Questions
What are the six questions you should you yourself before launching a cost reduction campain ?
Clues for answering
Questions you should ask yourself
A. To what level do I want to decrease the costs
1. At competitors level
2. At target margin level
3. At psychological level
4. At stable quality level
5. At stable customer satisfaction level
6. At target pricing level
B. Will you decrease costs ?
1. By abandoning an unprofitable activity
2. By reducing the costs of all the activities
C. What type of costs will you decrease ?
1. Labor costs
2. Suppliers bills
3. Transformation costs
4. Sales costs
D. Why are the labor costs too high ?
1. Geographical high wages
2. Overpayement
3. Too many people
4. Too many expansive people
E. How will you reduce labor costs?
1. Automation
2. Delocalization
3. Subcontracting
F. How will you reduce suppliers bills?
1. Negociation
2. Changing suppliers
3. Make supply yourself