3 Simple Steps to Reduce Operations Cost in Your Business

Lean Six Sigma

3 Simple Steps to Reduce Operations Cost in Your Business

3 Simple Steps to Reduce Operations Cost in Your Business are detailed in this article by the author. He explains his viewpoint.

Pankaj Kumar Apr 24, 2019 4679 0

3 Simple Steps to Reduce Operations Cost in Your Business

There are many ways through which once can reduce the cost of business, have listed few below

3 Simple Steps to Reduce Operations Cost in Your Business

Step 1. Identify Value – The very First Step is to Define Value from the perspective of the Final Customer. Express value in terms of a specific product or service, which meets the customer’s needs at a specific price and at a specific time.

Identify value

Step 2. Identify Steps – Identify all the steps taken to Create Value defined above and Categorize Each Step into two Categories.

a) Value Added Steps – These are Activities or Steps which the Customer is Willing to Pay for.
b) Non-Value Added Steps – Such Activities or Steps Consume Time and Resources which Costs You Money but the Customer is not willing to pay for it. Such Steps are also called Waste.

Identify steps
Step 3. Create Smooth Flow – Eliminate Non-Value Added Steps also called Waste from the above timeline and arrange the remaining steps in Correct Sequence Enabling the Value Flow Smoothly.
Time spent
Time spent
Above procedure will Result in Reduction in Consumption of Time and Resources which will in turn Reduce Cost In Your Business.