COST OPTIMISATION

Book excerpt: Prime objective of any business is to get more PROFIT on investment. We are in the customer driven era. Producer’s monopoly for sales price fixing has gone. Either we are owner of any business or employees of any organizations, our growth are linked with profitability & profitability only. If profit is there & growing, music will go on, if not then existence of all will be in question. Firefighting, resignation, demotion, demotivation and termination everything shall be started without looking at your past contributions & dedications. Business owner will be restless due to pending debts, installments and other essential expenditure. Now, the formula for profit has changed, PROFIT = Total sales revenue- Total costs We have only two options for survival & growth. Either we are able to make more & sell more or have to reduce our total costs. But how? Which areas we have to attack first? Are we aware about SWOT? Do we have capable & knowledgeable team? What are different cost reduction ideas? What are different methodologies to benchmark & optimize that? The objective of this small book is the same. There are many tested & trusted ideas developed by author for Big/ Medium/ Small/New startup/CEO/COO/ Plant heads/ Departmental heads/ Managers/ Engineers/ supervisors/ Talented workmen in this book under separate categories. After implementation of these ideas, any company can drastically improve their balance sheets. Even one good idea’s implementation can saves some lakhs/ crores of rupees for your future regular growth & breakthrough improvements.