Cutting costs without drawing blood - PETER SEDK F2 CUTTING...

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PETER ŠEDÍK F2 CUTTING COSTS WITHOUT DRAWING BLOOD Some organizations are trying to cut costs in traditional ways – they lay off employees to raise their profit. But there are also other ways, how to do it. They could eliminate big spending projects, but it is also not very effective. But there is also other advantageous method – by conducting a rigorous, disciplined evaluation of the small-ticket items that usually get rubber- stamped. Some issues that should be discussed Cutting the capital budget increases cash flow enormly. Before taking any action there are some questions which can help us to solve problems with cutting costs: Requesting the Right Operations (three first questions to operating managers) Is this your investment to make? It is because: sometimes some managers put in a request for an investment which are not in their responsibility Solution: these managers have to explain why they decided to do this decision Does it really have to be new? It is because: managers prefer to buy new machines instead of maintanence of old
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This note was uploaded on 05/10/2010 for the course BUSINESS A Business taught by Professor Stevens during the Spring '10 term at Anna University Chennai - Regional Office, Coimbatore.

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Cutting costs without drawing blood - PETER SEDK F2 CUTTING...

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