COST REDUCTION: Minimizing Waste With PRIME
The days are gone where developing a cost reduction strategy was as simple as cutting down the budget. Furthermore even randomly trimming expenditures across the board is not accepted nowadays. Therefore today we need to identify long-term saving opportunities and achieve sustained cost reduction.
Documenting and analysing business processes can achieve sustained cost reduction. Create an end-to-end current-state business process for each process in the organisation. Subsequently, dig into the lower level views to identify the associated process expenses.
Once the documentation is complete, analysing and improving the processes achieves sustainable cost reduction.
Use the following analysis techniques to successfully achieve cost reduction.
Process Value Analysis
Process Value Analysis is a method to analyse the value of each of the tasks. That is, first of all understand if the task contributes value directly to the customer. Secondly, analyse if the task adds value to the business. Finally, analyse to identify the processes that do not add value at all.
Process Time Analysis
Process Time Analysis is a method to analyse if time is well spent. Time analysis measures two components. Firs of all, the total execution time of the process, and secondly the delay time in the process.
Process Cost Analysis
Process Cost Analysis is a method that measures process cost. It identifies the total cost of doing the process. Secondly, it identifies the cost of any delays in the process.
Process Efficiency Analysis
Process Efficiency Analysis measures if a process is operating in an efficient manner. An industry efficiency threshold determines which processes are efficient and which are not.
Cost Reduction with PRIME BPM
The PRIME Suite helps you identifies the right cost reduction opportunity. It does this by analyzing your documented business processes for cost, time and value.
View the performance of your business processes as a graph. The graph displays the time it takes to perform a process and the value of each task within it.
The PRIME Process Analyser analyses a business process end to end. The Analyser shows which activities add value. That is, either to the business, the customer or which activities are not adding any value at all. This is an easy way to identify cost reduction opportunities.
Especially relevant is that PRIME also shows the actual execution time of a business process. If there are any non-value adding tasks, PRIME also shows the cost of that. Use this knowledge to see the cost reduction possibilities.
PRIME's process simulation engine will provide visibility on the cost savings if you:
- Reroute the tasks to a lower cost resource
- Remove the non-value adding activities
- Introduce new resources to fast track the process
- Remove the delay