Small Business Shared Interest Group

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  • 1.  cost reduction

    Posted 19 days ago

    Today, I invite each of you to participate in an open-ended discussion on how we can collectively identify opportunities to streamline our operations and reduce costs without compromising on the quality of our products/services. Your perspectives and insights are invaluable in this process, and I encourage everyone to share ideas openly.

    how we can reduce cost/hour specifically if we are a service company developing software.

    I encourage everyone to come prepared with ideas and examples that can contribute to a productive and collaborative discussion. Our goal is not only to optimize our financial resources but also to strengthen our overall business operations and enhance our competitive edge



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    Karine Kamareddine CMA
    CFO
    Bluering SAL
    Beirut
    Lebanon
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  • 2.  RE: cost reduction

    Posted 17 days ago

    Irregardless of company type, service-based vs product-based, a strategy analysis needs to be performed. What is the company's main strategy? Which products or services promote that strategy and which detract from it? Remove any detractors and focus on what the company excels at. The next step is to look at the pain points in the process. What step causes the most problems? Problems represent lost revenue either by adding costs or taking time to resolve them. Time is money, after all. When that step has been resolved, rinse and repeat the entire analysis. There is always something that can be improved.



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    David Belnap, CMA, CSCA, CPA
    Belnap Accounting
    Hollywood FL
    United States
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  • 3.  RE: cost reduction

    Posted 14 days ago

    Absolutely, conducting a thorough strategy analysis is crucial for any company, regardless of whether it's service-based or product-based. It begins with identifying the core strategy of the company: what are we truly excelling at? Which products or services align closely with this strategy, and which ones do not?

    Once we've identified these, the next step involves focusing our resources on strengthening and promoting our strategic offerings, while considering the removal or realignment of products or services that detract from our core strategy.

    Moving forward, it's essential to identify the pain points within our processes. These pain points are not just inconveniences; they represent potential areas where we are losing revenue, either through increased costs or delays in resolution. As they say, time is money.

    Addressing these pain points effectively requires a systematic approach. We need to pinpoint the step that causes the most significant problems and prioritize its resolution. By doing so, we can streamline operations, reduce costs, and enhance overall efficiency.

    However, improvement doesn't stop there. Continuous improvement is key to sustaining success. After resolving one set of issues, we should rinse and repeat the analysis process. There's always room for enhancement, whether it's optimizing existing processes, innovating new solutions, or refining our strategic focus.

    In essence, by consistently analyzing our strategy, aligning our products/services, tackling pain points, and committing to ongoing improvement, we can not only mitigate current challenges but also position ourselves stronger for future growth and success



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    Karine Kamareddine CMA
    CFO
    Bluering SAL
    Beirut
    Lebanon
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  • 4.  RE: cost reduction

    Posted 15 days ago

    Karine,

    This is a great question and I look forward to the input that you receive.  I have always felt that the key to process improvements, specifically when dealing with processes driven by people, is the identification of goals and targets and holding teams responsible for their achievement.  Defining KPI's is key.  Businesses so often overlook the importance of management in driving efficiency and productivity.  To properly manage teams, the organization needs to understand the business goals and the performance measurements need to reflect those goals.  Most importantly, the goals and performance against them needs to be visible and discussed on an ongoing basis.  Where teams are falling short of goals, they need to be able to define activities to close the shortfall.  

    As companies, we are always looking for the latest techniques, but we often overlook the simple process of management and what can result when it is done properly.  



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    Mary Baird CMA
    Chief Executive Officer
    Dublin OH
    United States
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  • 5.  RE: cost reduction

    Posted 14 days ago

    Thank you Mary

    Absolutely, I completely agree that effective management and clear goal-setting are fundamental to driving process improvements, especially in environments where human actions play a significant role. It starts with clearly defining goals and targets that align with the organization's overall business objectives. These goals then need to be translated into measurable Key Performance Indicators (KPIs) that reflect performance against those objectives.

    Too often, businesses overlook the critical role that management plays in fostering efficiency and productivity. Managers must not only understand the business goals but also ensure that the KPIs they set for their teams directly contribute to those goals. This alignment is crucial in ensuring that every action taken by the team moves the organization closer to its strategic targets.

    Equally important is the visibility and ongoing discussion of these goals and KPIs. When goals and performance metrics are transparent and regularly reviewed, it creates accountability within the teams. It allows for proactive identification of areas where teams are falling short and facilitates collaborative problem-solving to address these shortcomings.

    Moreover, effective management isn't just about setting goals and tracking performance; it's also about empowering teams to take ownership of their targets. When teams understand their responsibilities in achieving goals and have the autonomy to define and execute activities to close any performance gaps, they become more engaged and motivated.

    While it's natural to seek out the latest techniques and technologies for improvement, it's crucial not to overlook the foundational aspects of good management. When done properly-through clear goal-setting, aligned KPIs, transparent performance tracking, and empowered teams-management becomes a powerful driver of organizational success and sustained improvement.



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    Karine Kamareddine CMA
    CFO
    Bluering SAL
    Beirut
    Lebanon
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  • 6.  RE: cost reduction

    Posted 14 days ago

    When it comes to reducing cost or cost management, it all starts with identifying standard cost/price per unit and standard quantity usage. For example, the company should identify the standard price per unit of raw materials and the standard quantity used in production, the standard rate of utilities and the standard quantity usage, standard rate of labor and the standard hours. Then you have to prepare variance analysis reports comparing the actual standard cost/price and quantity usage with the actuals and showing unfavorable variance (if any), the causes for the unfavorable variance, addressing the causes and the persons responsible.

    When it comes to streamline operation, it all starts with identifying added value activities and non-added value activities in order to optimize the added value activities while correcting non-added value activities. All activities related to quality of product, increasing efficiency, increasing innovation and increasing response to customer are added value activities and should be maintained and optimized. Any activities other than that need to be removed. For example, delivering goods to the customer and responding to customers enquires/complains are added value activities and need to be maintained whereas moving goods from place to place inside the factory and employees chatting are non-added value activities and need to be stopped.



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    Elhadi Elimam CMA
    Director/Manager
    Riyadh
    Saudi Arabia
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  • 7.  RE: cost reduction

    Posted 14 days ago

    effectively, the processes involved in cost management and operational efficiency while aligning with the principles highlighted in the initial statement. It also shows readiness to implement these strategies effectively within the organization



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    Karine Kamareddine CMA
    CFO
    Bluering SAL
    Beirut
    Lebanon
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