Two Best Practice Approaches to Cost Streamlining

In times of uncertainty, organizations irrespective of size, are faced with the challenge to improve or maintain their margins, by focusing on operational cost efficiencies. They are using different approaches to ride the economic downturn and come out even stronger. Akzo Nobel's margin management programs were implemented throughout the company with a strong focus on cost management, and cash management, by closely monitoring working capital and be prudent in capital deployment. Besides managing costs and working capital, the company also wants to come out of the recession stronger and serve their customers better. Therefore the company focuses on continuous innovation and development of emerging markets. Akzo Nobel uses technology and innovation as key differentiators. The results of the cost management program are being monitored closely, to ensure full benefit realization. Oskomera, a steel fabricator,  worked on redesigning their business processes using lean production principles.  The result: a reduction of work in progress by 85%, a reduction in cycle time by 65%, an improvement of quality levels by 41% and an increase of productivity by 67%. The lean principles that Oskomera applied were: Quality is integrated in business flows People are an integral part of the business process Stocks are streamlined an waste eliminated. O2ibm

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