Eliminating Financial Waste
Raising your organization’s awareness to indirect and transactional waste will build additional flexibility within your organization.
Do you know what your direct costs really are? Well, of course you do. As a good processor and sound business manager, you work to control these costs every day. But do you know what your indirect and transactional costs really are? Maybe you do, but not as well as you understand your direct costs. Through our assessment process, we repeatedly find opportunities for clients to identify and eliminate waste within their support functions and processes.
Take a look at the following list and ask yourself if you have data to answer these types of questions: How much does it cost to issue a purchase order? How much does it cost to maintain a tool or piece of equipment? Have your preventive maintenance tasks increased or decreased? How much does it cost to conduct secondary inspection? Have your secondary inspection costs increased or decreased? How much does it cost to enter a sales order? How much does it cost to hire a new employee? How much does it cost to launch a new program? How much does it cost to push a design change through your engineering department? How much does it cost to quote a new opportunity? How many iterations of the same quote do you do?
If you have difficulty finding supporting data to answer these types of questions, then it’s time to take a hard look at your transactional costs. The economy is recovering slowly, and the changes you have made in your core functional areas are taking hold and showing positive results, so now more than ever you must ensure that your support functions are aligned and responsive to a new business environment.
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