationary period

Time & cost of training

Cost of performance errors

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Cost reduction of Human Resources – Skills development

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Cost reduction of Human Resources – Out Sourcing

Design, develop & maintenance of website

Maintenance of IT network

Research and development and innovation

Design, engineering and technical documentation

Design and production of production devices & tools

Assembling

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Cost reduction of Human Resources – Performance (KPI) based pay

Develop KPI (Key Performance Indicators)

Marketing, sales and after sales

Design & Development

Purchasing

Production

Service provision

Quality control

And other processes

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Cost reduction of Suppling & Purchasing

Definition new suppliers

Determination priority of purchasing

Purchasing budgeting based on

marketing and sales forecasting

Control of financial liquidity

Control of claim collection

Cost reduction of material and products

handling

Develop the supply chain

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Cost element

Material

WagesOverhead

cost

Cost reduction of Production and service providing

Cost reduction of:

Depreciation

Rent & Leasing

Licenses

Assurance

Wastage & duplication

Energy

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Cost reduction of Production and service providing

Objectives of work study:

Methods development

Layout development

Fatigue and errors reduction

Quality level development

Effective & effectiveness of resources usage

Material handling improvement

Risk level & incident reduction

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Cost of Quality

Prevention cost

Appraisal cost

Failure cost

Internal failure

External failure

Cost reduction of Production and service providing

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Cost reduction of Production and service providing

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Development a maintenance planning

system

Analysis of inactivity

Preventive of inactivity and repairs

Determination point order for

maintenance and repair’s equipment

Time reduction of inactivity and repairs

Usage devices and equipment by long

term life-cycles

هزینه نگهداری و

تعمیرات

Reset up

Components and supplies

Repairs

Inactivity

Cost reduction of Maintenance

Daily Plan

Weekly Plan

Monthly Plan

Quarterly Plan

Six monthly

Plan

Yearly Plan

Preventive Maintenance

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Cost reduction of Maintenance

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Correct sales forecasting

Determination of BOM (Bill of material)

Integrated of production planning, inventory

planning and purchase order

Determination point of purchase

Time estimation of material and semi-finished

goods providing

Cost of Storage

Materials

Semi-finished goods

Product

Wastage

Cost reduction of Storage

Costs Reduction methods

Pejman Haghpanah

October 2015

P.Haghpanah@kas-msp.com