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Transcript: Cost reduction is a systematic and corrective technique used by most of the firms to cut the inessential expenses of the goods manufactured and increase the overall profits. The basic purpose is to lower down the cost occurring at the time of production, storing, selling and other process in one company. By adding work that is not required, Overprocessing costs you money with regards to the time of your staff, the materials used and the wear on your equipment. This type of waste usually reflects on doing work that doesn’t bring additional value or it brings more value than required. Do you have proposal how to reduce costs? The 7 Wastes Eliminating wasteful activities is crucial for the success: The Waste of Motion TIMWOOD Transport Inventory Motion Waiting Over Processing Over Production Defects The Waste of Waiting Quality errors that cause defects invariably cost you far more than you expect. Every defective item requires rework or replacement, it wastes resources and materials, it creates paperwork, it can lead to lost customers. The Waste of Defects The Waste of Inventory COST REDUCTION This is probably the easiest waste you can recognize. Whenever goods or tasks are not moving, the waste of waiting occurs. It is easily identifiable because lost time is the most obvious thing you can detect. For example, goods waiting to be delivered, equipment waiting to be fixed or a document waiting for approval from executives This kind of waste includes movements of employees (or machinery) which are complicated and unnecessary. In other words, do whatever is necessary to arrange a process where workers need to do as little as possible to finish their job. The 7 Wastes The waste of Overproduction The seven wastes are categories of unproductive manufacturing practices. The Waste of Transport This type of waste is when you move resources (materials) and the movement doesn’t add value to the product. Excessive movement of materials can be costly to your business and cause damage to quality. The Waste of Over-processing Cost Reduction is related to improving the standards. It can be applied to all the activities and it is focuses on the two primary areas: Reduction in Expenses: Decrease in the expenditure in the given volume of output, leads to the decrease in unit cost; Increase in Productivity: The overall decrease in unit cost, by increase in the output, for the given expenditure. The most serious of all of the seven wastes. Overproduction leads to high levels of inventory which mask many of the problems within your organization. This is usually because of working with oversize batches, long lead times, poor supplier relations and a host of other reasons. Excessive inventory is often the result of a company holding “just in case” inventories. Inventory costs company money, every piece of product tied up in raw material, work in progress or finished goods has a cost and until it is actually sold that is the cost of company. lower the profitability; increase customer costs; decrease quality; lower employees satisfaction.

Cost reduction

Transcript: Introduction: The business was going through a period of rapid growth and pressure was being applied to reduce overhead costs to maintain margins. The situation was made worse because this growth wasn’t forecast by sales, causing increased pressure on all departments. This meant we had to be selective on which overheads we targeted. COST REDUCTION cost reduction How To Reduce Overhead Costs In Your Retail Business? CASE STUDIES case study 1 Hire a developer EXP 1: 2 EXP 2: Restructure Group Restructure group search to find solutions How To Reduce Overhead Costs In KAYLA COMPANY? Generating Incomes Reducing Overhead Cost KAYLA CASE SOLUTIONS 1 IDEA 1: LEASING WAREHOUSES FOR BUSINESS PARTNERS Kazem Abad Lease Cash Flow (Monthly) Forecast (MT) Samansoor .CO 10.0 Familia Suppler 5.0 Carbonel 5.0 CO.RO 5.0 Ahmad Abad Lease Cash Flow (Monthly) 30 ------------------------------------------------------------------------------------------------------------------------------ ---- Total – Cash Flow 55 2 Profit and loss statement IDEA 2: GENERATE REVENUE FROM DISTRIBUTION CARS Income Forecast (MT) Milk Run ( Amol, Gorgan, Mashhad) every week 3.6 Milk Run ( Isfahan, Yazd, Shiraz) every week 4.8 Milk Run ( Tabriz, Oromia ) every week 3.2 Milk Run ( Qazvin , Rasht ) every week 2.0 -------------------- Total – Income 13.6 --------------------------------------------------------------------------------------------------------------------------------- Less: Expenses Fuel cost 0.4 Driver’s Cost 4.0 Waybill 2.0 Cash fund 1.0 ------------------- Total – Expenses 8.4 --------------------------------------------------------------------------------------------------------------------------------- Net Profit 6.2 3 IDEA 3: GENERATE INCOME BY SALES DEVELOPMENT DEPARTMENT Income (Monthly) Forecast (MT) Sticker for distribution cars 37 Market research for new suppliers 3.5 -------------------- Total – Income 40.5 --------------------------------------------------------------------------------------------------------------------------------- Less: Expenses wage 0.5 ------------------- Total – Expenses 0.5 --------------------------------------------------------------------------------------------------------------------------------- Net Profit 40 Profit and loss statement 4 IDEA 4: REDUCE COST BY OPTIMIZING Business Trips Video confrerece most of the meeting (5%) Comprehensive plan for business trip (30%) Online ticket (20%) Hotel Online booking (5%) 5 IDEA 5: REDUCE COST BY OPTIMIZING Utilities costs Online fax Online invoice Reducing consumption on power & water by applying new Technologies (solar chiller) Reducing consumption of paper 6 IDEA 6: REDUCE COST BY RESTRUCTURING HR CONCLUSION CONCLUSION

Cost Reduction

Transcript: Show how things would improve Pro No action will cost the stakeholders bigger losses on the P&L Reduce by 10%-10%-10% Make NEW deals. New Providers Conclusion Review Food and Liquor providers . Negotiate lower prices on the current providers. Change providers if need it. Analyze the smallest operative structure to reduce labor cost. Make GM the ONLY one requesting supplies. Challenges and opportunities Con Cost Reduction Describe the next steps Find out if there is a legal get out on the lease or if the penalty attached to it is smaller than the losses accrued. Marketing Strategy Get your audience excited Idea 2 Pro Make SMART decisions for the stakeholders that helps them get the most PROFIT on the next P&L untill reach a break even point to determine to GO forward or stop (If doable) Pro Bring Jalapeno into the radar through the different social media channels to increase Jalapeno sales through passive income. Con If we Manage to have 120 Delivery orders a day 10 by platform with our average ticket of just 22 USD we manage to get our P&L brake point out of it. 2,640 a day which is $79,200 mth. Con Reduce 10% Food cost Reduce Food cost 10% Reduce Liquor cost 10% Reduce Labor cost 10% Invesment Refer back to the pros and cons Idea 1 Invest in passive income would lower labor cost and maximize sales with almost NO effort. Create changes on the management team. Bring best practices from Maya into Jalapeno. Bring Clover as the new core business plataform Time for the stakeholders to align requeriments with the GM. How problems can be resolved Pro Describe the idea you think is best Strategy Recommendation for JALAPENO Due the losses reflected on the P&L the previews months Jalapeno has fallen behind in day to day tools that helps customer experience enrichment and operative infrestructure to provide top notch experience to our guest. What if we do nothing? Break Even Point on P&L No u turn back Get away options Stakeholders posture Changes Explain how it will help Advertise Jalapeno in different Social Media channels like: Yelp, Eat24, UberEats, AmazonPrime,, Munchery, Postmates, Caviar, Blueacre, Peachd, Lish, Bitesquad, GrubHub, Seamless, DeliveryHero, JustEat, Facebook, Instagram, Snapchat. Jalapeno Challenges Core Buisness System Internet Inestability Ambience system Kitchen Equipment Draft Beer Lack of Marketing Strategies Marketing and Media Plan Invesment (Concierge, Yelp) Weak managment Team Based on Jim Harvey's speech structures Negotiate new Deals To create PROFIT for JALAPENO there is just 2 simple ways to achive it: Cost Reduction Increasing Sales Con

IT Cost Reduction

Transcript: Is there a button..? Nope! This feels a bit restricted... ... maybe we should look at the problem through a variety of.... Which will ask questions and give suggestions on IT cost reduction initiatives from a variety of perspectives This is your IT function: (not really, but it's a complicated thing that does a lot of useful work) Wow! It is pretty complicated! Technology! Of course! That's what we do! We are very methodological in our consideration of technology options And will take into account your level of technological maturity and appetite for innovation Can we use: the 'cloud'? or 'virtualisation' or 'rationalisation' or 'comoditisaion' or 'extreme collaboration'? .... and save us lots of money! I am a very posh bit of kit... but how much do I really cost? Are you interested in finding out? Are we spending more than our peers? Do we do the things we do well and efficiently? If we are being wasteful, we should consider 'lean'ing our IT function Yes... here's another... Value is not just about cheap! it's about right sizing the service and... giving the business what it needs! Shock! at least one more YES! So these are the forward thinking areas Have we covered everything? are there any more lenses? You tell us!!! Lenses! let's recap... .....what are the lenses through which we will look? Total Cost of Ownership well... of course it is Cost per user Cost per desktop % spend of hardware IT spend as a % of business operations IT staff per user etc. Some KPIs which we can benchmark: hmmm... Have we considered It's all about the... This will give us a lot of ideas... IT Cost Reduction OK... so let's put on our (but let's not go nuts!)

Cost Reduction

Transcript: A combination of multiple intervention strategies already being implemented on the unit and providing further education to nurses and patients targeted to each patient’s individual needs would appear to have the most effect. Implementing general fall reduction strategies General fall risk assessment, using wristbands Educating patient to call for help before getting up Bed rails up with bed lowered, call bell in reach, bed alarms, chair alarms Re-educating nurses about fall-risk patients periodically Providing one hour, paid educational sessions for staff about falls off schedule, over the course of one month More detailed assessments that further determine cause of each patient’s previous falls or fall risk Teaching nurses to educate patients or their families on their individual risk factor relating to falls Timeline How do Falls affect patients? Paola Aguirre, Cynthia Gonzalez, Vivian Madinya, Andrea Matchanickal, Jessica Opio, Moises Ruiz, Sean Patrick Russell, Dharitza Sanchez Defining the Problem Ang, E., Mordiffi, S. Z., & Wong, H. B. (2011). Evaluating the use of a targeted multiple intervention strategy in reducing patient falls in an acute care hospital: a randomized controlled trial. Journal of Advanced Nursing, 67(9), 1984-1992 9p. doi:10.1111/j.1365-2648.2011.05646.x Boyé, N. D., Van Lieshout, E. M., Van Beeck, E. F., Hartholt, K. A., Van Der Cammen, T. J., & Patka, P. (2013). The impact of falls in the elderly. Trauma, 15(1), 29-35 7p. Johnson. L., Kelly. L., Siric. A., Tran. D., Overs. B. Improving falls risk screening and prevention using an e-learning approach. (2015). Journal of Nursing Management, 23(7), 910-919 10p. doi:10.1111/jonm.12234 Kumar, S. (2011). What finance needs to know about using technology to improve value. Hfm (Healthcare Financial Management), 65(1), 90-95 6p. Morello. R., Barker. A., Watts. J., Haines. T., Zavarsek. S., Hill. K., Brand. C., Sherrington. C., Wolfe. R., Bohensky. M., and Stoelwinder. J. The Extra Resource Burden of In-Hospital Falls: A Cost of Falls Study. (2015). Medical Journal of Australia, 203(9), 367.e1-367.e8 8p. doi:10.5694/mja15.00296 Sahota, O., Drummond, A., Kendrick, D., Grainge, M. J., Vass, C., Sach, T., & ... Avis, M. (2014). REFINE (REducing Falls in In-patieNt Elderly) using bed and bedside chair pressure sensors linked to radio-pagers in acute hospital care: a randomised controlled trial. Age & Ageing, 43(2), 247-253 Vieira, E. R., Berean, C., Paches, D., Caveny, P., Yuen, D., Ballash, L., & Freund-Heritage, R. (2013). Reducing falls among geriatric rehabilitation patients: a controlled clinical trial. Clinical Rehabilitation, 27(4), 325-335 11p. doi:10.1177/0269215512456308 Literature Review (Morello et al., 2015) (Boye et al., 2013) (Ang et al., 2011; Vieira et al., 2013) (Sahota et al., 2014) Budgeting ROI, Profitability, and Outcomes Why are Falls considered a Problem? Literature Review According to the literature, falls is the leading cause of injury and death by injury in adults over the age of 65 years higher hospitalization costs because of surgical intervention, admission to a nursing home, and decreased overall functional ability. Patients who experience an in-hospital fall have significantly longer hospital stays and higher costs. A study held in England estimated that falls comprised about 40% of all reported patient incidents among older adult patients. A study held in Australia hospital-related costs for fallers were reported to be double those for non-fallers. Falls in hospitals are a major problem and contribute to substantial healthcare burden resulting in: Physical and psychological morbidity for patients Large healthcare costs Treating injuries Increased hospital stay Complaints Litigation Goals and Objectives References The Price to Pay for Falls Medical/Surgical Geriatric Unit 40 beds unit Average Daily patient census of 40 patients Average length of stay is 2.6 additional days Currently 25 full-time RNs on staff RNs hourly wage of $25/hr Reduce the amount of money hospitals spend on falls. Reduce the hospital’s liability on fall incidents. Decrease falls in the elderly by implementing teaching on precautions and tools. Raise nursing performance and increase hospital scores. (Sahota et al., 2014) A study conducted in a 400 bed hospital showed an additional length of stay resulting in a little over $1000 per fall incident. By implementing strategies and interventions to reduce falls , the hospital could have saved $45,000. Falls prevention by nursing staff and structured multifactorial interventions were recommended as potentially effective fall prevention strategies in hospital settings E-learning education program within two hospitals between February 2010 and December 2011. “Education in combination with the regular use of audit and observation of patients and nurses support improvements in falls prevention strategies”. Number of patients aged 65 years or older will double by 2050 1 in 3 patients aged 65 years or

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