Combined top-down / bottom-up analysis to identify cost targets, waste drivers and savings potential.
Period: 2 weeks.
At the beginning of the program, the EFESO team analyses the cost structure within the organisation. Based on the income statement and internal cost accounting, we identify cost drivers, compare planned and actual data and derive cost targets for your organisation (top-down). In doing so, we use the following instruments, among others:
- Cost structure analysis for identification and weighting of cost blocks
- Allocation of cost drivers to sub-processes, e.g. via value driver trees
- Trend analysis: presentation of cost structures and cost blocks
- Sensitivity analysis to determine P&L effectiveness
In parallel, we look at the central functional areas such as production, supply chain management, procurement or R&D in order to identify possible weak points, derive initial measures and quantify the resulting savings potential (bottom-up). In doing so, we look at the following cost reduction levers, among others:
- Reduction of waste and shortening of lead times
- Consolidation of the supplier base
- Review of make-or-buy decisions
- Review of costs in indirect areas (zero-based approach), process flow analysis (Makigami)
